Friday, December 1, 2023

US Energy Costs 12123

The price of all commodities including oil, gasoline and natural gas is controlled by supply and demand. Demand normally increases, but when supply is restricted the price per barrel of oil increases. When supply is increased, the price per barrel decreases. From 2008 to 2016, oil prices were high and gasoline was over $3.00 per gallon. From 2016 to 2020, US oil and natural gas production increased and gasoline prices were in the $2.00 per gallon range. In 2021, when Biden stopped production, prices increases to the $3.00 range.  Higher prices ignited inflation.  The cost of fuel increased the cost of transportation and resulted in higher grocery prices. The cost of producing Natural Gas remains under 2 cents per cubic feet, but the cost of nitrogen fertilizer has jumped.

The data below included the US average for Regular Gasoline. The Production and Consumption per barrel of Oil is in million barrels per day.

 US Average Gasoline Prices & Oil Production

Year   Per Gal.  Production      Consumption   $/Bbl

2023    3.57       12.61 mbpd     TBD                90.00 est

2022    3.98       11.89 mbpd      20.28 mbpd   94.53

2021    3.03       11.26 mbpd      19.89 mbpd   68.17

2020    2.19       11.32 mbpd      17.18 mbpd   39.68 Trump

2019    2.63       12.32 mbpd      16.42 mbpd   56.99  

2018    2.73       10.95 mbpd      19.42 mbpd   65.23

2017    2.86         9.37 mbpd      18.85 mbpd   50.80

2016    2.16         8.90 mbpd      18.59 mbpd   43.29 Obama

2015    2.43         9.42 mbpd      18.50 mbpd   48.66

2014    3.37         8.70 mbpd                            93.17

2013    3.53         7.40 mbpd                            97.98

2012    3.64         2.37 mbpd      18.60             94.05

2011    3.53         2.06 mbpd      18.90             94.88

2010    2.79         1.99 mbpd                            79.48

2009    2.35         1.95 mbpd                            44.60

2008    3.27         1.83 mbpd      19.40             99.67 Bush2

https://www.finder.com/gas-prices

Individual Google questions

How much oil did the US produce and consume in each year 2008  to 2022.

Comments

Oil prices were in the $93 to $97 per barrel range from 2011 to 2014 and gasoline prices were in the $3.37 to $3.64 range. In 2013, US oil production rose from 2.37mbpd to 7.40mbpd. In 2013 the price per barrel dropped to $48.66.

In 2020 gasoline prices sank to $2.16 per gallon, because of increased US production.

In 2021 and 2022, the price per barrel and gasoline prices rose again from $3.00 to $3.99 per gallon, because of Biden’s war on oil.

If production goes up, prices come down. Oil prices are determined globally based on supply and demand.

The US needs to double its oil production to meet demand. This would return the US to energy independent and allow exports of oil and natural gas to reduce our trade deficit.

US Natural Gas Cost  per BTU 2023

The cost of natural gas was $2.58 per million BTU in August 2023. That is 2.58 cents per BTU.

https://www.eia.gov/dnav/ng/hist/rngwhhdM.htm

Doubling US production of natural gas would cut costs in half. This would lower the cost of nitrogen fertilizer and heating cost. 

Norb Leahy, Dunwoody GA Tea Party Leader

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