We make enough corn that we can apparently waste it to turn into fuel, why isn't corn practically free?
A know oil prices are up but....
- Thread starter PWMDMD
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There are thousands of leases available and it is the oil companies who are not acting because they are making a butt load of money right now with ZERO additional investment. They are also afraid to make the investment because in years past oil prices start to fall right when they finish building capacity. Not to mention OPEC has excess capacity they aren't using so it would be easy for them to wait for US companies to invest a whole bunch of money and then increase production and watch what just happened (tons of US companies either went bankrupt or were bought and consolidated). We HAVE the capacity to increase oil production right now...we just aren't using it.
Barrel prices were low, gas prices were high.
In February 2009 the nationwide average was $1.96/gallon. After that it stabilized in the low-mid $2 range for years. Following the summer of 08 where it was in the $4 range that was a huge drop.
Here is a chart from eia.gov showing average prices monthly over years. Did gas prices on average go up after Jan 2021? Yeah they did, because, as I've said multiple times already, demand for oil went up and production lagged.
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=emm_epm0_pte_nus_dpg&f=m
Here is some graphs showing demand/consumption and price. You can see that demand and production fell off a cliff in early 2020 with the onset of the pandemic, and then went back up again, but for quite a while production lagged demand, and in fact production was LESS than demand, resulting in drawing dock of stockpiles, until this year when it's projected to reverse. That is why prices have been high, and the Ukraine thing made it worse.
This devolved into politics and bickering between members.
Lock Time.
Lock Time.
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