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Shale Boom Cuts Gulf Oil Premium to 24-Year Low: Energy Markets

Bloomberg -- The U.S. shale boom has driven the cost of Gulf Coast light, sweet oil to its lowest level versus Brent crude in almost a quarter century as the nation’s dependence on foreign supplies wanes.
Light Louisiana Sweet, the benchmark grade for the Gulf Coast known as LLS, has traded on the spot market at an average of 15 cents a barrel more than Brent this year, the smallest premium since at least 1988, data compiled by Bloomberg show. The spread’s highest annual average was $4.02 in 2008.
The drop has cut costs for refiners in Texas and Louisiana accounting for 45 percent of U.S. capacity and replaced competing shipments from Africa. Gulf imports of light, sweet crude have fallen 56 percent since 2010, according to U.S. Energy Department data. A shale-oil influx from the Eagle Ford formation i

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Submitted Sep 11, 2012 By: drpepperTX

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honda0105 Champion Author Tallahassee Posts:18,818 Points:1,636,245 Joined:Nov 2008	Message Posted: Sep 14, 2012 9:15:19 PM Ignore honda0105 Report Abuse not really surprised.
goldrose1 Champion Author Cleveland Posts:11,065 Points:1,948,630 Joined:Feb 2005	Message Posted: Sep 12, 2012 8:57:05 PM Ignore goldrose1 Report Abuse kkkk
remay Champion Author Houston Posts:7,078 Points:2,143,215 Joined:May 2006	Message Posted: Sep 12, 2012 5:44:20 AM Ignore remay Report Abuse "The drop has cut costs for refiners in Texas and Louisiana " And yet the prices has NOT dropped at the pump! So... WHO is profiting?
tomok Champion Author Portland Posts:33,579 Points:2,372,235 Joined:Aug 2006	Message Posted: Sep 12, 2012 12:24:24 AM Ignore tomok Report Abuse Domestic Crude Oil and Fuel is being produced at high levels but the price at the pump does Not reflect what is happening at the Refinery! Less demand from the driving population and not as much fuel is needed, there should be cheaper prices at the pump! Big Oil continues to sell fuel and natural gas on the world market for higher prices, there will be NO price reduction for the cost of fuel or natural gas IN the US. 'Coming out of the closet' Chuck will support natural gas and oil production for sale on the world market to pay for his ‘spending gone wild’ addiction and receive the huge federal tax income from oil. Chuck's lousy, smoke and mirrors, lack of jobs, dog and pony show and in the crapper economy, the jobs are Not here. Chuck's economy is not improving but continues to hurt the population and the job numbers continue to be down – no matter how smoooooth talking Chuck spins those numbers and he can spin them very well! People will still drive and buy fuel no matter what but it sure helps to have a job too! If more CNG vehicles are produced or more vehicles are converted to natural gas, more and more natural gas is used so expect that fuel to rise in price too. Whatever the size or shape of the vehicle, Produce and ‘Drive’ vehicles with high MPG, are very reliable, have a ‘reasonable’ cost and a good ‘value’ for the money. The price of fuel at the pump is too high! 12/22/2012!
jrschl Champion Author Louisville Posts:3,102 Points:707,790 Joined:Jun 2011	Message Posted: Sep 11, 2012 8:17:18 PM Ignore jrschl Report Abuse Wow! Think someone forgot to tell the energy companies and the stations.
OGW Champion Author London Posts:5,440 Points:1,557,275 Joined:Sep 2005	Message Posted: Sep 11, 2012 6:26:33 PM Ignore OGW Report Abuse Then why have fuel prices not fallen to the same level by percentage? Maybe greed!
A2J Champion Author Richmond Posts:3,205 Points:628,700 Joined:Aug 2011	Message Posted: Sep 11, 2012 6:17:31 PM Ignore A2J Report Abuse Good
cateyes8264 Champion Author Tennessee Posts:2,997 Points:664,965 Joined:Jul 2011	Message Posted: Sep 11, 2012 6:01:27 PM Ignore cateyes8264 Report Abuse Not reflected in gas prices!!!!
RocketGeek Champion Author Grand Rapids Posts:10,728 Points:2,135,110 Joined:May 2005	Message Posted: Sep 11, 2012 6:01:15 PM Ignore RocketGeek Report Abuse So let prices drop.
cwashi3324 Champion Author Cincinnati Posts:2,858 Points:586,745 Joined:May 2009	Message Posted: Sep 11, 2012 6:00:10 PM Ignore cwashi3324 Report Abuse ok
satrn38mpg Champion Author Raleigh Posts:5,202 Points:1,079,665 Joined:Sep 2009	Message Posted: Sep 11, 2012 5:57:50 PM Ignore satrn38mpg Report Abuse still got a long way 2 go >
heysailor Champion Author Pittsburgh Posts:9,717 Points:2,360,145 Joined:Mar 2006	Message Posted: Sep 11, 2012 5:56:48 PM Ignore heysailor Report Abuse Waste less
snerd All-Star Author Pennsylvania Posts:935 Points:663,450 Joined:May 2005	Message Posted: Sep 11, 2012 5:48:38 PM Ignore snerd Report Abuse oo bad gas prices don't reflect this.
goodbuy Champion Author Michigan Posts:7,806 Points:1,449,205 Joined:May 2005	Message Posted: Sep 11, 2012 5:48:06 PM Ignore goodbuy Report Abuse Too bad the pumps don't reflect it. Up 30 cents a gallon yesterday.
MadTraveler Champion Author Idaho Posts:2,082 Points:572,100 Joined:Nov 2009	Message Posted: Sep 11, 2012 5:47:20 PM Ignore MadTraveler Report Abuse Big deal - I see no help.
jad1960 Champion Author Gary Posts:1,575 Points:423,030 Joined:Feb 2012	Message Posted: Sep 11, 2012 5:43:25 PM Ignore jad1960 Report Abuse So why are gas prices going sky high.
Elaine4411 Champion Author Pennsylvania Posts:1,785 Points:490,230 Joined:Dec 2011	Message Posted: Sep 11, 2012 5:40:50 PM Ignore Elaine4411 Report Abuse ok
GasSpy007 Champion Author New York City Posts:1,958 Points:515,050 Joined:Nov 2011	Message Posted: Sep 11, 2012 5:40:34 PM Ignore GasSpy007 Report Abuse ...
SandeeC Champion Author Ontario Posts:3,124 Points:476,535 Joined:Apr 2011	Message Posted: Sep 11, 2012 5:40:31 PM Ignore SandeeC Report Abuse I too agree with drpepperTX.
76chevy Champion Author Toledo Posts:4,023 Points:778,620 Joined:Jun 2010	Message Posted: Sep 11, 2012 5:39:01 PM Ignore 76chevy Report Abuse obama should have drpepperTX as an advisor. Of course he doesn't listen to any of his other advisors. At least he would have a chance to learn something.
jwduke1 Champion Author Iowa Posts:15,604 Points:3,068,265 Joined:Apr 2004	Message Posted: Sep 11, 2012 5:37:02 PM Ignore jwduke1 Report Abuse I agree with drpepperTX.
Ferdman17 Champion Author Albany Posts:1,420 Points:401,035 Joined:Feb 2012	Message Posted: Sep 11, 2012 5:32:12 PM Ignore Ferdman17 Report Abuse Couldn't have said it better drpepperTX.
drpepperTX Champion Author Texas Posts:9,159 Points:778,875 Joined:Apr 2011	Message Posted: Sep 11, 2012 5:29:58 PM Ignore drpepperTX Report Abuse As I expected with this news, a lot of the comments show how some miss the point entirely because of their ideology towards oil. No matter the discount to premium, it's still based on global market supply and demand! What goes right over the ideologues heads is the fact that increased domestic supply keeps prices lower than without. Still high but relative to world markets the discount widens. Carry on....
bra0712 Champion Author Arizona Posts:3,790 Points:794,825 Joined:Nov 2008	Message Posted: Sep 11, 2012 5:23:37 PM Ignore bra0712 Report Abuse O
N4PIP Champion Author Miami Posts:1,010 Points:445,055 Joined:Jan 2012	Message Posted: Sep 11, 2012 5:23:35 PM Ignore N4PIP Report Abuse So why isn't this domestic production bringing gas prices down? All I hear are excuses for high prices.
BuckyTJones Champion Author Salt Lake City Posts:4,932 Points:967,950 Joined:Mar 2010	Message Posted: Sep 11, 2012 4:57:03 PM Ignore BuckyTJones Report Abuse Lets hope the consumer will feel some of its affects for the good.
camaro_man Champion Author Kitchener-Waterloo Posts:2,367 Points:638,520 Joined:Jun 2010	Message Posted: Sep 11, 2012 3:43:10 PM Ignore camaro_man Report Abuse wow
melvindale Champion Author Michigan Posts:1,438 Points:351,230 Joined:Jun 2011	Message Posted: Sep 11, 2012 2:43:11 PM Ignore melvindale Report Abuse Good!
QuagmireLA Champion Author Louisiana Posts:1,081 Points:161,230 Joined:Jun 2012	Message Posted: Sep 11, 2012 2:38:45 PM Ignore QuagmireLA Report Abuse Supports my theory of a cornered oil market. In a sane market system supply goes up cost goes down. National prices holding steady or going up? There's something rotten in Denmark or Washington.
2granny Champion Author Michigan Posts:9,710 Points:1,492,980 Joined:Apr 2009	Message Posted: Sep 11, 2012 2:34:57 PM Ignore 2granny Report Abuse We are up 56 cents since July.
5Golfer8 Champion Author Tucson Posts:2,258 Points:325,950 Joined:Jun 2011	Message Posted: Sep 11, 2012 2:28:46 PM Ignore 5Golfer8 Report Abuse More double talk to make you think things are not really all that bad when they are.
barbs24 Champion Author Virginia Beach Posts:3,277 Points:2,067,480 Joined:Feb 2006	Message Posted: Sep 11, 2012 2:10:47 PM Ignore barbs24 Report Abuse When will this help us?
Gascapade Champion Author Fort Worth Posts:3,152 Points:501,660 Joined:Mar 2009	Message Posted: Sep 11, 2012 2:09:44 PM Ignore Gascapade Report Abuse And prices are at nearly an all time high, so supply posts are completely irrelevant to our corrupt, colluded, rampantly speculated, and price manipulated crude oil market.....
Chillywilly Champion Author Winnipeg Posts:2,097 Points:580,645 Joined:Mar 2004	Message Posted: Sep 11, 2012 2:09:20 PM Ignore Chillywilly Report Abuse The more good news that we get, the higher prices stay.
justthedriver Rookie Author New Jersey Posts:67 Points:19,115 Joined:Sep 2012	Message Posted: Sep 11, 2012 2:07:50 PM Ignore justthedriver Report Abuse thought yesterday prices leveled out, today they went up 8 -10 cents a gal???
trytogetby All-Star Author Cincinnati Posts:905 Points:223,870 Joined:Apr 2012	Message Posted: Sep 11, 2012 2:07:21 PM Ignore trytogetby Report Abuse I don't believe the common man will benefit from this. Our gas price will never go to a reasonable rate ever again . Just look at today we jumped .30 cents a gallon. What's up with that?
unloquacious Champion Author Indiana Posts:2,802 Points:1,059,400 Joined:May 2005	Message Posted: Sep 11, 2012 2:07:18 PM Ignore unloquacious Report Abuse quit jerkin' our chain!!
nru Champion Author Twin Cities Posts:1,947 Points:1,009,880 Joined:Feb 2006	Message Posted: Sep 11, 2012 2:04:11 PM Ignore nru Report Abuse Dang - I must have missed it - gas is going up again here
40mpgsaturn Champion Author Wisconsin Posts:2,595 Points:544,005 Joined:Jun 2011	Message Posted: Sep 11, 2012 2:01:34 PM Ignore 40mpgsaturn Report Abuse We are still .62 over the low in July??????????//
KillChain Champion Author Albuquerque Posts:5,630 Points:1,555,685 Joined:Jun 2006	Message Posted: Sep 11, 2012 2:01:16 PM Ignore KillChain Report Abuse Lets hope so..............
DYSKYPILOT Champion Author Fort Worth Posts:3,032 Points:652,205 Joined:Mar 2006	Message Posted: Sep 11, 2012 1:57:57 PM Ignore DYSKYPILOT Report Abuse WhiteNight18 has got it right!!
tutaw Champion Author Kentucky Posts:3,754 Points:869,245 Joined:Sep 2008	Message Posted: Sep 11, 2012 1:54:22 PM Ignore tutaw Report Abuse ok
Ahking Champion Author Orange County Posts:3,599 Points:621,360 Joined:May 2011	Message Posted: Sep 11, 2012 1:54:11 PM Ignore Ahking Report Abuse so we should see lower prices. Now?
t1mberwolff Sophomore Author Eugene Posts:207 Points:190,135 Joined:Apr 2012	Message Posted: Sep 11, 2012 1:53:33 PM Ignore t1mberwolff Report Abuse So the Government sells this oil abroad for pennies on the dollar and in return buys oil from overseas from greedy, oil-rich countries at an astronomical price. Seems logical...
WhiteNight18 Sophomore Author Phoenix Posts:246 Points:229,910 Joined:Feb 2012	Message Posted: Sep 11, 2012 1:51:18 PM Ignore WhiteNight18 Report Abuse another set of good news - Not for the consumers; need to go out & buy the oil stocks to see any benefit of all of these wonderful news regarding domestic oil - cause we sure are not seeing or will see where the rubber meets the road ...
blazerbob91 Champion Author Milwaukee Posts:6,279 Points:1,910,020 Joined:Aug 2005	Message Posted: Sep 11, 2012 1:47:13 PM Ignore blazerbob91 Report Abuse Why are we still so high. Greed!!!
TNT2EC Champion Author Wisconsin Posts:5,113 Points:1,537,365 Joined:Oct 2008	Message Posted: Sep 11, 2012 1:47:09 PM Ignore TNT2EC Report Abuse So gas should be lower.
jb107 Champion Author New Jersey Posts:9,690 Points:2,648,725 Joined:Sep 2005	Message Posted: Sep 11, 2012 1:42:47 PM Ignore jb107 Report Abuse Then why are gas prices so high and going up?
Ayeghoti Champion Author Michigan Posts:2,530 Points:368,380 Joined:Aug 2007	Message Posted: Sep 11, 2012 1:35:58 PM Ignore Ayeghoti Report Abuse over $4.00 a gallon here when will it drop?
TA33 Champion Author Massachusetts Posts:1,607 Points:347,090 Joined:Apr 2012	Message Posted: Sep 11, 2012 1:34:02 PM Ignore TA33 Report Abuse Haven't seen any savings at the pump!