NEW USGS FIGURES FOR BAKKEN OIL

[oldbabyboomer]

Anybody with a crystal ball out there? Last year I dropped out of a Cherokee partnership because I was retiring and the price of gas in our area was close to $6.00 per gallon. The USGS announced last month a huge change in oil reserves because of Bakken oil in the Dakotas. I've read that shock waves were sent around the globe. US might be self sufficient by 2025? and net exporter in just a few years? Will price of gas be dropping in US soon? If the EPA won't let us build new refineries, how can that be. Any thoughts? Would like to get back into flying if gas prices drop back down to around $3to 4 per gallon.

 

[Jim Logajan]

There's something unusual going on with oil and fuel prices - diesel is 10 to 35 cents cheaper than unleaded here. Haven't seen that in years. Combination of diesel dropping a few cents and unleaded jumping up a quarter or so.

My understanding has been that the two largest consumers of diesel fuel in the U.S. are the Navy and the railroads. Railroads allegedly account for 6% of U.S. consumption, but BNSF railroad recently announced plans to switch its locomotives from diesel to natural gas, which would reduce diesel demand:

http://johnhanger.blogspot.com/2013/03/buffetts-railraod-americas-second.html