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Starvid, I don't understand if all oil use (US) had to be purchased on the international market. Were there no direct sales from producers to customers in the US? If not, how are US auto fuel prices so decoupled from EU and others?

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Thu Mar 27th, 2014 at 07:48:44 AM EST
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Look, if oil prices were to fall below the world market price in the US, arbitrageurs would quickly remove that difference, barring infrastructure limits.  

The difference in auto fuel prices between the US and Europe is all about taxes. If we didn't tax gas in Europe, it would be as cheap as in the US.

Peak oil is not an energy crisis. It is a liquid fuel crisis.

by Starvid on Thu Mar 27th, 2014 at 08:35:39 AM EST
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How do you explain the spread between WTI and Brent?

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Thu Mar 27th, 2014 at 09:15:52 AM EST
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Infrastructure limitations. Keystone XL will eliminate them.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Thu Mar 27th, 2014 at 09:28:06 AM EST
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since two years, infrastructure limitations were circumvented by vastly increased use of tar sand trains (includes fracked hydrocarbons)... and the number is still increasing strongly.

"Life shrinks or expands in proportion to one's courage." - Ana´s Nin
by Crazy Horse on Thu Mar 27th, 2014 at 09:56:09 AM EST
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Without the trains, the divergence would be even greater. It's no coincidence that the divergence materialized at the same time as the shale oil boom.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid on Thu Mar 27th, 2014 at 10:53:35 AM EST
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You mean financial arbitrage is not the only force at play? I'm SHOCKED, I tell you, SHOCKED

A society committed to the notion that government is always bad will have bad government. And it doesn't have to be that way. — Paul Krugman
by Migeru (migeru at eurotrib dot com) on Sun Mar 30th, 2014 at 06:19:05 AM EST
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