The Complicated Reality Behind High Gas Prices
Epoch Times,
by
Petr Svab
Original Article
Posted By: earlybird,
5/6/2026 10:55:04 AM
Average gas prices in the United States have gone up by almost 40 percent since March 1. The reason appears straightforward: Iran has blocked the Strait of Hormuz in response to the U.S. military operation that decapitated its regime and degraded its military. Hundreds of tankers trapped behind the strait cannot deliver their oil, depriving the world of 7 percent to 10 percent of its supply.
Although that explains drastic price increases and even shortages in Europe and Asia, the United States gets almost no oil through the strait. In theory, the country should be energy-independent, as it is a net petroleum exporter.
But in reality, the United States is highly intertwined
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Reply 1 - Posted by:
mc squared 5/6/2026 11:16:25 AM (No. 2101297)
More ethanol is NOT the answer. We all know the problems with the current 10% mix - 15% is a disaster, lower mileage is just one of the problems.
16 people like this.
Reply 2 - Posted by:
felixcat 5/6/2026 12:53:43 PM (No. 2101343)
NO to E15 mix ethanol. No! I am sorry but this is a temporary hike in gas prices and all those Americans who would vote for a Dem/against Trump just because of the price of gas does not deserve to vote. Stop buying more tattoos, acrylic nails, fast food, etc and put that money towards essentials.
12 people like this.
Reply 3 - Posted by:
red1066 5/6/2026 2:36:54 PM (No. 2101372)
This article still doesn't explain why consumers in the U.S. are paying so much more for gas. As I've mentioned on here before. The so-called oil shortage back in the seventies was just an excuse to raise gas prices. There was no oil shortage. No need for those even and odd days to get gas. It was a manufactured crisis because refineries had all the oil they needed and could refine. So, the excuse this time is that our refineries are built to refine crappy oil instead of the light sweet crude produced here which we've been told for decades is the kind of oil everyone wants. It would be more honest of oil companies to just tell the truth that gas prices are higher because we don't have the refining capacity to produce more gas because no new oil refinery has been built in this country for fifty years. As a result, we have to import refined gas from other countries.
3 people like this.
Reply 4 - Posted by:
DVC 5/6/2026 3:05:21 PM (No. 2101383)
Re #3. OK, suppose you own a oil well in Texas. You are going along selling your oil for $60 a barrel.
You note that all the foreign oil sources are buying oil for $80 a barrel....pretty much same oil. Do you continue to sell your oil for $60 or say....hey, I'll sell my oil, via a tanker for $80 a barrel to some of those foreign guys now paying $80, why should I be stupid and sell it to a US refinery for $60?
Nobody sells a product for less than the highest price that it can bring.
And all that 'thinking' about "selling at $60 vs $80" in modern markets happens in about 1 hour, or less. If the US refinery doesn't pay the same as some foreigners will pay, then the US oil goes overseas....so they match.
Basically, if the price of North Sea oil jumps....Texas oil matches it almost instantly....because OIL IS AN INTERNATIONAL commodity and nobody is stupid enough to sell if for less than they the best price they can get.
Saying things like "We shouldn't pay high prices, we have lots of oil" are really failing to see that ANY oil producer can sell on ANY world market with the click of a keyboard. Oil or gasoline are NOT local products being sold into a local market, they are part of an international market. If China gets short on oil a bit, they will pay extra to make sure that they get it......and OUR prices go up.
4 people like this.
Reply 5 - Posted by:
DVC 5/6/2026 3:13:14 PM (No. 2101388)
Re #3, also....it costs a fortune to modify a refinery....and the EPA slaps huge limits on changes, so it's easier by far to trade the sweet oil for sour oil and get all we need without spending millions and incurring the wrath of the EPA modifying refineries. Trading around oil you can be certain is figured to be cheaper in the long run than modifying refineries.
And the reason no new refineries have been built is 100% on the EPA and other federal and state rules strangling new refinery construction.
3 people like this.
Reply 6 - Posted by:
Venturer 5/6/2026 3:14:52 PM (No. 2101391)
I believe our oil is being sold in overseas markets, and the price is whatever it will bear.
4 people like this.
Reply 7 - Posted by:
Geoman 5/6/2026 6:41:31 PM (No. 2101428)
The article contains a needless factual error early on. FTA: "Not all crude oil is made the same. The oil produced in the United States through fracking is called “light sweet.” It is the easiest to refine and contains few impurities such as sulphur."
The "sweet - sour" ratings have everything to do with hydrocarbon sulphur content and nothing to do with the specific completion technique cited by the author, known as hydraulic fracturing. Likewise, the "light" and "heavy" ratings, which mainly refer to the amount of paraffin, asphaltenes, bitumens, and similar naturally occurring non-fluid contaminants of crude oil have nothing to do with hydraulic fracturing, as the author curiously suggests. The famous LaBrea Tar Pits in Los Angeles, naturally occurring oil seep that has reached the surface, have a lot of heavy hydrocarbons that would stymie most modern refining techniques.
The sulphur content of oil is the very genesis of the sweet-sour terms, which predate hydraulic fracturing of the reservoir formations by decades. Fracking was first used in limestone wells in Kansas back in 1947. Limestone reservoir rock is typically very non-porous, unlike sandstone, which has good natural pore space between sand grains and permeability (the ability of fluids to move through rock formations), thus stimulating the movement of the oil and gas from the formation to the borehole at the bottom of the well, then into the production casing, steel pipe perforated with small explosive charges to allow oil and gas flow through the casing to the surface for transportation to refineries or gas storage and transportation facilities. The steel casing also helps protect fresh water aquifers from contamination by hydrocarbons. Oil in limestone typically occurs along fracture zones - or cracks in the concrete-like limestone, often caused by faulting and associated tensional stress, such that fracking was used to enhance the naturally poor permeability of tight, limestone reservoirs by widening the cracks. In many frac jobs, sand is mixed with the fracking fluid, injected into the natural cracks in the formation to keep them from collapsing, once the fracking pressure from serial heavy pumps is released. When high amounts of paraffin (wax) and asphaltenes are found present with the oil, another method of production stimulation involves super-heating oil at the surface and pumping it into the formation, under pressure, to melt the paraffin and increase the well's production rates, typically measured in barrels per day. The terms "light" and "heavy" also have everything to do with the chemical content of the oil, with heavy crude containing a high amount of paraffin and asphaltenes, used as paving materials for roadways, which reduce the rate of flow of the hydrocarbons from the reservoir formations into the production casings and make the oil more difficult to refine. I see no reason why the author brought fracking into the discussion on the chemical makeup of oil destined for American gas tanks.
4 people like this.
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