A different take on rising energy cost...

[Harpy Eagle]

This gives a good look at some of the underlying causes of the price increase in energy over the last few months.

https://econ.st/3Bef2bW

FOR MUCH of the past half-decade, the operative word in the energy sector was “abundance”. An industry that had long sought to ration the production of fossil fuels to keep prices high suddenly found itself swamped with oversupply, as America’s shale boom lowered the price of oil around the world and clean-energy sources, such as wind and solar, competed with other fuels used for power generation, such as coal and natural gas.

In recent weeks, however, it is a shortage of energy, rather than an abundance of it, that has caught the world’s attention.

.....


Yet an underlying factor is expected to make scarcity even worse in the next few years: a slump in investment in oil wells, natural-gas hubs and coal mines. This is partly a hangover from the period of abundance, with years of overinvestment giving rise to more capital discipline. It is also the result of growing pressures to decarbonise. This year the investment shortfall is one of the main reasons prices of all three energy commodities have soared.

 

[surada]

This gives a good look at some of the underlying causes of the price increase in energy over the last few months.

https://econ.st/3Bef2bW

FOR MUCH of the past half-decade, the operative word in the energy sector was “abundance”. An industry that had long sought to ration the production of fossil fuels to keep prices high suddenly found itself swamped with oversupply, as America’s shale boom lowered the price of oil around the world and clean-energy sources, such as wind and solar, competed with other fuels used for power generation, such as coal and natural gas.

In recent weeks, however, it is a shortage of energy, rather than an abundance of it, that has caught the world’s attention.

.....


Yet an underlying factor is expected to make scarcity even worse in the next few years: a slump in investment in oil wells, natural-gas hubs and coal mines. This is partly a hangover from the period of abundance, with years of overinvestment giving rise to more capital discipline. It is also the result of growing pressures to decarbonise. This year the investment shortfall is one of the main reasons prices of all three energy commodities have soared.

Sort of... Investment in oil rigs, exploration and production increases when the ppb is high..

That's natural not sinister or gouging. The US has the highest production costs in the world.

 

[Dekster]

Saudi Arabia went through a period of intentional over production to drive down prices for its OPEC neighbors (i.e. to screw Iran). The drove the PPB so low that many of the American frackers went into the red. Now that there is a temporary surge in demand, people are not going to be rushing in to invest more money into new fracking operations. Can't blame them though. Anyway there are the added issues that the US only has so much capacity to manufacture exportable LNG and there is only so many ships that can transport the stuff anyway, and our capacity has been greatly reduced by Hurricane Ida. We are somewhat but not completely insulated from the woes in Europe and Asia right now for natural gas since most of it is now being produced domestically and stored in caverns and such.

 

[Wild Bill Kelsoe]

The government shutting down drilling doesn't help.

 

[Harpy Eagle]

The government shutting down drilling doesn't help.

Approvals for companies to drill for oil and gas on U.S. public lands are on pace this year to reach their highest level since George W. Bush was president, underscoring President Joe Biden's reluctance to more forcefully curb petroleum production in the face of industry and Republican resistance.

The Interior Department approved about 2,500 permits to drill on public and tribal lands in the first six months of the year, according to an Associated Press analysis of government data. That includes more than 2,100 drilling approvals since Biden took office January 20.

 

[Uncensored2008]

This gives a good look at some of the underlying causes of the price increase in energy over the last few months.

https://econ.st/3Bef2bW

FOR MUCH of the past half-decade, the operative word in the energy sector was “abundance”. An industry that had long sought to ration the production of fossil fuels to keep prices high suddenly found itself swamped with oversupply, as America’s shale boom lowered the price of oil around the world and clean-energy sources, such as wind and solar, competed with other fuels used for power generation, such as coal and natural gas.

In recent weeks, however, it is a shortage of energy, rather than an abundance of it, that has caught the world’s attention.

.....


Yet an underlying factor is expected to make scarcity even worse in the next few years: a slump in investment in oil wells, natural-gas hubs and coal mines. This is partly a hangover from the period of abundance, with years of overinvestment giving rise to more capital discipline. It is also the result of growing pressures to decarbonise. This year the investment shortfall is one of the main reasons prices of all three energy commodities have soared.

What was it that caused the abundance of American energy to become a shortage?

 

[surada]

The government shutting down drilling doesn't help.

The government is NOT shutting down drilling. Oil production is NOT nationalized in the US.

 

[Harpy Eagle]

What was it that caused the abundance of American energy to become a shortage?

Oil production is higher now than the month he took office, tell me how it is all his fault?

 

[Harpy Eagle]

The government is NOT shutting down drilling. Oil production is NOT nationalized in the US.

It is a MAGA talking points, despite the facts pointed out in post# 5

 

[surada]

It is a MAGA talking points, despite the facts pointed out in post# 5

I know.. They are hopelessly dense. Permits on public lands are on track to be at levels not seen since Bush junior.

 

[progressive hunter]

This gives a good look at some of the underlying causes of the price increase in energy over the last few months.

https://econ.st/3Bef2bW

FOR MUCH of the past half-decade, the operative word in the energy sector was “abundance”. An industry that had long sought to ration the production of fossil fuels to keep prices high suddenly found itself swamped with oversupply, as America’s shale boom lowered the price of oil around the world and clean-energy sources, such as wind and solar, competed with other fuels used for power generation, such as coal and natural gas.

In recent weeks, however, it is a shortage of energy, rather than an abundance of it, that has caught the world’s attention.

.....


Yet an underlying factor is expected to make scarcity even worse in the next few years: a slump in investment in oil wells, natural-gas hubs and coal mines. This is partly a hangover from the period of abundance, with years of overinvestment giving rise to more capital discipline. It is also the result of growing pressures to decarbonise. This year the investment shortfall is one of the main reasons prices of all three energy commodities have soared.

WTF are you talking about?? theres a lack of labor due to government intervention not a lack of energy,,

 

[surada]

WTF are you talking about?? theres a lack of labor due to government intervention not a lack of energy,,

LOLOL, you mean because of Covid killing 600,000 Americans? Are you a nincompoop?

 

[Harpy Eagle]

WTF are you talking about?? theres a lack of labor due to government intervention not a lack of energy,,

read the article and then come back

 

[Claudette]

Wild Bill Kelsoe
I agree. Under Trump we were oil independent. Then Bidung came along and stopped drilling for oil on Fed lands and wants to end fracking.

He also begged SA to sell us more oil. Mans' a raving lunatic.

 

[Wild Bill Kelsoe]

The government is NOT shutting down drilling. Oil production is NOT nationalized in the US.

Yes, he did...

EXPLAINER: Why is Biden halting federal oil and gas sales?

BILLINGS, Mont. (AP) — President Joe Biden shut down oil and gas lease sales from the nation’s vast public lands and waters in his first days in office, citing worries about climate change

apnews.com

He also shut down the Keystone pipeline.

 

[Wild Bill Kelsoe]

Approvals for companies to drill for oil and gas on U.S. public lands are on pace this year to reach their highest level since George W. Bush was president, underscoring President Joe Biden's reluctance to more forcefully curb petroleum production in the face of industry and Republican resistance.

The Interior Department approved about 2,500 permits to drill on public and tribal lands in the first six months of the year, according to an Associated Press analysis of government data. That includes more than 2,100 drilling approvals since Biden took office January 20.

EXPLAINER: Why is Biden halting federal oil and gas sales?

BILLINGS, Mont. (AP) — President Joe Biden shut down oil and gas lease sales from the nation’s vast public lands and waters in his first days in office, citing worries about climate change

apnews.com

 

[AzogtheDefiler]

LOLOL, you mean because of Covid killing 600,000 Americans? Are you a nincompoop?

600k? You mean closer to 800k but they were mostly old and frail people. Like you, Islamist

 

[Wild Bill Kelsoe]

LOLOL, you mean because of Covid killing 600,000 Americans? Are you a nincompoop?

Most of those aren't working age people...lol

 

[Dekster]

California and the northeast will be completely soaked by the spikes in natural gas/propane this winter since they are both dependent on LNG brought in by ship.

 

[Independentthinker]

This gives a good look at some of the underlying causes of the price increase in energy over the last few months.

https://econ.st/3Bef2bW

FOR MUCH of the past half-decade, the operative word in the energy sector was “abundance”. An industry that had long sought to ration the production of fossil fuels to keep prices high suddenly found itself swamped with oversupply, as America’s shale boom lowered the price of oil around the world and clean-energy sources, such as wind and solar, competed with other fuels used for power generation, such as coal and natural gas.

In recent weeks, however, it is a shortage of energy, rather than an abundance of it, that has caught the world’s attention.

.....


Yet an underlying factor is expected to make scarcity even worse in the next few years: a slump in investment in oil wells, natural-gas hubs and coal mines. This is partly a hangover from the period of abundance, with years of overinvestment giving rise to more capital discipline. It is also the result of growing pressures to decarbonise. This year the investment shortfall is one of the main reasons prices of all three energy commodities have soared.

LOL. So, you're saying that if we enact climate change policies, energy prices will come down?