Biden admin expects oil companies to expand capacity while at the same time telling oil companies they will be out of business in 5-10 years

[ColonelAngus]

How does this make sense?

Would you build a new house if you knew your city was going to tear it down in 5 years, but you still owe the money?

This oil price spike was CREATED AND IMPLEMENTED ON PURPOSE BY THE BIDEN ADMINISTRATION.

When you say over and over and over that you are going to crush the oil industry...then take steps to do so, speculation goes up.

Companies with heavy fuel costs purchase future contract options.

IT IS ALL BY DESIGN. READ A BOOK ON ECONOMICS.

Biden could bring prices down tomorrow by unbanning fracking, drilling in ANWAR, and unblocking Keystone.

THEY WOULD DROP DRAMATICALLY OVERNIGHT.

 

[1srelluc]

Who is John Galt?

 

[BlindBoo]

How does this make sense?

Would you build a new house if you knew your city was going to tear it down in 5 years, but you still owe the money?

This oil price spike was CREATED AND IMPLEMENTED ON PURPOSE BY THE BIDEN ADMINISTRATION.

When you say over and over and over that you are going to crush the oil industry...then take steps to do so, speculation goes up.

Companies with heavy fuel costs purchase future contract options.

IT IS ALL BY DESIGN. READ A BOOK ON ECONOMICS.

Biden could bring prices down tomorrow by unbanning fracking, drilling in ANWAR, and unblocking Keystone.

THEY WOULD DROP DRAMATICALLY OVERNIGHT.

Fracking has not been banned on federal land. Any fields in ANWR would take years if not a decade to develop, and a foreign pipeline will not increase US production or decrease our dependence on foreign oil.

 

[Seymour Flops]

I wanna puke everytime I hear a Biden spokesliar say that there are nine thousand unused federal leases available.

Clearly those leases would not be profitable, or the oil companies would be snapping them up. Somehow, Team Biden has convinced itself that the oil companies have a duty to produce less or more oil to meet his political needs, even if drives them out of business.

John Galt is right. Rand was prescient, as the government characters in AS had exactly those same kinds of expectations for steel and railroad companies.

 

[Toddsterpatriot]

No one can accuse the Biden administration of having a clue when it comes to economics.

 

[Flash]

Potatohead knows that the price of gas at the pump along with inflation and his other disasters will cause the Democrats to get their asses creamed in the midterms.

His Environmental Wacko anti fossil fuel polices has squandered the energy independence that Trump left the nation. The American people are paying for it.

He tried begging Venezuela and the Saudis to bring more in to get him by the mid terms but that busted. Now he is begging the oil companies, that he has fucked, to bail the Democrats out.

He is a pathetic excuse for a human being and anybody that voted for him is a moron.

 

[BlindBoo]

Clearly those leases would not be profitable, or the oil companies would be snapping them up.

They have already been snapped up.

"Once a company acquires a lease, it then carries those subsurface reserves as assets on its balance sheet. By doing this, a company can immediately improve its overall financial health, boost its attractiveness to shareholders and investors, and even increase its ability to borrow on favorable terms. While industry leaders have suggested it was “absurd” to think companies would continue to shell out millions of dollars in rental fees and lease acquisitions solely to pad their balance sheets,6 the relatively low cost of federal land nonetheless provides a strong incentive for companies to do just that. Because of this, companies have the potential to directly benefit from amassing these undeveloped reserves through federal land leases, while the U.S. taxpayer loses out on revenue that could—and should—be generated from wells actually producing oil and gas products. Meanwhile, these undeveloped leases tie up land that the federal government would otherwise manage for conservation, recreation, or other beneficial uses as required under the BLM’s multiple-use mandate.

This report explores these possible financial motivations for oil and gas companies to acquire and hold undeveloped federal leases as a means to bolster their bottom line and improve their financial health. "

Oil and Gas Companies Gain by Stockpiling America’s Federal Land

The oil and gas industry is using America’s public lands to pad their own bottom line at the expense of U.S. taxpayers.

www.americanprogress.org

 

[Seymour Flops]

They have already been snapped up.

"Once a company acquires a lease, it then carries those subsurface reserves as assets on its balance sheet. By doing this, a company can immediately improve its overall financial health, boost its attractiveness to shareholders and investors, and even increase its ability to borrow on favorable terms. While industry leaders have suggested it was “absurd” to think companies would continue to shell out millions of dollars in rental fees and lease acquisitions solely to pad their balance sheets,6 the relatively low cost of federal land nonetheless provides a strong incentive for companies to do just that. Because of this, companies have the potential to directly benefit from amassing these undeveloped reserves through federal land leases, while the U.S. taxpayer loses out on revenue that could—and should—be generated from wells actually producing oil and gas products. Meanwhile, these undeveloped leases tie up land that the federal government would otherwise manage for conservation, recreation, or other beneficial uses as required under the BLM’s multiple-use mandate.

This report explores these possible financial motivations for oil and gas companies to acquire and hold undeveloped federal leases as a means to bolster their bottom line and improve their financial health. "

Oil and Gas Companies Gain by Stockpiling America’s Federal Land

The oil and gas industry is using America’s public lands to pad their own bottom line at the expense of U.S. taxpayers.

www.americanprogress.org

So the federal government has actually incentivized these oil companies to lease federal land and NOT drill on it?

Brilliant. Right up there with paying farmers not to grow food.