Biden Got Us Into This Oil Price Mess

[Oldestyle]

The graph was in post #10

LOL...I already know what the graph refers to, Winco...I'm busting your chops for not knowing how to post a graph that reads as it should.

 

[Oldestyle]

Have you ever lived abroad?

The U.S. is the world's largest oil producer. You'll still pay more for gas.

When the Organization of the Petroleum Exporting Countries and its partners - often known as OPEC Plus - announced a production cut of 2 million barrels of oil on Wednesday, the reaction in the United States was less than positive. In a statement, the White House called the decision...

news.yahoo.com

All over the Far East. Why?

 

[Winco]

LOL...I already know what the graph refers to, Winco...I'm busting your chops for not knowing how to post a graph that reads as it should.

Why should I repost something for the 2nd time?

Why should I post a graph that was already posted?

 

[surada]

Of course he's cut production of fossil fuels, Winco and the worst is yet to come because it takes years for new projects to come on line. The reason that he's BEGGING others to increase production is that we don't have any in the "pipeline" and won't for quite some time! Biden's already raided the Strategic Oil Reserves so he can't keep going there or we're really screwed in an emergency. Oil and natural gas prices are set by what the market sees in the future and Joe Biden let them know from day one of his administration that the fossil fuel industry was their enemy and not their friend! Joe and his progressive handlers cut oil and natural gas production that first week they were in office and they couldn't care less who got hurt by their policies!

The U.S. is the world's largest oil producer. You'll still pay more for gas.

When the Organization of the Petroleum Exporting Countries and its partners - often known as OPEC Plus - announced a production cut of 2 million barrels of oil on Wednesday, the reaction in the United States was less than positive. In a statement, the White House called the decision...

news.yahoo.com

 

[surada]

All over the Far East. Why?

You were in the military?

 

[Oldestyle]

Why should I repost something for the 2nd time?

Why should I post a graph that was already posted?

A graph that doesn't tell you what the columns stand for is about as useful as tits on a bull! It's just a square with a bunch of numbers in it!

 

[Oldestyle]

You were in the military?

I was an executive with Planet Hollywood.

 

[surada]

I was an executive with Planet Hollywood.

In the far east not the Middle East. You don't know anything about the oil business or Saudi Arabia or OPEC. Do you remember Zaki Yamani? He was a friend of the family when OPEC was founded.

 

[Oldestyle]

In the far east not the Middle East. You don't know anything about the oil business or Saudi Arabia or OPEC. Do you remember Zaki Yamani? He was a friend of the family when OPEC was founded.

Why do you say I know nothing about the Middle East?

 

[surada]

Why do you say I know nothing about the Middle East?

You're full of bombast but you sure as hell don't know the Saudis or even Nasser Amin.

 

[Oldestyle]

You're full of bombast but you sure as hell don't know the Saudis or even Nasser Amin.

Again...what do you base that on?
The only "bombast" I'm seeing here is from you!

 

[Flopper]

Leases are only as valuable as the oil underneath them. What good does it do if the geology of a lease is unlikely to have oil under it?

You use them to start fires and to fill your recycle bin. Oil and gas lease in area with no proven reserves in the area rarely get leased and when they do it’s for practically nothing. People that lease this kind property are speculators who hoping to sell the lease to other speculators Occaionally

What good are leases that are not likely to produce oil? That's why many of them go unused. It's not like there's a layer of oil spread uniformly under the entire state of Alaska, for example.

Expired leases without any production can be used to light fireplaces and fill your recycle bin. Federal oil and gas leases have a 10 year term. If at end of 10 years there is no production. The lease expires and is worthless.

I have been leasing mineral rights I own for many years. Some years ago when I was a bit younger and a lot more foolish, I tried spectating in federal oil and gas leases. I learned quickly that leasing federal mineral rights is for people who really know what they doing. The minimum parcel size is about 2500 acres and minimum bid is $2.00 with a $1.50 a year rental and many leases are for 10,000 acres or more. Parcels selected for auction are nominate by public, that is large oil companies whose research indicates the possibly of oil or gas. So these companies have a pretty good idea of what the lease would worth before placing a bid.

 

[Flopper]

The Biden administration has set us up for a complete disaster with pump prices. We are completely screwed and left at the mercy of OPEC.

Biden or any administration have very little control of the current price of gasoline. The president can release gasoline from the national reserve which can drive prices down about 5% but that is a very short term fix.

The Second way the administration can effect US production and thus prices is via leasing of federal land for oil and gas exploration and drilling, which accounts for 15% of US production. Although the president has paused leasing in 2021 for several months to allow his administration to study the current programs, it will have no effect on current production and thus prices for at lease 18 to 24 months, the time to bring new production online. The same is true for offshore drilling but that would not effect US production for at least 4 to 8 years due to the time it takes for offshore drilling.

Biden's plan is to reduce US production in the future coincides with the plans of a number of large oil companies. Major oil companies are not going to be expanding oil production, when oil is at an all time high, a global recession is likely, and a million barrels a day of Russian oil could enter the market at any time. OPEC has already announced that they will begin reducing production starting in November due to a projection of reduced consumption due to an economic slowdown.

 

[Flopper]

If we produce enough oil and natural gas it keeps the world wide energy market prices low enough that economies all over the planet will thrive. If we don't then we'll continue to see run away inflation not only here but in other nations as well. With that we'll see instability and conflict.

Ignoring the fact that we are not in a runaway inflation environment and oil prices are just one of the factors in the inflation we are having, we will not produce what you say is enough. The reason is because oil companies do not want cheap oil. At $20 a barrel, most US oil companies would go out of business. At $40, oil companies can replace the 38,000 wells that are depleted each year. At $60 a barrel they pay investors an expected rate of return and a $70 they can expand operations, open new refineries etc. However $70 a barrel which is what the oil companies consider their sweet spot for oil prices is not a price that economies all over the planet with thrive.

Keep in mind if the US produces a glut of oil on the market, OPEC can reduce production to drive prices up. OPEC countries have 80.4% of the world's proven oil reserves and the leading producers have much lower cost of production than the US. As we have seen before if OPEC countries work together they can control the supply and the price of oil which is just one of the reasons we need to rely more on alternative sources of energy.

 

[Devils_Advocate]

It is not four bucks where I live it is three forty.

I paid $3.09 here in Tejas…

 

[Oldestyle]

Ignoring the fact that we are not in a runaway inflation environment and oil prices are just one of the factors in the inflation we are having, we will not produce what you say is enough. The reason is because oil companies do not want cheap oil. At $20 a barrel, most US oil companies would go out of business. At $40, oil companies can replace the 38,000 wells that are depleted each year. At $60 a barrel they pay investors an expected rate of return and a $70 they can expand operations, open new refineries etc. However $70 a barrel which is what the oil companies consider their sweet spot for oil prices is not a price that economies all over the planet with thrive.

Keep in mind if the US produces a glut of oil on the market, OPEC can reduce production to drive prices up. OPEC countries have 80.4% of the world's proven oil reserves and the leading producers have much lower cost of production than the US. As we have seen before if OPEC countries work together they can control the supply and price oil.

We are not suffering from runaway inflation? Seriously, Flopper? Ask your neighbors if they hold that same view! The price of everyday staples is through the roof.

 

[Flopper]

Liar.
Everyone knows Brandon got us into this mess.
We went from energy independence to being slaves of Islam in less than 2 years under Democrats.

It depends on what you mean by energy independence. If energy independence means we don't import oil, then that hasn’t been true since the 1940s. If it means we export more energy than we import, then we became energy independent in 2019 and remain so today. Some people define energy independence as producing more than we consume. In that case, we reached that milestone in 2020 which was primarily a result of a sharp drop in consumption because of the Covid-19 pandemic, accompanied by a smaller drop in energy production and that milestone remained intact.

 

[surada]

Biden or any administration have very little control of the current price of gasoline. The president can release gasoline from the national reserve which can drive prices down about 5% but that is a very short term fix.

The Second way the administration can effect US production and thus prices is via leasing of federal land for oil and gas exploration and drilling, which accounts for 15% of US production. Although the president has paused leasing in 2021 for several months to allow his administration to study the current programs, it will have no effect on current production and thus prices for at lease 18 to 24 months, the time to bring new production online. The same is true for offshore drilling but that would not effect US production for at least 4 to 8 years due to the time it takes for offshore drilling.

Biden's plan is to reduce US production in the future coincides with the plans of a number of large oil companies. Major oil companies are not going to be expanding oil production, when oil is at an all time high, a global recession is likely, and a million barrels a day of Russian oil could enter the market at any time. OPEC has already announced that they will begin reducing production starting in November due to a projection of reduced consumption due to an economic slowdown.

The pundits want to blame Biden or OPEC or Saudi Arabia.

 

[Flopper]

We are not suffering from runaway inflation? Seriously, Flopper? Ask your neighbors if they hold that same view! The price of everyday staples is through the roof.

We have never had runaway inflation; that is hyperinflation in the US. With runaway inflation, currency becomes worthless and people resort to barter as a means of obtaining goods because prices are rising so fast that income lags far behind prices.
The current inflation rate is 8.2%. Since 1940, we had 10 years where the inflation rate was higher than the current rate. The highest rate was 18.1% in 1946. In the 1970's it was above 12% 3 time.

US Inflation Rate by Year: 1929-2023

The U.S. inflation rate by year is the percentage of change in prices from one year to the next. It responds to business cycle phases and interest rates.

www.thebalancemoney.com

 

[Flopper]

Domestic producers also want $100 a barrel. Their production costs are higher than OPEC's.

Domestic production cost in the US was approximately $20 a barrel in 2018 and in Saudi Arabia production cost was $5.40.