Biden has been better for the oil companies than the right will admit

[Toddsterpatriot]

They stop development when the ppb is low. The US has the highest lift costs in the world so when the price goes down it hits our domestic producers first. Obama knows that.

No kidding, was anything dumber than Obama's claim?

 

[Big Bend Texas]

Apparently the HUGE profits the oil companies are getting wasn't enough to convince the right that Biden and the oil companies are pulling the wool over their eyes.

Driving up prices makes them more money. That isn't hard to understand.

Drillers and Refiners are not always the same companies.

We have a hell of a lot of independent refineries.,

 

[YoursTruly]

Driving up prices makes them more money. That isn't hard to understand.

Drillers and Refiners are not always the same companies.

We have a hell of a lot of independent refineries.,

Refineries aren't hurting. They're still refining enough oil to keep them well paid.

Artificially driving up prices is the sole reason for the bust cycle. Everything is still the same as it was before the bust cycle. Same producing wells, same pipelines pushing oil/gas. The only thing that's really changed is the amount of oil/gas being produced. And since there's still no shortage of oil/gas being produced, the only thing left are the artificial means of increasing price. "Speculation." Speculation drives the oil futures market up. The oil companies use that excuse to increase their ppb.
They used to use supply and demand. But since we have so much oil/gas now, and everyone knows it, they can't use that excuse any longer.

The business end of this, with their record profits, is everyone at the top gets their bonuses in the millions. And the oil companies put money back to start the next bust cycle. And they're going to need it, because all those oil field hands gotta get paid when the boom cycle starts back. The oil companies will use this money for more drilling, more pipelines (New and replacements). They do this so they don't lose their profits. It's sort of like a savings account.

It's just business. Blaming the president is just a way for them to prolong the bust cycle and make even more profit. In a short time, enough people will figure this out and when the pressure starts being put on the oil companies (which is where it should be to start with), they'll begin their boom cycle. Ramp up production. Prices will start coming down. And things will go back to normal until the next bust cycle.

This ain't rocket science. We seen OPEC do it for many MANY decades. It's the sole reason the government gave oil companies so many incentives to find and produce more oil in the 70's, 80's and 90's. So OPEC wouldn't have such a huge effect on our economy. Apparently bust cycles are necessary to oil companies. Investors have to get paid. CEO's have to get their million $$$ bonus, new drilling rigs and new pipes have to be paid for. Increase in oil field wages. etc etc etc<<<< Increases in overhead. This is simple stuff.

 

[Toddsterpatriot]

Speculation drives the oil futures market up. The oil companies use that excuse to increase their ppb.

You mean the oil companies aren't going to sell their oil for less than the market price?

That's outrageous!!!

 

[Big Bend Texas]

Refineries aren't hurting. They're still refining enough oil to keep them well paid.

Artificially driving up prices is the sole reason for the bust cycle. Everything is still the same as it was before the bust cycle. Same producing wells, same pipelines pushing oil/gas. The only thing that's really changed is the amount of oil/gas being produced. And since there's still no shortage of oil/gas being produced, the only thing left are the artificial means of increasing price. "Speculation." Speculation drives the oil futures market up. The oil companies use that excuse to increase their ppb.
They used to use supply and demand. But since we have so much oil/gas now, and everyone knows it, they can't use that excuse any longer.

The business end of this, with their record profits, is everyone at the top gets their bonuses in the millions. And the oil companies put money back to start the next bust cycle. And they're going to need it, because all those oil field hands gotta get paid when the boom cycle starts back. The oil companies will use this money for more drilling, more pipelines (New and replacements). They do this so they don't lose their profits. It's sort of like a savings account.

It's just business. Blaming the president is just a way for them to prolong the bust cycle and make even more profit. In a short time, enough people will figure this out and when the pressure starts being put on the oil companies (which is where it should be to start with), they'll begin their boom cycle. Ramp up production. Prices will start coming down. And things will go back to normal until the next bust cycle.

This ain't rocket science. We seen OPEC do it for many MANY decades. It's the sole reason the government gave oil companies so many incentives to find and produce more oil in the 70's, 80's and 90's. So OPEC wouldn't have such a huge effect on our economy. Apparently bust cycles are necessary to oil companies. Investors have to get paid. CEO's have to get their million $$$ bonus, new drilling rigs and new pipes have to be paid for. Increase in oil field wages. etc etc etc<<<< Increases in overhead. This is simple stuff.

I didn't say they are hurting, I merely pointed out it's a completely different business from exploration and drilling.

No, bust cycles are not necessary and they certainly are not good for the industry.

What's seriously driving up prices in the US right now is demand for refined products going to Europe is at an all time high due to the sanctions and the Euro's finally waking up to realize that being dependent upon a ruthless dictator with expansionist desires for the blood that keeps an industrial economy fueled and lubricated probably isn't a good idea.

If the gov't would just get out of the way and/or even help our own domestic petroleum industry this could be the biggest opportunity to create and keep a whole lot of high paying jobs with great benefits and at the same time bring hundreds of billions of dollars into the country annually fueling the economy and building the tax base.

 

[Big Bend Texas]

You mean the oil companies aren't going to sell their oil for less than the market price?

That's outrageous!!!

If there were actually any collusion or price gouging going on in the industry here in the Biden's DoJ would be on them like flies on a corpse.

 

[BlindBoo]

Biden comes in an allows a record number of drilling permits to existing oil leases. Oil companies continued with their scheduled bust cycle, regardless of the 3500 DRILLING permits they were given by BLM.
So now, production is low.

The active rig count followed the pandemic slow down as well. It bottomed out at 250 in Aug. 2020 and has been on the rise ever since.

U.S. Crude Oil and Natural Gas Rotary Rigs in Operation (Number of Elements)

 

[WTH_Progs?]

 

[Big Bend Texas]

The active rig count followed the pandemic slow down as well. It bottomed out at 250 in Aug. 2020 and has been on the rise ever since.

U.S. Crude Oil and Natural Gas Rotary Rigs in Operation (Number of Elements)

The rig count is miserable right now particularly as compared to the first 3 years of the Trump Administration. We're at about half the rig count as prior to Covid.

 

[BlindBoo]

The rig count is miserable right now particularly as compared to the first 3 years of the Trump Administration. We're at about half the rig count as prior to Covid.

The rate of increase is practically identical during the first 18 months of each president.

U.S. Crude Oil and Natural Gas Rotary Rigs in Operation (Number of Elements)

 

[Big Bend Texas]

The rate of increase is practically identical during the first 18 months of each president.

U.S. Crude Oil and Natural Gas Rotary Rigs in Operation (Number of Elements)

The number working isn't. Biden got the end of Covid Lockdowns bounce. nothing he's done is increasing the number of rigs working nor increasing the available supply.

 

[YoursTruly]

The number working isn't. Biden got the end of Covid Lockdowns bounce. nothing he's done is increasing the number of rigs working nor increasing the available supply.

Biden can't force oil companies to produce faster. No more than he can make OPEC produce faster. He's just the president.

 

[Big Bend Texas]

Biden can't force oil companies to produce faster. No more than he can make OPEC produce faster. He's just the president.

Try selling that line to people who have no understanding of the industry.

He could do the same thing Trump did which was to streamline both the leasing and permitting processes.

He could also quit tying up the arctic and offshore.

He could absolutely roll back regulations to expedite the building of new refineries and LNG export facilities.

 

[YoursTruly]

Try selling that line to people who have no understanding of the industry.

He could do the same thing Trump did which was to streamline both the leasing and permitting processes.

He could also quit tying up the arctic and offshore.

He could absolutely roll back regulations to expedite the building of new refineries and LNG export facilities.

Those streamlined permit regulations are still in effect from Trump. Now 2 to 3 years, instead of 5 to 7. Biden didn't change that.

 

[Big Bend Texas]

Those streamlined permit regulations are still in effect from Trump. Now 2 to 3 years, instead of 5 to 7. Biden didn't change that.

How's that? They cancelled the last two auctions and put the gulf and almost all of the Arctic off limits along with new drilling off of both the east and west coasts.

 

[BlindBoo]

The number working isn't. Biden got the end of Covid Lockdowns bounce. nothing he's done is increasing the number of rigs working nor increasing the available supply.

The numbers prove the rebound began in 2020 and continued into 21 and 22. Nothing he has done is hindering the rig operators and contractors who service that sector.