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?
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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.
Driving up prices makes them more money. That isn't hard to understand.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.,
Speculation drives the oil futures market up. The oil companies use that excuse to increase their ppb.
I didn't say they are hurting, I merely pointed out it's a completely different business from exploration and drilling.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.
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.You mean the oil companies aren't going to sell their oil for less than the market price?
That's outrageous!!!
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 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 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.
The rate of increase is practically identical during the first 18 months of each president.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 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 rate of increase is practically identical during the first 18 months of each president.
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.
Try selling that line to people who have no understanding of the industry.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.
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.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.
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.