Fed raises rates 3/4%, trying to curb inflation

[Cougarbear]

The reason why prices were low was the pandemic. Oil companies have since decided that they can make more money by constraining the supply of oil.

Nice try. But, no. The price of oil was low because of the fact the U.S. was energy independent. But, Biden changed all that with the stroke of his pen. Now, we are at the mercy of OPEC and our enemies. Let's go Brandon!

 

[task0778]

The reason why prices were low was the pandemic.

No. the price of gas has been low since 2015, until 2021. It was around $2.30 when Trump took office in Jan 2017 and a bit less than that when he left office in Jan 2021. What the pandemic did was lower demand cuz a lot of people were in lockdowns, not just here but around the world. So, the oil companies slowed production cuz people weren't driving anywhere. But at some point the lockdowns lifted and the demand for gas went up bigly but the supply wasn't there to meet it and so the price went up around the world, not just here. People think it's a US problem, but it isn't; oil is an international commodity.

 

[Flopper]

Nice try. But, no. The price of oil was low because of the fact the U.S. was energy independent. But, Biden changed all that with the stroke of his pen. Now, we are at the mercy of OPEC and our enemies. Let's go Brandon!

Not so:
Oil production in 2019 was 12.2 million b/d in the US; in the world 95.1 million barrels a day
Oil production in 2020 was 11.3 million b/d in the US; in the world 88.4 million barrels a day
Oil production in 2021 was 11. 2 million b/d in the US; in the world 77.0 million barrels a day
Oil production in 2022 est 11.92 million b/d in the US; in the world 81.5 million barrels a day

No, US oil production fell nearly million barrels a day in 2020 under the Trump administration.
In 2021, Biden first year in office production drop less than 1% and current estimates are that in 2022 production will rise to 11.92 million b/d in 2022.

It is the fall in world oil production in 2021 and 2022, not US production that is responsible for increase in oil and gas prices throughout the world, not just in the US. US production has remained relatively stable 2020 and 2021.

The price of oil and to a great extent the price gasoline is determined by world oil supply and demand. Boosting US production by a million barrels a day will have little impact when world oil production drops by 5 or 10 million barrels a day.

In short being energy independent which we are now, does not protect us from supply and demand changes oversea. As long as US producers are fee sell their production to the world at the best price, we will be subject international changes in supply and demand.

List of countries by oil extraction - Wikipedia

en.wikipedia.org

U.S. crude oil production fell by 8% in 2020, the largest annual decrease on record - U.S. Energy Information Administration (EIA)

www.eia.gov

Global oil production 2024| Statista

Global oil production amounted to ************ barrels per day in 2024.

www.statista.com

U.S. crude oil production grew 11% in 2019, surpassing 12 million barrels per day - U.S. Energy Information Administration (EIA)

www.eia.gov

 

[Cougarbear]

Not so:
Oil production in 2019 was 12.2 million b/d in the US; in the world 95.1 million barrels a day
Oil production in 2020 was 11.3 million b/d in the US; in the world 88.4 million barrels a day
Oil production in 2021 was 11. 2 million b/d in the US; in the world 77.0 million barrels a day
Oil production in 2022 est 11.92 million b/d in the US; in the world 81.5 million barrels a day

No, US oil production fell nearly million barrels a day in 2020 under the Trump administration.
In 2021, Biden first year in office production drop less than 1% and current estimates are that in 2022 production will rise to 11.92 million b/d in 2022.

It is the fall in world oil production in 2021 and 2022, not US production that is responsible for increase in oil and gas prices throughout the world, not just in the US. US production has remained relatively stable 2020 and 2021.

The price of oil and to a great extent the price gasoline is determined by world oil supply and demand. Boosting US production by a million barrels a day will have little impact when world oil production drops by 5 or 10 million barrels a day.

In short being energy independent which we are now, does not protect us from supply and demand changes oversea. As long as US producers are fee sell their production to the world at the best price, we will be subject international changes in supply and demand.

List of countries by oil extraction - Wikipedia

en.wikipedia.org

U.S. crude oil production fell by 8% in 2020, the largest annual decrease on record - U.S. Energy Information Administration (EIA)

www.eia.gov

Global oil production 2024| Statista

Global oil production amounted to ************ barrels per day in 2024.

www.statista.com

U.S. crude oil production grew 11% in 2019, surpassing 12 million barrels per day - U.S. Energy Information Administration (EIA)

www.eia.gov

Yet, in 2020, we were energy independent. There's a lot more of natural gas and coal that was being used as well. We were also receiving a lot more oil from Canada and Mexico as well. Friends. Now, with the pandemic basically over, we need a lot more oil than we did in Trump's Presidency. But, Biden is not allowing more drilling and processing it into gasoline. Trying to give Biden a pass on this is ridiculous calling it Putin's war as the problem. Nope. It's Biden and his handlers.

 

[jknowgood]

It’s all that extra money we have in our pockets from Trumps tax cuts that’s causing all this inflation.

You're an idiot.

 

[Flopper]

Yet, in 2020, we were energy independent. There's a lot more of natural gas and coal that was being used as well. We were also receiving a lot more oil from Canada and Mexico as well. Friends. Now, with the pandemic basically over, we need a lot more oil than we did in Trump's Presidency. But, Biden is not allowing more drilling and processing it into gasoline. Trying to give Biden a pass on this is ridiculous calling it Putin's war as the problem. Nope. It's Biden and his handlers.

There were over 3300 drilling permits issued by Biden last year on federal land which was more than Trump issued in his first year. The opposition to a president always makes big deal about the permit issued and oil regulations on federal land but the fact is most of our oil production and reserves are on private land. Only about 6% of production comes from federal land and about 10% to15% from offshore drilling.

Before the pandemic hit Oil production in 2019 was 12.2 million b/d in the US. It fell to low 11.1 in 2020 and this year it is projected to hit about 12 and 13 next year. The real decision to increase production is not made in the Whitehouse but rather by a dozen giant multinational oil companies who study depletion rates, projections on GDP growth, refinery capacity, tanker capacity both in the US and the world and from all this comes a target production projection over next 5 years. However, there are about 10,000 small oil companies in the US, that don't project, they search for oil and sink well believing they can sell the oil at a profit.. Each year 30,000 to 60,000 new wells are drilled in the US. Many will be dry holes but there will be 30 or 40 thousand that will start pumping that black goal each year.

In regard to energy independence, the term is a political slogan, not an economic or technical concept with a clear definition often used by politicians to “imply that a country is insulated from global energy markets. In 2021, we produced enough oil that we could exported more oil than we imported but oil prices and gas prices went up significantly even thou we had an abundance of oil being produced.

Since oil is free traded for the most part and very few countries set any quotas on imports or exports including the US, oil producers in the US are free to ship there product abroad if they can get a better price abroad and they often do just as producers abroad ship their oil to US if they can get a better price. So are we energy independent?

 

[Cougarbear]

There were over 3300 drilling permits issued by Biden last year on federal land which was more than Trump issued in his first year. The opposition to a president always makes big deal about the permit issued and oil regulations on federal land but the fact is most of our oil production and reserves are on private land. Only about 6% of production comes from federal land and about 10% to15% from offshore drilling.

Before the pandemic hit Oil production in 2019 was 12.2 million b/d in the US. It fell to low 11.1 in 2020 and this year it is projected to hit about 12 and 13 next year. The real decision to increase production is not made in the Whitehouse but rather by a dozen giant multinational oil companies who study depletion rates, projections on GDP growth, refinery capacity, tanker capacity both in the US and the world and from all this comes a target production projection over next 5 years. However, there are about 10,000 small oil companies in the US, that don't project, they search for oil and sink well believing they can sell the oil at a profit.. Each year 30,000 to 60,000 new wells are drilled in the US. Many will be dry holes but there will be 30 or 40 thousand that will start pumping that black goal each year.

In regard to energy independence, the term is a political slogan, not an economic or technical concept with a clear definition often used by politicians to “imply that a country is insulated from global energy markets. In 2021, we produced enough oil that we could exported more oil than we imported but oil prices and gas prices went up significantly even thou we had an abundance of oil being produced.

Since oil is free traded for the most part and very few countries set any quotas on imports or exports including the US, oil producers in the US are free to ship there product abroad if they can get a better price abroad and they often do just as producers abroad ship their oil to US if they can get a better price. So are we energy independent?

Thanks again for the information. Issuing permits and actually getting to drill is two separate issues you aren't following. The regulations that go along with the permit do not permit drilling. And, again, we are in need to be energy independent, especially of Venezuela, Russia and OPEC. Trump had us there and when Biden came in, he stopped everything that Trump had started causing now high gas prices and inflation. Plain and simple. Open up the ability to drill more.