healthmyths
Platinum Member
- Sep 19, 2011
- 29,359
- 10,803
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I've posted several times how Biden has affected gas pump prices which according to the latest numbers have gone up 63%.
But many of you and a few "oil price" experts evidently haven't ever done any mid-term economic planning.
So I'm going to use a very simple example.
Assume you are a consultant to a oatmeal cereal manufacturer and assigned to do production planning for next 4 years..
A consultant has to make some assumption as to what raw oats will cost IF 25% of your oats come from Federal lands.
Assume 25% of your future production based on land that becomes no longer available, what now?
1) To prepare for higher oat prices, you suggest that current oat procurement be increased while prices still normal.
2) This means more COST which hmmm is passed on to stores that sell the cereal that raises the prices to consumers.
3) This also means that profits will be reduced if 25% of your sources are gone and what will that do to your stock value?
This is what happened when Biden stopped exploration on Federal lands that produce 25% of oil used to make gas,
what do the gas stations do? Raise the prices. Hence what you see below... 63% increase from a year ago.
FACTS:
Biden canceled Federal land exploration(where 25% of oil is produced today)
Oil from federal lands tops 1B barrels as Trump eases rules
Federal land leases signed by last 3 presidents: Notice Obama signed fewer and fewer, while Trump signed more and more!
But many of you and a few "oil price" experts evidently haven't ever done any mid-term economic planning.
So I'm going to use a very simple example.
Assume you are a consultant to a oatmeal cereal manufacturer and assigned to do production planning for next 4 years..
A consultant has to make some assumption as to what raw oats will cost IF 25% of your oats come from Federal lands.
Assume 25% of your future production based on land that becomes no longer available, what now?
1) To prepare for higher oat prices, you suggest that current oat procurement be increased while prices still normal.
2) This means more COST which hmmm is passed on to stores that sell the cereal that raises the prices to consumers.
3) This also means that profits will be reduced if 25% of your sources are gone and what will that do to your stock value?
This is what happened when Biden stopped exploration on Federal lands that produce 25% of oil used to make gas,
what do the gas stations do? Raise the prices. Hence what you see below... 63% increase from a year ago.
FACTS:
Biden canceled Federal land exploration(where 25% of oil is produced today)
Oil from federal lands tops 1B barrels as Trump eases rules
Federal land leases signed by last 3 presidents: Notice Obama signed fewer and fewer, while Trump signed more and more!