Profits Are Not the Problem for Oil Companies

[excalibur]

So tired of the usual nonsense from Democrats, they never actually offer anything but tax, tax, and more tax.

It is time that the Democratic Party be thrown onto the trash heap of history if we are to save America.

Senator Elizabeth Warren has an idea:



If she had opened the Wall Street Journal yesterday, she would have read the following:

Leaders of the fracking companies that helped make the U.S. the world’s top oil producer say they are responding to calls by the Biden administration and others to increase production after oil prices this week topped $130 a barrel and gasoline prices surged, threatening to dent the broader economy.

But the executives say that some investors, who felt burned after shale drillers gave priority to expansion over profits last decade and lost billions, are still concerned that the companies might spend too much if they return to rapid growth.

They also say that a flight of capital from the fossil-fuel industry in recent years has left U.S. oil patches without enough fracking equipment to bring a ton of new wells online, and that a resurgence of go-go drilling would deplete companies’ most valuable drilling locations. [emphasis added]

That’s right, oil companies are having a hard time attracting investors now because they were perceived to have supplied too much oil and made too low profits over the last ten years.

Most of America’s oil drilling is actually done by relatively small, independent firms, not by Big Oil. From the Independent Petroleum Association of America:

The U.S. Internal Revenue Code section 613A(d) defines an independent producer as a producer who does not have more than $5 million in retail sales of oil and gas in a year or who does not refine more than an average of 75,000 barrels per day of crude oil during a given year. There are about 9,000 independent oil and natural gas producers in the United States. These companies operate in 33 states and the offshore and employ an average of just 12 people.

Independent producers develop 91 percent of the wells in the United States – producing 83 percent of America’s oil and 90 percent of America’s natural gas.

These are not fat cats who should have their profits confiscated by the federal government.

Profits operate as a signal to investors, saying, “Send your money over here.” As these oil companies increased production even when oil prices were relatively low, they didn’t make huge profits. Now that oil prices have gone through the roof, profits will go up, which is great news for them because they desperately need more capital to produce more oil.

...​

Profits Are Not the Problem for Oil Companies | National Review

Taxing away oil companies’ ‘windfall profits’ would keep them starved for capital and unable to increase production.

www.nationalreview.com

 

[Moonglow]

It is campaign season.

 

[MarcATL]

Why aren't your beloved oil companies drilling for more oil now on US soil OP?

They already have all they need to do so. There's nothing or no-one stopping them.

 

[Moonglow]

Why aren't your beloved oil companies drilling for more oil now on US soil OP?

They already have all they need to do so. There's nothing or no-one stopping them.

Notice how farmers have not needed hundreds of billions of dollars to help them stay afloat like what happened during Trump?

 

[excalibur]

Meanwhile, Democrats have been working behind the scenes to get banks to not loan money for oil and NG development. And extremists in Congrees are pushing legislation to force banks to stop such lending.

House Democrats want curbs on big-bank lending to fossil-fuel industry

Progressive House Democrats on Wednesday introduced a measure that would require the Federal Reserve to make sure that the largest banks start to reduce...

www.marketwatch.com

Senators Markey and Merkley Announce Legislation to Get Big Banks to Stop Financing Fossil Fuel Projects | U.S. Senator Ed Markey of Massachusetts

Legislation will require the country’s largest banks to better protect consumers and the climate...

www.markey.senate.gov

Leading to this:

The Journal explains:

Small but instrumental players [are] short of the financing they need to repair fracking equipment sidelined during the start of the pandemic, or invest in building drill bits, drilling rigs and blowout preventers.

 

[excalibur]

Why aren't your beloved oil companies drilling for more oil now on US soil OP?

They already have all they need to do so. There's nothing or no-one stopping them.

Maybe you could read the OP? Then again, I am not responsible for your inability to comprehend it if you did read it.

 

[Turtlesoup]

Why aren't your beloved oil companies drilling for more oil now on US soil OP?

They already have all they need to do so. There's nothing or no-one stopping them.

Just a shortage of workers, equipment along with Permits thanks to Biden and company playing stupid communist games.

 

[odanny]

We only rely on 2% of Russian oil for our supply, and nothing else has changed. So why the spike in prices?

Read what Senator Warren said. It's taking advantage of a war to price gouge us all. Anyone remember 9/11? I do. And I remember getting gouged.

You Trumpsters are a clueless lot.

 

[excalibur]

Notice how farmers have not needed hundreds of billions of dollars to help them stay afloat like what happened during Trump?

WTF does that have to do with the OP?

 

[excalibur]

We only rely on 2% of Russian oil for our supply, and nothing else has changed. So why the spike in prices?

Read what Senator Warren said.

Read the article in the OP.

 

[excalibur]

Just a shortage of workers, equipment along with Permits thanks to Biden and company playing stupid communist games.

Yep.

'Big shift': Biden moves to rewrite the rules on climate threat

Among other moves, regulators are likely to press banks to prepare for the fallout from a warming planet by stepping up scrutiny of fossil fuel financing.

www.politico.com

 

[Toddsterpatriot]

So tired of the usual nonsense from Democrats, they never actually offer anything but tax, tax, and more tax.

It is time that the Democratic Party be thrown onto the trash heap of history if we are to save America.

​

Senator Elizabeth Warren has an idea:​

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If she had opened the Wall Street Journal yesterday, she would have read the following:​

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That’s right, oil companies are having a hard time attracting investors now because they were perceived to have supplied too much oil and made too low profits over the last ten years.​

​

Most of America’s oil drilling is actually done by relatively small, independent firms, not by Big Oil. From the Independent Petroleum Association of America:​

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These are not fat cats who should have their profits confiscated by the federal government.​

​

Profits operate as a signal to investors, saying, “Send your money over here.” As these oil companies increased production even when oil prices were relatively low, they didn’t make huge profits. Now that oil prices have gone through the roof, profits will go up, which is great news for them because they desperately need more capital to produce more oil.​

​

...​

Profits Are Not the Problem for Oil Companies | National Review

Taxing away oil companies’ ‘windfall profits’ would keep them starved for capital and unable to increase production.

www.nationalreview.com

We can always count on Warren to be a stupid twat.

 

[Toddsterpatriot]

We only rely on 2% of Russian oil for our supply, and nothing else has changed. So why the spike in prices?

Read what Senator Warren said. It's taking advantage of a war to price gouge us all. Anyone remember 9/11? I do. And I remember getting gouged.

You Trumpsters are a clueless lot.

We only rely on 2% of Russian oil for our supply, and nothing else has changed.

Anyone else rely on Russian oil?

So why the spike in prices?

Maybe someone else wants to buy it?

Read what Senator Warren said. It's taking advantage of a war to price gouge us all.

Then you should sell it, instead of buying it. Clueless.

 

[odanny]

We only rely on 2% of Russian oil for our supply, and nothing else has changed.

Anyone else rely on Russian oil?

So why the spike in prices?

Maybe someone else wants to buy it?

Read what Senator Warren said. It's taking advantage of a war to price gouge us all.

Then you should sell it, instead of buying it. Clueless.

Let me give you some advice:


It's better to have people think you're a fool, then to begin typing and remove all doubt.

 

[Toddsterpatriot]

Let me give you some advice:


It's better to have people think you're a fool, then to begin typing and remove all doubt.

Don't be so hard on yourself.

 

[Vel]

We only rely on 2% of Russian oil for our supply, and nothing else has changed. So why the spike in prices?

Read what Senator Warren said. It's taking advantage of a war to price gouge us all. Anyone remember 9/11? I do. And I remember getting gouged.

You Trumpsters are a clueless lot.

"We only rely on 2% of Russian oil for our supply, and nothing else has changed. So why the spike in prices?"

The spike in prices is because Joe Biden and his clueless followers launched a war against the U.S. energy sector on day one in order to placate the AOC wing of the party.

US Energy Sector Facing New Attacks from Biden - USA Herald

It goes without saying the energy sector in America plays a pivotal role in the lives of Americans. Fuel is an important resource; yet, since the Biden administration came into power, the energy sector has faced attacks like never before. When Biden first arrived in office, he implemented an...

usaherald.com

 

[1srelluc]

LOL.....I wondered how long it would take before the old "windfall" profit tax reared it's ugly head again.

 

[DigitalDrifter]

It's completely dishonest of Dimocrats to now attempt to run away from blame of what we're seeing at the gas pump.
They have fought the fossil fuel industry for years, and have made it as difficult and expensive to drill for oil as possible.

 

[sparky]

So i'm to believe our shill on the take Congress , who have bowed down to the Oilocracy for generations, is going to actually produce some sort of 'tax' leash for them?

~S~

 

[Resnic]

We only rely on 2% of Russian oil for our supply, and nothing else has changed. So why the spike in prices?

Read what Senator Warren said. It's taking advantage of a war to price gouge us all. Anyone remember 9/11? I do. And I remember getting gouged.

You Trumpsters are a clueless lot.

Then why has gas prices along with everything else been going up since 2021? That's before the war in Ukraine Incase you didn't know.

In February 2022 inflation rates rose 7.9% over the previous 12 months.

CPI Home

www.bls.gov

People were warning of inflation in 2022 in 2022.

https://www.washingtonpost.com/business/2021/12/29/inflation-2022-price-fed/

Again, before the Ukraine war.

On the campaign trail Biden said he would declare war of domestic fuel production. and he most certainly is doing so which is driving up our costs. He started doing so last year.

Moore: Biden’s green plan declares war on American energy

Am I the only one who finds it head-scratching that President Biden, who wants to spend $2 trillion of taxpayer money on “infrastructure,” is the same president whose first act in the W…

www.bostonherald.com