Think Drill Baby Drill Is The Answer To Our Energy Solution? Think Again

[skews13]

It must be pointed out that the last time Saudi Arabia sent this ‘preservation of market share’ signal was in 2014 when they and OPEC flooded the market with millions of barrels of additional crude. That move was in response to the then-nascent boom in US shale oil production coming mainly from the Permian Basin, the Bakken Shale, and the Eagle Ford Shale. Saudi and other OPEC officials at the time saw this US shale oil cutting into their market share and decided to mount a defense.

The result was a dramatically oversupplied market, a supply surplus that some believed reached as high as 8 million barrels of oil per day, and a collapse in crude prices. Over the next two years, more than 200 US shale producers were forced into bankruptcy, creating the worst depression in the domestic oil and gas industry since the mid-1980s. By the end of 2016, Saudi Arabia was coordinating with Russia and other big oil producing countries to form the OPEC+ cartel to raise prices to more economic levels.

Saudi Strategic Shift Raises Specter Of Another Oil Bust — Forbes

Saudi Arabia is again signaling a shift in strategy to protect global market share. The last time this happened, an oil bust was the result.

apple.news

 

[Oddball]

Strawman argument.... Nobody has said it's the ONLY answer.

Another day, another skrewsy thread fail.

 

[hadit]

Strawman argument.... Nobody has said it's the ONLY answer.

Another day, another skrewsy thread fail.

Seriously, nuclear is a very, very important answer as well.

 

[martybegan]

Strawman argument.... Nobody has said it's the ONLY answer.

Another day, another skrewsy thread fail.

True, we need Nuclear, and we need to exploit more hydroelectric.

 

[Woodznutz]

Three-dollar gas is likely the best we can do.

 

[pknopp]

Strawman argument.... Nobody has said it's the ONLY answer.

Another day, another skrewsy thread fail.

Yes, that's because we are drilling at a record level so.......................

 

[skews13]

Yes, that's because we are drilling at a record level so.......................

You have to wonder if you are dealing with people that are truly this ignorant, or if they are just trolls.

Or ignorant trolls.

 

[pknopp]

You have to wonder if you are dealing with people that are truly this ignorant, or if they are just trolls.

Or ignorant trolls.

I go with brainwashed.

 

[Woodznutz]

All domestic economic problems are in the hands of consumers including energy. Business provides supply, consumers provide demand. Demand trumps supply.

 

[para bellum]

All domestic economic problems are in the hands of consumers including energy. Business provides supply, consumers provide demand. Demand trumps supply.

Supply creates demand.

There was no demand for iphones before Apple invented iphones. People wanted iphones, but not everyone could afford an iphone. Competition sprung up with android phones. A year later, Motorola couldn't give away a flip-phone...

If Ford was to drop the price of an F-150 to say, $10,000, they would sellout the inventory in one day. Demand at the lower price would outstrip supply immediately.

A company makes a widget. People want widgets, we know this because there is another company that also makes widgets. But widgets are expensive, not everyone can afford a widget. Lower the price of widgets, more people will buy them.

Companies already have the tools to manage the demand for their products. Lower the cost of production, you will increase the demand for the products.

 

[Woodznutz]

Supply creates demand.

There was no demand for iphones before Apple invented iphones. People wanted iphones, but not everyone could afford an iphone. Competition sprung up with android phones. A year later, Motorola couldn't give away a flip-phone...

If Ford was to drop the price of an F-150 to say, $10,000, they would sellout the inventory in one day. Demand at the lower price would outstrip supply immediately.

A company makes a widget. People want widgets, we know this because there is another company that also makes widgets. But widgets are expensive, not everyone can afford a widget. Lower the price of widgets, more people will buy them.

Companies already have the tools to manage the demand for their products. Lower the cost of production, you will increase the demand for the products.

Supply fulfills demand created by advertising and marketing.

 

[para bellum]

Supply fulfills demand created by advertising and marketing.

If that was true, all any business would have to do to increase sales is more advertising.

There were no iphones to market until apple made them.

Yes, I know the Keynesian view of the academics. The real world does not work that way. Businesses operate on neo-classical economic principles. Artificial demand stimulus does not change the behavior of producers.

The demand for widgets is there. People want shit. It's human nature. It is the price of the widget that holds some buyers back.

 

[Woodznutz]

If that was true, all any business would have to do to increase sales is more advertising.

There were no iphones to market until apple made them.

Yes, I know the Keynesian view of the academics. The real world does not work that way. Businesses operate on neo-classical economic principles. Artificial demand stimulus does not change the behavior of producers.

The demand for widgets is there. People want shit. It's human nature. It is the price of the widget that holds some buyers back.

We're in the age of conspicuous consumption, for all economic classes.

 

[para bellum]

We're in the age of conspicuous consumption, for all economic classes.

I am talking about macroeconomics. When a new product is invented, of course it's promoted. But most advertising and marketing is aimed at capturing market share, not creating market demand. It's about distinguishing your product from your competitor's, and creating brand recognition, and all that crap.

It's the product that is in demand, not the advertising.

If you really want to increase demand, you want to make the product accessible to more consumers. You do that by reducing the production cost, which allows the price to go down. The overall demand will go up because more people can afford it.

Artificial demand (so-called stimulus) does not work. Producers know it's temporary, and they can just
1. raise their prices, or
2. outsource the production to meet the excess demand

They will profit, but they won't make the long-term capital investments because they know it's an artificial demand.

 

[westwall]

It must be pointed out that the last time Saudi Arabia sent this ‘preservation of market share’ signal was in 2014 when they and OPEC flooded the market with millions of barrels of additional crude. That move was in response to the then-nascent boom in US shale oil production coming mainly from the Permian Basin, the Bakken Shale, and the Eagle Ford Shale. Saudi and other OPEC officials at the time saw this US shale oil cutting into their market share and decided to mount a defense.

The result was a dramatically oversupplied market, a supply surplus that some believed reached as high as 8 million barrels of oil per day, and a collapse in crude prices. Over the next two years, more than 200 US shale producers were forced into bankruptcy, creating the worst depression in the domestic oil and gas industry since the mid-1980s. By the end of 2016, Saudi Arabia was coordinating with Russia and other big oil producing countries to form the OPEC+ cartel to raise prices to more economic levels.

Saudi Strategic Shift Raises Specter Of Another Oil Bust — Forbes

Saudi Arabia is again signaling a shift in strategy to protect global market share. The last time this happened, an oil bust was the result.

apple.news

Yes, that is the solution.

 

[westwall]

True, we need Nuclear, and we need to exploit more hydroelectric.

Hydro only works in very limited ares, other than that it's great.

 

[yidnar]

Three-dollar gas is likely the best we can do.

remove the expensive cost raising regs that have been implemented by the dem admin and gas prices will fall .. dramatically .

 

[Woodznutz]

I am talking about macroeconomics. When a new product is invented, of course it's promoted. But most advertising and marketing is aimed at capturing market share, not creating market demand. It's about distinguishing your product from your competitor's, and creating brand recognition, and all that crap.

It's the product that is in demand, not the advertising.

If you really want to increase demand, you want to make the product accessible to more consumers. You do that by reducing the production cost, which allows the price to go down. The overall demand will go up because more people can afford it.

Artificial demand (so-called stimulus) does not work. Producers know it's temporary, and they can just
1. raise their prices, or
2. outsource the production to meet the excess demand

They will profit, but they won't make the long-term capital investments because they know it's an artificial demand.

I don't understand macroeconomics.

 

[RGR]

Yes, that's because we are drilling at a record level so.......................

No, we are not

Current US drilling. Not even close.

 

[MarathonMike]

Strawman argument.... Nobody has said it's the ONLY answer.

Another day, another skrewsy thread fail.

skew13 another paid poster, no doubt.