U.S. oil industry prepares to boost production — but with a giant warning

[Oldestyle]

Maybe we can end this stupid discussion about how it was Biden's fault that gas prices are souring. (Finally)

Sure, Biden pissed off the oil companies when he first too office. He pulled the plug on an uncompleted pipeline. He pulled new leases. He even pulled the permits on some wells. But what he didn't do was stop the flow of existing wells and pipelines already in production. Production and new well drilling was slowed due to, at least in part to Covid and oil field employee's not being able to come to work because they had covid, or had been around someone who had tested positive.
But, the biggest reason, at least for the last 4 or 5 months, has been the oil companies themselves keeping their production low, and waiting patiently for the trading price to increase. They are smart people. They know how to manipulate the oil markets. Especially with an anti oil president and a war looming.
And their excuses worked like a charm. The cut their overhead, earned billions in extra profit. The millions in bonuses were paid. And now, they can get back to the business of producing oil. Their vacation is just about over.

P.S. Not the bold print in the article. They, themselves are ramping up oil production. And Biden hasn't done anything. He hasn't reinstated all those permits. He hasn't opened up the oil leases. He hasn't reversed anything the oil companies have been complaining about that's caused them to produce less oil. The oil companies made the same decision they could've made months ago.

U.S. oil industry prepares to boost production — but with a giant warning​

HOUSTON — Executives at some of the world’s biggest oil and gas producers said on Monday they are ramping up their crude production as U.S. gasoline prices surge to $4 a gallon amid expectations that President Joe Biden and Congress would ban imports of Russian petroleum — but the companies warned not to expect new supplies overnight.

Exxon Mobil and Chevron are both boosting oil production at the mammoth Permian Basin field in West Texas and New Mexico, strategies that both oil majors laid out last year but that have taken on new urgency because of the surge in oil prices to their highest level in 14 years.

You forgot to mention how the Biden Administration actively slow walked any permitting needed by the fossil fuel industry so that they could use their leases! That was the method that the far left progressive that Joe put in charge of our energy needs hamstringed gas and oil producers. Now the Biden Administration is complaining that the energy companies aren't producing oil and natural gas fast enough to counter what their own policies have given us. This whole thing borders on farce! You on the left WANTED higher gas and oil prices...put policies in place to make that happen...but now you're running scared because Americans are angry over the inflation that is stealing money out of their pockets so you try to blame Big Oil and Gas. Sorry...but the voters aren't buying your bullshit! They know how it was under Trump. They know how it is now.

 

[surada]

B

You forgot to mention how the Biden Administration actively slow walked any permitting needed by the fossil fuel industry so that they could use their leases! That was the method that the far left progressive that Joe put in charge of our energy needs hamstringed gas and oil producers. Now the Biden Administration is complaining that the energy companies aren't producing oil and natural gas fast enough to counter what their own policies have given us. This whole thing borders on farce! You on the left WANTED higher gas and oil prices...put policies in place to make that happen...but now you're running scared because Americans are angry over the inflation that is stealing money out of their pockets so you try to blame Big Oil and Gas. Sorry...but the voters aren't buying your bullshit! They know how it was under Trump. They know how it is now.

Biden signed more permits and leases in his first 3 months than Trump signed his first year. Trump was coasting on the extraordinary successes of domestic oil production during the 8 years Obama was in office.

 

[surada]

U.S. Imports from Iran of Crude Oil and Petroleum Products (Thousand Barrels per Day)

www.eia.gov

 

[sartre play]

The prices for gas in USA are set by wall street traders, end of story.

 

[surada]

The leftists love these high fuel prices. It is by design for them to take advantage of any situation that will lead to higher prices.

Obama laid it all out back in 2008.

The communists dream is to have FF expensive and for investment in GREEN ENERGY that THEY WILL PROFIT FROM.

Fuck them.

Domestic oil production doubled under Obama.

 

[YoursTruly]

You forgot to mention how the Biden Administration actively slow walked any permitting needed by the fossil fuel industry so that they could use their leases! That was the method that the far left progressive that Joe put in charge of our energy needs hamstringed gas and oil producers. Now the Biden Administration is complaining that the energy companies aren't producing oil and natural gas fast enough to counter what their own policies have given us. This whole thing borders on farce! You on the left WANTED higher gas and oil prices...put policies in place to make that happen...but now you're running scared because Americans are angry over the inflation that is stealing money out of their pockets so you try to blame Big Oil and Gas. Sorry...but the voters aren't buying your bullshit! They know how it was under Trump. They know how it is now.

The leases that were affected didn't have any actual oil production going on. No existing wells. No wells that were even being drilled. Many of the locations hadn't even had the oil companies geologist studies yet. So this is what is commonly referred to as a lie, with just enough truth built into it, to make it all seem true. It's true that Biden stopped a lot of leases. What's not true, and something not mentioned by the oil companies, was that it didn't affect any operational wells or pipelines.
The Biden administration is right about the oil companies not producing as much oil from existing wells. When the bust cycle begins, the oil companies and the owners of the mineral rights (with producing wells on their own private property) only allow what's contracted with the oil companies to be pumped from their production tanks.
If an oil company has contracted the land owner to allow 500 barrels from each production tank per week, then that's all that's going to be pumped. If they allowed more, that would mean less profit if the oil prices are on the rise.
Example: If oil is $100pbl, and prices were going up next week to $110pbl, it would be more profitable to only allow the contracted amount this week, so you can make more money from the oil next week.
This continues until the stock prices are at their projected highest.
Do the math.
500 barrels at $100 pbl (one week) X average of 5 wells (X the 8% average to the land owner) = $20,000.
500 barrels at $120 pbl (one week) X average of 5 wells (X the 8% average to the land owner) = $24,000.
Just waiting a couple of weeks, the land owner and the oil companies can make a larger profit.

This is easy stuff here. Not sure why no one is even trying to understand it.

 

[YoursTruly]

Domestic oil production doubled under Obama.

Not during the bust cycle.

 

[YoursTruly]

The prices for gas in USA are set by wall street traders, end of story.

Even that is just an excuse the oil companies use. They don't have to go by the stock prices.

When I had my small engine shop open, there were two other shops in town. Their going rate was $60hr. I had almost no overhead, because I was working out of a friends shop who didn't charge me for the use of his other bays that he didn't use. So I was charging only $45 hr. I could've charged $60hr, and used the excuse that it was the going rate. In fact, I could've used a LOT of excuses to charge more. And my customers would've had no other option but to pay the higher rate.
Same as we do with gas.
But when you own the oil. The oil is refined and sold by you, the stock price is actually irrelevant. But it's an excuse that most people accept. The excuse works. So they use it.

 

[surada]

Not during the bust cycle.

Rig counts were higher than they had been in 44 years. What bust cycle are you talking about?

 

[ColonelAngus]

ColonelAngus said:
The leftists love these high fuel prices. It is by design for them to take advantage of any situation that will lead to higher prices.

Obama laid it all out back in 2008.

The communists dream is to have FF expensive and for investment in GREEN ENERGY that THEY WILL PROFIT FROM.

Fuck them.
Click to expand...

Give us the numbers.

Barrels and years.

 

[Delldude]

B
Biden signed more permits and leases in his first 3 months than Trump signed his first year. Trump was coasting on the extraordinary successes of domestic oil production during the 8 years Obama was in office.

Drilling permits spiked then plunged under Biden​

The reason for the permitting slowdown is unclear, but it comes as Biden administration officials have been pushing the oil and gas industry to increase drilling amid surging gas prices. Many environmental groups also have been frustrated with the rapid pace of approvals, seeing it as a betrayal of President Biden’s pledges to confront climate change. They say the approvals carved into the number of backlogged permits Biden inherited by nearly 1,000 by year’s end.

But the administration has also taken heat from environmental groups for focusing on these regulatory reforms rather than aggressively working to retire the oil and gas program.

“Even under Biden, 96 percent are getting approved versus 98 percent under Trump,” he said.

With oil and gas companies exercising “fiscal discipline” to please investors, that’s even more the case, he said.

Drilling permits spiked then plunged under Biden

 

[surada]

Drilling permits spiked then plunged under Biden​

Drilling permits spiked then plunged under Biden

That's not an Obama cycle.

 

[Delldude]

That's not an Obama cycle.

No one mentioned Obama. Off on another one of your regular red herrings?

 

[surada]

No one mentioned Obama. Off on another one of your regular red herrings?

Sorry. See #207.

 

[Oldestyle]

Domestic oil production doubled under Obama.

On land that Obama controlled production went down...on land that he didn't it increased. Peddle that silly shit somewhere else, Surada! You're embarrassing yourself.

 

[YoursTruly]

You forgot to mention how the Biden Administration actively slow walked any permitting needed by the fossil fuel industry so that they could use their leases! That was the method that the far left progressive that Joe put in charge of our energy needs hamstringed gas and oil producers. Now the Biden Administration is complaining that the energy companies aren't producing oil and natural gas fast enough to counter what their own policies have given us. This whole thing borders on farce! You on the left WANTED higher gas and oil prices...put policies in place to make that happen...but now you're running scared because Americans are angry over the inflation that is stealing money out of their pockets so you try to blame Big Oil and Gas. Sorry...but the voters aren't buying your bullshit! They know how it was under Trump. They know how it is now.

I didn't mention it because it's just not true. The permitting process is still 2 to 3 years. Instead of 5 to 7 years as it was during the first of Trumps presidency. Trump is responsible for getting it down to 2 or 3 years. But Biden didn't repeal any of that. Or even try to.

Biden's first year of drilling permits were a lot higher than Trumps first year. BLM approved over 3500 drilling permits.. So the locations are available to drill now. The geologist reports are finalized. The permits are finalized and in the hands of the oil companies. The only thing lacking are the drilling rigs. When the oil company tells the driller to get to work, they'll go.
And they're ready. They've been on lay off for a year now.

 

[Big Bend Texas]

But, the biggest reason, at least for the last 4 or 5 months, has been the oil companies themselves keeping their production low, and waiting patiently for the trading price to increase. They are smart people. They know how to manipulate the oil markets. Especially with an anti oil president and a war looming.

You cannot possibly show that to be true in any way.

U.S. Refinery Net Production

United States Gasoline Production

Gasoline Production in the United States decreased to -538 Thousand Barrels in April 5 from 767 Thousand Barrels in the previous week. This page provides - United States Gasoline Production- actual values, historical data, forecast, chart, statistics, economic calendar and news.

tradingeconomics.com

 

[Big Bend Texas]

Domestic oil production doubled under Obama.

Not offshore or on federal land.

The fracking boom is what doubled production and on private lands.

 

[Big Bend Texas]

I didn't mention it because it's just not true. The permitting process is still 2 to 3 years. Instead of 5 to 7 years as it was during the first of Trumps presidency. Trump is responsible for getting it down to 2 or 3 years. But Biden didn't repeal any of that. Or even try to.

Biden's first year of drilling permits were a lot higher than Trumps first year. BLM approved over 3500 drilling permits.. So the locations are available to drill now. The geologist reports are finalized. The permits are finalized and in the hands of the oil companies. The only thing lacking are the drilling rigs. When the oil company tells the driller to get to work, they'll go.
And they're ready. They've been on lay off for a year now.

How long does it take when Biden shuts down lease sales?

 

[Big Bend Texas]

I didn't mention it because it's just not true. The permitting process is still 2 to 3 years. Instead of 5 to 7 years as it was during the first of Trumps presidency. Trump is responsible for getting it down to 2 or 3 years. But Biden didn't repeal any of that. Or even try to.

Biden's first year of drilling permits were a lot higher than Trumps first year. BLM approved over 3500 drilling permits.. So the locations are available to drill now. The geologist reports are finalized. The permits are finalized and in the hands of the oil companies. The only thing lacking are the drilling rigs. When the oil company tells the driller to get to work, they'll go.
And they're ready. They've been on lay off for a year now.

Permits initially spiked under this administration as companies rushed to get them finalized before his administration could implement it's plans to choke off drilling on federal lands.

Drilling permits spiked then plunged under Biden

The number of oil and gas permits approved by the Bureau of Land Management for drilling on public lands declined to its lowest number under the Biden administration in January.

news.yahoo.com