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

[eagle1462010]

He wasn't boasting. He was pleased that domestic oil production doubled while he was president.

As he attacked it during his administration. They sued his ass then the liar takes credit for losing court battles.

Kinda like saying im great for burning houses down because toy were stopped frim burning down more.

 

[eagle1462010]

He could've killed the Keystone for any reason he wanted to.

Is he a King?? This is why this country is fucked.

 

[easyt65]

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.

Thank you for Joe 'The Buck Stops Here' Biden's latest finger-pointing session.

A couple of months ago it was Trump's fault.

A couple of weeks ago it was Putin's fault.

Today snowflakes blamed Americans for 'price gouging' and Republicans for not voting for their SHOW VOTE.

Now you want to 'circle back' to blaming oil companies.

Can't you dumbasses settle on one scapegoat for Biden's and Green New Deal Democrats' failed pixies and actions?

HHHow, again, did Trump sabotage his own policies that allowed the US to become energy independent?

How did Putin, again, end US energy production, eliminating US energy independence in less than a year?

Tell us again how Americans being hammered by Joe's record inflation suddenly became responsible for US ending our energy production and affecting $4.50 a gallon gas prices....how gas would be below $3 a gallon if Conservatives were not price gouging right now....

Oh wait, change #5, 'circle-back', it's the oil companies ... AGAIN ... to blame.

You know, if Biden and Democrats spent their time trying to solve the problems they have created instead of running in circles expending all their effort trying to find scapegoats the country wod be much better off & Biden's approval rating would not be in the toilet.

 

[bripat9643]

Domestic oil production doubled under Obama, period. Doesn't matter where.

Something that does matter is why 60% of the drilling permits that's already been issued to oil companies, don't have a drilling rig on them. They're permitted and ready to go. Just waiting on the oil companies.

The reason, in case you can't figure it out, is that it's a bust cycle. If the oil companies ramped up productions, pressurized their existing wells, drilled more well (on the land that's already permitted), the oil prices would go down and their overhead would go up. . Meaning a lot less profit.

So from a business stand point, let me ask you a serious question. If you were Exxon, would you:

A. Sit tight and keep making record profits from the high cost of oil and the extremely low overhead.
B. Hire all those drillers, pipeliners, Xray tech and geologist back. Pressurize existing wells. Drill more wells. And ramp up production so the price of oil could come back down to $40 barrel.


Let's do some math, shall we? The US consumes 19,000,000,000 barrels of oil per day. At the moment it's $110. And most of the oil field hands are on lay off.

19 billion X $110 = $2,090,000,000,000 in gross profit. (with much lower overhead)
19 billion X $40 = $760,000,000,000 in gross profit, (with a huge amount of overhead)
That's a daily loss of $1,330,000,000,000 in gross profit, plus the overhead.

Of course those numbers are spread out over all the oil companies. But you get the picture, right? Ramping up production will being the profits down. Way down.
You can sit on that extra monetary gain for as long as you can. Or start losing money right away? Which do you choose?

Do you have a link to support these claims?

 

[YoursTruly]

Do you have a link to support these claims?

It's been posted before. If you don't believe me, look it up. Prove me wrong.

 

[YoursTruly]

Thank you for Joe 'The Buck Stops Here' Biden's latest finger-pointing session.

A couple of months ago it was Trump's fault.

A couple of weeks ago it was Putin's fault.

Today snowflakes blamed Americans for 'price gouging' and Republicans for not voting for their SHOW VOTE.

Now you want to 'circle back' to blaming oil companies.

Can't you dumbasses settle on one scapegoat for Biden's and Green New Deal Democrats' failed pixies and actions?

HHHow, again, did Trump sabotage his own policies that allowed the US to become energy independent?

How did Putin, again, end US energy production, eliminating US energy independence in less than a year?

Tell us again how Americans being hammered by Joe's record inflation suddenly became responsible for US ending our energy production and affecting $4.50 a gallon gas prices....how gas would be below $3 a gallon if Conservatives were not price gouging right now....

Oh wait, change #5, 'circle-back', it's the oil companies ... AGAIN ... to blame.

You know, if Biden and Democrats spent their time trying to solve the problems they have created instead of running in circles expending all their effort trying to find scapegoats the country wod be much better off & Biden's approval rating would not be in the toilet.

I don't believe a work Biden says. So don't try to make me out as some sort of liberal Biden supporter. I don't support him, Trump or any politician. (except the few remaining fiscal conservatives we have left)
The oil industry is what it is. It's what's it's always been. They have their business model that works for them. They always go through their boom and bust cycles. And as long as we're dependent on their product, they always will.
Their business model works for them. And most of the time, during their boom cycles, it works pretty good for us.

 

[bripat9643]

It's been posted before. If you don't believe me, look it up. Prove me wrong.

you look it up and then post. If you don't support your claims, then people reading your post will just assume it's bullshit. I've posted stuff 100 times because other forum members demanded proof/

 

[YoursTruly]

you look it up and then post. If you don't support your claims, then people reading your post will just assume it's bullshit. I've posted stuff 100 times because other forum members demanded proof/

Sounds like you have a problem with always wanting to be right. So much so you repost stuff a lot just to prove your right.

Don't believe me? Don't want to look it up? Ok, I'm good with that.

Just keep blaming everything on Biden. That's about all surface level thinkers are good for.

 

[bripat9643]

Sounds like you have a problem with always wanting to be right. So much so you repost stuff a lot just to prove your right.

Don't believe me? Don't want to look it up? Ok, I'm good with that.

Just keep blaming everything on Biden. That's about all surface level thinkers are good for.

I'm glad you're OK with it because everyone in this forum will just assume you're making stuff up.

 

[eagle1462010]

Sounds like you have a problem with always wanting to be right. So much so you repost stuff a lot just to prove your right.

Don't believe me? Don't want to look it up? Ok, I'm good with that.

Just keep blaming everything on Biden. That's about all surface level thinkers are good for.

Sounds good. Biden is a Clusterfuck from hell.

 

[YoursTruly]

I'm glad you're OK with it because everyone in this forum will just assume you're making stuff up.

No. Not everyone. There are those that seen what you seek.

 

[bripat9643]

No. Not everyone. There are those that seen what you seek.

What we see from you is not evidence to support your claims.

 

[watchingfromafar]

People are complaining about gas prices as if it is preventable, they are wrong.
At the current rate of oil consumption, we will suck up and burn it all in +/- 47 years. World panic will start way before then.
Summary Table as of 2017

Oil Reserves
1,650,585,140,000 barrels
Oil Consumption
35,442,913,090
barrels per year
97,103,871 barrels per day
Reserves/Consumption
47 (years left)
World Oil Statistics - Worldometer

What do we doo--?

-

 

[YoursTruly]

People are complaining about gas prices as if it is preventable, they are wrong.
At the current rate of oil consumption, we will suck up and burn it all in +/- 47 years. World panic will start way before then.
Summary Table as of 2017

Oil Reserves
1,650,585,140,000 barrels
Oil Consumption
35,442,913,090
barrels per year
97,103,871 barrels per day
Reserves/Consumption
47 (years left)
World Oil Statistics - Worldometer

What do we doo--?

-

By then, we'll all be either dead or driving electric cars.

 

[blackhawk]

It’s funny how so many only come to realize how little control any President has over gas prices is when they are soaring up under the President you support.

 

[Oldestyle]

Oil companies are making record profits. Is that point flying right over your head? It means that the Biden administration isn't hamstringing the oil companies. Biden is helping them.

This is easy economics 101 with easy math.

Biden is KILLING the American public, YoursTruly and he's doing it with his policies! Oil companies make less money when there is a glut of oil on the market or when demand decreases. Right now there is a shortage of oil and huge demand.
Did you even TAKE Economics?

 

[YoursTruly]

Biden is KILLING the American public, YoursTruly and he's doing it with his policies! Oil companies make less money when there is a glut of oil on the market or when demand decreases. Right now there is a shortage of oil and huge demand.
Did you even TAKE Economics?

There is no shortage of oil. Have you seen any lines at the gas pump? Any signs saying "we're out of gas?" No, you haven't. The supply is keeping up with the demand. Even without Russian oil.

Biden is just the president. He has almost no control over the oil/gas industry. Especially on private lands. Which is where most of our oil production comes from.
And he has NO control over the oil industries EXISTING production levels. Over 9000 DRILLING permits have been handed out to the oil/gas companies. In which these things are happening.

1. The oil companies are just sitting on, not using.
2. Environmentalist groups have shut down the operation through the courts.
3. Oil companies here and around the world (especially OPEC) have entered a bust cycle, and have slowed production.
They're not pumping as much through their pipelines. They're not pulling as much out of their production tanks. Keeping the prices high, so they can make record profits. <<<<<< This is not a bad business decision. This creates the revenue needed for the next boom cycle. Where they ramp up their drilling. Put all their oil field hands (contractors) back to work. Which does two things.
1. Greatly increases their overhead.
2. Brings the oil futures price down drastically. So they have to produce more, to make less.

It's just business.

Biden sucks. That's a fact. But he didn't suck for the oil/gas industry. They're making a killing, producing less.

 

[surada]

That is the most ridiculous attempt to take credit for the hard work of others, that I have ever seen on this board.

Obama didn't take credit. He was happy that US production doubled, but he didn't take credit. He lightheartedly said that happened when I was president. You are an absolute dolt. Obama was never as insecure as Trump.

 

[surada]

Biden is KILLING the American public, YoursTruly and he's doing it with his policies! Oil companies make less money when there is a glut of oil on the market or when demand decreases. Right now there is a shortage of oil and huge demand.
Did you even TAKE Economics?

Oil company profit margins have remained steady at 6.8 % for decades. Compare them to other industries.

 

[Oldestyle]

Oil company profit margins have remained steady at 6.8 % for decades. Compare them to other industries.

Has the President come out and said that his intention was to do away with any other industries, Surada? Biden was quite clear that WAS his intention with the fossil fuel industry!

Then he wonders why production is lagging? Joe never was all that bright!