BIDEN BLOWS UP OIL PRICES BY CANCELLING DRILLING IN U.S. NOW BEGS OPEC

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refineryworker05

Well-Known Member
www.marketplace.org

Why politicians have little sway over gas prices - Marketplace

In an attempt to moderate oil and gas prices, Biden has asked OPEC to increase production, despite it being a function of market forces.
www.marketplace.org www.marketplace.org
“There’s a tradition of calling on OPEC and putting the blame on OPEC for high prices and asking very publicly OPEC to increase supply to bring the price down,” he said.

But squeezing OPEC rarely works. It’s a powerful cartel that doesn’t have to lose too much sleep over rising gas prices in the United States. American politicians also have limited control at home, said Sara Vakhshouri, president of the oil and gas consultancy SVB Energy International.

“So, the U.S. government has no say really on how much the oil production should be,” she said.

That’s up to private energy firms, meaning Texas Gov. Abbott can’t just tell oil companies in the Permian Basin to start pumping to increase supply.
Clark Williams-Derry, an analyst at the Institute for Energy Economics and Financial Analysis, said that at the moment, the U.S. oil industry is telling itself, “don’t overproduce, don’t pretend like today’s price blip is a great long-term opportunity. Exercise what they call ‘capital discipline.'”

Which, Williams-Derry said, is shorthand for just drill less.


“This is an industry that’s been burned again and again by overproduction. They respond to high prices by ramping up drilling. And then they wind up producing too much oil and gas and the prices come back down, and they don’t make the money they were expecting to,” he said.
 
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HFolb23

Well-Known Member
bottomups said:
Demand goes up in a booming economy and prices follow.
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Booming economies don’t continue to extend foreclosure/eviction protections and unemployment benefits while job openings are at record highs, those two things should not correlate.

It also doesn’t change the fact that they blamed a driver shortage for the higher gas prices to begin with, if that had been true, then the demand would have been due to a lower available supply, not a booming economy.
 
Jkloc420

Jkloc420

Do you need an air compressor or tire gauge
refineryworker05 said:
www.marketplace.org

Why politicians have little sway over gas prices - Marketplace

In an attempt to moderate oil and gas prices, Biden has asked OPEC to increase production, despite it being a function of market forces.
www.marketplace.org www.marketplace.org
“There’s a tradition of calling on OPEC and putting the blame on OPEC for high prices and asking very publicly OPEC to increase supply to bring the price down,” he said.

But squeezing OPEC rarely works. It’s a powerful cartel that doesn’t have to lose too much sleep over rising gas prices in the United States. American politicians also have limited control at home, said Sara Vakhshouri, president of the oil and gas consultancy SVB Energy International.

“So, the U.S. government has no say really on how much the oil production should be,” she said.

That’s up to private energy firms, meaning Texas Gov. Abbott can’t just tell oil companies in the Permian Basin to start pumping to increase supply.
Clark Williams-Derry, an analyst at the Institute for Energy Economics and Financial Analysis, said that at the moment, the U.S. oil industry is telling itself, “don’t overproduce, don’t pretend like today’s price blip is a great long-term opportunity. Exercise what they call ‘capital discipline.'”

Which, Williams-Derry said, is shorthand for just drill less.


“This is an industry that’s been burned again and again by overproduction. They respond to high prices by ramping up drilling. And then they wind up producing too much oil and gas and the prices come back down, and they don’t make the money they were expecting to,” he said.
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Screenshot_20210813-124731_Samsung Internet.jpg
 
zubenelgenubi

zubenelgenubi

I'm a star
PT Car Washer said:
There is still a world wide supply problem. Experts say it could be a year to get things back to normal.
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Caused by useless, harmful lockdowns that were enacted by totalitarian governments after being warned that it would cause supply chain disruptions. Supply chain disruptions have already killed significantly more people, particularly children, than the hyperbolically over-inflated death count attributed to covid. But we know the pandemic response was never actually about saving lives. By this time next year, you lefties will be convinced that murdering billions of people is not only necessary, but morally acceptable.
 
V

vantexan

Well-Known Member
zubenelgenubi said:
Caused by useless, harmful lockdowns that were enacted by totalitarian governments after being warned that it would cause supply chain disruptions. Supply chain disruptions have already killed significantly more people, particularly children, than the hyperbolically over-inflated death count attributed to covid. But we know the pandemic response was never actually about saving lives. By this time next year, you lefties will be convinced that murdering billions of people is not only necessary, but morally acceptable.
Click to expand...
As long as it's not them getting murdered.
 
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