Are you sure you didn't hear that on TV?
How short our memory is
- Thread starter Snagglefoot
- Start date
If you really want to get prices down the USA needs to get drilling or import more oil from Canada. Here is a plot of the number of drilling rigs operating in the USA.
So much money was lost when the oil price collapsed in 2015 that investors are not excited about doing it again. With 500 rigs running all they can do is maintain production at between 11 million and 12 million bbls per day. The US consumes almost 20 million bbls per day.
So much money was lost when the oil price collapsed in 2015 that investors are not excited about doing it again. With 500 rigs running all they can do is maintain production at between 11 million and 12 million bbls per day. The US consumes almost 20 million bbls per day.
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The only time, I watch Tv is when I am in the dentist's office waiting room, I find Tv fairly offending.
The real danger is not a particular source, but limiting your sources.
Zee09
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Scotty Kilmer belongs in the humor section…
I think Scotty might actually be correct here, but for the wrong reasons-gas prices tend to track with oil futures prices (worldwide, ratcheting higher with the war & sanctions against Russia), and since the stock market has been tanking, the excess hedge fund capital is hunting for returns. As it did in the Goldman "pump & dump" of 2006/2007!
The fringe benefit of all that fracking is the excess natural gas from the wells-which is also needed to run peaking electricity (coal burners disappearing) and the LNG export boom.
The US alone supposedly has 400 years worth of crude in the ground. These prices are unnecessary...
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But the prices aren't determined by "how much is in the ground"! It is determined by a formula using the GLOBAL price of crude on the open market. To do otherwise would have plenty of other countries screaming, not to mention our own government.
I have a hard time feeling sorry for anyone because we did this to ourselves. When the Ford F-150 is the best-selling vehicles in America and you have automakers scaling back small and midsize cars and some of them even completely dropping them from their lineup because the sales are so bad, clearly no one is worried about owning cars that get great gas milage.
Second, during the height of the pandemic, not many people were driving, so the price dropped and the oil companies cut back their production. Now, as we continue to come out of the pandemic, these same oil companies are playing a game where they dont want to up production. Part of it is because its difficult to just ramp back up and part of it is because the current administration has made it clear that they are no friend to big oil and that the days of big oil are numbered, so why would they want to up prodution and drop the price when they could make record profits now, incase the days of big oil actually are numbered (something that Im still highly skeptical of).
So because of those things, we get what we've got. You have to buy gas to get to work and to run your errands on the weekends, so theyve kind of got you right where they want you.
I do think that much of it is greed and price gouging but thats what theyve always done. The price goes up for whatever reason they can think of but the price never seems to go down anywhere near as quick.
Second, during the height of the pandemic, not many people were driving, so the price dropped and the oil companies cut back their production. Now, as we continue to come out of the pandemic, these same oil companies are playing a game where they dont want to up production. Part of it is because its difficult to just ramp back up and part of it is because the current administration has made it clear that they are no friend to big oil and that the days of big oil are numbered, so why would they want to up prodution and drop the price when they could make record profits now, incase the days of big oil actually are numbered (something that Im still highly skeptical of).
So because of those things, we get what we've got. You have to buy gas to get to work and to run your errands on the weekends, so theyve kind of got you right where they want you.
I do think that much of it is greed and price gouging but thats what theyve always done. The price goes up for whatever reason they can think of but the price never seems to go down anywhere near as quick.
Any time someone says big oil is "gouging", someone else quickly chimes in to say it's not. I too believe these prices are gouging, and are 100% unnecessary. I think the industry is using any and every excuse to jack up prices. In the end they will end up hurting themselves because at some point, these high prices are going to break the economy. When that happens people aren't going to have money to buy gas, or anything else for that matter. I don't ever want to hear big oil crying again that they're losing money. The industry spends A LOT more time raking in record profits than it does losing money...
I like pick ups I bought a 2015 F150 with the 2.7 engine and it get between 21 to almost 24 mpgs on a regular basis doing the math with the driving I do. It averages about 7500 per year. I would buy more economy If I drove lots of miles.
It's called demand destruction and I'm pretty sure oil isn't the only commodity that will be experiencing it soon.
The term profit is misconstrued a lot these days and applies to every business. The term to be used is "NET profit", which is what a company makes after all expenses, such as building a refinery, are deducted.
And to be honest the price of West Texas Intermediate is established by the Chicago Mercantile Exchange. Its actually the traders that establish the price. They make bets it will go up or down and if you make bets that it is going to go down while the price is going up, you'll lose money and vice versa. It's called futures trading. IT IS NOT THE OIL COMPANIES THAT DECIDE WHAT THE PRICE OF OIL IS.
They can, however, decide whether they will decide to invest billions of dollars to increase production. So far there are about 740 drilling rigs running in the USA with enough invested to pretty much replace all that is produced with a small increase towards 12 million bbl/day. The USA consumes 20 million bbls per day and the rest is made up by imports, mostly from Canada and some from else where, including a small amount from Russia in the past. The complicated part of the Russian imports was that is was only partly crude oil and was mostly partially refined product that US refineries liked to use as feedstock.
US Oil Production has just hit 12 million bbls/day after getting as low as 9.7 million bbls/day in February of 2021. The last time is was 12 million bbls/day was April of 2020.
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