Oil production cut backs announced

[grampi]

That depends on how you define the market. It is a supply and demand issue. Demand is up due to strong world wide economies. Supply is controlled by OPEC. They have (and control) all the marbles.

Prices will tend to rise until consumption is affected to an unacceptable level. If big oil can make as much, or more, with less supply, why should they produce more? Brutal to consumers? Sure, welcome to the market. Fair? Corrupt? Depends on which side of the deal you are on.

The answer to OPEC's control is the emergence of a viable alternative.

The word "viable" rules out EVs for decades...

 

[grampi]

I don’t care gas price has never been a thought when I ran my credit card since graduating engineering college. Don’t even look or care about total. Cannot control that but can control how much money I make.

So can (and does) the oil industry...

 

[JeffKeryk]

The word "viable" rules out EVs for decades...

Depends on how bad you want it. And how bad you want solution. The world runs on oil. Wars are fought over oil. The real cost of oil is beyond calculation.

 

[4WD]

Depends on how bad you want it. And how bad you want solution. The world runs on oil. Wars are fought over oil. The real cost of oil is beyond calculation.

So you don’t see the same thing coming over surface extracted minerals ? CCP does … We might be gone - but it’s in motion …

 

[JeffKeryk]

So you don’t see the same thing coming over surface extracted minerals ? CCP does … We might be gone - but it’s in motion …

I support multi faceted solutions. What they all are is above my pay grade.

 

[SC Maintenance]

Nope. Oil may be produced in America but is sold on the world market.

It actually really isn't. First you have refinery setup. You could give Houston refineries middle east Sour Crude for free and they couldn't use it - they are set up for light sweet shale crude, it would take them a year and millions of dollars to switch over.

You also have transportation. West Coast refineries still refine middle east oil because its cheaper for them to get that than ship shale over the rockies - since there is no pipe.

Finished product is shipped from the US more frequently - we were shipping a lot of diesel to Europe when the Ukraine thing started. Not sure anymore.

Here is a chart of the world oil flows. https://www.eia.gov/international/c...ld_Oil_Transit_Chokepoints/images/figure1.png

 

[JeffKeryk]

It actually really isn't. First you have refinery setup. You could give Houston refineries middle east Sour Crude for free - that are set up for light sweet shale crude, it would take them a year and millions of dollars to switch over.

You also have transportation. West Coast refineries still refine middle east oil because its cheaper for them to get that than ship shale over the rockies or through the Panama Canal - since there is no pipe.

Finished product is shipped from the US more frequently - we were shipping a lot of diesel to Europe when the Ukraine thing started. Not sure anymore.

Here is a chart of the world oil flows. https://www.eia.gov/international/c...ld_Oil_Transit_Chokepoints/images/figure1.png

My point is, American oil adds to the world total.

 

[GMBoy]

#1 The strategic oil reserves is NOT for the public's use to save a few cents at the pump - it is for national security. Biden should NEVER have touched it and it is still not back at full capacity.

#2 The current administration caused all of this so they cannot complain to OPEC - they are here to make a profit and they love sticking to us. I can't blame them either.

#3 Gas will be going up again so we the people are conditioned to the "new norm" in energy costs

I cannot say anymore or I might violate the politics rule on here if I didn't already!

 

[SC Maintenance]

What I find most interesting is this thread started on April 5th. Both WTI and Brent ramped up, and have now come back down and are both less than a dollar from which they started. All Hype maybe, or as usual Opec didn't cut a thing - it was all jawboning.

 

[MolaKule]

This ship has crossed into political waters so we will drop anchor on it!