U.S. to release 1 million barrels of oil per day from reserves to help cut gas prices

[Vern_in_IL]

Oil Mutt on Youtube is making video shorts of shut-in wells being started up in the East Texas field.

 

[schwinney]

And most of the rest becomes diesel and jet fuel, which are worth more per gallon than gasoline.

It also go through the production of many regular everyday household products, there are so many things that are petroleum-based it's crazy.

 

[ZeeOSix]

Won't help (very much if at all, as mentioned.)

And we should buy from Canada, if we must look elwewhere. 🇨🇦

Let's not mention the imminent rise from when oil drilling leases are up some are at the end of June....

There are a lot of US wells already drilled and ready to pump if the oil companies wanted to invest money to get them back on-line, but they don't want to. They would rather keep oil prices high and make more money without spending more money.

 

[ZeeOSix]

A million bpd is more than the USA imported from Russia per day in 2021.

How much oil does the US import from Russia?

While Russian oil makes up a small amount of US imports, sanctions could have serious knock-on effects for the economy.

www.aljazeera.com

 

[PWMDMD]

There are a lot of US wells already drilled and ready to pump if the oil companies wanted to invest money to get them back on-line, but they don't want to. They would rather keep oil prices high and make more money without spending more money.

In the past, every time oil prices were high and wells were available and oil companies invested a lot of money in developing these wells to drive up supply, the price of oil would come down, leaving them losing money. They have learned their lesson. Now they will not waste effort and money in developing these new leases and simultaneously they will enjoy the high price of oil due to lack of supply - it is a win-win for them and screw the citizens of the US.

 

[ZeeOSix]

Also, I say if Canada has enough excess production to sell a bunch of oil right now to the USA then go for it. The USA oil producers can pound sand if they don't want to increase production and just want to reap huge profits.

 

[PWMDMD]

Also, I say if Canada has enough excess production to sell a bunch of oil right now to the USA then go for it. The USA oil producers can pound sand if they don't want to increase production and just want to reap huge profits.

It is a global market - there is no "selling to the US". Hell, US producers don't "sell" to the US - all their oil goes onto the global market too and the price paid is based on the global market. There is no way to "segregate" oil for just the US.

 

[ZeeOSix]

It is a global market - there is no "selling to the US". Hell, US producers don't "sell" to the US - all their oil goes onto the global market too and the price paid is based on the global market.

True, but why couldn't Canada sell direct? Is there some super law against doing that?

Look at it as a direct import, just like the oil imported from Russia or any other country we import oil from.

 

[gman2304]

Also, I say if Canada has enough excess production to sell a bunch of oil right now to the USA then go for it. The USA oil producers can pound sand if they don't want to increase production and just want to reap huge profits.

Wasn’t this the reason the Keystone pipeline was being built? Before it wasn’t being built.

 

[PWMDMD]

Wasn’t this the reason the Keystone pipeline was being built? Before it wasn’t being built.

No, the Keystone XL would transport sweet light crude that was marked for export to ASIA and most of the US refineries can not handle sweet light crude. Even so, 800,000 barrels per day is <1% of the daily worldwide production. This was only good for oil companies because they could export more oil but did not benefit the US beyond some jobs in terms of oil independence. That oil would still be on the global market and at 1% you could expect it to reduce oil prices 1%.

 

[M56959]

Topic is inherently political. Just as the last locked version of this topic showed.