Who is really to blame

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Cimarron

It's not dying I'm talking about, it's living.
Jun 28, 2007
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#21
May 25, 2018

"We are calling on President Trump to act," Cantwell said. "We do not want to see the price of oil get more expensive as we go into the summer driving season."

Senator Cantwell was joined by Senate Minority Leader Chuck Schumer of New York and Sen. Bob Menendez of New Jersey.

We are being lied to by the very people we elect. Does anyone really think they care about anyone but themselves?
 

andylicious

Territorial Marshal
Nov 16, 2013
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#23
The fiddling while Rome burns is getting tiresome. If we have rolling blackouts or brownouts due to the continued wish for renewable energy it's a problem for the party in power. If there is a food shortage coupled with power grid issues woe betide the party in power. To get back to 1980 all we need now is an Olympic boycott. In Joe's favor is we are still dealing with a pandemics after effects, Carter didn't have that excuse.
 

Cimarron

It's not dying I'm talking about, it's living.
Jun 28, 2007
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#24
China Joe Biden comments May 2022

“Here’s the situation,” Biden said at a Tokyo news conference on May 23, “when it comes to the gas prices, we’re going through an incredible transition that is taking place that, God willing, when it’s over, we’ll be stronger and the world will be stronger and less reliant on fossil fuels.”

Testifying before Congress on May 19, 2022, Interior Secretary Deb Haaland repeatedly refused to say that gas prices are too high.

https://www.washingtonpost.com/opinions/2022/05/31/gas-prices-biden-approval-clean-energy/

Now here we are a few weeks later and China Joe Biden is begging for someone to do something to lower the cost of fuel.......
 

docjoctoo

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Feb 11, 2007
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#25
There is no singular cause for high oil prices. Anyone stating that there is has a political agenda. Period.
But as Boone Pickens said years ago America must seek to be completely energy independent from other counties energy sources. Right now Democrats seem obsessed with global warming. They have done their best to shut down production of all fossil fuel production and thus prices have skyrocketed. We have been forced to go begging world wide to meet our demand for fossil fuel energy. This has also weakened our foreign policy positions. Putin for example is using Russian Oil needed by his neighbors to strengthen his present war effort. Energy Independence should be our national goal.
 

steross

he/him
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Mar 31, 2004
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#26
But as Boone Pickens said years ago America must seek to be completely energy independent from other counties energy sources. Right now Democrats seem obsessed with global warming. They have done their best to shut down production of all fossil fuel production and thus prices have skyrocketed. We have been forced to go begging world wide to meet our demand for fossil fuel energy. This has also weakened our foreign policy positions. Putin for example is using Russian Oil needed by his neighbors to strengthen his present war effort. Energy Independence should be our national goal.
For Andrew Campbell, Executive Director of the Energy Institute at Berkeley Haas ( here ) “energy independence” is a “political slogan, not an economic or technical concept with a clear definition” often used by politicians to “imply that a country is insulated from global energy markets”.

“This is rarely the case,” he said.

“If a country produces all of the energy that it consumes, does not participate in international trade in energy, does not import energy-intensive products and does not send energy-related pollution to its neighbors or the atmosphere, then I would consider it energy independent. I don’t think any country meets that definition.”



Explain specifically measures that have shut down production?
This article states that production is increasing.
Indeed, oil production in the country is on the upswing. The Energy Information Administration has projected U.S. oil production will hit a record over 12.2 million barrels per day in 2023 as drillers ramp up output.

Finally, how many federal permits would do the trick? Obviously 1000 unused permits isn't enough.
WHERE IS THE CONSTRAINT?
The top five holders of unused leases on federal lands include EOG Resources (EOG.N), Devon Energy , Occidental Petroleum , ConocoPhillips (COP.N) and Matador Resources (MTDR.N), according to energy research firm Rystad.

Four of the companies – EOG, Occidental, ConocoPhillips and Devon - declined to comment on whether they will raise production by tapping those unused leases. Matador did not respond to requests for comment.

EOG, the largest holder of unused permits with more than 1,000, said it's "standard practice is to maintain a healthy inventory of the permits necessary to provide flexibility for current and future development plans."

Labor and supply constraints can also make it difficult for companies to boost production beyond what they had previously planned, Occidental Petroleum Chief Executive Vicki Hollub said at the CERAWeek conference.

Occidental has more than 500 unused federal permits.

She added that oil and gas companies have been limiting costs and spending to return more cash to shareholders. "Capital discipline today for oil companies is basically no (production) growth," Hollub said.

Her view was echoed by another executive at the conference.

"As an industry, we can't lose sight of the returns," said ConocoPhillips CEO Ryan Lance, and he also blamed the administration's "poor energy policy, poor regulatory policy" for creating the current squeeze. The company has nearly 400 unused federal permits.


https://www.reuters.com/world/us/big-oil-biden-administration-spar-over-blame-pain-pump-2022-03-10/


When it comes to big, complex issues, I laugh at how the same partisan people place blame without looking at any data at all. But, it appears as always, look at the money not the political spin.
 

Rack

Legendary Cowboy
Oct 13, 2004
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#28
For Andrew Campbell, Executive Director of the Energy Institute at Berkeley Haas ( here ) “energy independence” is a “political slogan, not an economic or technical concept with a clear definition” often used by politicians to “imply that a country is insulated from global energy markets”.

“This is rarely the case,” he said.

“If a country produces all of the energy that it consumes, does not participate in international trade in energy, does not import energy-intensive products and does not send energy-related pollution to its neighbors or the atmosphere, then I would consider it energy independent. I don’t think any country meets that definition.”


Explain specifically measures that have shut down production?
This article states that production is increasing.
Indeed, oil production in the country is on the upswing. The Energy Information Administration has projected U.S. oil production will hit a record over 12.2 million barrels per day in 2023 as drillers ramp up output.

Finally, how many federal permits would do the trick? Obviously 1000 unused permits isn't enough.
WHERE IS THE CONSTRAINT?
The top five holders of unused leases on federal lands include EOG Resources (EOG.N), Devon Energy , Occidental Petroleum , ConocoPhillips (COP.N) and Matador Resources (MTDR.N), according to energy research firm Rystad.

Four of the companies – EOG, Occidental, ConocoPhillips and Devon - declined to comment on whether they will raise production by tapping those unused leases. Matador did not respond to requests for comment.

EOG, the largest holder of unused permits with more than 1,000, said it's "standard practice is to maintain a healthy inventory of the permits necessary to provide flexibility for current and future development plans."

Labor and supply constraints can also make it difficult for companies to boost production beyond what they had previously planned, Occidental Petroleum Chief Executive Vicki Hollub said at the CERAWeek conference.

Occidental has more than 500 unused federal permits.

She added that oil and gas companies have been limiting costs and spending to return more cash to shareholders. "Capital discipline today for oil companies is basically no (production) growth," Hollub said.

Her view was echoed by another executive at the conference.

"As an industry, we can't lose sight of the returns," said ConocoPhillips CEO Ryan Lance, and he also blamed the administration's "poor energy policy, poor regulatory policy" for creating the current squeeze. The company has nearly 400 unused federal permits.

https://www.reuters.com/world/us/big-oil-biden-administration-spar-over-blame-pain-pump-2022-03-10/


When it comes to big, complex issues, I laugh at how the same partisan people place blame without looking at any data at all. But, it appears as always, look at the money not the political spin.
So what this is saying is that for political and economic reasons the oil companies are holding production down by not drilling to limit supply or just simply to raise prices...OR that they are raising prices despite production levels being high? However, it also implies that these R leaning companies are driving prices up because a D is in office who doesn't like the Oil and Gas industry...Bottom line, it's still a political argument and has the underpinnings in policy and politics. This is why the current POTUS may be changing his stance and threating these companies in order to now get production up, even thought he has stated he wants to end the industry due to pollution and environmental change.

Bottom line, it's more political than any of us want to admit and could be fixed by politicians being more friendly to the business. This is the reason one side can see the fix on this particular issue more clearly than the other...We all want clean air and water, we all want money in our 401K's as well. How do we balance these things while we wait on technology to catch up...AND remain the world power we need to be economically in order to keep the world order in place?
 

okstate987

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#29
But as Boone Pickens said years ago America must seek to be completely energy independent from other counties energy sources. Right now Democrats seem obsessed with global warming. They have done their best to shut down production of all fossil fuel production and thus prices have skyrocketed. We have been forced to go begging world wide to meet our demand for fossil fuel energy. This has also weakened our foreign policy positions. Putin for example is using Russian Oil needed by his neighbors to strengthen his present war effort. Energy Independence should be our national goal.
Its like you dont have the abilty to comprehend what you are reading or something.

It wasnt profitable for american companies to drill for an extended period of time. Do you think that the government should force conpanies to drill when it is not profitable for them?
 

LS1 Z28

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Oct 30, 2007
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#31
There are probably a lot of people on this board that understand the oil industry far better than me, but I'll toss in my two cents.

Supply and demand set the value of just about everything in this world. Demand plummeted during the pandemic. The value of crude oil temporarily turned negative during the height of the lockdowns, because it cost more to store it than it was actually worth.

Demand for oil surged after economies reopened throughout the world. Supply was constrained as countries banned the import of Russian oil. (Russia produces roughly 10% of the world's oil.) Increased demand and decreased supply sent oil prices soaring from negative to $120 per barrel.

Biden has made some mistakes in this area. He said during the primaries that he would close the oil industry. He said that he would stop subsidies, ban drilling on federal lands, and shut down pipeline construction. He created a very negative sentiment for oil companies that discouraged expansion. All that being said, gas prices would still be very high if Trump was in office, because the global crude oil prices are largely out of our control.

Unpopular opinion: We need a recession to reset the world's economy. The odds for that seem to be increasing daily as inflation persists.
 

oks10

Federal Marshal
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Sep 9, 2007
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#32
There are probably a lot of people on this board that understand the oil industry far better than me, but I'll toss in my two cents.

Supply and demand set the value of just about everything in this world. Demand plummeted during the pandemic. The value of crude oil temporarily turned negative during the height of the lockdowns, because it cost more to store it than it was actually worth.

Demand for oil surged after economies reopened throughout the world. Supply was constrained as countries banned the import of Russian oil. (Russia produces roughly 10% of the world's oil.) Increased demand and decreased supply sent oil prices soaring from negative to $120 per barrel.

Biden has made some mistakes in this area. He said during the primaries that he would close the oil industry. He said that he would stop subsidies, ban drilling on federal lands, and shut down pipeline construction. He created a very negative sentiment for oil companies that discouraged expansion. All that being said, gas prices would still be very high if Trump was in office, because the global crude oil prices are largely out of our control.

Unpopular opinion: We need a recession to reset the world's economy. The odds for that seem to be increasing daily as inflation persists.
This is my thought about it as well. This isn't a US gas price issue, it's a global crude issue that's also impacting US gas prices.
 

cableok

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Mar 11, 2006
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#33
Unpopular opinion: We need a recession to reset the world's economy. The odds for that seem to be increasing daily as inflation persists.
I am not sure if we need a recession to reset the world's economy, but I get your point.

But I do wish our political leaders would be brave enough to weather the political storm by lowering spending, actually balancing the budget, ....and not only slowing down the continual increase in national debt, but nibbling at it so it slowly shrinks. No doubt that a bold move like that would cause a temporary recession, but those actions are needed to address the terrible burden we are placing on future generations --- we just rarely have leaders willing to make those changes.
 
Dec 9, 2013
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#34
Imagine being faced w making decisions regarding 100’s of millions of dollars going out 5-10 yrs in this political environment w an uncertain/inexperienced labor and resource pool and a forward price curve that is back under $70/bbl in lees than 4.5 yrs. And on top of that you have dry hole risk, downstream transportation risk and now potentially crippling interest rate threat.

Would any of us commit to a multi rig build out (for discussion let’s say cost to drill and complete 1 well is $10-15MM and takes 1-2 months) and it takes a 3 yr commitment to secure the rig at a cost that meets your roi? Knowing today you can’t get those rigs until Summer of 23 (pricing is solid there at mid $90/bbl) and by mid 2026 when you are still in your 3 yr commit the future price today of 2026 WTI is low $70’s meaning when that production comes on line you are having to hedge today’s forecasted end of 2026 PDP at below $70 which probably puts those future wells under water. But you would have to commit today to secure the rig to even drill those wells in 2026/27.

Also, wait until you see your future electric bill and heating bills when they get rate adjusted. NatGas pricing is sitting there quietly basically ignored getting ready to top $8/dth
 

Rack

Legendary Cowboy
Oct 13, 2004
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#35
This is my thought about it as well. This isn't a US gas price issue, it's a global crude issue that's also impacting US gas prices.
That's not 100% true, it's more a USA issue than it is for most of the others on this list. Over 100 countries have lower per gallon prices than the USA right now and the majority of them are producer nations which pay penny's on the gallon compared to us (under a dollar per gallon). There are 25 nations that pay less than $2 a gallon right now. In our hemisphere Ecuador is at $2.50. If we were to increase our production we would also have lower prices. Pretty simple supply and demand really. I don't have any problem with Biden demanding more production...its what we need in the short run to draw pricing down.
Gasoline prices around the world, 13-Jun-2022 | GlobalPetrolPrices.com
 
Sep 3, 2010
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#36
https://www.wsj.com/articles/is-6-a...ossil-fuels-11654806637?mod=opinion_lead_pos1

n a remarkable and threatening letter to oil and gas CEOs this week, Mr. Biden seems stunned to learn that prices rise when supply doesn’t meet demand. He’s aghast that gas prices are still rising above $5 a gallon even as oil prices have stabilized at $120 a barrel. Ergo, he says, the problem must be greedy oil companies making too much money.

At least he’s finally noticed the dearth of refining capacity to process crude, which some of us have warned about for years. The U.S. has lost about one million barrels a day of refining capacity in the pandemic. Some new refineries have opened in Asia, but the International Energy Agency recently reported that global capacity last year fell by 730,000 barrels a day.
A major culprit is U.S. government policy. Some older refineries have closed because companies couldn’t justify spending on upgrades as government forces a shift from fossil fuels. They also have to account for the Environmental Protection Agency’s tighter permitting requirements—the agency recently challenged a permit for an Indiana refinery—and steeper biofuel mandates.
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The EPA recently published its final renewable fuel standards for this year, which the American Fuel and Petrochemical Manufacturers called “unachievable.” They usually are. One problem this year is that gasoline consumption has been trending lower from last year’s levels as prices climbed. Yet refiners this year will be required to blend 10% more biofuel.
This means refiners will again hit the so-called “blend wall” of how much ethanol and biodiesel can technically be processed into the nation’s fuel supply. Higher ethanol blends can corrode older vehicle engines and fueling infrastructure. Refiners must purchase regulatory credits to comply with the mandates.
Increasing credit prices have driven some small, independent refineries out of business. Small refineries can seek a temporary exemption from the mandates if they show a “disproportionate economic hardship.” But the biofuels lobby opposes these exemptions, and the EPA just denied 69 waiver requests.
Some large refiners such as Marathon Petroleum and Phillips 66 have sought to comply with biofuel mandates by converting refineries to produce renewable diesel from vegetable oil. This also lets them cash in on a $1 a gallon federal tax credit and regulatory credits under California’s low-carbon fuel standard that some other states are copying.
S&P Global Platts estimates that renewable diesel in California fetched a $3.70 a gallon premium over regular diesel in the early weeks of 2022 owing to tax and regulatory credits. This biofuel profit premium is driving the sort of capital misallocation that the World Bank noted last week in a report on economic growth and inflation.
Chevron CEO Mike Wirth said recently that refineries are shutting down or being repurposed for renewable fuels because “the stated policy of the U.S. government is to reduce demand for the products that refiners produce.” When companies are told that demand for their product will become obsolete, it’s no surprise that they don’t invest in supply.
In his letter Mr. Biden orders the refiners to increase supply pronto, but they have to make business decisions based on long-term market expectations. The same is true for oil producers. The President slams refiners for reaping record profits. Does he not understand markets? Refining petroleum is a low-margin business, and the companies lost money early in the pandemic as demand for gas and other fuels fell. Now margins have widened as demand rises again and the industry’s capacity to produce them has shrunk.
The refining shortage was also predictable for those who follow events in California. Environmental regulations there have driven refineries to shut down and convert to biofuels, driving up prices and refiner profits. This is a major reason gas prices in California are averaging $6.44 per gallon—$1.43 more than the national average versus 30 cents in 2012.
Mr. Biden demands that refiners propose “concrete ideas” to immediately increase capacity. How about his Administration stop trying to put them out of business?
 
Dec 9, 2013
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#37
That's not 100% true, it's more a USA issue than it is for most of the others on this list. Over 100 countries have lower per gallon prices than the USA right now and the majority of them are producer nations which pay penny's on the gallon compared to us (under a dollar per gallon). There are 25 nations that pay less than $2 a gallon right now. In our hemisphere Ecuador is at $2.50. If we were to increase our production we would also have lower prices. Pretty simple supply and demand really. I don't have any problem with Biden demanding more production...its what we need in the short run to draw pricing down.
Gasoline prices around the world, 13-Jun-2022 | GlobalPetrolPrices.com
While I appreciate what you are getting at and recognize that we need a political discourse in this country that both encourages responsible domestic fossil fuel production and the continued push for alternative and cheaper over the long run renewables, I would be curious on an apples to apples comparison the details behind average gasoline costs.

For example, how much do taxes play a part in each countries price as well as knowing which countries are subsidizing. We do it in the US (not effectively and in various ways) and often to greater harm than short term good.

Oil and refined products are a global market and for the most part statistics and pricing and economic data are pretty readily available in the US.

Interesting the link you provided puts the US in the cheaper lower 1/2 of countries listed and it looks like only one other sizable free market democracy is really cheaper and not by much. If I’m reading the chart right.

A lot of the countries ahead of us are oil producing kingdoms who can manipulate gas prices to keep their domestic advantage.

You mention Ecuador but it looks like their govt has capped their prices so they aren’t a reflection of what is really happening.

We seem to go though this price shock about once every 15 years in the US. It’s astounding that our elected leaders can’t think and lead responsibly with a long term vision on energy policy and that we continue to put our heads in the sand until it hits our wallet.
 

PF5

Deputy
Jan 3, 2014
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#38
A Look at Gas Prices Around the World usnews

At an average of $4.59 per gallon as of May 19, American consumers are dealing with the highest gas prices the nation has ever seen.
But the pain at the pump is actually much worse in some other countries. The global average price of a gallon of gas, in American dollars, is about $5.13, according to GlobalPetrolPrices.com. But there’s a wide range in the price paid by country.
Residents of Hong Kong pay the highest international gas prices, with one gallon setting them back $10.97. Norway has the second-highest gas prices at $9.64 per gallon, followed by Denmark where gas costs an average $9.32 per gallon.
At the other end of the spectrum, Venezuelans pay just $0.08 for a gallon of gas, the cheapest prices on the planet. Libya and Iran also pay less than a dollar per gallon of gas, with petrol costing $0.12 and $0.20, respectively.
“People say that it’s terrible that the price of gas here is over $4, but gas prices in Europe are $6 or $7,” says Giacomo Santangelo, an economist with Monster Intelligence. “To Europeans, $4 a gallon is nothing.”

Individual countries actually have some control over their gas prices via government policies. Since countries and gasoline retailers purchase gas on the open market, the biggest factor driving prices at the pump is the amount of taxes and fees that countries place on gas, or the amount that countries subsidize gas prices.
“In countries with good mass transit, they often try to incentive people not to drive by taxing gasoline at a far higher rate than we do in the U.S.,” says Patrick De Haan, head of petroleum analysis for Gas Buddy. “That’s true for much of Europe, but people have alternatives there to driving a car. You can usually take a train.”

American gas prices are among the lowest in industrialized nations because the federal government levies very few taxes on fuel.
The disparity in taxes also reflects differences in gas prices from state-to-state. Gas prices are highest in California, for example, which has the most cars in the country, residents pay $1.18 per gallon in taxes and fees alone. Meanwhile gas prices are lowest in Georgia, where taxes and fees only amounted to $0.48 per gallon, before the gas tax holiday the state put in place in March.

There are several gas price factors pushing costs up globally for gas and other commodities, including supply and demand related to the war in Ukraine, economic sanctions on Russia, and the continued impact of the pandemic. Given that all those factors appear fairly entrenched, it’s unlikely that gas prices will decline significantly any time soon, particularly as seasonal demand rises moving into summer.

That could spell trouble for the broader economy, as consumers look to adjust their budgets to accommodate higher gas prices, says Rob Smith, director, global retail fuel at S&P Global Commodity Insights.
“Higher gas prices just put more of a burden on people, and something has to give,” he says. “So people might not go out to eat at restaurants, they might skip going to the movies or decide not to buy the new iPhone. If you take all of that away, the economy starts to slow down.”
 
Oct 16, 2003
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Edmond, OK
#39
(IMHO)

The Democratic party wants to encourage a more "green" energy program in the US and that is only practical when oil prices are high in order to minimize the "cost gap" of the more "green" energy programs. So the Dems have to drive oil prices higher in order to encourage adoption of their green energy alternatives.

(Source: Sen Ted Cruz)


Biden Gas Price.jpg
 
Last edited:

Cimarron

It's not dying I'm talking about, it's living.
Jun 28, 2007
54,656
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#40
(IMHO)

The Democratic party wants to encourage a more "green" energy program in the US and that is only practical when oil prices are high in order to minimize the "cost gap" of the more "green" energy programs. So the Dems have to drive oil prices higher in order to encourage adoption of their green energy alternatives.

(Source: Sen Ted Cruz)


View attachment 96018
Are they truly more green and what is the cost to national security?