US Oil Producers Fail to Produce

[Seran]

President Biden called out the need to lower inflation by combating the huge impact energy prices have on costs. Announcing the coordinated release of oil from emergency stockpiles internationally due not only to Russian oil sanctions, but domestic oil producers in the United States failing to produce.

Oil drilling starts in the United States catered during the Trump administration starting well before the beginning of the covid-19 pandemic as scene in the EIA drilling report below. Only now under Biden has the number of active oil rigs begun to increase.

https://www.eia.gov/petroleum/drilling/pdf/dpr-full.pdf

On the flip side, gasoline inventories have fallen month and month while the refinery utilization rate has stagnated at 87%. The crack spread for oil distillate profits has spared 41%. This trend highlights the massive disparity between the cost to produce oil and the value of the final product. Democrats have done a shitty job showing how oil producers and oil refineries are owned by the same companies who manipulate production to keep prices high. Republicans meanwhile are entirely silent on the issue and instead excoriate Biden for failing to entice these companies to produce more.

https://www.eia.gov/todayinenergy/detail.php?id=49856

To affect true change, five things need to happen that Republicans will not allow.

1. All oil leases not utilized will be reclaimed by the Federal government and auctioned off again.

2. The United States investment into producing electric only cars or hybrids with fuel efficiency ratings over 40-50 miles per gallon should be 1/3rd of the price of the car, paid as a refundable tax rebate.

3. Any further acquisitions or merges of existing oil and gas producers must be denied. Existing producers of oil who in turn refine their own product must be split up. A lack of competition has enabled the current price manipulation.

4. Oil and gasoline exports in the United States must be halted again. This is a necessary price control needed to insulate Americans from the predatory production and price manipulation of OPEC+.

5. Lastly, oil and gasoline trading in commodity markets will be limited to domestic refiners for oil and domestic retailers of gasoline. No refiner or outlet will be permitted to purchase contracts greater than their ability to take delivery in any given week or month.

[Seran]

Oil prices are up 6% as commodity traders and investors bet on oil shortages as a result of Russian sanctions. Meanwhile, not only are oil producer stocks up today, but REFINERS are also up today between 4-8% on oil prices. If oil refiners weren't able to completely pass on their cost increases (at a profit), then their stocks would be falling as analysts revised their balance sheets to determine their long and short oil positions.

On the flip side, oil producers who have idled the majority of their drilling rigs know their fixed costs on maintaining existing wells makes them a profit in excess of $80-$90 dollars per barrel produced at sites. Which explains why their stocks are soaring. As are dividends to shareholders. But not, you'll notice, are the majority of these profits being put into drilling new wells. Why? Current fracking technology allows the life of existing wells to be extended for years, compared to pre-2000s and wells created prior to fracking being widespread are being made productive again.

[Seran]

Oil and gas exports continue to increase, following a recent revision by the EIA showing that in December, oil and petroleum exports surged to 9.6 million barrels per day.

Republicans can help immediately reduce oil and gas prices by supporting Democrats in ending unrefined crude oil exports again in our country. They should additionally call their major donors with ExxonMobil, Chevron, BP, Occidental and others and tell them to reactivate idled oil production and to increase oil drilling.

Recent export data show differences between our weekly and monthly estimates. In our February release of the Petroleum Supply Monthly (PSM), we report that the United States exported slightly more than 9.6 million barrels per day (b/d) of crude oil and petroleum products during December 2021. This volume of exports surpassed the all-time record of slightly less than 9.6 million b/d in February 2020 (Figure 1). The export volumes in the PSM were 1.7 million b/d higher than preliminary exports reported in our Weekly Petroleum Status Report (WPSR), in which we estimated that exports averaged 7.9 million b/d in December.

https://www.eia.gov/petroleum/weekly...ysis_print.php

[Tgo01]

Is anything ever Biden's fault?

[Gelston]

According to Psaki, just right now, there is more oil production than under the first year of Trump and next year we'll have more production than anytime in US history. Is Psaki lying, Seran?

[Seran]

According to Psaki, just right now, there is more oil production than under the first year of Trump and next year we'll have more production than anytime in US history. Is Psaki lying, Seran?

Now she's telling the truth and I can understand where you're confused as to why oil prices are rising in the US when we are producing even more oil than before. It's because the Republicans and Trump opened up oil exports from the United States for the first time in five decades. Which means that the entire world demand is competing for the resources produced here the US. I can certainly see where basic supply and demand is confusing you. You should ask your congressman to help the Republican Party to understand that it is private companies that produce oil in our country and not President Biden

[Tgo01]

I am now convinced that Seran is doing an extreme left-wing version of old school Stephen Colbert, just without even a hint of humor in it.

It's the only logical conclusion one can draw from the insanity that is Seran's posts.

[Gelston]

Now she's telling the truth and I can understand where you're confused as to why oil prices are rising in the US when we are producing even more oil than before. It's because the Republicans and Trump opened up oil exports from the United States for the first time in five decades. Which means that the entire world demand is competing for the resources produced here the US. I can certainly see where basic supply and demand is confusing you. You should ask your congressman to help the Republican Party to understand that it is private companies that produce oil in our country and not President Biden

But…. Your entire thread is about them failing to produce.

[Tgo01]

Seran: High oil prices is because US oil companies won't pump more oil!!!11!!!!
5 days later.
Seran: High oil prices is because US oil companies are producing TOO MUCH OIL but they are selling it all to other countries!

[Parkbandit]

I am now convinced that Seran is doing an extreme left-wing version of old school Stephen Colbert, just without even a hint of humor in it.

It's the only logical conclusion one can draw from the insanity that is Seran's posts.

He's not.

He's really that fucking retarded.