US Oil Producers Fail to Produce

[Bhaalizmo]

Well this is an amusing. The Dallas Federal Reserve released its quarterly survey results on March 23, 2022 and asked 83 small and large firms what their dollar per barrel break even point is for a new well, the average response $55. When asked their price per barrel for existing wells, $31. Now the real nail in the coffin, when 123 firms were asked what oil price would get them to drill more, 28% said a price over $100 and 27% said there choice to drill or not wasn't dependent on oil.

When 132 oil and gas companies were asked why they were restraining growth of new production, over 59% said investors were demanding higher payouts. While only 15% said environmental, social or government regulations.

So there you have it folks, from the horses mouth the government isn't the problem, it is the fact they and their shareholders are demanding prices be maintained at current level to continue windfall profits. Greed in America from Big Oil is the problem.

[Seran]

I know, right. Canada announced their going to add to worldwide production, our President is reaching out to allies and former oil trading partners to meet our immediate need. Great call to not be held hostage by the greed of the US based firms who are trying to hold the American people hostage by their gas tanks and suck out as much profit as possible.

[Seran]

Great opportunity to negotiate an active oil production increase of 500,000-850,000 barrels of oil per day sold directly to the United States above current production targets. We have weapons, military, intelligence, they have oil for the market since US producers are sitting on their asses.

Some of the largest Gulf oil producers, including Saudi Arabia and the United Arab Emirates, are seeking to sign a written treaty with the United States under which the U.S. could provide defense support after attacks from Yemen have intensified, Bloomberg reported on Wednesday, quoting sources with knowledge of the proposal.

Ideally, the major oil exporters in the Arab Gulf would seek a formal treaty with the United States, the sources told Bloomberg, but expanded and revised bilateral defense support agreements could also work, one of the sources said.

https://oilprice.com/Latest-Energy-N...n-Attacks.html

[Seran]

To give you an idea how strong the counter narrative is from 'analysts' who are trying to keep oil prices high by baseless speculation. When asked for input on President Biden's planned release of up to one million barrels of oil per day from the SPR, analysts were quoting to say it was already 'priced in'. As of they legitimately had an idea our President would increase domestic oil availability by some 8% with a stroke of his pen.

Oil Drops As Biden Prepares Largest Ever SPR Crude Release

At the time, analysts warned that the SPR release would not have the desired effect for various reasons, such as the type of crude to be released versus the types of crude used by refiners to produce fuels. Also, they said, traders had already priced in the release, and it would not affect benchmark oil prices on which fuel prices are based.

https://oilprice.com/Latest-Energy-N...e-Release.html

[Suppressed Poet]

Great opportunity to negotiate an active oil production increase of 500,000-850,000 barrels of oil per day sold directly to the United States above current production targets. We have weapons, military, intelligence, they have oil for the market since US producers are sitting on their asses.


https://oilprice.com/Latest-Energy-N...n-Attacks.html

You do realize that previously (and fairly recently) Biden pledged to withdraw his support to Saudi Arabia in their war against Yemen, right?

[Seran]

You do realize that previously (and fairly recently) Biden pledged to withdraw his support to Saudi Arabia in their war against Yemen, right?

Withdrawing support for someone's offensive and territorial ambitions are waaay different that a mutual defense treaty.

[Parkbandit]

Withdrawing support for someone's offensive and territorial ambitions are waaay different that a mutual defense treaty.

[Methais]

I wish I was 8 years old so Biden would try to put his peener in me.

Fixed.

[Suppa Hobbit Mage]

So if/when Biden releases the million barrels... we'll still be behind peak oil production before he started his attacks on the oil industry.

[Seran]

So if/when Biden releases the million barrels... we'll still be behind peak oil production before he started his attacks on the oil industry.

You should ask the big oil industry about that. They say that their investors are demanding dividends and aren't allowed to do capital expenditures. Meanwhile, as Republicans and Manchin are preventing any real investment in renewable energy infrastructure, electric vehicle credits, the President is tapping the SPR and reaching out to other oil sources, since you know... Americans still drive, despite the oil industry taking a siesta.