re: why are we importing any oil ????

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The US isn't now, nor has it ever been a net exporter of crude oil.

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Obama re-opened the door for crude exports. This site applauded him for it.

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Go ahead and read this, then get back up on your soap box. It's directly from the American Petroleum Institute, so you can't claim it's from the liberal media.

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I never argued against any of that.

My issue is with the premise that the president doesn't impact gas prices. Which according to the president and the media is patently false.

Olive oil is in short demand.

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I thought that years ago we became energy independent and net exporter? Did this change ?

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Brandon

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You know your argument is dumb when the authority you cite is joe fricking biden and the msm.

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Well no shite.

These lefties are speaking out of both sides of their mouth as per usual.

President doesn't control prices when it's skyrocketing. But when it goes down 10 cents for 3 days it's all him.

Anything to keep power and control over the people. And the lemmings defend the narrative to their last breath.

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To save the planet you idiot

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Well, soon saving the planet will be a moot point.

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Haha then you aren't paying attention. The president doesn't have any control over gas prices has been the MSM talking point since prices started rising. Maybe these people in the oil industry you so trust are getting this info from MSNBC and passing it on to you?

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Those damned oilfield baws, parroting MSNBC talking points.

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Not everyone that works in the industry is an expert on pricing nor supply and demand economics.

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Are you an expert on “supply and demand economics”? Because I can assure you that just about every engineer who has worked in the oil & gas industry understands how these market pressures work - particularly those of us who experienced the 2014-2015 price collapse firsthand.

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Information you claim comes from people in the industry does nothing to convince me of anything.

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The irony here is astounding. You’re accusing people who actually understand the industry of repeating what they heard on MSNBC while at the same time refusing to believe it’s possible that they are correct purely because you think it’s a partisan talking point. You are doing the exact thing that you accuse others of doing.

This is a chart of the number of crude oil rigs operating in the US vs. the price of oil (WTI) over the past 15ish years:



As you can see, drilling activity in the US has always trailed oil prices. Again - prices drive US production, not the other way around. In 2014 drilling activity fell way off when OPEC flooded the market to take share back from US shale producers.

There was a period of relative stability around $50/bbl from 2016-2018, during which activity picked back up. A lot of this activity involved completing wells that had previously been drilled but were left uncompleted. More about that in a moment.

The situation today is very reminiscent of the situation in 2010 when the global economy was recovering from the recession, while oil prices soared. It took years of sustained prices at those levels before drilling activity peaked. And when it did peak, OPEC pulled the rug from under everyone and put a lot of US producers out of business.

The biggest risk facing producers in the US isn’t regulatory uncertainty, it’s price uncertainty. Companies are likely to hesitate this time around because there’s no guarantee that OPEC won’t do the same thing again. Right now it looks like they aren’t able to increase output much, but that could change in the timespan over which US companies make investment decisions. On top of that, there is uncertainty about if/when Russia will re-enter the global market, as well as how this war will impact the global economy (a global recession could collapse demand). And then on top of that you have the supply chain headwinds to deal with.

Back to DUC wells - this is a chart of the number of active crude oil rigs in the US vs. total US crude production:



You can see how total production started rising at pre-2015 rates once the price stabilized, despite the rig count being well below 2015 peaks. DUC wells are a big part of this. Another big part is that infrastructure projects to develop new fields (e.g. Bakken, Eagle Ford, etc.) which were previously in-progress had largely been completed by the time activity picked back up.

The DUC backlog is smaller now than it was a few years ago. But there is still a DUC backlog, which means we should see a good uptick in US production over the short term. Over the long term, it’s going to take lasting high prices for the drilling industry to grow back to pre-2015 levels. You can’t just flick a switch and remobilize the tens of thousands (if not hundreds of thousands) of oilfield workers who retired or were laid off after 2015.

I’d like someone to point to a country in history that was made great from a point of weakness and dependence, either economically or militarily.



I’ll save you a little time. There are none, and that’s because peace and prosperity only comes from a point of strength, not weakness and dependence. What’s so damning though, is that America has everything in needs to be strong both economically and militarily, and like no other save a few on this planet can compare with, yet throws that position away because it’s become rotten from the inside out. It panders to the least educated, the most ignorant, and the lazy unplugged masses that understand emotionalism but refuse to think pragmatic and logical because it takes effort, effort they are not willing to muster as it may interfere with their stale boring and valueless time watching television on the like which they can regurgitate any tidbit of useless information on command, but can’t tell you how many branches of government our republic has or recite even one of the 10 amendments in the bill of rights. It’s why that is eroding and being trampled upon by bad characters in this country as we speak, and yet the alarm bell hasn’t sounded in their heads, because they’ve allowed themselves to become dumb as a bucket of rocks.

Like all great empires throughout history, the decline started from within.

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You're the only one citing what the president and media are saying. Politicians and the mainstream media are the two biggest jokes, yet you argue that I'm listening to them, when I clearly disclosed where I get my information from.

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I agree completely. I don't believe a word the media prints. The media is the enemy of the people.


The media is telling everyone the president controls prices. I am simply pointing out that is the messaging from the media and admin.

They think they control the prices. Regardless of what your people in the industry say the perception to many is that the president has massive influence on the price at the pump.