It adjusted cause there was no investment in oil when it was trading for less than 40 bucks for a year. Also drill baby drill is terrible for oil companies. They lost something like 300 billion over that period. They make more money when oil prices are high which means make less oil.
i have scoured this thread and can’t find one suggestion as to what Biden should do to lower oil and gas prices. I really have. I’ve had some productive discussion with you before in other threads, so I’d really like to understand your thoughts on this.
Well the first thing, is this has been a slow, steady rise, so Biden has brought us up to and including this point. This is not a sudden increase. It got a jolt because of the war, but that is not the sole cause. He killed the Keystone Pipeline on his first day in office. Imagine if that had been in progress for the past year. He froze many NEW permits and leases (not the 9,000 dry holes that Psaki keeps peddling). So it's a combination of what can he do now in addition to what he should have been doing all along that could have prevented this. Right now, he needs to loosen up on more domestic production, including on federal lands. Yes, it will take time for that to equate to production, BUT when futures are projected to increase, that does indeed affect current prices, as well. So in summary, he got us to this point through crappy policy, which is hard to undo in one day, but he can make certain strokes to help it go down. Doing nothing will only make it continue going up. Blaming Russia will only make it continue to go up.
You're in the industry so you know it is typically a dynamic situation. If you don't think that bidens win didn't cause turbulence then maybe you are more keyed in then me.
Well, to be fair, the vast majority of the jump in oil and gasoline prices has been recent. We can fairly discuss how much, and the extent to which pre Ukraine decisions could have ameliorated the current situation, but I would assume we all agree that even with Keystone, we would be seeing a dramatic spike, right? As to new permits and leases, that’s where I would strongly disagree. Look at the behavior of oil companies objectively. You will see that for the many years now, they/we have moved away from massive cap ex projects on federal lands, and have gone all in on low risk, low cap, high certainty and yield Permian like development. It’s a factory model that works and is demanded by the investing public. Take a look at development in the Gulf spanning the Biden’s and trump years, versus activity and capital in the Permian. It tells the entire story. Full stop. It’s really not debatable. Now, if you’re talking about a 15 year plan toward “energy independence” through greater development by oil companies, you might have a chance at something. But you’d still have to convince oil company CEOs that it is a worthy bet, and honestly I’m not sure what set of factors would need to come home to roost for oil companies to go down that road again. If you had said that the Biden administration should enact policies to make development on federal lands more economically attractive, like corporate subsidies like what the federal government gives agriculture, maybe that’s worth discussing. But I can’t imagine anyone thinks that’s a real option. Lastly, blaming Russia might not move the ball and might be politically driven, but it’s also factually correct. The vast majority of the run up is due to Russia. Stated differently, but for Russia, there is no reason to think that oil and gas prices would be anything different from where they stood in December.
This is ducking the question. You said global markets “adjusted”. You used a bunch of words, but nowhere is there an explanation of what the “adjustment” was. The statement that global markets “adjusted” to Biden being elected is entirely conclusory. Which, in my view, is entirely the problem with Republican talking points. Hell, at least make some attempt to back up the conclusion. Even a half assed theory with no basis in fact.
The election and the anticipated recovery from covid caused the cost oil to increase by nearly 70% from Nov 20 to feb 21. Coincidence with bidens election? Maybe?
Damn I work at a refinery and had to Google some of those words. You sound like a lawyer with all that jargon. Anyways I don’t think you’ll get a response from him.
Im not even going to fact check the numbers. I’m still struggling to find in that word salad what actions or events occurred in global markets to “adjust” to Biden’s elections. this is bordering on drivel. Seriously, what did global markets do to adjust. What policies, behaviors, or actions occurred in the global market to adjust to Biden’s election. it is not an ambiguous or difficult question. I’ll give up after this third try and assume you just don’t have an actual basis for your assertion if you can’t name one thing.
Didn’t mean to sound like a lawyer, but yeah, I am one. And big oil is my client base (I’m in Houston, big shock). I’ve seen enough pitches and decks on how cap ex decisions are made to have a pretty decent idea of how big oil behaves like rational economic actors. I get that republicans are overjoyed to have inflation and gas prices to clobber Biden with. It is tribal and reflexive. But unfortunately for them, it is also completely devoid of factual basis, which has been the norm since 2016.
there is some truth this. Inflation prior to the Russian invasion of Ukraine can’t be attributed to that war. But it is stupid to call it Biden’s inflation. Unless you think that Biden caused Covid and the resulting global supply chain issues that are the actual causes of inflation. but hey, it is politically expedient and lord knows your team desperately needs something to rail about, particularly since you got blasted for four years because trump f-cked up non stop and armed Dems with endless bullets to fire.
Biden is quick to take credit for unprecedented job growth because everyone went back to work after covid lockdowns. Why cant he take credit for the accompanying inflation?
or we can be intellectually honest and say neither is really attributable to Biden. I personally prefer that route. Unlike trumpers, I am capable of good faith attempts at intellectual honesty, probably because I value that more than mindless devotion.
If a sane and competent Republican candidate was available I would have voted for them most likely… instead Trump was the nominee….. the country couldn’t afford another four years of his utter incompetence.
Really? Why would he? Where were you the last 4 years? Did you live through that period of time? A politician not taking the blame for inflation and taking credit for growth is WAY down the list of concerns… in fact it is down right normal and almost comforting compared to the level of dishonesty we had under the prior President. FWIW, I agree with you that the economy isn’t wonderful and the positive numbers for growth are from circumstances surrounding COVID. I also don’t think Biden had anything to do with the energy market or inflation at this point in time. He at least hasn’t been a disgrace, even if I don’t agree with some of his policies and decisions… that makes him better than the last President.
So let me get this right, inflation is way up, gas/food is way up, supply situation a mess, crime is up, border is a mess, Covid/mandate situation was a mess, Afghanistan was a mess, we got war, and we can go on and on, but Biden takes no responsibility… not sure how exactly that works. Go back reread your old posts, Trump was blamed for everything when he was in office, heck, you guys still blame him for everything today. I don’t think it is humanly possible for you guys to even write a post without including the word Trump in it. Though I get it, you voted in what will go down as one of the worst presidents in history and you need to do all you can to diverge the conversation as best as possible - enter, well I hate Trump. All I will say is I can’t wait till November to see who the country blames for how bad everything has gotten this past year plus…. We will see how competent and trustworthy they think he is….
Well, rather than speak in generalities, let’s try dissecting this with some intellectual honesty. Inflation: unquestionably, this is primarily driven by the worldwide pandemic and the resulting supply chain issues. Any disagreement there? What policies can or should any president (to make this non partisan) push to fix global supply chain problems in the near term? Now, one thing we can debate is whether the Covid relief dollars that congress passed went too far, flooded the economy with money, and thus contributed to inflation. Biden was for the relief, so you can blame him for that. But as I recall, it was bipartisan relief. The Biden infrastructure bill has nothing to do with Covid relief and hasn’t gotten underway. gas: it’s Russia. Pre Russia, see inflation analysis above. crime: I understood that we all agree that crime is handled at the state and local level. If you’re gonna be partisan, do the whole Dem mayors suck thing. It’s not Biden. I’m not even a big Biden fan. I just want people to be intellectually honest and educated.. afganistan: right decision, bad execution. Little to debate there. It is a blip relative to the bigger picture of the Biden presidency, as there are far more important issues, but highly visible eff up. covid/mandates: this all depends on where you fall in the debate. Feel how you want. But Biden is nowhere near the total f-ck up that Trump was. With Biden, we get to disagree about policy. With Trump, we didn’t have that luxury. We were dealing with sheer stupidity, an idiot, a moron, someone who didn’t believe in facts, science. Or anything beyond partisan politics. No question that voters will be heard in November. In terms of quality of presidency, Trump has last place in history sewn up. It is not close. If you want to be objective about presidents, evaluate them by how independents and the opposing party views him, not his devotees. Is Biden great? No. Yet he is miles better than trump. He is doing his job. He was elected to not be Donald trump.
Why is he at fault for a massive uptick in demand at a time when it was impossible to keep up on supply? What do you think should've been done?
