Frac sand and labor in short supply too. Of course they shouldn’t drill at a loss. They are climbing themselves out of the worst oil bust since the 80s that occurred under Trump. Tens of thousand of skilled laborers and engineers laid off and many not coming back. Deregulation caused a massive supply increase followed by a massive supply glut that caused $300 billion in domestic bankruptcies.
The oil bust/ supply glut started in 2019, pre Covid. Covid was just the cherry on top of the worst oil bust since the 80s. It was historic capital mismanagement by the companies. Deregulation/ drill baby drill wasn’t prudent.
They make a profit at $56 a barrel. Wall Street wants the windfall profits as along as possible. So leave the BS about new leases and the Government preventing them from drilling alone.
Yes there are supply chain issues, yet some people also ignore other facts such as meat packers making record profits, yet the ranchers, pig farmers, chicken farmers are making less money. Oil companies are seeing 8 year records in profits yet prices keep climbing. I saw a post earlier about Californians going to Mexico to get cheaper gas. The last time I checked Mexico's oil company is nationalized. People pay what the market will bear. This whole inflation thing is actually pretty simple. The entire world shut down. It opened back up. Producers did not or could not react fast enough. It seems everyone is supposed to take a hit except for the companies making record profits. I said this when Bush was President and gas prices soared. Oil companies were gloating about their record profits, yet we were paying much more at the pump. I don't have a problem if Oil companies tell us "Hey we are barely making any profit." and prices are increasing, but don't show record profits while we are suffering.
Smart move by his handlers to go with a teleprompter speech today. There is a lot of confusion and contrary statements when he speaks off the cuff.
It has nothing to do with zero interest rates, quantitative easing or trillions in stimulus then? Just about corporate greed?
That's always been one of the biggest problems with Biden. It's what gets him into trouble with going down rambling stories about the old days or to him exaggerating or conflating events.
More so the Covid thing where he said the economy shut down and then reopened. Even though the US economy is a consumer based one, we went from services to goods with Covid. Hence all the imports. We had an oil bust that started pre Covid and exacerbated by Covid. Frac sand is in short supply, along with labor and things like steel. Rising energy costs have many downstream effects.
The lack of knowledge of the energy industry you possess, while ostensibly living in Houston, would be comical if it weren't so sad.
Hard to miss it if you live in Houston......But: How the historic oil bust unfolded The U.S. Lost 120,000 Oil & Gas Jobs In 2020 Of course the oil and gas is still there, but the labor and equipment isn't. Not to mention investors and banks aren't happy about the historic capital mismanagement that caused ~$300 billion bankruptcies from "drill baby drill".
I was talking to a friend about Biden's gaffe and it might not have been an actual gaffe. What this reminded me of was Reagan's "Evil Empire" rhetoric and many back then said that it was excessive and might lead to WWIII. Reagan was somewhat vindicated when Gorbachev came to power and maybe this was just Biden feeling the need to ramp up the rhetoric even as he tamps down what NATO can do to help Ukraine. Overall I doubt this makes much of a difference. I don't think Russia is going to fight any harder, Ukrainians any less or NATO get more or less involved over it.
