All of this was largely inevitable after Russia made the decision to invade the Ukraine and the USA and Western Europe decided to promote sanctions. The reality is that in a world economy, everyone is going to be impacted with a decrease in available crude oil. It also will impact almost all market and good costs. The question is whether it is worth it from a geo-political stand point. There are also costs associated with not sanctioning Russia and allowing them to take the Ukraine and possibly setting up the CCP taking Taiwan and other expansionist outposts. I don't have a definitive answer personally based on the fact I question how long the West will be able to hold out before some start buying Russian crude. I also think that Biden is less likely to cave than the vast majority of leaders because of his age and concerns over his legacy.
The issue is not the US buying Russian Crude at like 2.3% of all US oil supplies prior to sanctions but that a large number of European Countries also bought Russian Crude and were much more dependent on it. So they are intruding on US and other foreign supplies that drive this economic mess.
An historic supply glut followed by historic bankruptcies starting in 2019 is the cause. It's a function of historic mismanagement by US O&G companies. I can understand if you aren't around the biz, you can be ignorant about the actual cause and effect. The shale boom started under Obama and decreased prices so you casual relationship is easily denied.
LOL. When in doubt.... always resort back to the trope that Democrats hate America... or freedom.... Biden and Putin colluded to cause higher prices!11!!! Next you'll be arguing to nationalize our O&G industry....
Shall we ignore all the tarrifs added to China a couple years ago? Inflation started well before Russia invaded. Rise is oil prices is just another dead fish thrown on top of a huge pile of dead fish. This whole thing has been stankin for a bit.
I think the inflation we are seeing now was largely inevitable before the Russian invasion of Ukraine. I think it's mostly a consequence of the governments policies surrounding economic stimulus during the hey-day of the coronavirus pandemic. The Russian invasion of Ukraine didn't help anything but I think inflation was an inevitable consequence of the trillions pumped into the economy by the government. Is that Bidens fault? I don't really think so but does that matter? Not really, every President and party in power is going to suffer politically if they happen to be in office during tough economic times, whether it is directly their fault or not. Thems the breaks.
LMAO! This guy used a correlation (Obama in office) and attempted to attribute causation (note spelling, which you botched). The shale boom happened in spite of Obama, and was the work of decades of R&D that started with George Mitchell in the 1980's. To oversimplify that to who was President at the time when production started booming is the height of stupidity... and is mistaking correlation with causation... thereby completely invalidating your argument. Anyone in the energy business knows that Democrats throw up every roadblock possible to oil & gas production and then do everything they can to limit investment into the space. And when that doesn't work, they try to shut down the transportation (pipelines). Democrats own every bit of this energy cost inflation and pain at the pump. Their dumb energy policies and the absurd ESG movement are directly responsible. GOOD DAY
LMAO. So how did all the pipelines needed to move the oil get approved? How did the refinery upgrades get approved? How about LNG export terminals that opened under Trump? Sounds like a lot of road blocks were tossed up there…. The bottomline is the O&G drilled themselves into bankruptcies under Trump. They aren’t able to ramp up production because they laid off over a hundred thousand workers and supply chains have made input costs higher. Anyone in the biz knows that the supply bust is what caused the reduction in US production.
Demand destruction due to COVID bankrupted the sector in 2020. Demand for oil fell apart when people weren't driving or flying. Production today is challenged by labor availability and supply chain issues -- that is true. But development of oil & gas projects is a multi-year proposition, and the headwaters of the problem is the ESG movement trying to strongarm people to NOT invest in oil & gas. This has had a huge impact on new supply. The climate crusaders attempt to get to the banks to prevent loans and get to the big asset managers (Blackrock, Vanguard, Fidelity, etc) to pressure them to not invest in oil & gas companies. And now here we sit, with $120/bbl oil and super expensive gasoline. Good luck flying commercial for under $1000 these days.
There are a number of reasons....... but oil prices are a huge part of it, it is reflected in the cost of just about everything.
Do you really think it's the result of some conspiracy by the EV industry and not the trillions of dollars printed to keep the US afloat during the pandemic, global supply chain issues and the war in Ukraine? Please stop watching old people network news.
