March 7, 20223 yr 3 hours ago, JohnSnowsHair said: Again... Keystone XL was nowhere near being in production. Zero effect in gas prices in 2022. 333 drilling permits per month were issued from Jan 20 through the end of 2021. That's more than Trump averaged pre-Covid, I don't recall a lot of queefing over gas prices from 2017-2020. And per the BLM report, "Federal onshore oil and gas production accounts for approximately seven percent of domestically produced oil". (https://www.doi.gov/sites/doi.gov/files/report-on-the-federal-oil-and-gas-leasing-program-doi-eo-14008.pdf) So you're arguing about permits that marginally impact oil production on what makes up only 7% of overall production - these drilling permits amount to a fraction of a percent of overall production. And even so, you have to go back at least a decade to find a two year period where more drilling leases were approved than the last 2. Drilling leases are NOT a dam holding back domestic oil production. Nordstream was to carry natural gas. I don't know wtf you think that would do to impact gasoline prices. And even if it was crude, it should have had the effect of LOWERING gas prices as the supply increases. You're literally just pointing to a pipeline cancelation and a (natural gas ) pipeline being completed and implying both are causes of gas prices. The biggest factor here is oil producers. OPEC is producing 10% less than pre-pandemic. US producers also appear to be throttling supply, albeit at a lesser rate. Oil producers around the globe are apprehensive about increasing supply too quickly after demand fell so sharply due to COVID-19. Which is why gas prices are up globally. It is not as simple as "Biden bad," no matter how politically appealing that message may be. Demand has a lot to do with it too. The period from Jan.-April 2021 was the initial COVID-19 vaccine rollout, when shut-downs were lifted, recession ended, and people started travelling again. Prices from 2020 to early 2021 were extraordinarily low due to lack of demand.
March 7, 20223 yr 1 minute ago, toolg said: Demand has a lot to do with it too. The period from Jan.-April 2021 was the initial COVID-19 vaccine rollout, when shut-downs were lifted, recession ended, and people started travelling again. Prices from 2020 to early 2021 were extraordinarily low due to lack of demand. Yup. And the oil industry is not rushing back to pre-pandemic production levels. Not because there aren't enough places to drill for oil, but probably some mix of a desire for more profits as demand is not dropping off even as gas goes north of $4/gallon (there is nothing wrong with this, but blaming Biden is dumb) and the risk of a new variant that shocks the system again.
March 7, 20223 yr 20 minutes ago, JohnSnowsHair said: Yup. And the oil industry is not rushing back to pre-pandemic production levels. Not because there aren't enough places to drill for oil, but probably some mix of a desire for more profits as demand is not dropping off even as gas goes north of $4/gallon (there is nothing wrong with this, but blaming Biden is dumb) and the risk of a new variant that shocks the system again. Lack of financing for drilling projects is the biggest issue for US shale, which is the swing production.
March 7, 20223 yr 16 minutes ago, vikas83 said: Lack of financing for drilling projects is the biggest issue for US shale, which is the swing production. True as well. Investors have gotten much more conservative on the US oil industry in general. But regardless of the various factors, oil leases isn't the biggest barrier to increasing US production from what I can tell at least. Biden is going to be blamed either way, that's the political reality, but there also isn't much he can do - unless you want a president that strongarms producers and tries to force companies to do something against their financial interests.
March 7, 20223 yr 4 hours ago, JohnSnowsHair said: Again... Keystone XL was nowhere near being in production. Zero effect in gas prices in 2022. 333 drilling permits per month were issued from Jan 20 through the end of 2021. That's more than Trump averaged pre-Covid, I don't recall a lot of queefing over gas prices from 2017-2020. And per the BLM report, "Federal onshore oil and gas production accounts for approximately seven percent of domestically produced oil". (https://www.doi.gov/sites/doi.gov/files/report-on-the-federal-oil-and-gas-leasing-program-doi-eo-14008.pdf) So you're arguing about permits that marginally impact oil production on what makes up only 7% of overall production - these drilling permits amount to a fraction of a percent of overall production. And even so, you have to go back at least a decade to find a two year period where more drilling leases were approved than the last 2. Drilling leases are NOT a dam holding back domestic oil production. Nordstream was to carry natural gas. I don't know wtf you think that would do to impact gasoline prices. And even if it was crude, it should have had the effect of LOWERING gas prices as the supply increases. You're literally just pointing to a pipeline cancelation and a (natural gas ) pipeline being completed and implying both are causes of gas prices. The biggest factor here is oil producers. OPEC is producing 10% less than pre-pandemic. US producers also appear to be throttling supply, albeit at a lesser rate. Oil producers around the globe are apprehensive about increasing supply too quickly after demand fell so sharply due to COVID-19. Which is why gas prices are up globally. It is not as simple as "Biden bad," no matter how politically appealing that message may be. Oil is bought on futures, and any kind of policy announcements get baked into the pricing. Every hostile policy that this administration has undertaken, one of which has been to kill Keystone XL, have absolutely contributed to the soaring prices. And keystone XL was stalled by 0bama, and now Biden, leading to the lack of progress on it. To now start claiming that it’s too far away from completion to matter is as hypocritical as it’s wrong.
March 7, 20223 yr 4 minutes ago, JohnSnowsHair said: True as well. Investors have gotten much more conservative on the US oil industry in general. But regardless of the various factors, oil leases isn't the biggest barrier to increasing US production from what I can tell at least. Biden is going to be blamed either way, that's the political reality, but there also isn't much he can do - unless you want a president that strongarms producers and tries to force companies to do something against their financial interests. It's because so many have adopted ESG mandates. Traditional lenders and banks can't touch loans to these guys, so the capital has to come from specialty lenders that charge much higher rates. Significantly higher costs of capital make fewer projects economically viable than before. If the goal is to get back to pre-2019 levels of shale production, we need to lower the cost of capital.
March 7, 20223 yr 22 minutes ago, The_Omega said: Oil is bought on futures, and any kind of policy announcements get baked into the pricing. Every hostile policy that this administration has undertaken, one of which has been to kill Keystone XL, have absolutely contributed to the soaring prices. And keystone XL was stalled by 0bama, and now Biden, leading to the lack of progress on it. To now start claiming that it’s too far away from completion to matter is as hypocritical as it’s wrong. So you're arguing that the price of gas at the pump over the last six months is affected by a pipeline that has been stalled for a decade, was 7% completed, and was killed a year ago. Ok.
March 7, 20223 yr 33 minutes ago, JohnSnowsHair said: So you're arguing that the price of gas at the pump over the last six months is affected by a pipeline that has been stalled for a decade, was 7% completed, and was killed a year ago. Ok. It hasn't been stalled for a decade, they had secured the funding, and construction was moving forward before Biden killed it. And yes, that decision got factored into the price. As did the unconscionable decision to halt all new leasing just the other week.
March 7, 20223 yr 7 minutes ago, The_Omega said: It hasn't been stalled for a decade, they had secured the funding, and construction was moving forward before Biden killed it. And yes, that decision got factored into the price. As did the unconscionable decision to halt all new leasing just the other week. Literally no progress was made on the pipeline under Trump, it was held up in court the whole time. There was still a lot of environmental impact studies for alternate routes that needed to be done because not all of the original paths were approved by states (and remember it runs through a bunch of red states so no blaming Democrats for those delays ) The idea that it was built into gas prices is ridiculous.
March 7, 20223 yr 3 minutes ago, iladelphxx said: It's almost like removing leverage is bad for price negotiations? Who knew? can you expand on this? I have no idea what you're trying to argue, if it's related to oil and Keystone.
March 7, 20223 yr 18 minutes ago, JohnSnowsHair said: Literally no progress was made on the pipeline under Trump, it was held up in court the whole time. There was still a lot of environmental impact studies for alternate routes that needed to be done because not all of the original paths were approved by states (and remember it runs through a bunch of red states so no blaming Democrats for those delays ) The idea that it was built into gas prices is ridiculous. Zucker:
March 7, 20223 yr It's cute watching the ishlibs defend Biden for flushing the country down the crapper after 4 years of blaming Trump for everything, including their miniscule height, morbid obesity, and small peckers.
March 7, 20223 yr 3 hours ago, vikas83 said: It's because so many have adopted ESG mandates. Traditional lenders and banks can't touch loans to these guys, so the capital has to come from specialty lenders that charge much higher rates. Significantly higher costs of capital make fewer projects economically viable than before. If the goal is to get back to pre-2019 levels of shale production, we need to lower the cost of capital. Interesting, I was not aware of this aspect. Thanks
March 7, 20223 yr 1 hour ago, toolg said: I gotta agree. Like WTF are they even protesting at this point?
March 7, 20223 yr 3 hours ago, mikemack8 said: It's cute watching the ishlibs defend Biden for flushing the country down the crapper after 4 years of blaming Trump for everything, including their miniscule height, morbid obesity, and small peckers. It is cuter watching you traitorous curs pretend you care about America.
March 7, 20223 yr 1 minute ago, Outlaw said: I gotta agree. Like WTF are they even protesting at this point? Don't digitile us!
March 7, 20223 yr 1 hour ago, toolg said: Don't digitile us! I gotta say, it seems to me that they are not sending their best.
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