But...But...I thought Biden didn't have anything to do with gas prices?
- Thread starter bonefish1
- Start date
When did demand crater under Trump?
Why is the US no longer an exporter or oil? What changed? Are US oil companies producing as much as they were under Trump or have Biden's policies impacted production?
So, the US companies are conspiring with OPEC to artifically constrict production and inflate prices? Is that your arguement?
If so, why are they just doing it now? Regardless of demand, couldn't oil/gas companies control production so that we always have $5 gas?
Why would they ever produce enough to tip the S/D curve out of their favor and lower prices?
You need to quit watching MSNBC. It's not a real news source, especially if your just regurgitating.
I think there may be a difference in the definition of “independence”.
US energy independence is the idea of eliminating the need for the United States to import petroleum and other foreign sources of energy, either entirely or with the exception of imports from Canada and Mexico, in which case it is called North American energy independence. Energy independence is espoused by those who want to leave the US unaffected by global energy supplydisruptions, and to restrict reliance upon politically unstable states for its energy security. Energy independence is highly concerned with oil, the source of the country's principal transport fuels.
In total energy consumption, the US produces more energy than it uses.[1] In May 2011, the country became a net exporter of refinedpetroleum products.[2] By 2014, the United States was the world's third largest producer of crude oil, after Saudi Arabia and Russia,[3] and second-largest exporter of refined products, after Russia.[4] In November 2019, the United States became a net exporter of all oil products, including both refined petroleum products and crude oil.[5] By 2021 the US was the world's largest producer.[6]
United States energy independence - Wikipedia
I don't listen to any network for economic news. Like I said, I have a lot of experience in the oil markets, but you do you.
In 2020, the economics to drill in the US went off the cliff. Many small providers completely shut down. Oil production doesn't magically get turned back on.
If you are willing to educate yourself look at the eia data. Here is another good source
United States Crude Oil Production
Crude Oil Production in the United States decreased to 13178 BBL/D/1K in May from 13239 BBL/D/1K in April of 2024. This page provides the latest reported value for - United States Crude Oil Production - plus previous releases, historical high and low, short-term forecast and long-term...
tradingeconomics.com
You ding bat, click on your link, go to the top and click on the 5y avg.In 2020, the economics to drill in the US went off the cliff. Many small providers completely shut down. Oil production doesn't magically get turned back on.
If you are willing to educate yourself look at the eia data. Here is another good source
United States Crude Oil Production
Crude Oil Production in the United States decreased to 13178 BBL/D/1K in May from 13239 BBL/D/1K in April of 2024. This page provides the latest reported value for - United States Crude Oil Production - plus previous releases, historical high and low, short-term forecast and long-term...
Look at the production in 2019 and 2020.
I agree it won't get magically turned on, you know like Obama and his magic wand and a stagnant economy
is the new norm.
Trump evidentially had the magic wand that eluded Obama, as Trump got the economy rolling with record numbered of employed persons. (A number that even during the COVID down turn was higher than any number under Obama or yet reached by Biden).
I would bet Trump would again find his magic wand and get gasoline prices back under $3.00/gallon.
I would think a new XL approval would tend to have a company investing in refining capacity or at least investing to keep current capacity available.
IMO, the oil CEOs have voiced their ability to work with the Biden Administration to alleviate issues, but the administration hasn’t reached out to Big Oil, due to what I assume is a long term conflict of interest with the climate change (read Green New Deal) agenda. The Democrats don’t want to work with Big Oil because it contradicts their position on fossil fuels. People can say that a President “cannot do anything about gas prices” in the short term (which my be “somewhat” true as a President is limited on their options that can impact prices in the short term)…but a President with 2 1/2 years left in office COULD DO SOMETHING to impact refining capacity, Biden just doesn’t want to….and Americans will pay the price, both literally and figuratively.
No other “wealthy” country is going to invest in refining capacity due to the climate alarmists and risk associated with converting renewable energy.
We are a net exporter of oil products, but the latest figures I can find (Dec 2021) show a daily import of 6 million barrels of crude PER DAY. That's a long way away from energy independence.I think there may be a difference in the definition of “independence”.
US energy independence is the idea of eliminating the need for the United States to import petroleum and other foreign sources of energy, either entirely or with the exception of imports from Canada and Mexico, in which case it is called North American energy independence. Energy independence is espoused by those who want to leave the US unaffected by global energy supplydisruptions, and to restrict reliance upon politically unstable states for its energy security. Energy independence is highly concerned with oil, the source of the country's principal transport fuels.
In total energy consumption, the US produces more energy than it uses.[1] In May 2011, the country became a net exporter of refinedpetroleum products.[2] By 2014, the United States was the world's third largest producer of crude oil, after Saudi Arabia and Russia,[3] and second-largest exporter of refined products, after Russia.[4] In November 2019, the United States became a net exporter of all oil products, including both refined petroleum products and crude oil.[5] By 2021 the US was the world's largest producer.[6]
United States energy independence - Wikipedia
en.m.wikipedia.org
More importantly, it doesn't matter if we are a net exporter. US oil producers and refiners are for-profit businesses. If global supply issues cause global prices to rise, US businesses are going to expect you to pay that price.
Oh, I thought you said above “If you think we were ever energy “independent” you are ignorant“.
From Wiki….In total energy consumption, the US produces more energy than it uses. In November 2019, the United States became a net exporter of all oil products,
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Here is a well-written article from the end of last year.
Is The U.S. Energy Independent?
Did we lose our energy independence under President Biden? It's complicated.
www.forbes.com
Here is a well-written article from the end of last year.
Is The U.S. Energy Independent?
Did we lose our energy independence under President Biden? It's complicated.
Is America Really Producing More Oil Under Biden Than Trump? No, Obviously Not.
The White House and its allies are circulating a misleading talking point that the Biden administration is overseeing the most oil production in U.S. history.
freebeacon.com
ThanksHere is a well-written article from the end of last year.
Is The U.S. Energy Independent?
Did we lose our energy independence under President Biden? It's complicated.
Responding to a Forbes article with a Free Beacon article. 🤡Is America Really Producing More Oil Under Biden Than Trump? No, Obviously Not.
The White House and its allies are circulating a misleading talking point that the Biden administration is overseeing the most oil production in U.S. history.
This is pretty damn funny. Mom and Pop gas stations? They make all their money from stuff in the convenience stores. How does anyone take cable news seriously?
If we can avoid a bad hurricane season in the Gulf, the economics should continue down this path when we get out of summer.
If we can avoid a bad hurricane season in the Gulf, the economics should continue down this path when we get out of summer.
Let me try to explain to you how a sudden decrease in gas prices hurts the small business owner.
Let's presume the gas station owner buys gas at the current price. Let's say he makes 15 cents on every gallon sold. US average.
So over night the price drops 30 cents per gallon, the gas station owner, who buys fuel at a minimum of 8000 galons at a time, has to drop his price to keep up with his competition, who bought fuel this A.M. at the cheaper price.
So he loses 15 cent per gallon.
Or, as Biden has acussed the owner, he is price gauging.
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They made a ton when prices went up as they jacked up prices daily when ordering new fuel. These people run a glorified convenience store with higher margins on beer and food than fuel.
Also, if you are in the commodity business at some level, you must manage your risk. The big players know how to hedge their costs.
So, we complain when 400 MM people are paying more for gas but now lament over a couple hundred thousand people that have to manage a business they chose to go into as we are all paying 10% less at the pump vs. a month ago?
I edited my post to include a semi tanker of gas which is close to 8000 gallons.
Yes managers have to manage risk. But when your mark up is slim and the product you sell fluctuates drastically you take your marginal profits when you can. And people will always magnify their losses.
20 cents a gallon on 8000 gallon isn’t a ton of money. And that’s probably over a 4 day period. And remember that’s gross profit not net.
My point is that the POTUS should not chastise small gas station owners because:
1. Don’t sell as much product as higher volume stations and sell their product at market price even though they purchased it a week earlier at a low price.
2. There are times when the opposite occurs.
