$7/gallon gas is coming

[Anonymous]

Anonymous wrote:

Anonymous wrote:

American oil production is at all time highs. When you hear news about "the dems holding leases' - those leases take DECADES to develop and have nothing to do with current oil and gas prices.

By the time anyone would need that fossil fuel, we likely will be mostly on renewables and electric cars with little to no need to continue to destroy the environment or our air for the damage of fossil fuels.

But go on and complain about it as if you are an expert.

For oil companies, every barrel drilled is a barrel they cannot sell in the future. If you open up more leases, that increases the future supply, and lowers the future price. This changes the oil company calculation regarding what to sell now.

No. The cost of oil is a commodity and is set by world wide demand. If the price to extract oil from a given area is less vs the benchmark for that type of oil the oil is left in the ground. If prices fall and an active well becomes unprofitable the well is shut down. Oil is a boom bust business. They will not increase drilling unless oil price rise by 20-30% and stay there.

[Anonymous]

Unlike in most petrostates, where state-owned firms dominate drilling, American oil is pumped by private firms, which make their own decisions. They have increased output by so much since 2022, when Europe started shunning Russian barrels, that America is already the largest producer of crude in the world. In October it cranked out a record 13.5m b/d, up from 11.5m when the Ukraine war began. To go further, America’s oilmen need a convincing reason.
They may not get one. America’s shale oil, which accounts for most of its output, used to be pumped by thousands of tiny, trigger-happy firms. A wave of mergers and failures since the late 2010s, when overproduction caused prices to crash, means that the industry is ruled by a few large companies that hate risk. Their shareholders require stable dividends and double-digit returns. Moreover, dearer capital comes on top of rising costs: as production has surged the best wells have been depleted. Shale firms therefore have little incentive to drill more unless oil prices reach $89 a barrel, according to a survey by the Kansas City Federal Reserve. At less than $70 a barrel today, West Texas Intermediate (WTI), America’s oil-price benchmark, is far from that threshold.

The market looks unlikely to move in a helpful direction for Mr Trump. Not only is global oil supply plentiful, but members of the Organisation of the Petroleum Exporting Countries (OPEC) have plenty in reserve. At the same time, demand is weak because of tepid global economic growth and the replacement of petrol-powered cars by electric vehicles. No wonder the Energy Information Administration (EIA), a federal agency, expects America’s oil production to rise by only 0.6m b/d by 2028. On December 5th Chevron, America’s second-largest energy firm, slashed its capital-expenditure forecast for 2025.

Economist.


Bottom line it will be very talk to increase oil production. OPEC has plenty of capacity. Trump would have to pay oils companies to drill and produce more oil.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

American oil production is at all time highs. When you hear news about "the dems holding leases' - those leases take DECADES to develop and have nothing to do with current oil and gas prices.

By the time anyone would need that fossil fuel, we likely will be mostly on renewables and electric cars with little to no need to continue to destroy the environment or our air for the damage of fossil fuels.

But go on and complain about it as if you are an expert.

For oil companies, every barrel drilled is a barrel they cannot sell in the future. If you open up more leases, that increases the future supply, and lowers the future price. This changes the oil company calculation regarding what to sell now.

Not when you are talking 10-20 years down the road, and with renewables and EV coming on line, the demand for oil will continue to fall. So no, not really.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

American oil production is at all time highs. When you hear news about "the dems holding leases' - those leases take DECADES to develop and have nothing to do with current oil and gas prices.

By the time anyone would need that fossil fuel, we likely will be mostly on renewables and electric cars with little to no need to continue to destroy the environment or our air for the damage of fossil fuels.

But go on and complain about it as if you are an expert.

For oil companies, every barrel drilled is a barrel they cannot sell in the future. If you open up more leases, that increases the future supply, and lowers the future price. This changes the oil company calculation regarding what to sell now.

Not when you are talking 10-20 years down the road, and with renewables and EV coming on line, the demand for oil will continue to fall. So no, not really.

OPEC has so much excess capacity and China’s increase use of EV can sink prices. Also tariffs always reduce demand. Think Saudi can pull a barrel of oil out of the ground for $5. For big producers in Texas it is $26 to cover the cost and smaller producers it is $44. Though all of the easy(cheap) oil has been gotten. Oil shale is $50-$95 a barrel to produce with some saying it closer to the higher side($70-$95).

Right now oil shale is 9 million barrels a day out of 13 million in the US. Shale oil does have quick decline problems- ie the wells quickly become less productive, harder and more expensive to extract as time goes on.

The only way Trump can confidently meet his goals in oil production is to nationalize the industry or pay a subsidy of $30- $50 a barrel for domestic producers for like 8-10 years. That would do it and the access oil can be shipped over to Europe?

[Anonymous]

MAGA can breathe a sigh of relief: Trump is getting them their $7 a gallon gas.

Congrats!

U.S. consumers will see higher prices at the gas pump from President Donald Trump’s decision on Saturday to apply tariffs on Canadian and Mexican oil, according to analysts and fuel traders.

https://www.nbcnews.com/news/amp/rcna190320

[Anonymous]

Anonymous wrote:Good

Good. It’s time for the dumb,red state voters to feel the pain of voting for this cult leader, president elon and his orange side kick.

[Anonymous]

I have seen gas go down about 25 cents a gallon.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Good

Good. It’s time for the dumb,red state voters to feel the pain of voting for this cult leader, president elon and his orange side kick.

They don’t care as long as they “heard” that their amigo neighbors gone, so much winning. They don’t have thinking comprehension ability beyond that.

[Anonymous]

Anonymous wrote:MAGA can breathe a sigh of relief: Trump is getting them their $7 a gallon gas.

Congrats!

U.S. consumers will see higher prices at the gas pump from President Donald Trump’s decision on Saturday to apply tariffs on Canadian and Mexican oil, according to analysts and fuel traders.

https://www.nbcnews.com/news/amp/rcna190320

They’re going to get $7 head of lettuce and $10 eggs too.

[Anonymous]

Anonymous wrote:Buy a Tesla and problem solved.

lol.

Built by Nazis, for Nazis.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Good

Good. It’s time for the dumb,red state voters to feel the pain of voting for this cult leader, president elon and his orange side kick.

They don’t care as long as they “heard” that their amigo neighbors gone, so much winning. They don’t have thinking comprehension ability beyond that.

I’m going to make stickers that say “Donald Trump did this” and put them all over gas stations in Central PA.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Good

Good. It’s time for the dumb,red state voters to feel the pain of voting for this cult leader, president elon and his orange side kick.

They don’t care as long as they “heard” that their amigo neighbors gone, so much winning. They don’t have thinking comprehension ability beyond that.

I’m going to make stickers that say “Donald Trump did this” and put them all over gas stations in Central PA.

Five minutes of Truth Speak from Diaper Don and they will think that’s it’s Christian to pay more for gas or something.

[Anonymous]

Anonymous wrote:

Anonymous wrote:And the pipeline is still closed for what reason?

Tell me you have no earthly idea what the Keystone Pipeline was for without telling me you have no earthly idea what the Keystone Pipeline was for.

Np. I am getting so tired of people saying ' tell me you have no idea about x without telling me you have no idea about x'

It insults without educating or adding anything to the conversation.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Buy a Tesla and problem solved.

lol.

Built by Nazis, for Nazis.

Never buy a tesla.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Buy a Tesla and problem solved.

lol.

Built by Nazis, for Nazis.

Never buy a tesla.

Too late. Tons of rich libs already did.