$7/gallon gas is coming

[Anonymous]

Anonymous wrote:Everything Democrats touches, turns shit. Good luck paying high gas , food, rent, and household goods America.

Tovarishch, ty otlichno sosesh' penis putina

[Anonymous]

Anonymous wrote:Don’t care. Russia/Putin are terrible and deserve sanctions. I would rather walk than buy cheap gas off the backs of Ukrainians.

Worse than terrible. Look at the havoc Putin has managed to wreak in this country.

[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.

I notice you make this stupid response “tell me … without telling me” on multiple threads. You’re not original or cute. Please go away.

[Anonymous]

Why are Americans having to live so close the edge that a dollar rise in gas prices is killing them?

Why are energy companies making record profits?

[Anonymous]

Anonymous wrote:

About a dozen or so pages back I was lectured for pointing out the problem here, but I’ll try again:

1. Drilling for oil is a technically complex operation. You’re trying to extract a molecule thousands of feet beneath the surface of the earth. You’re drilling into asymmetric geological formations. Those formations will determine the success of your venture. You can’t actually put your eyes on the molecule until it is extracted. There is a reason why Petroleum engineers are amongst the best paid on the planet.

2. Drilling for oil is a capital intensive business. Most of your costs are upfront before you start to collect revenue. The economics on any particular well are typically based on 30+ years of production from that well. Investing in a new well is inherently a very long term commitment.

3. Even under ideal circumstances, assuming you have a lease to drill on, first planning to first production takes about 180 days. Typically, it is much longer. Presently, it would be even longer due to labor and supply shortages.

4. EVEN BEFORE COVID, the oil business in North America was going through a historic reorganization with record bankruptcies filed. COVID further supercharged the process. Numerous big time investors flat out declared they would never invest in the space again. Politicians all over the globe have stated a desire to phase out oil sometime between 2030 to 2050.

5. EVEN BEFORE RUSSIA ATTACKED UKRAINE, the price of oil was steadily marching upward as demand was outstripping market forecasts. Just like COVID accelerated what was already a badly declining price environment, Russia’s actions accelerated what was a badly increasing price environment.

Now, a bunch of politicians who as recently as three weeks ago were openly cheering on/trying to legislate the end of the oil industry, have a SHORT term problem. They want oil companies to deploy expensive LONG term solutions to solve the problem. I don’t know what the solution is and there are probably a thousand more wrinkles to this problem I’ve left out from this post.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Don’t care. Russia/Putin are terrible and deserve sanctions. I would rather walk than buy cheap gas off the backs of Ukrainians.

Worse than terrible. Look at the havoc Putin has managed to wreak in this country.

Completely agree but didn’t want to be dismissed as hyperbolic.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Who is this thread for? Polling shows that Americans, including among Republicans, overwhelmingly support higher gas prices if it means damaging sanctions for Russia.

You oil lobbyists and pro-Putin lapdogs are only convincing yourselves. Not anyone else.

LOL, ask them again in a few months.
I am neither pro Putin nor pro oil, but gas prices are a holy cow for Americans and it will cost democrats many many seats

Only if Americans are stupid.

[Anonymous]

Anonymous wrote:Why are Americans having to live so close the edge that a dollar rise in gas prices is killing them?

Why are energy companies making record profits?

These are excellent questions that the people demanding $2 gallon gas for their SUVs are not interested in addressing. It's much easier to complain about Biden and also they secretly love it because they think it will bring him down. They actually don't care about the low-wage workers who are hurt the most by gasoline costs. If they did they'd be fully on the side of working to close the wage gaps of CEOs and workers and to promoting renewable energy technologies that would lessen dependence on the fossil fuels that are killing our planet.

[Anonymous]

Anonymous wrote:Why are Americans having to live so close the edge that a dollar rise in gas prices is killing them?

Why are energy companies making record profits?

With respect to your first question, the price of oil flows through everything. It isn’t just your car that gets more expensive. Your food gets more expensive and not just to ship it from the farm to your grocery store. What do you think farmer John puts in his tractor to work his farm? Pretty much every single physical good or commodity is impacted by the price of oil.

As to your second question, because after years of historic losses due to an oversupply of oil, the world now appears to be undersupplied.

[Anonymous]

Anonymous wrote:

Anonymous wrote:Why are Americans having to live so close the edge that a dollar rise in gas prices is killing them?

Why are energy companies making record profits?

These are excellent questions that the people demanding $2 gallon gas for their SUVs are not interested in addressing. It's much easier to complain about Biden and also they secretly love it because they think it will bring him down. They actually don't care about the low-wage workers who are hurt the most by gasoline costs. If they did they'd be fully on the side of working to close the wage gaps of CEOs and workers and to promoting renewable energy technologies that would lessen dependence on the fossil fuels that are killing our planet.

Truth.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Was mentioned several times upthread, the investments to expand production are uneconomical to companies like Shell. It would take either some sort of regulation or incentive by US gov for these companies to expand production.

That is not true production is expanding and is extremely profitable at current price points. The problem, as it were, is more that companies are not convinced that this price spike isn't just temporary. Investments in production capacity take at least a year to start seeing a return. They are holding back because of how hard many companies got hit by debt issues from 2018-2020 and not having a clear idea where the price of oil will be a year from now. Investors want financial discipline and dividends over growth. The market will take some time to adjust but it will. The oil guys also want a pat on the head and a belly rub

That's how the oil industry has always worked. Certain wells are always profitable, as the prices rise, other sources like shale and deeper water become profitable, as the price falls, those rigs are taken off line.

Of course, it's basic economics. I'm just pushing back on the assertion that increasing production is uneconomical.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

About a dozen or so pages back I was lectured for pointing out the problem here, but I’ll try again:

1. Drilling for oil is a technically complex operation. You’re trying to extract a molecule thousands of feet beneath the surface of the earth. You’re drilling into asymmetric geological formations. Those formations will determine the success of your venture. You can’t actually put your eyes on the molecule until it is extracted. There is a reason why Petroleum engineers are amongst the best paid on the planet.

2. Drilling for oil is a capital intensive business. Most of your costs are upfront before you start to collect revenue. The economics on any particular well are typically based on 30+ years of production from that well. Investing in a new well is inherently a very long term commitment.

3. Even under ideal circumstances, assuming you have a lease to drill on, first planning to first production takes about 180 days. Typically, it is much longer. Presently, it would be even longer due to labor and supply shortages.

4. EVEN BEFORE COVID, the oil business in North America was going through a historic reorganization with record bankruptcies filed. COVID further supercharged the process. Numerous big time investors flat out declared they would never invest in the space again. Politicians all over the globe have stated a desire to phase out oil sometime between 2030 to 2050.

5. EVEN BEFORE RUSSIA ATTACKED UKRAINE, the price of oil was steadily marching upward as demand was outstripping market forecasts. Just like COVID accelerated what was already a badly declining price environment, Russia’s actions accelerated what was a badly increasing price environment.

Now, a bunch of politicians who as recently as three weeks ago were openly cheering on/trying to legislate the end of the oil industry, have a SHORT term problem. They want oil companies to deploy expensive LONG term solutions to solve the problem. I don’t know what the solution is and there are probably a thousand more wrinkles to this problem I’ve left out from this post.

Still doesn’t mean the windfall should be paid out to shareholders rather than invested in more efficient energy sources or somehow used to soften the price increases on consumers. The message to consumers is that the companies and the shareholder are happy with inflation. They making out like robber barons at their consumers’ expense.

[Anonymous]

I'm not sure why so many people are condemning the President when oil companies are raising prices, prioritizing paying dividends to share holders, and raking in huge profits at the expense of the customers.

The President has made a bi-partisanly politically popular decision to ban the import of oil from Russia in response to the Russian invasion of Ukraine. But that, and even the closing of the XL pipeline are not the reasons why the price of gasoline is skyrocketing at the pump. The oil companies should be held accountable, not the President. Most other corporations out there, when faced with rising costs, tighten their belts, decrease their profit margins and lower dividend payouts to shareholders in order to minimize the amount they raise the price of their products. Not oil companies. And the oil companies get to skip off scott free and let the politicians take the blame.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Was mentioned several times upthread, the investments to expand production are uneconomical to companies like Shell. It would take either some sort of regulation or incentive by US gov for these companies to expand production.

That is not true production is expanding and is extremely profitable at current price points. The problem, as it were, is more that companies are not convinced that this price spike isn't just temporary. Investments in production capacity take at least a year to start seeing a return. They are holding back because of how hard many companies got hit by debt issues from 2018-2020 and not having a clear idea where the price of oil will be a year from now. Investors want financial discipline and dividends over growth. The market will take some time to adjust but it will. The oil guys also want a pat on the head and a belly rub

That's how the oil industry has always worked. Certain wells are always profitable, as the prices rise, other sources like shale and deeper water become profitable, as the price falls, those rigs are taken off line.

Of course, it's basic economics. I'm just pushing back on the assertion that increasing production is uneconomical.

Increasing production is uneconomical for the companies for all the reasons mention by the poster at 15:54

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

About a dozen or so pages back I was lectured for pointing out the problem here, but I’ll try again:

1. Drilling for oil is a technically complex operation. You’re trying to extract a molecule thousands of feet beneath the surface of the earth. You’re drilling into asymmetric geological formations. Those formations will determine the success of your venture. You can’t actually put your eyes on the molecule until it is extracted. There is a reason why Petroleum engineers are amongst the best paid on the planet.

2. Drilling for oil is a capital intensive business. Most of your costs are upfront before you start to collect revenue. The economics on any particular well are typically based on 30+ years of production from that well. Investing in a new well is inherently a very long term commitment.

3. Even under ideal circumstances, assuming you have a lease to drill on, first planning to first production takes about 180 days. Typically, it is much longer. Presently, it would be even longer due to labor and supply shortages.

4. EVEN BEFORE COVID, the oil business in North America was going through a historic reorganization with record bankruptcies filed. COVID further supercharged the process. Numerous big time investors flat out declared they would never invest in the space again. Politicians all over the globe have stated a desire to phase out oil sometime between 2030 to 2050.

5. EVEN BEFORE RUSSIA ATTACKED UKRAINE, the price of oil was steadily marching upward as demand was outstripping market forecasts. Just like COVID accelerated what was already a badly declining price environment, Russia’s actions accelerated what was a badly increasing price environment.

Now, a bunch of politicians who as recently as three weeks ago were openly cheering on/trying to legislate the end of the oil industry, have a SHORT term problem. They want oil companies to deploy expensive LONG term solutions to solve the problem. I don’t know what the solution is and there are probably a thousand more wrinkles to this problem I’ve left out from this post.

Still doesn’t mean the windfall should be paid out to shareholders rather than invested in more efficient energy sources or somehow used to soften the price increases on consumers. The message to consumers is that the companies and the shareholder are happy with inflation. They making out like robber barons at their consumers’ expense.

These are not Nationalized companies, they are private, for profit - of course profits are passed on to shareholders as is the duty of the company to do so. It's up to the US government to take countermeasures or regulate the industry more heavily due to implications to national security and interests.