Reply to $7/gallon gas is coming

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]

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.[/quote]

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.[/quote]

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.[/quote]

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?[/quote]

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