Reply to $7/gallon gas is coming

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][twitter]https://twitter.com/tomselliott/status/1500808667100286979[/twitter][/quote]

Domestic Producers have no plans to invest in domestic capacity, even at these high prices. They know the long term trends - move to electric vehicles, better efficiency in ICE, big leaps in battery tech - make their domestic investments moot in a couple years. It’s not enough time to recover the CapEx.

Further, a huge number federal land leases for drilling are not being used by the industry. They are just sitting on them, doing squat.

Time for Biden to grab the bully pulpit.[/quote]

Gasoline prices are based on futures - which is sentiment. The broad forward-looking sentiment under Biden is negative for gasoline. Despite available capacity, the expectation is that Democrats will continue to place additional restrictions to reduce domestic supply capacity in order to pursue green energy policies. [b]The current unwillingness for US to stop the importation of Russian oil[/b] is a very strong signal that Biden will continue down this path and therefore the market is reacting by bidding up the cost of oil. [/quote]

That decision would have huge implications and the Biden admin is unlikely to make that decision impulsively. I think they are trying to line up options to stabilize the market and US prices short term as they think of mid term and long term implications.  As someone upthread noted, we are past the inflection point, the technology is there (and economics viable) for alternative energy to take off. It will take some time, but there is no going back to oil no matter who is elected.[/quote]

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