Reply to $7/gallon gas is coming

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

Lots of conjecture with no proof there.

[b]Biden stopped the lease program and he’s almost directly responsible [/quote][/b]

Why do they need more leases? Trump sold a sh#tload of leases that are not even being utilized yet for drilling/exploration by the companies. There is zero need for more leases right now, considering they are not even using the ones they already have!

The fact of the matter is that they don't want to invest their own money - they want taxpayer subsidies to drill. [/quote]

God, you DCUM office workers are completely overeducated but know nothing of value in the real world.  Drilling for oil is not an on/off switch.  Drillers can lose substantial amounts of money if they get fooled by market head fakes, which is why they only conservatively increase production even while oil prices rise because they can get burned if there's a downturn in demand.

It takes 3 months to begin to drill a new rig.  If a company tries to start gearing up to go after more oil today, it won't be able to produce actual supplies of oil until 9-12 months later.  Where will oil be 12 months from now, do you know?  Drillers also face out of control inflation.  Companies now have to pay upwards of 15-20% more for rigs than they used to just a little while ago.  No one is going to drill for oil if it isn't profitable due to inflation eating away at producer margins.  The futures market also shows the threat of super backwardation - where oil may significantly dropoff over the coming year.  Why would a producer produce more if there's a serious threat that prices will rapidly retreat over the next year?  [/quote]

OK, so what's your solution? "MOAR LEASES" doesn't solve anything.

Just admit what you want: [b]the taxpayer teat. [/b] [/quote]

NP - simple, less regulatory burden on the oil companies is better than MOAR leases.  We were completely energy independent starting in 2018 through 2020... there was a reason why and it just wasn't the leases.  Biden is trying to please his left flank and reports say Biden is considering a trip to Saudi Arabia to personal plead for more oil for the west.[/quote]

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