OPEC plus 1= a whole lotta pain

Maybe some need to learn how to read and understand what is posted. The corporate greed is from the oil companies price fixing and making record quarterly profits in the billions of dollars. Nobody is saying that extra drilling will not bring prices down. But all the oil companies are looking at is making as much profit as possible and they will sell to the highest bidder. They don't give a damn about the US. tRumptards need a lesson in econ 101.

So just to clarify, if there was more oil being produced in the USA, you think that would solve a global energy deficit?

More US production would help alleviate the problem if not "solve" it. What do you think happened over the past decade? We replaced Saudi Arabia as the world's "swing producer". By handcuffing domestic production, Biden is now ceding market power back to the Saudis, OPEC and Russia.

What would oil producers in the USA do if they had more oil on hand?

The same thing they did with the extra 7 million bpd they starting pumping over the past decade! They would flood the global market, keeping oil prices low!

Would they sell it at a discount for domestic USA users, or as publicly traded entities, would they sell on the global market at whatever the price was globally? Originally Posted by eyecu2

Crude oil prices are set globally. Higher production (from whatever source) means lower prices than would otherwise be the case. Even if global demand rises faster than supply, more US output will help restrain price increases. It's not rocket science.

Please help out poor rmg_35. Maybe there's an Econ 101 class he can attend at CCAC.

Maybe some need to learn how to read and understand what is posted. The corporate greed is from the oil companies price fixing and making record quarterly profits in the billions of dollars. Nobody is saying that extra drilling will not bring prices down. But all the oil companies are looking at is making as much profit as possible and they will sell to the highest bidder. They don't give a damn about the US. tRumptards need a lesson in econ 101. Originally Posted by rmg_35

Oh dear! Someone has a bug up his ass against making a profit.

Greed, greed, greed!

Go back and look at the second graph in my post #15 above.

If the oil companies are price fixers, why did they let crude prices slump in 2014 from $120 to under $50 a barrel? That made a lot of domestic US wells unprofitable almost overnight.

If it costs you $60 to produce something you can only sell for $40, would you do it?

Profits are what keep you in business, losses are what put you out of business. Did you never learn that basic lesson?

By the way, price fixing is illegal under US anti-trust laws. If you have evidence of oil company collusion on prices, why haven't you handed it over to the anti-trust division of Biden's Department of Justice? I'm pretty sure they would jump at the chance to prosecute the oil majors and scapegoat them even more for our soaring gas prices!

Of course, most intelligent people understand that the real price fixers are OPEC. They meet the classic definition of a cartel. In case you didn't read (and understand) the OP, this cartel just got together and agreed to cut their members' output by 2 million bpd in an effort to keep global crude prices high.

Are they being greedy? Why aren't you whining about OPEC's greed?

By the way, I'm still waiting for you to explain why Biden wants to lift sanctions on your socialist buddy Maduro in Venezuela, instead of encouraging more oil production at home.

If you can't explain or defend it, just say so.

You're talking too much sense. All tRumptards can do is post bullshit they hear on faux and truth social. Biden has been approving new drill, but tRumptards will not mention anything about the greedy oil companies making record billions of dollars in profits. More drilling is not going to solve the corporate greed that is going on in this country. Originally Posted by rmg_35

Do you just make these lies up or does the DNC feed them to you?

This is what Senile Biden has done in terms of issuing new oil and gas leases. The Senile Biden administration has leased fewer acres for oil-and-gas drilling offshore and on federal land than any other administration in its early stages dating back to the end of World War II.:



As to corporate greed, I see Lusty is already schooling you on that lie of yours.

Senile Biden’s entire foreign policy is now wholly subservient to his mad dash to replace the domestic energy resources he shut down. So the self-anointed global democracy crusader will finance authoritarian communism in our own hemisphere to get Maduro’s oil before midterms. Depraved.

The Wall Street Journal - The Biden administration is preparing to scale down sanctions on Venezuela’s authoritarian regime to allow Chevron to resume pumping oil there, according to people familiar with the proposal

Senile Biden draining our oil reserves just to mitigate Democrat losses in the midterm election might be the most despicable thing a president has ever done.

BX2, nobody disputed more oil means lower prices, but do you really think that's what the producers of oil want? Do they want to spend millions per hole to sell their product at 1/2 the price, or do they like the price high, and sell at 2x the price and drill zero million dollars per hole?

The economics are not in disguise here. And if suddenly there was way more oil available, there would still be the inelasticity of oil prices.

Another way to look at this is that there was 5x the drilling and oil exploration companies from 2008-2014...but then oil prices crashed, and more than half went out of business due to low oil revenue. The Pickens were good for those who survived but I doubt any of them will want to be in that situation again by over producing and financially killing themselves in the process. The legitimate level for oil prices is being manipulated by OPEC...and we will see if domestic producers take the bait. Remember -oil in foreign countries is not private but government owned. Politics and policy alone will not impact drilling domestically. Money will.

I guess my point with the response from Salty is this-

If the oil produced in the USA is also part of a global commodity - subject to global pricing, why would the USA oil be sold at a discount to local distillation vs. on a global market; or would retailers and owners of the oil price it at or close to the global value of oil?

I think they would in fact, price the oil at or close to the same global prices (minus perhaps cost for shipping) but it would not become grossly worth less money- ergo less money after distillation and at the gas pump. Global prices and commodities is a sad reality when you open your markets for export. There used to be laws that prohibited the sale of oil and gas out of the USA, and then Marcelles Shale came to play- and exports were allowed.

Sometimes open markets are not good for those who consume products that are allowed into the global market. The ends meaning, the price is the price- Just like selling a car on ebay vs. down at the local dealership. You might get a better price selling to the largest audience you can find.

This doesn't also include that oil companies are facing increases in costs to drill now due to increased borrowing costs and if oil prices drop, the net costs to produce are really subject to high market volatility and fluctuations. I would think the current wells that are producing, will likely get an infusion of capital for re-fracking and higher production rates; but new wells, nope. Production companies will likely sit out the latest round of increases until the prices stabilize to a point where they feel like more oil will not decrease prices long term.

If the oil produced in the USA is also part of a global commodity - subject to global pricing, why would the USA oil be sold at a discount? Originally Posted by eyecu2

Here's one example - when Bakken oil up in North Dakota started to be produced in significant volume a few years ago, it couldn't easily reach refiners on the Gulf or east coasts because normal distribution via pipeline was blocked by environmental activists. A glut built up in the Midwest, causing producers to offer sizeable discounts versus oil sold in the rest of the country.

Sometimes open markets are not good for those who consume products that are allowed into the global market. Originally Posted by eyecu2

Au contraire. Free trade and open markets almost always benefit the consumer... by driving down prices and making thousands of products more affordable. That's an Econ 101 lesson!

when open markets create competition of buyers, not just producers- that is a positive price increase feature; good for product owners, but not for local consumers.

In closed market as mentioned, with Bakken etc., the locals made out due to a glut of production. Hence lower prices.

My comments are that open markets are NOT always good for the consumer; They almost always are to the advantage of the manufacturer or producer- due to reaching a wider consumer group, but at the plus or minus of supply. The demand portion is why open markets exist.

Supply and demand is the issue- and domestic increases will NOT be able to help out due to open markets with new transmission lines and all. Those who clammer for the building of bigger/ better pipelines, don't always realize that while it benefits the producer, it's not always good to consumers. While there could be a case of the lowering of production cost and hence a lower sales price. that conservation of costs isn't going to exist in the oil and gas industry as refining expenses are fairly consistent and fixed. Transportation cost are a variable, but not enough to really create a drop in sale price more than 10%.

So just to clarify, if there was more oil being produced in the USA, you think that would solve a global energy deficit?


What would oil producers in the USA do if they had more oil on hand?

Would they sell it at a discount for domestic USA users, or as publicly traded entities, would they sell on the global market at whatever the price was globally? Originally Posted by eyecu2

Doesn’t matter, it’s a global market. The more energy we dump in, the lower the cost. They don’t have to discount it to Americans, that’s what will happen all by itself.

It’s 6th grade economics, and exactly what biden is trying to do but not by drilling, but by dumping the SPR into the market. That’s only a short term solution, but his administration doesn’t give AF. Their only objective is to unnaturally suppress prices until the next election.

Doesn’t matter, it’s a global market. The more energy we dump in, the lower the cost. They don’t have to discount it to Americans, that’s what will happen all by itself.

It’s 6th grade economics, and exactly what biden is trying to do but not by drilling, but by dumping the SPR into the market. That’s only a short term solution, but his administration doesn’t give AF. Their only objective is to unnaturally suppress prices until the next election. Originally Posted by Jacuzzme

This 100%. Well said

So shocking that OPEC saw right through Senile Biden admin's idiotic idea that it will somehow fund OPEC capital spending if only OPEC ignores its own best interest and helps libtards (including the green earth morons) win the midterms.

Senile Biden would rather beg foreign nations for oil and make hardworking Americans pay record high gas prices than unleash American energy.

Weak, reckless, and incompetent.