Basic Truths About Oil
Daily Wire,
by
Erick Erickson
Original Article
Posted By: ladydawgfan,
3/14/2022 7:24:13 AM
In 2020, President Joe Biden declared war on oil and gas in America. In a Democratic primary debate, Biden declared, “No more subsidies for the fossil fuel industry. No more drilling including offshore. No ability for the oil industry to continue to drill, period. It ends.” High gas prices are all part of his plan.
The other day, Biden declared that there was nothing his administration had done to raise prices or restrict drilling. Actually, there have been plenty of regulatory measures taken and offshore leases curtailed. More importantly, Biden declared war on fossil fuels.
If you were an investor, would you invest in a company
Reply 1 - Posted by:
Rich323 3/14/2022 7:56:30 AM (No. 1099497)
Those Tesla’s will look great running on granite tires or steel tires since rubber will be impossible to manufacture without OIL.
13 people like this.
Reply 2 - Posted by:
Clinger 3/14/2022 8:06:39 AM (No. 1099513)
In the same week I believe with two days of each other Jen the Red told us that opening up the Keystone would have no immediate impact on gas prices because it wouldn't immediately flow oil. Then Joe Biden claimed that the spike in prices was triggered by Putin's build up on the border before the invasion.
Won't someone please ask the esteemed Ms. Psaki in the next propaganda session if future expectations as manifest in futures contracts do or do not have a near term effect?
8 people like this.
Reply 3 - Posted by:
JunkYardDog 3/14/2022 8:08:17 AM (No. 1099518)
OP makes excellent points. So many products depend upon petroleum byproducts that life as we know it today simply would not exist. The ones in charge of the Green Energy boondoggle are all hippy treehugging Gaia worshippers who would prefer the human race was extinct. So, you know, the planet could heal and could live happily ever after. The End.
10 people like this.
Reply 4 - Posted by:
wilarrbie 3/14/2022 8:46:08 AM (No. 1099573)
I keep wondering what they will do with all our gas guzzlers as more electrics come on line. Once the chips backlog is eased, used cars $ will come down - and soon you won't be able to get $40 for your trade-in. They already did Cash For Clunkers - what next?
6 people like this.
Reply 5 - Posted by:
Venturer 3/14/2022 9:08:13 AM (No. 1099599)
This is Biden speaking for Obama.
5 people like this.
Reply 6 - Posted by:
rikkitikki 3/14/2022 9:13:31 AM (No. 1099610)
Erickson's reasoning is absurd...because there is not enough potential in offshore drilling, and its actual production result so speculative and delayed into the future, that Bush's announcement was purely coincidental, not causative. In opposition to Erickson's main point, there simply are no futures traders who are stupid enough to believe that a presidential order to allow offshore drilling would materially impact oil production, and therefore prices, within the next ten years...which is the cycle time between an oil company's decision to consider new prospects, generating those prospects, getting leases, contracting a rig, drilling the prospect, throwing away the dry holes, drilling development wells, construction a production platform, and then putting the discovery on production. The process is infinitely more complicated, expensive, and risky, than driving a T-post into your back yard.
Consider the following list of actual disruptions to international oil markets (not some speculative event 10 years into the future):
In February 2008 Venezuela cut off oil sales to ExxonMobil during a legal battle over nationalization of the company’s properties there.
Production from Iraqi oil fields, of course, had still not recovered from wartime damage, and in late March saboteurs blew up the two main oil export pipelines in the south—cutting about 300,000 barrels per day from Iraqi exports.
On April 25, Nigerian union workers went out on strike, causing ExxonMobil to shut in production of 780,000 barrels per day from three fields.
Two days later, on April 27, Scottish oil workers walked off the job, leading to closure of the North Forties pipeline that carries about half of the United Kingdom’s North Sea oil production.
As of May 1, about 1.36 million barrels per day of Nigerian production was shut in due to a combination of militant attacks on oil facilities, sabotage, and labor strife. At the same time, it was reported that Mexican oil exports (tenth largest in the world) had fallen sharply in April due to rapid decline in the country’s massive Cantarell oil field.
On June 19, militant attacks in Nigeria caused Shell to shut in an additional 225,000 barrels per day.
On June 20, just days before the price of oil reached its historic peak, Nigerian protesters blew up a pipeline that forced Chevron to shut in 125,000 barrels per day.
https://www.resources.org/common-resources/the-2008-oil-price-shock-markets-or-mayhem/
3 people like this.
Reply 7 - Posted by:
MDConservative 3/14/2022 9:53:26 AM (No. 1099661)
#6, there are plenty of productive wells that were capped or left untapped when American oil prices fell in 2020 to unprofitable levels as low as $20/bbl, well below the $50/bbl general breakeven. They largely remain inactive.
Price volatility is a major factor for owners/investors. They've seen busts before. What happens to them when Russian oil comes back on line and the market is awash to pay Putin's war bills? It's all happened before.
2 people like this.
Reply 8 - Posted by:
Grateful 3/14/2022 10:36:53 AM (No. 1099717)
Lying Joe firmly believes that everyone is as dumb as him. We have seen perfect the lying thing for nearly 50 years.
5 people like this.
Reply 9 - Posted by:
smokincol 3/14/2022 10:49:41 AM (No. 1099732)
yah, the basic truth about oil is this: everybody needs it and the politicians control it, that's the problem
7 people like this.
OP is right, but I would be willing to wager that they don't write the articles, because they do not know about this reality. I didn't really either until the late great Rush Limbaugh talked about it on his show one day several years ago. This isn't just about the ability to drive, this is also going to kill 10's of thousands of jobs that depend on those byproducts that come from processed oil. The stupidity of democrats, especially Biden, is just staggering.
6 people like this.
Reply 11 - Posted by:
rytwng 3/14/2022 3:16:58 PM (No. 1099987)
Brandon doesn't know how many products require oil.
4 people like this.
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I have yet to read an article that mentions that petroleum is not just used for gasoline in our daily lives. Where are the articles mentioning that petroleum is also used in plastics, rubber, medicines, toothpaste, shampoo, lotions, Vaseline, road asphalt, etc. I have a list with over 3400 items on it that are petroleum-based but are NOT gasoline!! Shutting down petroleum affects every aspect of our lives, not just what we put in our cars!!