There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

1939 said:

---

There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

---

Emotions.

Russia + John kerry + Joe biden

gotta ram Green New Deal in before November...

Al Gore touched himself

Same reason grocery stores ran out of toilet paper a few months back

Speculation, the higher it goes the more people are worrying about oil bans on Russia and prolonged war.

1939 said:

---

There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

---

The bold part is not entirely accurate. Yes, China and some other countries may be willing to keep buying Russian oil, but changing supply chains from current buyers and getting it to buyers willing to ignore a boycott is not as easy as it sounds. Russia has pipelines and shipping set up for the current market--trying to switch to other buyers would require some logistical changes.

Even without an oil embargo, Chinese banks are reluctant to get involved with purchases of Russian oil for fear of being cut off from business in the West for violating the banking sanctions, and this is effectively limiting the supply of oil right now, and causing trader's to factor in limited supply from Russia in setting prices for futures contracts.

1939 said:

---

There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

---

I think you answered your own question at the end there

West Texas looks like we still have $40/b oil. I get we can't just fire up production but oil has been going up for 8 months. There's a reason companies are not putting up capital to kick off production. And it's not because this administration supports O&G.

I saw an article last week that to get rid of some oil, the Russians had to discount it $28/bbl. Refiners are worried about getting stuck with product they can't move if they purchase the Russian oil and additional sanctions looming.

The countries that don't care about the sanctions are the ones not in position to pay with hard currency.

Also, uncertainty with war in Europe will cause prices to skyrocket.

Elon Musk needs to sell some Teslas

1939 said:

---

There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

---

There is a supply issue. The US is producing 10% less oil than pre-covid. It is heavy oil that mostly goes elsewhere to be refined, but we are all connected. Oil is global commodity.

Yesterday said:

---

West Texas looks like we still have $40/b oil. I get we can't just fire up production but oil has been going up for 8 months. There's a reason companies are not putting up capital to kick off production. And it's not because this administration supports O&G.

---

There is a reason that exploration is not going red hot in the US, that has nothing to do with the war, and that is that the Wall Street money which financed all that breakneck exploration has dried up, for two reasons: (1) investors are demanding more return on their capital, which they weren't getting in the former exploration race; and (2) the work of climate nutters has been effective in getting a lot of financial players out of financing oil and gas exploration.

1939 said:

---

There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

---

Because of stupidity.

The commodity is available from a democratic neighbor in Canada, yet this administration cancelled a pipeline ON DAY ONE that would have made it more readily and easily available to us. Similar decisions were made with ANWAR in Alaska years ago. Instead the choice is made to be reliant on product from risky places like Iran, Venezuela, Russia, and other OPEC members where the free flow will always be at risk. Seems like a strategy to keep the price elevated and at risk as compared to the opposite.

Supply will be an issue. Drilling activity has been way down.

ChemEAg08 said:

---

Speculation, the higher it goes the more people are worrying about oil bans on Russia and prolonged war.

---

So then as soon as this whole thing in Ukraine is over gas prices will drop back to where they were pre Putin invasion?

Gap said:

---

1939 said:

---

There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

---

Because of stupidity.

The commodity is available from a democratic neighbor in Canada, yet this administration cancelled a pipeline ON DAY ONE that would have made it more readily and easily available to us. Similar decisions were made with ANWAR in Alaska years ago. Instead the choice is made to be reliant on product from risky places like Iran, Venezuela, Russia, and other OPEC members where the free flow will always be at risk. Seems like a strategy to keep the price elevated and at risk as compared to the opposite.

---

I saw the redhead demon say "the pipeline oil would not be available now anyway even if we had not killed it"

That's the same crap Obama said when he killed the pipeline: "it wont be available for 10 years", when oil prices were spiking.

Well, that was 13 years ago! Had Obama approved it, the oil would be flowing now!

They are evil!

*81 million votes*

1939 said:

---

There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

---

As the western world's economy was re-opening from covid, we now have a massive disruption, coupled with a significant drop regionally in production (including the US). Regulatory increases (dramatic ones) also preclude domestic production rebounding. Oil pricing, while a commodity, is always speculative, to boot, including when the various factions threaten shipments from the persian gulf.

In short, it's a mess right now, and will be for a while. That the US is focused on methane emissions at home...just means exploration/new production here is going to remain depressed. As the Keystone day 1 demonstration showed, by Biden, even the economic transportation of oil is now considered an enemy of the state by Democrats. It's insane, and it won't stop until they are removed from office.

twk said:

---

Yesterday said:

---

West Texas looks like we still have $40/b oil. I get we can't just fire up production but oil has been going up for 8 months. There's a reason companies are not putting up capital to kick off production. And it's not because this administration supports O&G.

---

There is a reason that exploration is not going red hot in the US, that has nothing to do with the war, and that is that the Wall Street money which financed all that breakneck exploration has dried up, for two reasons: (1) investors are demanding more return on their capital, which they weren't getting in the former exploration race; and (2) the work of climate nutters has been effective in getting a lot of financial players out of financing oil and gas exploration.

---

3. Material shortage - even if operators want to drill new wells, casing and tubing availability is the worst I've ever seen.

4. Labor shortage - drilling contractors, service companies, etc. are having a hard time finding people to come work.

https://texags.com/forums/16/topics/3276423

TexAgs thread: "Can the Oil/Gas service sector keep up with demand?"

GeorgiAg said:

---

Elon Musk needs to sell some Teslas

---

actually Musk posted to social media that the USA is idiotic for not drilling more of it's own oil right now in this emergency!

nortex97 said:

---

1939 said:

---

There isn't a supply issue, and Sleepy is going to allow Iranian oil to flow in the next week it seems. Even if we stop buying Russian oil, it will just go to other parts of the world, but if they announce that oil will be at $150bbl.

---

As the western world's economy was re-opening from covid, we now have a massive disruption, coupled with a significant drop regionally in production (including the US). Regulatory increases (dramatic ones) also preclude domestic production rebounding. Oil pricing, while a commodity, is always speculative, to boot, including when the various factions threaten shipments from the persian gulf.

In short, it's a mess right now, and will be for a while. That the US is focused on methane emissions at home...just means exploration/new production here is going to remain depressed. As the Keystone day 1 demonstration showed, by Biden, even the economic transportation of oil is now considered an enemy of the state by Democrats. It's insane, and it won't stop until they are removed from office.

---

Biden also shut down operations in ANWR and other "national parks" which have been designated by the left all over the country.

the Biden administration has put in a lot of regulations making it harder and more costly to drill (whatever happened to the shale drilling industry?!?)

as well as shutting down pipelines, and denying permits.

LMCane said:

---

GeorgiAg said:

---

Elon Musk needs to sell some Teslas

---

actually Musk posted to social media that the USA is idiotic for not drilling more of it's own oil right now in this emergency!

---

I agree with Elon! Drill now! Now is not the time to worry about the environment. Crush Russia first!

Still supply and demand. If you're genuinely curious, a colleague of mine put together a good Facebook post. The takeaway is that it's nearly completely unrelated to this or the previous administration. Keep that I mind before you put a sticker on the gas pump because that's how people end up looking like idiots.

If you're not genuinely interested then let's just go with FJB! LETS GO BRANDON! It's cute and fits on a bumper sticker.

BrazosDog02 said:

---

Still supply and demand. If you're genuinely curious, a colleague of mine out together a good Facebook post. The takeaway is that it's nearly completely unrelated to this or the previous administration. Keep that I mind before you put a sticker on the gas pump because that's how people end up looking like idiots.

---

WRONG!

I see you never responded in the other thread where you claimed that no one but you understands oil and gas.

If shale companies decided today to increase production it would take a minimum of 6-12 months before that could be felt in the global price of oil

SouthTex99 said:

---

Well the price has kept people from hoarding fuel so there's that.

---

I guess they should have done this will toilet paper a couple years ago...

There is a supply issue. Where you get the information that there isn't ? All companies cut back 2 years ago and haven't matched prior supply. The company I work for had 8 rigs onshore and now we are only running 3- that's going to cut supply.

The only answer to OP: because people hated trump more than they loved America

The D said:

---

There is a supply issue. Where you get the information that there isn't ? All companies cut back 2 years ago and haven't matched prior supply. The company I work for had 8 rigs onshore and now we are only running 3- that's going to cut supply.

---

Did that supply issue start 2 weeks ago? There may be a supply issue as far as regulation and the like goes but oil inventories are not at critically low levels.

1939 said:

---

The D said:

---

There is a supply issue. Where you get the information that there isn't ? All companies cut back 2 years ago and haven't matched prior supply. The company I work for had 8 rigs onshore and now we are only running 3- that's going to cut supply.

---

Did that supply issue start 2 weeks ago? There may be a supply issue as far as regulation and the like goes but oil inventories are not at critically low levels.

---

The market isn't blind, and oil doesn't spoil. If you can see that there will be a shortage a few months down the road, oil is going to go up immediately as buyers try to stock pile.

JP_Losman said:

---

If shale companies decided today to increase production it would take a minimum of 6-12 months before that could be felt in the global price of oil

---

The way things are going we will need it.