Hello oil money for an Olsen renovation.

What a great day!

And I finally figured out what today feels like. It is like when Reagan beat Carter. Malaise to excellence.

Just not tooooo much, a barrel needs to stay at a certain level to add suites.

Putting money back in the bank accounts of hard working Americans.

Liquid gold, right under our feet!

Muy said:

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Just not tooooo much, a barrel needs to stay at a certain level to add suites.

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Dude, don't mess with my vibe.

Oil companies aren't going to drill more like you guys think. They are first and foremost interested in optimizing profit

jt16 said:

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Oil companies aren't going to drill more like you guys think. They are first and foremost interested in optimizing profit

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They will because we will create massive new markets through exporting oil and gas, and the federal government will be purchasing a ton of it to replenish and grow our strategic reserve, not to mention the additional economic activity at home that will create an increased need for the product.

And profits will be maintained.

dermdoc said:

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Muy said:

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Just not tooooo much, a barrel needs to stay at a certain level to add suites.

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Dude, don't mess with my vibe.

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Why can't we have both?

Muy said:

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dermdoc said:

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Muy said:

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Just not tooooo much, a barrel needs to stay at a certain level to add suites.

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Dude, don't mess with my vibe.

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Why can't we have both?

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Because I am a simple man,

Exactly . The industry isn't going to drill themselves into lower prices . When economy and demand pick up you'll see the D & C activity pick up. Imo, nat gas will ramp up b4 oil will. Drill baby drill was always a laymen's way to say get out of the the way and we'll keep prices in the Goldilocks range .

The days of drilling just for the sake of production growth are over . That's what gets you booms and busts which aren't good for anyone.

jt16 said:

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Oil companies aren't going to drill more like you guys think. They are first and foremost interested in optimizing profit

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They might have no choice. But the last couple of decades have been.. expand production and capex during R's, then enjoy the fruits of the labors with decreased supply and decreased spending during D's.

PA24 said:

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It really is flare baby flare.

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increase LNG exports and flaring drops significantly

Ragoo said:

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PA24 said:

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It really is flare baby flare.

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increase LNG exports and flaring drops significantly

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Heard something today about Brandon barring all export of LNG on his way out of town. If so, hopefully Trump can undo that crap.

What do you mean, will have no choice? What would that look like ? You can't force that . You could I suppose incentivize it with tax treatment but that's no different than crop subsidies . Not something I'd want to see as a former industry worker and still a cheerleader for the O & G industry .

Fill SPR fill!!

jt16 said:

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Oil companies aren't going to drill more like you guys think. They are first and foremost interested in optimizing profit

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Right! When have oil companies ever over produced. Just like builder never over build, doctors never over prescribe or stock traders never over inflate. We are a society built on moderation and prudent behavior.

Drill baby drill means cheap oil, stacked rigs, then expensive oil. Cheap gas and happy oil field don't intersect

halfastros81 said:

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What do you mean, will have no choice? What would that look like ? You can't force that . You could I suppose incentivize it with tax treatment but that's no different than crop subsidies . Not something I'd want to see as a former industry worker and still a cheerleader for the O & G industry .

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With supply expanding, it puts downward pressure on prices. To make the same profits as the last 4 years, they would have to increase production to sell more at lower prices.

But again, nothing exists in a vacuum. And it takes a long time to go from planning, to implementation, to production, to profit. Recent history shows the bigs use R administrations to do the hard work and then profit immensely when the D's put a cap on supply.

The industry works on returns on investment . The days of increasing volumes just to get production growth are over. What you can do is get rid of unnecessary regs and red tape that slows things down and increases costs so that the returns are still there at lower prices . You can also open up areas for exploration that the commies closed.

That would help for sure . What would help more is an improving domestic and world economy and thus increased demand . That causes prices to rise and the industry will drill into that up to a point.

To lower gas prices at the pump!

halfastros81 said:

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The industry works on returns on investment . The days of increasing volumes just to get production growth are over. What you can do is get rid of unnecessary regs and red tape that slows things down and increases costs so that the returns are still there at lower prices . You can also open up areas for exploration that the commies closed.

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Think we're arguing two different things. The price of oil dropped last time Trump was president as America expanded production (some of which was the fruits of the labors of revolutionary DD) and became energy independent. My only point is that if oil companies want to see the same profits they've been seeing under Biden, it will only be able to happen with increased production. But that assumes oil prices drop. If for some reason they don't, you're right, nothing much will change.

Unpopular opinion...

Drill Baby Drill is actually NOT very good for US producers. Oddly Democrats are frequently better for US Oil & Gas companies as their policies drive prices up. Republican admins tend to drive prices down due to friendlier operating environments that encourage over-drilling.

As someone who has worked the body of water fka the Gulf of Mexico since 2000, including the last 12 years as head of the group that manages leases sales for a GoA operator and does the deals that flow from the leases acquired in those sales, I can only speak with direct knowledge of how things work in the OCS; but I think we need to temper our expectations of just how much industry will be able to deliver in the short run. This is primarily a function of geology and not any specific policy. Yes, the Biden administration did every thing it could to prevent us from growing in the GoA (fka GoM), BLM lands and even private land by way of regulations, especially environmental regulations, and also by welcoming lawsuits from their NGO friends who want to put the industry out of business and then entering into settlements with those NGOs that were harmful to our business.

But if Trump can just get the feds out of the way and stop the bureaucrats and agency rats from slow-playing everything, we can get after it and there will be an uptick in activity and eventually production. But the apolitical reality is that outside of areas like ANWR, geological reality will make it more challenging than ever to find material new reserves of oil. I do think we could see an uptick in natural gas production, especially if Trump can find a way to get the northeast to stop blocking it and we can get some LNG terminals permitted for export.

There's also a ton (several hundred Ts) of gas behind pipe in Alaska that could be sold to the far east. Those are areas that might show some real upside promise.

The flaring is associated gas in oil prone areas like parts of the Permian and Eagleford and Bakken (North Dakota) where the gas infrastructure isn't in place and you have to do something with the gas to produce the oil . The gas infrastructure in those areas has been expanded to some degree but oil prices are the driver for drilling the wells.

You don't see much gas flaring in places where natural gas is the economic driver for drilling the wells. They just slow down activity and even curtail gas production if the gas prices aren't high enough to turn a profit . Areas like the Haynesville Shale in North La /East Tx and NE PA.

A whole lot of people pretending they know anything about the oil industry in here.

• Need new refineries
• Need more domestic heavy
• Export the f out of light and LNG

Slightly different topic, but related: what are the odds Trump starts gutting the so-called Inflation Reduction Act, including the tax credit aspects for carbon sequestration? No company will squeal louder than XOM.

He could equalize the credit provided for ccs and use of CO2 flood for EOR and really rock industry's world in a good way. Could be an interesting move.

Modify existing refineries to better handle the light crude as well. Importing heavy crude from overseas and exporting light crude overseas is nonsensical .

Gordo14 said:

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A whole lot of people pretending they know anything about the oil industry in here.

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How about instead of laugh crying you quote the posts you disagree with and why you disagree with them. We'd love to see your knowledge of the industry.

If it's more than we can use now, get it out of here

There are some temporary flaring allowances of associated gas under OOOOb, but by and large you won't be able to flare associated gas shortly. Nothing Trump will do will remove that restriction from OOOOb. There are also restrictions on flaring under Part 27 and Part 50 in New Mexico, where most of the activity is. Texas is also getting to be a bit more of a stickler on associated gas flaring the last couple of years.

All that said, Trump can help with movement on OOOOc and the Waste Emission Charge (aka Methane Tax) under the IRA.

Trump can not force or coerce companies to drill more except through fast builds of gas export or guaranteed filling of the SPR.

Very happy sanity is returning to the world, but Trump is fairly limited in his capacity here.

Sure . Don't disagree but if you modify our refineries to better handle a higher volume of what we produce then you have to think it pays off over the long haul by getting rid of the transport costs and risks.

If the domestic refineries get modified the lighter stuff is easier/cheaper to refine to most of the products we need anyway.

Sensible post. Economics always win over the long haul.