A 50% hair cut in crude is only a recession away
JP76 said:
A 50% hair cut in crude is only a recession away
To a large part, inflation now is us paying back all the free stimulus money that we received over the past two years. More money chasing the same or fewer products is a large cause of much of inflation.techno-ag said:Regulations and litigation hold up a lot of that drilling. Also multiple permits are sometimes needed for an area. If a dry hole comes up in exploratory drilling, the oil companies will stop drilling even though they have permits.75AG said:
Never been in the Oil and Gas bidness, therefore know nothing of the inner workings of pricing. But I'm told there are 9,000 unused drilling permits and read that the Alaskan lease sale was canceled because there was no interest from the industry. If profits are so high, and apparently they are, why no interest and why thousands of unused permits. Asking because I just don't know.
In short, it's very misleading to harp on the 9000 permits. Only 10 percent of drilling takes place on federal land anyway. Read more here if you're interested: https://www.verifythis.com/article/news/verify/national-verify/oil-permits-9000-unused-fact-check/536-2a657e09-856b-436c-a55d-df1cdf2acb3f
Finally, banks are encouraged not to lend to big oil. Supplies of pipe and sand have increased dramatically when they can even be found to begin with. And workers are in short supply.
All of that is on top of Biden shutting things down like the Keystone Pipeline on day one of his term. High prices are here to stay a while. Probably years, if ever, it goes back down to where it was, IMO.
Bidenflation is here to stay a while.
Monywolf said:
If you voted for this, remember, you voted for this.
Be wary of it. That app is one of the most notorious for tracking not only your location, but your phone usage overall.techno-ag said:
Time to download the GasBuddy app again.
techno-ag said:
Time to download the GasBuddy app again.
In Washington (state, not swamp), the pumps at some stations are now displaying a 0 in front of the current price.TyHolden said:
it will be $5-6 before end of summer....
Rapier108 said:In Washington (state, not swamp), the pumps at some stations are now displaying a 0 in front of the current price.TyHolden said:
it will be $5-6 before end of summer....
They've upgraded the pumps in an expectation of the price going over $10.
75AG said:
Never been in the Oil and Gas bidness, therefore know nothing of the inner workings of pricing. But I'm told there are 9,000 unused drilling permits and read that the Alaskan lease sale was canceled because there was no interest from the industry. If profits are so high, and apparently they are, why no interest and why thousands of unused permits. Asking because I just don't know.
More likely they were trying to buy the permits before Biden got in. The Democrats have a long history of being anti-oil.75AG said:
Not sure I understand. To make Biden look bad?
They've been told for years not to do that by pols and big investors. So they're giving it back to shareholders. Combine that with supply chain and labor issues, an unwillingness from banks to lend along with everything else going on, and they can't really expand drilling even if they wanted to.75AG said:
Makes sense. I wish they were using their record profits to expand drilling. Maybe that would help stabilize prices.
75AG said:
Not sure I understand. To make Biden look bad?