National Average Price of Gasoline Hits an All-Time High

#554
#554
Carl Pickens said:
Stupid ass liberals and various other dullards that voted for Sloppy Joe…. He told you and you voted for him anyway
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We knew this CC nonsense was going to come to a head tab some point. Well here we are...nut up America, especially the ones who can least afford it. But hey...that is when the handouts can really begin.
 
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#555
#555
InVOLuntary said:
Biden and his band of communist absolutely declared war of fossil fuels. They campaigned on it. People that voted for Biden voted for his war on fossil fuels.
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What does that have to do with today's prices? Let's say Biden is willing to issue a permit to drill on the front lawn of the White House (honestly, he could probably be talked into it if you had him alone).

So how quickly could you get a rig up and running? Engage a geologist, find someone actually willing to work on a rig right now...Conservatively 2-3 years?

Also, if the gas stations aren't running out of supply, and sales are still strong, what incentive to oil companies have to drill? Say you're the CEO of Chevron, why would you want the price to go down?
 
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#556
#556
MurphyVol said:
What does that have to do with today's prices? Let's say Biden is willing to issue a permit to drill on the front lawn of the White House (honestly, he could probably be talked into it if you had him alone).

So how quickly could you get a rig up and running? Engage a geologist, find someone actually willing to work on a rig right now...Conservatively 2-3 years?

Also, if the gas stations aren't running out of supply, and sales are still strong, what incentive to oil companies have to drill? Say you're the CEO of Chevron, why would you want the price to go down?
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Say you’re the CEO of Chevron, why would you want to aid those that have encouraged your death?
 
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#557
#557
85SugarVol said:
Say you’re the CEO of Chevron, why would you want to aid those that have encouraged your death?
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If I'm the CEO of Chevron, my legal duty is to act in the best interest of my shareholders.

The stock price is up 42% just since Jan 1st. Which direction do you think it'll go if oil goes back to $40/brl
 
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#558
#558
MurphyVol said:
If I'm the CEO of Chevron, my legal duty is to act in the best interest of my shareholders.

The stock price is up 42% just since Jan 1st. Which direction do you think it'll go if oil goes back to $40/brl
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It’s just a shell game between the gov and the oil companies and like always the gears in the machine is what pays for the friction. I wonder where Warren Buffett is sticking his billions these days 👀
 
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#560
#560
MurphyVol said:
$1.5 Bil in Occidental...nothing to see over here folks
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If I remember right , the article said that it was his second investment into them and that they are just pennies away from turning a profit . The old geezer knows how and more importantly when to make money . Lol
 
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#561
#561
MurphyVol said:
What does that have to do with today's prices? Let's say Biden is willing to issue a permit to drill on the front lawn of the White House (honestly, he could probably be talked into it if you had him alone).

So how quickly could you get a rig up and running? Engage a geologist, find someone actually willing to work on a rig right now...Conservatively 2-3 years?

Also, if the gas stations aren't running out of supply, and sales are still strong, what incentive to oil companies have to drill? Say you're the CEO of Chevron, why would you want the price to go down?
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Lol.
 
#564
#564
InVOLuntary said:
If you don't understand what the having the president declare war on fossil fuels having a negative impact on oil prices there is really no need to engage.
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I am all ears, what has Biden done to discourage drilling on the 240,000 acres in the Permian Basin that is privately owned by Occidental Petroleum?

As a whole, the Permian Basin holds 30 billion barrels of oil and 75 trillion cubic feet of natural gas.

I'm eager to learn.
 
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#566
#566
MurphyVol said:
What does that have to do with today's prices? Let's say Biden is willing to issue a permit to drill on the front lawn of the White House (honestly, he could probably be talked into it if you had him alone).

So how quickly could you get a rig up and running? Engage a geologist, find someone actually willing to work on a rig right now...Conservatively 2-3 years?

Also, if the gas stations aren't running out of supply, and sales are still strong, what incentive to oil companies have to drill? Say you're the CEO of Chevron, why would you want the price to go down?
Click to expand...

Oil is a speculative commodity. It is priced based upon future expectations of supply. Even if US producers pulled no new oil out of the ground the fact that US policy was pro-production would drive the price down. Instead we continue to signal that the US will not ramp production in any meaningful matter but instead wishes to rely upon unstable governments (Iran, Venezuela) and OPEC to meet rising demand and Russian oil being largely reduced.

Further, the incentive to invest in more production is thwarted by anti-fossil fuel policies.

The signals this administration is sending the market are partially responsible for the run up in oil prices. Likewise, changing that signaling could put downward pressure on them even without a single additional drop produced in the short term.
 
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#567
#567
volinbham said:
Oil is a speculative commodity. It is priced based upon future expectations of supply. Even if US producers pulled no new oil out of the ground the fact that US policy was pro-production would drive the price down. Instead we continue to signal that the US will not ramp production in any meaningful matter but instead wishes to rely upon unstable governments (Iran, Venezuela) and OPEC to meet rising demand and Russian oil being largely reduced.

Further, the incentive to invest in more production is thwarted by anti-fossil fuel policies.

The signals this administration is sending the market are partially responsible for the run up in oil prices. Likewise, changing that signaling could put downward pressure on them even without a single additional drop produced in the short term.
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Dec 2024 futures are priced at $73, so I assume they're anticipating an change by Biden?

If it becomes in their best interest, they will drill. With the cost to come out of the ground in the neighborhood of $50/brl and how badly they got burned the last time the went all in on drilling infrastructure, nobody in America will drill unless they absolutely have to.

Transocean LTD, a drilling company had their stock drop 86% while Trump was in office. Was that because he was anti-drilling? Or maybe because drilling was not cost effective?

Based off the traffic I see daily, I don't see a huge incentive for oil companies to trip over themselves to spend billions to drive prices down
 
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#568
#568
MurphyVol said:
Dec 2024 futures are priced at $73, so I assume they're anticipating an change by Biden?

If it becomes in their best interest, they will drill. With the cost to come out of the ground in the neighborhood of $50/brl and how badly they got burned the last time the went all in on drilling infrastructure, nobody in America will drill unless they absolutely have to.

Transocean LTD, a drilling company had their stock drop 86% while Trump was in office. Was that because he was anti-drilling? Or maybe because drilling was not cost effective?

Based off the traffic I see daily, I don't see a huge incentive for oil companies to trip over themselves to spend billions to drive prices down
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I'd guess 2024 futures are almost exclusively a historical price play estimate.

You asked what can be done now. I explained what would take the pressure off oil prices and it's signaling a willingness to have stable worldwide production which means rather than relying on Iran, Venezuela to pick up the slack it would be the US becoming a bigger producer.

Oil companies will invest if they see a future that is hospitable to drilling - currently they do not.
 
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#569
#569
volinbham said:
Oil is a speculative commodity. It is priced based upon future expectations of supply. Even if US producers pulled no new oil out of the ground the fact that US policy was pro-production would drive the price down. Instead we continue to signal that the US will not ramp production in any meaningful matter but instead wishes to rely upon unstable governments (Iran, Venezuela) and OPEC to meet rising demand and Russian oil being largely reduced.

Further, the incentive to invest in more production is thwarted by anti-fossil fuel policies.

The signals this administration is sending the market are partially responsible for the run up in oil prices. Likewise, changing that signaling could put downward pressure on them even without a single additional drop produced in the short term.
Click to expand...

The investment and commodities markets are not performing they way originally designed. They are now simply short term investment tools for trades and profits rather than sources of capital for business growth or price stability in fields like farming. They are acting at odds to the economy ... unless you make your living as an investor rather than as a producer of goods and services - the tail wagging the dog.

I've read several articles about oil producers purposely not pumping to keep prices and profits high. Something like a twist on the business plan "doing more with less". Here are a couple or articles; there are plenty more, but who knows what is reliable info these days - I left off what seem to be the most political "news" organizations; could be, even the unlinked Al Jazeera article is more trustworthy than most.

But, according to other sources, the real reason that Big Oil won’t raise production is a matter of simple economics. Keeping the supply tight is just too good for the bottom line. And if it’s President Biden who will take the heat for high prices at the pumps, that’s just the cherry on top of a very, very lucrative cake. In fact, according to figures from Deloitte LLP, oil explorers in the United States are making more money now than at any other point in the more-than decade-long history of the nation’s shale revolution.
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Is The U.S. Shale Patch Refusing To Pump For Political Reasons? | OilPrice.com

https://www.nasdaq.com/articles/the-real-reason-big-oil-is-refusing-to-boost-production
 
#570
#570
AM64 said:
The investment and commodities markets are not performing they way originally designed. They are now simply short term investment tools for trades and profits rather than sources of capital for business growth or price stability in fields like farming. They are acting at odds to the economy ... unless you make your living as an investor rather than as a producer of goods and services - the tail wagging the dog.

I've read several articles about oil producers purposely not pumping to keep prices and profits high. Something like a twist on the business plan "doing more with less". Here are a couple or articles; there are plenty more, but who knows what is reliable info these days - I left off what seem to be the most political "news" organizations; could be, even the unlinked Al Jazeera article is more trustworthy than most.



Is The U.S. Shale Patch Refusing To Pump For Political Reasons? | OilPrice.com

https://www.nasdaq.com/articles/the-real-reason-big-oil-is-refusing-to-boost-production
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Exactly. They are loving the current environment and won't change a thing unless they can't meet demand or people stop buying.

And I think most oil executives are shrewd enough to know that Biden is not anti-oil, like every politician he's pro-Biden. He'll fill flop on any issue if he thinks it'll help him get reelected. Oil stocks and even drilling stocks have crushed it under clueless Joe.
 
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#574
#574
GroverCleveland said:
I think they are anticipating a change from Democrats to more economy friendly Republicans.
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Right now, if things continue on as they are, I'm not sure we will be much better of with some of these Republicans. We will be trading one evil for another. This Ukraine situation is seeming to embolden the neocon branch of the GOP that wants more wars and more MIC spending.
 
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