National Average Price of Gasoline Hits an All-Time High

[McDad]

Demand is up 10% over last year, the highest demand on product in history.


The idiot in chief released oil from the strategic reserves and asked OPEC+ to increase production. They said no, and why wouldn't they - Rolls Royce's don't pay for themselves.

What specifically can the president do today to lower gas prices? Refining is at max capacity and we're exporting a surplus of oil - legislate and EO a refinery into existence?

If Biden could waive a wand and make energy prices low again, don't you think he would? Of course - it'd get him out of a huge hole. But he can't because that's not the way it works.

I understand demand is up. But I also believe it will not remain once consumers are convinced the spike isn't temporary.

There are things listed in the thread related to administration's policies which increase prices to consumers, too.

 

[Ashevolle]

No, open up the pipelines that were shutdown on day one of this administration and let's talk about American political decisions.

And how much does that bring down the price of oil today, a worldwide commodity? 1 cent maybe.....

The two issues seem pretty tangentially related. The only real tue is that oil is involved.

 

[NorthDallas40]

Demand is up 10% over last year, the highest demand on product in history.


The idiot in chief released oil from the strategic reserves and asked OPEC+ to increase production. They said no, and why wouldn't they - Rolls Royce's don't pay for themselves.

What specifically can the president do today to lower gas prices? Refining is at max capacity and we're exporting a surplus of oil - legislate and EO a refinery into existence?

If Biden could waive a wand and make energy prices low again, don't you think he would? Of course - it'd get him out of a huge hole. But he can't because that's not the way it works.

Isn’t your contention that big oil isn’t pursing the capital investments required to keep up demand? Look if it’s a strategic issue the idiot in chief can absolutely force their hands.

Hell I mean after all since they’re a dinosaur industry (I really like that double entrendre ) living on borrowed time why not just maximize profits and share holder return today?

Go read my first entry into this. The idiot in chief can’t do anything today. It too late. But he’s had 18 months to get to this point and all he’s done is stand there with his thumb stuck in his diaper and rail against big oil.

 

[85SugarVol]

"multi-billion" and "decade long process"

Watch Chevron CEO on Oil Demand, Costs, Refinery Closures - Bloomberg

@6:24

I agree that it is a multi-billion decade long process.

 

[Septic]

Isn’t your contention that big oil isn’t pursing the capital investments required to keep up demand? Look if it’s a strategic issue the idiot in chief can absolutely force their hands.

Hell I mean after all since they’re a dinosaur industry (I really like that double entrendre ) living on borrowed time why not just maximize profits and share holder return today?

Go read my first entry into this. The idiot in chief can’t do anything today. It too late. But he’s had 18 months to get to this point and all he’s done is stand there with his thumb stuck in his diaper and rail against big oil.

No, the oil companies have explicitly stated they aren't spending on capital investments, they're paying them down with the profits.

Look, I get that it's easy and convenient and fun to trash Biden for the cost of gas, even the little stickers are cute. He's an easy target, all of them are and he's got a lot of low hanging fruit to get based over. The cost of gas isn't one of them.

The Real Reason Behind Surging Gas Prices (forbes.com)

 

[Septic]

I agree that it is a multi-billion decade long process.

We have half the refineries we did 20 years ago and likely won't be getting any more.

 

[85SugarVol]

Demand is up 10% over last year, the highest demand on product in history.


The idiot in chief released oil from the strategic reserves and asked OPEC+ to increase production. They said no, and why wouldn't they - Rolls Royce's don't pay for themselves.

What specifically can the president do today to lower gas prices? Refining is at max capacity and we're exporting a surplus of oil - legislate and EO a refinery into existence?

If Biden could waive a wand and make energy prices low again, don't you think he would? Of course - it'd get him out of a huge hole. But he can't because that's not the way it works.

There is nothing Biden can do right now to reverse this.
And he did not cause this, but he ain’t helping.

The best move they could make right now would be to cease all hostilities directed at Oil.

 

[85SugarVol]

We have half the refineries we did 20 years ago and likely won't be getting any more.

I agree.

We should try and make em cheaper.

 

[Septic]

And how much does that bring down the price of oil today, a worldwide commodity? 1 cent maybe.....

The two issues seem pretty tangentially related. The only real tue is that oil is involved.

Not even that much. The XL pipeline was a ploy to get Canadian oil to the gulf on public land so Canadian energy producers could sell it. How anyone was duped into believing it was going to make gas cheaper is bewildering.

 

[NorthDallas40]

No, the oil companies have explicitly stated they aren't spending on capital investments, they're paying them down with the profits.

Look, I get that it's easy and convenient and fun to trash Biden for the cost of gas, even the little stickers are cute. He's an easy target, all of them are and he's got a lot of low hanging fruit to get based over. The cost of gas isn't one of them.

The Real Reason Behind Surging Gas Prices (forbes.com)

I’ve already agreed with you that they are. But you are also trying to ignore a decade plus of animosity against the oil industry by the idiot progressives as well as 18 months telegraphing they have no intention to provide any favorable policy incentives. Thus the oil execs make hay while the sun is up. That is their jobs which the share holders expect them to do.

Whether you like it or not Biden’s last 18 months of adversarial policy have a big hand in why we are where we are. No he can’t magically fix it. But he’s absolutely culpable in creating it also.

 

[NorthDallas40]

Not even that much. The XL pipeline was a ploy to get Canadian oil to the gulf on public land so Canadian energy producers could sell it. How anyone was duped into believing it was going to make gas cheaper is bewildering.

Actually it was to get Canadian oil to US gulf coast refineries which are better equipped to refine it. Our old ass refineries are still huge capital investments that are still well maintained and upgraded regularly.

The last refinery from 1977 started at 200K barrels per day. Today it’s capable of 600k

 

[85SugarVol]

I’ve already agreed with you that they are. But you are also trying to ignore a decade plus of animosity against the oil industry by the idiot progressives as well as 18 months telegraphing they have no intention to provide any favorable policy incentives. Thus the oil execs make hay while the sun is up. That is their jobs which the share holders expect them to do.

Whether you like it or not Biden’s last 18 months of adversarial policy have a big hand in why we are where we are. No he can’t magically fix it. But he’s absolutely culpable in creating it also.

The Democrats have been waging holy war against Big Oil for 40 years - they’ve just ratcheted up the attacks in the last 5-10.

 

[MurphyVol]

People are very short sighted on oil. Curbing permits and discouraging new infrastructure will really hurt.... Years from now.

76% of oil is drilled on private land.

There is a huge stack of permits to work through.

1/3 of our existing wells are still turned off from pre-pandemic levels

Oil companies are meeting current demand and consumers have yet to balk at prices.

Record profits for Exxon, Chevron, etc.

High prices have way of taking care of themselves in the short run. Home equity and credit card balances continue to grow rapidly. We'll all pull back soon enough.

We have plenty of supply for the foreseeable future.

Is Biden an idiot? Of course he is. Pretty much everyone in Washington thinks short term. When things go wrong, they start talking about gays or woke stuff to distract us.

Nobody should be too worried about energy prices right now (well, some low income folks should probably be concernd about winter heating bills).

What should terrify us is ten-fifteen years from now. 10-15 years from now 1 billion people will be able to afford their first car. Many of these will be in India.

We need to act now ... But not because gas is $10 in California. We need to act now because $10/gal will be the norm in 10-15 years if we don't get moving.

We need a long term (25-50 year) plan to move off oil, but we need a plan to drill and refine more right now. Not because of this temporary blip, but because of what's coming.

But Kardashians, alphabet soup gender stuff, fights with Disney World other nonsense will soon take our attention elsewhere when prices go down later this year or early next year.

 

[lawgator1]

Would you agree that actions like those listed above, and comments from Biden of the “no new drilling” variety, might serve to have a chilling effect on Big Oil boardrooms?

No. I don't think they have that short a tine horizon. Not even remotely.

The issue is whether the cost of new production is too big for the profit. Now, if there is a way to help with that, I'd certainly listen.

 

[Rasputin_Vol]

Let's imagine Biden had done things differently:

1) Continued push for LNG export terminals to supply Europe and holds firm on Nordstream 2 block - maybe changes Putin's calculus on Ukraine as Europe has less dependency on him?
2) Leaves Keystone XL alone - possibly in operation now and represents a stable supply chain for Canadian oil
3) Doesn't put fracking limitations in place - less risk exploration and production of NG
4) Doesn't hold up permitting and new lease sales - less risk exploration and production of oil
5) Doesn't talk constantly about ending fossil fuels - less risk long term investment

Just a short list of how from Day 1 Biden has actively reduced access to and increased the risk of fossil fuel production and transportation. It is likely one of the most consistent policy positions this administration has taken - end fossil fuels. The big picture is that investments with 10 - 20 time horizons are bad strategy in an environment where the government is actively trying to end your industry.

There is no substiute that is cheaper and more reliable than pipeline gas.

 

[Rasputin_Vol]

Not even that much. The XL pipeline was a ploy to get Canadian oil to the gulf on public land so Canadian energy producers could sell it. How anyone was duped into believing it was going to make gas cheaper is bewildering.

It's not bewildering to me. The propaganda is strong and there was really little info about what the actual intentions were for the oil.

 

[Rasputin_Vol]

I wonder at what price per gallon will we finally start to hear the Biden voters scream "uncle"? $7.00/gal?

 

[85SugarVol]

No. I don't think they have that short a tine horizon. Not even remotely.

The issue is whether the cost of new production is too big for the profit. Now, if there is a way to help with that, I'd certainly listen.

Would you be willing to agree that C-Suite teams and Boards meet regularly (say once a Qtr)?

 

[SpaceCoastVol]

"Just buy an electric car." - Lefty

 

[davethevol]

I wonder at what price per gallon will we finally start to hear the Biden voters scream "uncle"? $7.00/gal?

I don’t think they will. They will ask for energy subsidies. I’ve already seen some start requesting that. Their solution is more government handouts.

 

[allvol123]

I don’t think they will. They will ask for energy subsidies. I’ve already seen some start requesting that. Their solution is more government handouts.

@lawgator1 starting screaming yesterday. That is what all his questions were about.

 

[Majors]

I wonder at what price per gallon will we finally start to hear the Biden voters scream "uncle"? $7.00/gal?

Believe that is the threshold of point of no return for those on the left who still support Biden. Their vote came at a price, anything post $7.00 is another nail in lefts coffin.

 

[Majors]

Not even that much. The XL pipeline was a ploy to get Canadian oil to the gulf on public land so Canadian energy producers could sell it. How anyone was duped into believing it was going to make gas cheaper is bewildering.

Day 1 coming back to bite him. Optics to those that you work for, no matter if you believe the Keystone Pipeline would not help gas prices then what do you have to lose? $10 gas, already in play. Begging the middle east isn't the way. So he will fly to the kingdom and kiss the ring Mohammed bin Salman for relief. Seems more American to just reopen the pipeline and create opportunities/competition here in the States.

 

[Majors]

Can someone summarize for me what can be done by the administration to get us some relief? I do not ask this for political purposes and ask that answers be specific and fact based because I would genuinely like to know what can be done.

Today, accept the resignation of Yellen and Peter B. If they don't have letters ready, have one ready for them to sign. It's not political its business.

 

[BigOrangeMojo]

The Secretary of Energy has as much experience with energy as my kid's pet goldfish. She's far left and her biggest claim to fame as Michigan governor was running off automakers.

Again, a lot of this isn't Biden fault with oil prices but when companies see someone that adversarial, they won't invest.