Biden threatens oil companies with 'emergency powers' if they don't boost supply amid inflation spike

[BOHICA]

26 minutes ago, Badger** said:

Fracking in The Dakotas has mostly shutdown.  

North Dakota has sued the Biden administration over its suspension of new oil and gas leases on federal land and water, saying the move will cost the state hundreds of millions of dollars in lost revenue.

North Dakota doesn’t have a lot of federal land.  It’s mostly private or tribal.

According to the Congressional Research Service, North Dakota spans 44.45 million acres. Of that total, 3.9 percent, or 1.73 million acres, belonged to the federal government as of 2012. More than 42 million acres in North Dakota are not owned by the federal government, or 59.05 non-federal acres per capita. 

[Badger**]

Just now, BOHICA said:

North Dakota doesn’t have a lot of federal land.  It’s mostly private or tribal.

According to the Congressional Research Service, North Dakota spans 44.45 million acres. Of that total, 3.9 percent, or 1.73 million acres, belonged to the federal government as of 2012. More than 42 million acres in North Dakota are not owned by the federal government, or 59.05 non-federal acres per capita. 

You should have seen the railroad trains heading out to the Dakotas during the Trump era, it was amazing. 

 

[BOHICA]

Just now, Badger** said:

You should have seen the railroad trains heading out to the Dakotas during the Trump era, it was amazing. 

 

Actually it slowed up big with trump when oil went negative during his presidency in 2020.  All activity pretty much stopped and rightfully so as oil companies were on the way to bankruptcy 

[Badger**]

1 minute ago, BOHICA said:

Actually it slowed up big with trump when oil went negative during his presidency in 2020.  All activity pretty much stopped and rightfully so as oil companies were on the way to bankruptcy 

Yes sir, we got to find that happy medium. 

[BOHICA]

Haynes Boone has monitored North American oil and gas producer Chapter 11 bankruptcies since 2015. This is our final report, which covers new cases filed during 2021. Over the past seven years, there have been 274 oil and gas producer bankruptcies. In the same period, 330 oilfield services and midstream companies have filed for bankruptcy, bringing the combined North American industry total to more than 600 industry bankruptcies involving over $321 billion in secured and unsecured debt.
 

[f7ben]

14 hours ago, Anler said:

So I guess the Biden admin (I won't say Biden cuz he's too retarded to speak with people) is begging Venezuela for oil. They are talking with president Maduro (not their zelensky style puppet they claim is the real president, guaido) about selling oil. I guess they are going to have to drop the crippling sanctions they put on their oil exports and banking then. 

 BUHT MAH keYSTONZ XLLLZZZ

[Jimmy Snacks]

Blame The President all day and night…doesn’t bother me a bit but it’s a little more complicated than that. One thing he could do is reinstate the export ban on oil and gas but I don’t see that happening…do you? Would it be feasible to open more public land for exploration and drilling if stipulations were put in place that said that oil/natural gas could not be exported?🤷🏻

BTW there are numerous articles and sources that talk about the wariness of investors due to the volatility of the oil markets. 
 

“But even if labor were not a concern and the government threw all its resources into solving the industry’s material shortage problem, oil and gas executives don’t want to increase production because the high prices are working for them financially at the moment. They’ve said so explicitly, out loud and in public.

The big fracking companies — Devon, Pioneer, and Continental — burned by multiple boom and bust cycles over the years, pledged in February not to increase production until 2023. “Whether it’s $150 oil, $200 oil, or $100 oil, we’re not going to change our growth plans,” Pioneer CEO Scott Sheffield said during a Bloomberg Television interview. “If the president wants us to grow, I just don’t think the industry can grow anyway.”

In ExxonMobil’s February earnings call, Woods said the company’s focus remains on price per barrel over volume. “One of the primary objectives we’ve had in looking at the portfolio is less about volume and volume targets and more about the quality and profitability of the barrels that we’re producing.” he said. “That’s been the focus. And as we move forward, we’ll continue — you’ll continue to see the quality of the barrels or profitability of the barrels increase.”

According to Tom Sanzillo, director of financial analysis for the Institute for Energy Economics and Financial Analysis, what’s even more unusual than the industry’s hesitancy to drill, given the high prices per barrel, is the fact that they’re not buying up new land.

Typically the price spike would occur and rather than pay dividends as robustly as they are paying now, they would buy up other assets and maybe increase production,” he said. “What’s happening now is not typical. They’re not buying up other assets, and they’re not drilling. What does that mean for the future? It’s hard to say. It’s possible they’re just biding their time, building confidence amongst investors and will increase production next year, but this is definitely not the typical response to a price spike.”

Instead, they’re banking that money, using it to make up for profits lost in the pandemic and mostly to conduct massive stock buybacks that keep their shareholders happy and might just bring investors back to fossil fuel for one more round.

Which brings us to the elephant in the room: the United States’s supposed energy independence. As a net exporter of oil and gas, that’s what the country was promised by industry. But you can’t have independence if you are ruled entirely by global commodity markets. The other big oil-exporting countries are able to use their production capabilities to protect themselves from sudden price changes because their fossil fuel industries are nationalized. Because the U.S. energy sector is entirely private, we have no such luck. For all the industry’s squawking about federal leases, only 10 percent of U.S. drilling happens on public land, the rest is on private land that the government has zero control over. And, again, there is no government entity overseeing production; it’s left entirely up to companies to produce as much or as little oil as they think will be profitable. The closest we have to a regulatory body on production is the Texas Railroad Commission, but even when oil prices went negative during the pandemic, the commission opted not to impose production limits.”

Edited June 16, 2022 by Jimmy Snacks

[Pete]

Replace D with R and the stories would be completely opposite every waking hour. That’s a fact 

[Jimmy Snacks]

Interesting….

 

 

At the end of November 2021, the United States exported an average 3 million barrels per day of mainly light sweet crude oil that U.S. refiners lack the capacity to process. Meanwhile, refiners imported more than 6 million barrels of mostly heavier crudes from Canada and other foreign suppliers that are unavailable domestically (Chart 1). These heavier crudes play an important role in the production of diesel fuel and jet fuel.

Downloadable chart | Chart data

Proponents of a U.S. crude oil export ban argue that prohibiting crude oil exports would increase the supply of crude in the United States, allowing refiners to increase their production of gasoline and diesel and lowering the price of these fuels. The implicit premise is that there is enough spare capacity for this light sweet crude oil to be refined in the United States.

One important point this proposal overlooks is that the prices of gasoline and diesel in the United States are determined by their prices in global markets since the U.S. trades diesel and gasoline. Because a cessation of U.S. crude oil exports would lower the supply of oil in global markets and raise its price, one would expect global fuel prices, if anything, to increase as a result. Refiners can always sell these fuels abroad at their global price, so it makes no sense for them to sell for less in the domestic market. 

In other words, the prices of gasoline and diesel fuel in the U.S. would not be expected to decline and might actually increase, rendering the crude oil export ban not only ineffective, but also counterproductive. Thus, there is no reason to expect that U.S. consumers would benefit from such a ban. 

Banning crude exports, however, would benefit refiners of light sweet crude in the short run because they can buy crude oil that otherwise would have been exported at a discount, while selling fuels at high global prices. This is not merely conjecture. “The Impact of the Shale Oil Revolution on U.S. Oil and Gasoline Prices,”  by Lutz Kilian, provides evidence supporting this point from before 2015, when exports of domestically produced crude were largely banned for national security reasons. 

The short-run bonanza for U.S. refiners specialized in refining light sweet crude, however, would not last. As the price of domestically produced crude oil declines and storage fills, it would not be long before some domestic oil producers become unprofitable and cease operations.

Broader Implications for the Economy

Eliminating U.S. crude oil exports would also raise the overall U.S. trade deficit and would make the U.S. more dependent on foreign oil in the long run. As more oil is imported, more consumer dollars spent on fuel end up abroad, increasing the exposure of the U.S. economy to rising oil prices—an exposure that has been unusually low in recent years by historical standards.

Although one could argue that renewable energy will reduce the reliance on oil over time, given current technologies, most projections envision continued demand for fossil fuels near current levels for years to come, with renewables accounting for the increased overall energy demand as the economy grows.

Edited June 16, 2022 by Jimmy Snacks

[Jimmy Snacks]

https://www.forbes.com/sites/daneberhart/2022/06/07/banning-us-exports-would-be-bidens-ultimate-energy-folly/amp/

Apparently banning exports might not be the panacea for high gas prices….good thing Jennifer Granholm is running The Energy Department.🤣

 

 

Edited June 16, 2022 by Jimmy Snacks

[ViperGTS/Z1]

Perfect example of cutting off your nose to spite your face.....Biden has a war on fossil fuels and now expects them to increase production......yeah ok

 

https://thehill.com/business-a-lobbying/business-lobbying/3526290-exxon-mobil-chevron-push-back-on-biden-blaming-industry-for-oil-prices/

Edited June 16, 2022 by ViperGTS/Z1

[ViperGTS/Z1]

Pretty much sums it up