Nowhere in that article did it say that production is not increasing fast enough because of government. The oil companies are proceeding cautiously because they have taken losses the last couple of years.
Oil companies regularly lose money. In four of the past ten years, the oil industry lost money. Big oil lost $76 billion just two years ago. Therefore, they are proceeding with caution. They are maintaining more capital discipline. They aren’t rushing to do projects with the assumption that oil prices will remain above $100/bbl. They are doing projects with the assumption that in a year or more when the projects might pay off, oil prices will have retreated to well below $100/bbl.
Should Biden invoke the Defense Production Act and force the oil companies to produce more oil?
When? Democrats shot down Trump’s plan to put oil into the SPR when prices crashed during the pandemic, so clearly buy low and sell high is not something Democrats support.
Normally oil prices drop in a recession, but this recession is being driven by a self-imposed embargo on Russian oil and gas. Oil demand is likely to increase in Europe as industry switches from Russian natural gas to oil. We could be looking at a worsening recession combined with rising oil prices once the withdrawals from the SPR end.
The Strategic Petroleum Reserve (SPR), the world’s largest supply of emergency crude oil was established primarily to reduce the impact of disruptions in supplies of petroleum products and to carry out obligations of the United States under the international energy program.`
Not the smartest thing to due considering the strategic state of the glob right now. This admin will seek to raise energy costs after the election. We all know they want high energy prices. So, this is a form of a lie…
The government has already announced that they will seek bids to replace the energy preserve. This will start in the fall of 2022. Can anyone not see that they are just doing what they can to lower gas costs now and we will pay for it as soon as the election is over?
Yes, expect gasoline and fuel oil prices to go up after the election.
Also Biden is selling 200 million barrels before the election and plans to buy back only 60 million after the election. The net effect is to exhaust the SPR while Biden is working starting another war in Asia.
The US has been buying products made from Russian oil at a Russian-owned refinery in Italy. Italy is the country of origin for trade purposes, so they are not covered by US sanctions. This source of petroleum products will disappear when Europe bans imports of Russian oil in December, which also coincides when the SPR withdrawals are scheduled to end.
It is as if everything has been rigged to delay the serious hardship until after the US mid-term elections.
