WOW the $5 gas is really here to stay it looks like......😳 [LOCKED: NO POLITICS]

[cowman]

I don't understand why this frame of mind exists, (not targeting you Fossil) but if more people buy electric, wouldn't demand for gasoline and subsequently the cost of gasoline go down?

Yea right.... fossil fuels don't produce electricy...

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[Roger123]

I don't know. Why do you think they are sitting on 9,000 oil drilling leases and not developing them?

My thoughts are cause the .gov has made oil out to be a bad thing and has publicly said they want everything to be electric. Why would they invest in the wells if the climate is against them long term?

I have a piece of land to build a house on but the restrictions are so severe that it I couldn't possibly build the house, also the .gov has said that in 25 years houses will no longer be able to be lived in. Do I build the house or say F-it and wait it out until a more favorable climate is there for me to possibly build the house and live there to re-coup my investment.

 

[Broncotrax]

I don't know. Why do you think they are sitting on 9,000 oil drilling leases and not developing them?

Here goes:
Like any business you rely on forecasting to meet supply and demand. You have spent the last five years "right sizing" your companies as the restrictions on exploration and drilling get tighter.
As things go, there are lots of restrictions because as a nation, we are all interested in an alternative energy source. Drilling and production takes hundreds of vendors and employees all across the country from manufacturing parts and supplies to employees doing the drilling and producing. Covid has made a steady flow of items used for this process drag to a very slow process (just like all of the long lead items we are all waiting for to get our Broncos) when this process slowed, we lost several employees (just like your favorite restaurants). There are several reasons we cannot just "open a tap" and produce this oil that awaits. Besides if we all panic and drill like hell and produce like mad people, we will be met with greater restrictions and folks more interested in changing energy sources will demand that this be stopped. It's a very fine balance of prediction, restriction and regulations. I am not trying to be political but policy's are actually what is keeping this from happening. These Policy's are good for the environment but bad for rapid changes in energy needs. Think of a slinky (the toy from the '70's) Be patient and all will work out.

 

[Calm horse]

Absolutely stupid....how do u respond to a political topic without political answer? Click bait! Now I feel like I just wasted 1 minute of my incredibly busy life! Now to find another worthless thread!

 

[Tricky Dick]

the .gov has said that in 25 years houses will no longer be able to be lived in.

What's the alternative, force us all into apartments?

 

[Bradley Thornton]

I work in the oil and gas industry. I could write you a book on the subject but will try and just give a good idea.

A few years ago a certain person opened the floodgates on drilling and help the US become independent but he drove the barrel to a negative number in the US. (Yep look it up) Now this person had no idea that would happen and really didn't know why, so he called in the top pipeline companies to find out why. Simple answer we import why didn't we stop because BP, Shell, Chevron and many other companies aren't US company's and the US being independent doesn't help them at all. So the answer to fix the problem was simple add sanctions on the import of oil keep drilling and work toward exporting more. (20yrs ago Venezuela was independent and sold to its people for $3.50 barrel and to the rest of the world at market value $30+ barrel, I will be clear this couldn't happen in the US but we could lock in one rate below world market to stabilize the US market) When a certain person took the other guys place his first action was to take those sanctions off and slow down drilling. This in return made us no longer independent so we have to buy oil at world market value and we have no control over that value.

The higher it goes up the lower it will fall. Personally I say $35 barrel not sure when my guess 3-4yrs.

 

[Roger123]

What's the alternative, force us all into apartments?

The entire paragraph was a rhetorical question used as an analogy.

 

[dan79]

What's the alternative, force us all into apartments?

That’s what black rock wants the are buying land and homes all over the country

 

[dan79]

I work in the oil and gas industry. I could write you a book on the subject but will try and just give a good idea.

A few years ago a certain person opened the floodgates on drilling and help the US become independent but he drove the barrel to a negative number in the US. (Yep look it up) Now this person had no idea that would happen and really didn't know why, so he called in the top pipeline companies to find out why. Simple answer we import why didn't we stop because BP, Shell, Chevron and many other companies aren't US company's and the US being independent doesn't help them at all. So the answer to fix the problem was simple add sanctions on the import of oil keep drilling and work toward exporting more. (20yrs ago Venezuela was independent and sold to its people for $3.50 barrel and to the rest of the world at market value $30+ barrel, I will be clear this couldn't happen in the US but we could lock in one rate below world market to stabilize the US market) When a certain person took the other guys place his first action was to take those sanctions off and slow down drilling. This in return made us no longer independent so we have to buy oil at world market value and we have no control over that value.

The higher it goes up the lower it will fall. Personally I say $35 barrel not sure when my guess 3-4yrs.

Thank u! matches all that I have been reading but don’t worry it’s not a political issue lol let’s talk about borders too with out politics sometimes it can’t be avoided

 

[StopsForTacoTrucks]

Here goes:
Like any business you rely on forecasting to meet supply and demand. You have spent the last five years "right sizing" your companies as the restrictions on exploration and drilling get tighter.
As things go, there are lots of restrictions because as a nation, we are all interested in an alternative energy source. Drilling and production takes hundreds of vendors and employees all across the country from manufacturing parts and supplies to employees doing the drilling and producing. Covid has made a steady flow of items used for this process drag to a very slow process (just like all of the long lead items we are all waiting for to get our Broncos) when this process slowed, we lost several employees (just like your favorite restaurants). There are several reasons we cannot just "open a tap" and produce this oil that awaits. Besides if we all panic and drill like hell and produce like mad people, we will be met with greater restrictions and folks more interested in changing energy sources will demand that this be stopped. It's a very fine balance of prediction, restriction and regulations. I am not trying to be political but policy's are actually what is keeping this from happening. These Policy's are good for the environment but bad for rapid changes in energy needs. Think of a slinky (the toy from the '70's) Be patient and all will work out.

True, but also incomplete. Futures market is the reason oil went negative. The biggest traders never actually 'touch' the oil because they are not oil companies or refiners or end users. They are financial institutions. They only touch paper and expect to move that paper before it turns in to physical oil. They lack the physical ability to accept delivery of the oil they bought.

Then one day everyone stopped buying so much oil. Suddenly they were holding paper that was going to become very real oil that they could not actually accept. So they had to rent physical holding space. There was more oil than space until the taps could get turned down. Negative oil prices resulted as oil now required carrying costs to people who had no intent or ability to use it.

There's good reasons for futures to exist, such as price smoothing for major customers, but accept that we're getting plucked pretty often by those in the financial world who can manipulate and pull money out of the marketplace for no real value added. You can't beat them, only join them.

 

[sgraing1]

Certain person(s) . Great creative writing skills.

 

[Ice Age]

Thanks everyone for not getting too political and truly having some great info and responses. I worked in the oil industry and still do but more on the end user Gas Stations side. There are a lot of variables that play into the Oil Markets and for the record no one is complaining on the oil side. And yes for sure the world Markets are controlling us more than ever and like many things hopefully the realistic markets return sooner than later. I feel the Media drives the narrative some tines too radical. Meaning we had the lowest price fuel in a decade or more and Negative I mean -$30 Barrel oil during the pandemic. No one complained about not having to commute anymore and buy gas during the pandemic. Many Gas Station owners went broke unbeknownst to most. And so many saved thousands of dollars on transportation expenses sitting at home teleworking and or even not working being paid to sit home. But yet now the economy is back with the work force having to drive again and there is a lot Of angry people on the road more than ever before. And for the record homes and cars have skyrocketed in prices as well as many other things in the last 20 plus years. But yet the price of fuel has been up and down as well which if you took inflation on the price of fuel back in 2000 to today it would probably be close to $4.00 a gallon, But the Media always has an agenda which just pisses people off and makes it a one sided story. I do not want to pay anymore than anyone else here but hell at the same time how much was a decked out SUV 20 years ago like say a 4Runner or Jeep and or a Truck?????? Then add how much was the minimum wage and rent……etc. Plus add on how there are more options than ever before to drive fuel efficient vehicles. Yeh YEH not a oil company owner here but at the same time its incredible how people will pay huge monies for other things and continue to gripe about the Fuel Prices that aggregate so many but at the same time give us so much joy to drive the ICE Age vehicles we love.

 

[jjack50]

My thoughts are cause the .gov has made oil out to be a bad thing and has publicly said they want everything to be electric. Why would they invest in the wells if the climate is against them long term?

I have a piece of land to build a house on but the restrictions are so severe that it I couldn't possibly build the house, also the .gov has said that in 25 years houses will no longer be able to be lived in. Do I build the house or say F-it and wait it out until a more favorable climate is there for me to possibly build the house and live there to re-coup my investment.

That’s not even close to true. The US gov does not control how much drilling takes place. They only control the issuance of new leases and renewal of old leases and only on public land. The oil companies control how much drilling and extraction take place. as Long as the companies can make a decent profit without more drilling they are ok with that. The more oil cost, the more they make. Drilling is expensive and is only increased when prices pass a certain threshold to make it profitable to drill more.

I have no idea where this bit about house limitations in 25 years comes from. The building of private houses is one of the primary industries and is greatly encouraged and facilitated.

 

[MillerBuilt]

Doesn’t the “Warning, No Politics” just shut down this whole topic down

I mean…….come on………..it’s not rocket science

 

[MillerBuilt]

I think it will probably get better in 2.75 years. Not political…..just a timing issue.

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