Yes, you are discarding capitalism by refusing to accept that oil companies only increase or decrease production to achieve the highest possible profit.
That's why they don't drill on their permits.
Domestic oil production booming under Biden
- Thread starter Cypress
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Yes, you are discarding capitalism by refusing to accept that oil companies only increase or decrease production to achieve the highest possible profit.
That's why they don't drill on their permits.
They already have 1000's of permits they won't drill on because doing so will increase the supply of oil and result in a decline in the price per barrel, which will decrease their profit margin.
And also, any drilling expansion in the US will be met with equal and/or greater production cuts by OPEC in order to maintain the balance on the global supply that maximizes their profits.
Funny thing is that OPEC did precisely that in 2015, lowering the price per barrel by 50% and bankrupting dozens of US oil and natural gas companies to the tune of over $100B in debt.
Yes, we all know how you don't understand how capitalism works, so let me give you yet another lesson.
Since oil is traded on global markets, not individual ones, the way oil companies price gouge is to cut production. Doing so cuts the supply and increases the price per barrel.
It's a shame you can't understand how capitalism works.
Well it sure was when Conservatives were catching it.
Yes it was. Biden released enough oil out of the SR that it increased supply enough to lower gas prices by 30%.
You're welcome.
Show me.
Incorrect again. Projection. You're the one making tenuous generalizations without support (i.e. "the strategic reserve is a safety net").
No one believes this because you lack all courage of your convictions.
Really? Where is that written?
You do what you gotta do to posture, my dude.
What's most hilarious about your posts is that you have been completely unable to respond to any of mine, so you run to your Nazi pals for comfort because of how much of a loser you are.
And you are a loser.
Newsflash, dipshit, if you increase the supply of anything, but particularly oil and steel, you lower the price and thus, lower your profit margin.
So why would any private, for-profit company do that?
Right, OIL COMPANIES produce oil and they produce the exact amount necessary to achieve the highest possible profit.
Then, they get to sell that oil to whomever they want, for however as much or little as they want.
The strategic value of lowering gas prices by 30% from $4.69 in May to $3.28 today.
Any other dumb questions you want to ask?
Into the Night
Verified User
Biden has not increased oil production.
Into the Night
Verified User
I think Walt lost it. He's just laughing maniacally now.
Right, and neither did Trump.
OIL COMPANIES increase or decrease production, and they do it solely to achieve the highest possible profit.
Low supply = high price per barrel
High supply = low price per barrel
High price per barrel = high profits
Low price per barrel = low profits
OPEC controls the price per barrel since they control a plurality of oil production and can easily match production increases in the US with production cuts globally in order to maintain the price (or raise it).
Into the Night
Verified User
So? You seem to have some problem with that.
Into the Night
Verified User
Word stuffing. Trolling.
Into the Night
Verified User
Argument from randU fallacy.