Into the Night
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Void reference fallacy. RQAA.
Lying Joe Biden & the Dems to eliminate fossil fuels making America Energy Dependent
- Thread starter Libhater
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Void reference fallacy. RQAA.
Into the Night
Verified User
RQAA
Into the Night
Verified User
Psychoquackery. Trolling.
Yet, oil production has been increasing and 2023 is expected to hit record highs. They reduced production during the pandemic as demand declined and are now increasing as demand increased.
"U.S. oil production in 2023 will top 2019's record 12.29 million bpd output."
- 2017: 3,415,257,000 Barrels of Crude Oil
- 2018: 3,993,288,000 Barrels of Crude Oil
- 2019: 4,485,635,000 Barrels of Crude Oil
- 2020: 4,129,563,000 Barrels of Crude Oil
- 2021: 4,082,478,000 Barrels of Crude Oil
2022 was the second highest oil production on record
https://www.forbes.com/sites/rrapie...oil-production-in-us-history/?sh=4a0ee2db11d7
Again, not *our* production, oil company production. They keep it all. We don't get any of it unless our government buys it for the strategic reserve.
Right, making the price per barrel higher.
All totally expected as the pandemic fades and demand increases.
However, did you happen to notice that OPEC cut production in 2022?
So their production cuts balanced out the production increases from domestic suppliers, which is what OPEC does because they have control. That's why the price per barrel never declined in 2022 despite the increase in domestic production, until Biden released oil from the strategic reserve which increased domestic supply and drove down prices for consumers...but that was merely a temporary solution to a much larger problem.
OPEC sticks with supply cuts as West tightens sanctions on Russian oil
https://www.cnn.com/2022/12/04/energy/opec-production-oil-prices/index.html
Of course. Oil companies are not going to keep producing more when travel and demand drop. If they could control the prices they would keep it high all the time.
Yes, I know that OPEC reduced production . We can't control what OPEC does (although most of our imported oil comes from Mexico and Canada).
Well they control the prices by constraining supply...so for instance, if US domestic producers increase their production, they're really only doing so to gain market share because OPEC simply meets any production increase with equal or greater production cuts.
And because we can't control what OPEC does, it is foolish to think that allowing domestic oil companies to drill in the Grand Canyon will do anything to lower the price per barrel. All that does is give the oil company more market share, but that doesn't lead to lower prices for consumers.
According to your theory, production should now be declining because demand is increasing in order to increase prices; instead, production is reaching record highs.
OPEC sticks with supply cuts as West tightens sanctions on Russian oil
https://www.cnn.com/2022/12/04/energy/opec-production-oil-prices/index.html
Oil is traded on global markets, not regional ones.
Production increase in one area does not necessarily mean production increase overall, not when the main producer is extending their production cuts.
So once again, OPEC is dictating the price by constraining supply, just like I said.
I paid $2.62 today for regular. That is much lower than I paid in June.
Yeah, and that's entirely thanks to Biden releasing oil from the strategic reserve for American refineries and consumers.
The price of oil and gas didn't start going down until after Biden did that....do you remember how the price of oil and gas was going UP in the weeks before the election?
World Crude Oil Production is at a current level of 81.45M, up from 80.32M last month and up from 77.38M one year ago. This is a change of 1.41% from last month and 5.25% from one year ago.
https://www.google.com/search?q=wor...0i13i512l9.8736j0j15&sourceid=chrome&ie=UTF-8
That's not nearly enough excess supply to drive down the price, which is why the price didn't start going down until Biden opened the strategic reserve.
That was the main point. Increased supply (production + reserves) is lowering gas prices.
Right, but that runs in direct conflict with the profit motive of an oil company, which is the point.
The point is that it's not in an oil company's interest to increase the supply because it drives down the price, and thus, drives down the profit.
That's why they only extract the amount of oil necessary to achieve the highest profits, no more no less.
Oil company interests do not align with consumer interests. So until we nationalize it, or transition off it, we are always going to be subject to the whims of a cartel.
The last thing we need is to nationalize the American oil industry. Nationalized industries also try to maximize their revenue--they just don't call it "profits."
In 2016 Venezuela was producing 2.5 million barrels per day--now is only 1 million barrels. That does not sound like it is in the consumer's interest.
The oil companies that earn the most revenue are state owned with the largest being Chinese. A gallon of gas in China is about $4.74 (November). The U. S. has the cheapest gas prices of any developed nation--that is in the consumer's interest.
If you want to keep the price per barrel permanently low, and thus keep gas prices permanently low, nationalization is the only route.
No they don't.
What event happened between 2016 and 2022 that could have caused a large drop in production?
Use your brain.
Prove it.
And why do we have the cheapest gas prices? Because Biden released oil from the strategic reserve. Gas was $4.69 in May 2022, and today it's down to $3.28...which is a decline of 30% in just 7 months, with the bulk of that decline happening in October and November, after Biden opened the SR.
China may be the 4th largest producer of oil, but it is also the second largest consumer of oil after the US.