Policy question: Inflation

Joe said:
When Trump says "drill baby drill" it means more than just getting more oil out of the ground. It means easing stifling regulations. It means pipelines. It means FJB. And we get it. sorry OP doesn't
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well as of a year ago over 20 new / rebuilt oil and gas pipelines have been put on line and there are something like 19 / 20 more being built.
the only major pipeline that Biden has stopped ( shut down ) was the Keystone XL pipeline , a pipeline that was only about 8% completed and would NOT have been completed until about this year.
a pipeline that was going to transport Tar Sand oil to the gulf to be shipped to Chins, an oil we do NOT use for our gas production in this country, an oil that is used for plastics .
back when Biden shut it down all kinds of lies were spread by the right, saying that shutting it down caused the gas prices to jump, when it had NO effect on oil or gas prices at the time .
apnews.com

High gas prices falsely attributed to Keystone XL cancellation

False. The Keystone XL crude oil pipeline wasn’t yet operational when it was canceled in 2021, and wasn’t expected to be running until 2023.
apnews.com apnews.com
and the FACT is the Keystone pipeline has NEVER been shut down by the Government, the ONLY time it has ever been shut down was to repair
leaks ( and there has been a lot of them ) and for maintenance.
so we have been building / rebuilding a LOT of oil and gas pipelines.
Have a nice day
 
PostmodernProphet said:
we've witnessed the results of Trump's approach and Biden's approach to energy......which one has cost American consumers AND American business more over a four year period.....now 3,2,1....vote!.......
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and still not a word about the Saudi / Russian oil price war.
the US oil industry went to Trump and asked him to help stem it before it crashed the US oil industry, Trump did NOTHING, and the Saudis drove the price of oil down so low there wasn't a US company that could even compete with them, ( oil futures went into the negitives ) so finally AFTER over 100 US oil drilling / producing companies went BANKRUPT and a lot of them out of business for good, Trump went to the Saudis and told them to cut their production and RAISE prices or he was going to stop ALL US military aid, and they did , and by the time the US refineries used up all the oil they had stored ( because it was sooo cheap ) it was about the end of Dec 2020, and oil prices started going up ,
US oil production was just 13 MBPD for ONE month under Trump then the oil price war happened and it went down to 9.7 MBPD and it was 9,9 MBPD the First of Feb, 2021 just after Biden took office and has been going up at a steady pace ever since and has been over 13 MBPD for over a year now. ( it did drop below 13 MBPD in Jan 2024 for ONE month.
Trump did a LOT of damage to the US oil industry a lot more then Biden has.
Have a nice day
 
Tbird19482 said:
and still not a word about the Saudi / Russian oil price war.
the US oil industry went to Trump and asked him to help stem it before it crashed the US oil industry, Trump did NOTHING, and the Saudis drove the price of oil down so low there wasn't a US company that could even compete with them, ( oil futures went into the negitives ) so finally AFTER over 100 US oil drilling / producing companies went BANKRUPT and a lot of them out of business for good, Trump went to the Saudis and told them to cut their production and RAISE prices or he was going to stop ALL US military aid, and they did , and by the time the US refineries used up all the oil they had stored ( because it was sooo cheap ) it was about the end of Dec 2020, and oil prices started going up ,
US oil production was just 13 MBPD for ONE month under Trump then the oil price war happened and it went down to 9.7 MBPD and it was 9,9 MBPD the First of Feb, 2021 just after Biden took office and has been going up at a steady pace ever since and has been over 13 MBPD for over a year now. ( it did drop below 13 MBPD in Jan 2024 for ONE month.
Trump did a LOT of damage to the US oil industry a lot more then Biden has.
Have a nice day
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and one more thing we have to think about and remember, you just don't rebuild almost an entire industry over night.
in the US when we shut down a oil or gas well they put hydraulic cement in it so when they want to reopen it they have to drill all that out IF they can to get an old well back on line and that takes time.
then seeing over 106 oil drilling / producing companies went Bankrupt under Trump and out of business , the new companies have to find out what those Bankrupt companies did with their drilling rigs ,then the new companies had to see if they could get them and then set them up to start drilling new wells.
that is a big reason why it has taken them a year or more under Biden to reverse the mess Trump put them in.
Have a nice day
 
ThatOwlWoman said:
The MAGATards think that they are Acme Instant Economists(tm), just like they suddenly all become experts on epidemiology and virology during the pandemic. Drill baby drill doesn't do jack for supply if you don't have the refinery capacity to handle it. Plus, as I said in a prior post, it is sold on the world market and is not just for domestic consumption. Add more to the world supply? OPEC and others will just cut production to keep the price per barrel inflated.
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I was actually curious so did some research. Energy prices at their peak added about two percent to inflation, meaning the other seven percent of that peak inflation had absolutely nothing to do with energy costs. So even if ‘drill baby drill’ drastically reduced the cost of energy (which it won’t of course’ the impact would be minimal. But of course not one of them gave a serious answer. Which is why they are an utter waste of time. They have no answers. Just hate.

www.federalreserve.gov

Second-Round Effects of Oil Prices on Inflation in the Advanced Foreign Economies

The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov
 
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Tbird19482 said:
and one more thing we have to think about and remember, you just don't rebuild almost an entire industry over night.
in the US when we shut down a oil or gas well they put hydraulic cement in it so when they want to reopen it they have to drill all that out IF they can to get an old well back on line and that takes time.
then seeing over 106 oil drilling / producing companies went Bankrupt under Trump and out of business , the new companies have to find out what those Bankrupt companies did with their drilling rigs ,then the new companies had to see if they could get them and then set them up to start drilling new wells.
that is a big reason why it has taken them a year or more under Biden to reverse the mess Trump put them in.
Have a nice day
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There are thousands of leases that go unused because the price to extract is too high. Only simpletons believe otherwise.
 
Walt said:
It is macroeconomics, not microeconomics, but continue.


Crashing the price of oil means that investment crashes by more. If investment goes up by x every dollar of increase in prices, it goes down by two x with every dollar of decrease. Investors price the risk of lower prices very heavily. So that means that decreasing the price will lead to much higher prices in the long term.

It takes a lot of finesse to get past this trap. Biden has it, and has gotten more drilling in the first three years of his administration than trump was able to get in the first three years.
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Bingo!
 
Concart said:
During Trumps news conference he claimed that the cost of oil had caused the spike in inflation.

Question: How will a policy of more drilling impact the price of goods and services. To what extent does an increase in oil/energy costs impact the cost of goods.

Please be specific regarding your claim and cite sources. Please state specific numbers.
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Oil supplies in America are at all time highs. Trump lies.
 
Concart said:
There are thousands of leases that go unused because the price to extract is too high. Only simpletons believe otherwise.
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also drilling permits, and also they need drilling rigs, there are only so many of them and it takes time to build more.
I am not sure if every one they have is in use but from what I have read most are.
and as for the leases from what I have read again some of those leases were bought up for future use and to keep other companies from getting that track because they believe it has oil and when it becomes beneficial for them to drill they will.
Have a nice day
 
Nordberg said:
Oil supplies in America are at all time highs. Trump lies.
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and has been for about a year now.
the most they produced under Trump was 13 MBPD for ONLY one month they have been producing more then that for a year now all except ONE month and that was in the high 12 MBPD level.
and the right keeps saying it is Biden that has hurt the US oil industry , I guess they just don't like the fact the US oil industry is doing very well under what they call an anti - oil President, a lot better then they did under Trump.
have a nice day
 
Matt Dillon said:
Then there would be no OP. :dunno:

Why don't you try to explain how EO 13990 didn't cause inflation, hmm?

Name calling doesn't explain things, moron.
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Irony. Reread your post. Slowly.

How did that Exective order impact inflation. Be specific and cite sources. I’ll wait.
 
Concart said:
I was actually curious so did some research. Energy prices at their peak added about two percent to inflation, meaning the other seven percent of that peak inflation had absolutely nothing to do with energy costs. So even if ‘drill baby drill’ drastically reduced the cost of energy (which it won’t of course’ the impact would be minimal. But of course not one of them gave a serious answer. Which is why they are an utter waste of time. They have no answers. Just hate.

www.federalreserve.gov

Second-Round Effects of Oil Prices on Inflation in the Advanced Foreign Economies

The Federal Reserve Board of Governors in Washington DC.
www.federalreserve.gov
Click to expand...
Good analysis. We've also pointed out numerous times that inflation is global, not just here. So either the POTUS has little control over it, or the supposedly incompetent. dementia-ridden Pres. Biden controls the economies of the entire planet. :rolleyes:
 
Concart said:
During Trumps news conference he claimed that the cost of oil had caused the spike in inflation.

Question: How will a policy of more drilling impact the price of goods and services. To what extent does an increase in oil/energy costs impact the cost of goods.

Please be specific regarding your claim and cite sources. Please state specific numbers.
Click to expand...
energy is used in the manufacture and transport of all goods, thus a price change of any fuel will effect vast swaths of the economy.

can you understand this on a general level?

if not, specifics won't matter, and you're too stupid to be involved in this discussion.
 
Concart said:
The University of Minnesota. Thanks for asking. My masters in business is from the Carlson school of management. You are an uneducated rube. Respect your superiors.
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Mr. Owl also has a masters in business/economics, from the Univ. of Missouri at St. Louis. He sees the RW insistence on simplistic answers to complex issues, like the ones we've seen here, as typical of the poorly- and non-educated.
 
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