Biden Got Us Into This Oil Price Mess

[Weatherman2020]

It depends on what you mean by energy independence. If energy independence means we don't import oil, then that hasn’t been true since the 1940s. If it means we export more energy than we import, then we became energy independent in 2019 and remain so today. Some people define energy independence as producing more than we consume. In that case, we reached that milestone in 2020 which was primarily a result of a sharp drop in consumption because of the Covid-19 pandemic, accompanied by a smaller drop in energy production and that milestone remained intact.

It means I’m paying less than $2 for gas like I was under Trump.
Then Brandon put sanctions on US oil

 

[Oldestyle]

We have never had runaway inflation; that is hyperinflation in the US. With runaway inflation, currency becomes worthless and people resort to barter as a means of obtaining goods because prices are rising so fast that income lags far behind prices.
The current inflation rate is 8.2%. Since 1940, we had 10 years where the inflation rate was higher than the current rate. The highest rate was 18.1% in 1946. In the 1970's it was above 12% 3 time.

U.S. Inflation Rate by Year

The U.S. inflation rate by year is the percentage change in prices from one year to the next. It responds to business cycle phases and interest rates.

www.thebalancemoney.com

I took Economics in college, Flopper. I know what hyperinflation is. I didn't use that term. I used the term runaway inflation which is NOT hyperinflation!

 

[Flopper]

Yep. They call it low hanging fruit.

Saudi Arabia last year needed to drill 399 wells to maintain a production at 11.4 million barrels a day. In the US we have to drill over 38,000 wells to reach that production. In essence one Saudi well is equal to 99 wells in the US. This is the main reason why the Saudi cost of lifting oil is so low. Also the extensive use of Fracking in the US has significantly increased our cost of production. Today it at least 4 times more costly to produce oil in the US than Saudi Arabia.

Today's solutions to domestic economic problems advocated free-market activities that stress comparative advantage -- a philosophy that suggests that in order for countries to develop, each country should do what it does best

I'm pretty sure producing oil is what Saudi Arabia do best. I think America does a lots things better than drill oil wells.

This Jaw-Dropping Slide Shows Why Saudi Arabia Makes So Much Money on Oil | The Motley Fool

Schlumberger Limited points out just how much harder it is for U.S. oil companies to keep up with Saudi Arabia.

www.fool.com

 

[Flopper]

I took Economics in college, Flopper. I know what hyperinflation is. I didn't use that term. I used the term runaway inflation which is NOT hyperinflation!

I am not an economics major but googling hyperinflation I see it used interchangeable with runaway inflation. I'm not going to argue over semantics. The fact is in the US, we have had a number of years in which inflation was greater than it is now, 10 to be exact. And in 8 out of those 10 years it was down significantly within a year and in all 10 years it was down to normal levels for that time period within 2 or 3 years.

 

[surada]

Saudi Arabia last year needed to drill 399 wells to maintain a production at 11.4 million barrels a day. In the US we have to drill over 38,000 wells to reach that production. In essence one Saudi well is equal to 99 wells in the US. This is the main reason why the Saudi cost of lifting oil is so low. Also the extensive use of Fracking in the US has significantly increased our cost of production. Today it at least 4 times more costly to produce oil in the US than Saudi Arabia.

Today's solutions to domestic economic problems advocated free-market activities that stress comparative advantage -- a philosophy that suggests that in order for countries to develop, each country should do what it does best

I'm pretty sure producing oil is what Saudi Arabia do best. I think America does a lots things better than drill oil wells.

This Jaw-Dropping Slide Shows Why Saudi Arabia Makes So Much Money on Oil | The Motley Fool

Schlumberger Limited points out just how much harder it is for U.S. oil companies to keep up with Saudi Arabia.

www.fool.com

I know. I grew up in Ghawar. Most US wells produce less than 50 barrels a day. You sure know more about this most people here.

 

[Flopper]

Well here's my question for those "Economists" then, Flopper!

When you're faced with shortage of product paired with strong consumer demand...why would ANYONE pursue a fiscal policy that pumped Trillions of dollars in Government spending into the same economy? Freshmen Econ students know that's a recipe for inflation!

That huge spending in 2021 came from covid relief. In 2021, most restaurants were doing takeout tens of thousands of schools were closed in America and 23 million more Americans were working from home, millions of Americans were unable to pay their rent or mortgage and 38,000 a months were dying from Covid-19. Inflation and the supply chain was not a major problem. In 2022 it was and Covid relief checks had stopped. In fact government spending is down 800 million dollars this year.

 

[Flopper]

I know. I grew up in Ghawar. Most US wells produce less than 50 barrels a day. You sure know more about this most people here.

I worked in oil production for 5 years and I own and lease mineral rights.

 

[Oldestyle]

That huge spending in 2021 came from covid relief. In 2021, most restaurants were doing takeout tens of thousands of schools were closed in America and 23 million more Americans were working from home, millions of Americans were unable to pay their rent or mortgage and 38,000 a months were dying from Covid-19. Inflation and the supply chain was not a major problem. In 2022 it was and Covid relief checks had stopped. In fact government spending is down 800 million dollars this year.

So explain WHY we needed to spend that much, Flopper? Why is Government spending down a mere 800 million from the massive spending we were doing during Covid? THAT is the spending that an economist like Larry Summers was warning against because he knew that injecting that much Government stimulus into an economy that already has a supply problem was the perfect recipe for inflation.

 

[Oldestyle]

I am not an economics major but googling hyperinflation I see it used interchangeable with runaway inflation. I'm not going to argue over semantics. The fact is in the US, we have had a number of years in which inflation was greater than it is now, 10 to be exact. And in 8 out of those 10 years it was down significantly within a year and in all 10 years it was down to normal levels for that time period within 2 or 3 years.

To an Economist, hyperinflation would be defined as inflation that increases by 50% or more in a month. Runaway inflation is more of a general term.

 

[Weatherman2020]

Saudi Arabia last year needed to drill 399 wells to maintain a production at 11.4 million barrels a day. In the US we have to drill over 38,000 wells to reach that production. In essence one Saudi well is equal to 99 wells in the US. This is the main reason why the Saudi cost of lifting oil is so low. Also the extensive use of Fracking in the US has significantly increased our cost of production. Today it at least 4 times more costly to produce oil in the US than Saudi Arabia.

Today's solutions to domestic economic problems advocated free-market activities that stress comparative advantage -- a philosophy that suggests that in order for countries to develop, each country should do what it does best

I'm pretty sure producing oil is what Saudi Arabia do best. I think America does a lots things better than drill oil wells.

This Jaw-Dropping Slide Shows Why Saudi Arabia Makes So Much Money on Oil | The Motley Fool

Schlumberger Limited points out just how much harder it is for U.S. oil companies to keep up with Saudi Arabia.

www.fool.com

Obama said we couldn’t drill our way out of high oil prices and self reliance.

3 years later America was self reliant and gas was in the $2-$3 range.

 

[surada]

Obama said we couldn’t drill our way out of high oil prices and self reliance.

3 years later America was self reliant and gas was in the $2-$3 range.

From 2008-2016 US oil production doubled because the ppb was high enough to justify investment in drilling and exploration. Do you understand that?

 

[Flash]

The Moon Bats don't like oil. They like solar power. The only problem is that solar doesn't work worth shit.

Moon Bats are in denial about that. They are Science deniers.

 

[surada]

The Moon Bats don't like oil. They like solar power. The only problem is that solar doesn't work worth shit.

Moon Bats are in denial about that. They are Science deniers.

Lol. Solar works quite well in Saudi Arabia and Florida... Hawaii and Israel. The oil business does too.. and fossil fuels are still essential. Why do you make such asinine statements?

 

[Weatherman2020]

From 2008-2016 US oil production doubled because the ppb was high enough to justify investment in drilling and exploration. Do you understand that?

 

[Weatherman2020]

The Moon Bats don't like oil. They like solar power. The only problem is that solar doesn't work worth shit.

Moon Bats are in denial about that. They are Science deniers.

Moonbats don’t like Western Civilization.
They’ll happily use and do lots of fossil fuels to keep them comfy, they just want their boot on your neck.

 

[Weatherman2020]

That huge spending in 2021 came from covid relief. In 2021, most restaurants were doing takeout tens of thousands of schools were closed in America and 23 million more Americans were working from home, millions of Americans were unable to pay their rent or mortgage and 38,000 a months were dying from Covid-19. Inflation and the supply chain was not a major problem. In 2022 it was and Covid relief checks had stopped. In fact government spending is down 800 million dollars this year.

How in the hell is hundreds of millions spent on solar energy linked to ChiCom flu relief?

 

[surada]

View attachment 708110

Oil production doubled during the Obama years. More Federal leases weren't needed. Oil companies prefer not to drill on Federal land.

 

[Flash]

Moonbats don’t like Western Civilization.
They’ll happily use and do lots of fossil fuels to keep them comfy, they just want their boot on your neck.

These stupid Moon Bats have a fantasy.

Their fantasy is that all houses, businesses and vehicles are powered by batteries and the batteries are recharged by solar and wind arrays. No pollution. Clean everything. Everybody is sitting around Walden's Pond singing "Imagine".

Reality is a wrecked economy, starvation and deaths.

 

[there4eyeM]

Voluntary descent into dependence has made the present energy situation what it is. "Cheap energy" appears to be something for which will we pay at least twice.

 

[Weatherman2020]

Oil production doubled during the Obama years. More Federal leases weren't needed. Oil companies prefer not to drill on Federal land.

Why is gas $7 in California?