Think Drill Baby Drill Is The Answer To Our Energy Solution? Think Again

[Man With A Plan]

It must be pointed out that the last time Saudi Arabia sent this ‘preservation of market share’ signal was in 2014 when they and OPEC flooded the market with millions of barrels of additional crude. That move was in response to the then-nascent boom in US shale oil production coming mainly from the Permian Basin, the Bakken Shale, and the Eagle Ford Shale. Saudi and other OPEC officials at the time saw this US shale oil cutting into their market share and decided to mount a defense.

The result was a dramatically oversupplied market, a supply surplus that some believed reached as high as 8 million barrels of oil per day, and a collapse in crude prices. Over the next two years, more than 200 US shale producers were forced into bankruptcy, creating the worst depression in the domestic oil and gas industry since the mid-1980s. By the end of 2016, Saudi Arabia was coordinating with Russia and other big oil producing countries to form the OPEC+ cartel to raise prices to more economic levels.

Saudi Strategic Shift Raises Specter Of Another Oil Bust — Forbes

Saudi Arabia is again signaling a shift in strategy to protect global market share. The last time this happened, an oil bust was the result.

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You do realize that a lowering of crude prices means a lowering of prices at the pump?

 

[martybegan]

Hydro only works in very limited ares, other than that it's great.

True, but right now we are REMOVING dams from those limited areas, not trying to find more locations where i can work.

 

[surada]

You do realize that a lowering of crude prices means a lowering of prices at the pump?

The Saudis were sticking it to the Russians, but it also hurt US producers because we have the highest lift costs in the world.

 

[Man With A Plan]

The Saudis were sticking it to the Russians, but it also hurt US producers because we have the highest lift costs in the world.

Did it help lower the price of gas at the pump for US consumers?

 

[surada]

Did it help lower the price of gas at the pump for US consumers?

Yes.

 

[Man With A Plan]

Yes.

Then why are you claiming it was a bad thing? Do you not grasp that one of the major drivers of the big inflationary spike under Joe Biden was that the cost of transporting everything increased and those costs were passed on to consumers?

 

[Unkotare]

The "answer" to our "solution"?

 

[surada]

Then why are you claiming it was a bad thing? Do you not grasp that one of the major drivers of the big inflationary spike under Joe Biden was that the cost of transporting everything increased and those costs were passed on to consumers?

I didn't say it was a bad thing. But think....

If the ppb goes too low it hurts US oil production first because we have the highest lift costs in the world....No economies of scale. Most US wells produce fewer than 50 barrels a day. Fracking isn't feasible for most wells...and most US oil has to be handled at least 3 times between the wellhead and a refinery.

American oilmen are heroes, geniuses... and all you all do is bitch.

 

[Man With A Plan]

I didn't say it was a bad thing. But think....

If the ppb goes too low it hurts US oil production first because we have the highest lift costs in the world....No economies of scale. Most US wells produce fewer than 50 barrels a day. Fracking isn't feasible for most wells...and most US oil has to be handled at least 3 times between the wellhead and a refinery.

American oilmen are heroes, geniuses... and all you all do is bitch.

You seem confused...

 

[elektra]

True, but right now we are REMOVING dams from those limited areas, not trying to find more locations where i can work.

All the good spots are long gone

 

[elektra]

Massive government spending is inflation

 

[surada]

You seem confused...

You aren't listening.

 

[martybegan]

All the good spots are long gone

We thought of that with oil drilling until fracking came about. Time to think outside the box.

 

[elektra]

We thought of that with oil drilling until fracking came about. Time to think outside the box.

Great rivers are very limited resource. All are used. Outside the box of hydroelectric is nuclear power

 

[martybegan]

Great rivers are very limited resource. All are used. Outside the box of hydroelectric is nuclear power

it doesn't help that we are removing dams currently.

And I doubt we have exhausted all the ones available. Smaller rivers can be used as well.

 

[elektra]

it doesn't help that we are removing dams currently.

And I doubt we have exhausted all the ones available. Smaller rivers can be used as well.

Dams are not efficient. We have exhausted this resource. Cadillac Desert is a great book on the subject.

 

[martybegan]

Dams are not efficient. We have exhausted this resource. Cadillac Desert is a great book on the subject.

They are plenty efficient, and a good addition to nuke power. It doesn't have to be one or the other.

They are the most stable of the "renewable" sources, and the only one that can handle base load assignments.