To all you pro oil folks out there.

[YoursTruly]

Because the price was so low it would put a lot of companies out of business. When you look at gasoline and oil throughout the decades it hasn't gone up nearly as much as everyday products we buy like milk, pop, cereal, candy........ There is only so low they can sell fossil fuels before it becomes a huge loss.

Thus the need for oil bust cycles. This is a bust cycle and they're making a killing. This isn't rocket science. Big oil, Exxon, BP and the others have enough money to weather just about anything for a decade. No one should be scared of any oil company going out of business. Oil is in the top 5 of necessities in the world. If a few oil companies fall, no big deal for 99% of the global population.

 

[YoursTruly]

Bust cycle?
I thought that was when producers went bankrupt?

Nope, not at all.
A bust cycle is when oil companies lay off all their blue collar labor, reducing overhead, slow down production to increase oil futures (stock price), and start raking in the money.
This is when they pay back their bank loans, investors and stock up on revenue.
They sit back and watch the money come pouring in and they milk it for all it's worth.

The bust cycle turns to the boom cycle when
1. Renewables market starts cutting into their revenues.
2. Their supplies start running low.
3. Demand drops because the price per gallon gets too high. <<Happening now, but not enough
4. People finally figure out that the government isn't as much to blame as everyone initially thought. And starts complaining to the oil companies. Which leads back to #1.

Since Reagan, we've been through a bust cycle with every 2 term president. Be it a republican president or a democrat. The oil companies don't care who in the white house. Had Trump been in the white house, the bust cycle would've happened anyways. But since Trump was not stupid enough to take on big oil, the bust cycle wouldn't have been as hard on us. And probably wouldn't have lasted so long. Biden is a moron for thinking he can take on big oil. I guess someone told him that everyone could afford a Tesla and solar panels on their homes.

 

[YoursTruly]

So are you auditioning for the Biden administration that you can lie and spin better than they can? ANYBODY can lie and spin better than the bozos we have in the White House

Bro, I can't stand Biden. And can only think of one democrat in my entire life that I respect. (Tulsi Gabbard). So don't even try this "you're pro Biden" crap on me.
I'm just giving unbias information with facts about how and why oil companies do what they do. Boom and bust cycles are a natural occurrence in the oil business.
Have you forgotten why the whole "drill baby drill" slogan came about? We were sick of OPEC's bust cycles, where we were forced to pay high prices at the pump for middle eastern oil. So the government gave HUGE tax incentives and corporate welfare to oil companies to "drill baby drill."
And now Americans are shocked to find out that US oil companies are doing the same exact thing that OPEC did to us for so long.
There's a financial reason for bust cycles. It's just business. It'll be over in a year or so, and prices will once again fall.

Here's a little advice: Remember this bust cycle. Write it down if you need to. Because there will be more in the future. About every 5 years or so. That way you won't be shocked when the next one hits.

 

[Lesh]

The strategic reserve is limited. And strategic.

Oh, and because it only provided mere days of relief as opposed to the permanent relief we desire.

Ineffective.

I didn't say it was particularly effective. I said that it's about the only tool a President has

 

[KissMy]

/———/ NAH I’m not buying your spin.

Donald Trump just threatened to cause an unprecedented global financial crisis​

In an interview Thursday on CNBC, Donald Trump broke with tired clichés about the evils of federal debt accumulation. “I am the king of debt,” he said. “I love debt. I love playing with it.”

But he replaced fearmongering about debt with an even more alarming notion — a bankruptcy of the United States federal government that would incinerate the world economy.

“I would borrow, knowing that if the economy crashed, you could make a deal,” . “And if the economy was good, it was good. So therefore, you can’t lose.”

 

[Tom Paine 1949]

Of course — in theory — a smart President could adopt more rational approaches to international oil geo-politics. Obama got shut down pretty quickly when he attempted this with Iran. There is still room for realizable constructive measures that Biden can take — if he is willing to confront some powerful lobbies.

Here are two recent articles on the much too timid measures (imo) the Biden Administration is now taking toward selectively suspending sanctions which prevent even “allied” countries in Europe from buying and importing Venezuelan and Iranian oil. Many Republican and Democratic politicians close to the Cuban-American and Israeli lobbies oppose such measures. They support a policy like Trump’s “maximum pressure” sanction policy — even at the expense of smart diplomacy and U.S. and European consumer interests.

https://www.usnews.com/news/top-new...ship-venezuela-oil-to-europe-for-debt-sources

Joe Biden expected to ease sanctions on oil from Iran and Venezuela

 

[Ray From Cleveland]

I didn't say it was particularly effective. I said that it's about the only tool a President has

Correct. It's the only tool he has to keep his enviro-kooks happy without accomplishing a damn thing to try and bring his pathetic poll numbers up slightly.

 

[Lesh]

So...Trumpers

You onboard with dropping Venezuelan and Iranian oil sanctions?

I didn't think so

 

[Lesh]

Correct. It's the only tool he has to keep his enviro-kooks happy without accomplishing a damn thing to try and bring his pathetic poll numbers up slightly.

So what would YOU suggest retard?

 

[eagle1462010]

So what would YOU suggest retard?

Fire Biden and all Dems.......would be a good start.

 

[Ray From Cleveland]

Thus the need for oil bust cycles. This is a bust cycle and they're making a killing. This isn't rocket science. Big oil, Exxon, BP and the others have enough money to weather just about anything for a decade. No one should be scared of any oil company going out of business. Oil is in the top 5 of necessities in the world. If a few oil companies fall, no big deal for 99% of the global population.

There is no bust cycle because oil is not priced that way.

I'm no expert but I did spend a few years in the commodities market where prices are actually set. If you don't know anything about the market, think of it like e-bay.

You have a barrel of crude oil and you wish to sell it. You list it on e-bay and the highest bidder at your deadline wins. It's the exact same thing.

Of course nobody has barrels of oil sitting in their garage, but they do own X amount of oil via contract. Like e-bay, you can set the deadline. Right now you can buy August oil, October oil, March of next year oil, any oil you wish. The longer in the future you buy a contract or option, the less expensive it is.

The people interested in buying your barrel of oil are not going to make gasoline with it. They are merely the middle-men. They are going to sell it to somebody else at a profit. What makes them think the price will increase? The news and policies of the day which a US President has strong influence over as we are seeing today.

I bid on your barrel of oil, but somebody overbids me. I see the new President stopped the Keystone, so I outbid him or her. Then when our largest oil pipeline was hacked, Dementia said it's not a government issue, it's a private issue, so the other guy outbids me once again. Then I see Dementia gives his blessing to the Russians for their pipeline, and I outbid him again.

Every time a bid goes in higher than the last bid, the price of oil increases, like I said, which is what we are seeing today.

 

[Toddsterpatriot]

A bust cycle is when oil companies lay off all their blue collar labor, reducing overhead, slow down production to increase oil futures (stock price), and start raking in the money.

Are they laying off blue collar labor now, with record high profits?
Any examples in the past when they laid off workers while making record amounts?
Or were all the past layoffs when they were losing money?

The bust cycle turns to the boom cycle when
1. Renewables market starts cutting into their revenues.

They start investing more.....when their revenue drops?

2. Their supplies start running low.
3. Demand drops because the price per gallon gets too high. <<Happening now, but not enough

Dropping demand seems like the worst reason to invest in new supply.

 

[Ray From Cleveland]

So what would YOU suggest retard?

Maybe saying screw the enviro-kooks because they'll never vote for a Republican anyway unless fuel prices are making it a choice between eating and driving to get to work. Leftists are hard headed people.

 

[Cellblock2429]

Donald Trump just threatened to cause an unprecedented global financial crisis​

In an interview Thursday on CNBC, Donald Trump broke with tired clichés about the evils of federal debt accumulation. “I am the king of debt,” he said. “I love debt. I love playing with it.”

But he replaced fearmongering about debt with an even more alarming notion — a bankruptcy of the United States federal government that would incinerate the world economy.

“I would borrow, knowing that if the economy crashed, you could make a deal,” . “And if the economy was good, it was good. So therefore, you can’t lose.”

/———/ Even as president, Trump has no power to do anything with the debt. All finances are controlled by Congress which is run by democrats. You dummy.

 

[Toddsterpatriot]

So...Trumpers

You onboard with dropping Venezuelan and Iranian oil sanctions?

I didn't think so

Nah. Let's make them tighter.
Until Maduro loses weight and the mullahs all hang.

 

[bripat9643]

lol yes the market price big oil colludes with each other to sell it at, nimrod. It's a great time to run around hidng price gouging under 'shortages' that either don't exist or are very short term. They have clueless libertoons and shills running around blaming some idiot politician for it all.

A sure sign of an economic ignoramus is someone who doesn't accept the laws of supply and demand.

 

[bripat9643]

The shills and morons won't admit that oil and gas production on Federal lands that was supposedly shut down only accounts for some 6% to 8% of U.S. production. And, the prices those leases go for are a scandal in themselves with the minimum at $2 an acre and a max of $46 an acre. Ridiculously low. Of course the API, the oil industry fake data and PR outlet, will lie and claim otherwise.

Rates for state lands; even Texas gets almost twice what the Feds lease for in royalties, and the oil millionaires own this state.

https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=&cad=rja&uact=8&ved=2ahUKEwjzkZCR3Zv4AhUqomoFHQCKDvYQFnoECAUQAQ&url=https%3A%2F%2Fwww.statetrustland.org%2Fuploads%2F1%2F2%2F0%2F9%2F120909261%2Findustry_trends_in_oil_and_gas_-_kvasnicka.pdf&usg=AOvVaw02mSOwhJxC__lyuqo6hjgr

Proof?

 

[bripat9643]

Weird that the US still uses pump jacks instead of Christmas trees.

What's Christmas tree?

 

[Markle]

I asked you a question which you seem unable to answer.

What tools does the President have?

These twenty-five Biden administration policies are raising energy costs​

DEC 4, 2021 BY ABIGALE TARDIF
Updated on March 7, 2022

#1 and 2: Adopting new EPA oil and gas rules​

In November 2021, the Environmental Protection Agency announced new regulations governing methane emissions from oil and gas production, transmission, storage, and distribution that would cost more than $1 billion a year.

Last spring, Biden signed a resolution that overturned Trump administration reforms to EPA oil and gas rules. This resolution will worsen energy poverty, reestablish burdensome regulations, and have a disproportionate impact on small businesses.

#3, #4, #5, #6, #7, and #8: Restricting or impeding energy projects​

One of Biden’s first actions after taking office was to halt new oil and gas leases on federal lands and waters, the Biden administration has delayed decisions on these leases — a move that results in higher energy costs for the most vulnerable consumers.

The administration canceled the Keystone XL pipeline and suspended oil and gas leases in the Arctic National Wildlife Refuge and New Mexico (despite opposition from the Navajo Nation). It also resurrected the “Waters of the United States” rule, which would increase barriers to energy projects.

The White House is pursuing new standards for particulate matter and ozone, likely tightening them to unachievable levels for much of the country and creating new barriers for energy project permits.

The president also has rescinded Endangered Species Act reforms, a move that will increase red tape and allow litigation to slow down energy projects.

#9: Rejoining the Paris agreement​

In April 2021, without the consent of Congress, Biden rejoined the Paris agreement, which will result in onerous new regulations that could raise energy costs.

25 Biden policies raising gas prices and other energy costs - Americans for Prosperity

These twenty-five Biden administration policies are affecting gas prices, home heating costs, and other energy-related burdens families face. Read more.

americansforprosperity.org

 

[Markle]

… what a dope! It is hard to believe folks can be so dumb, so wrapped up in conspiracy theories. But here we are.

Are you really this ignorant about the topic or just plain desperate?