How much is gas where you're at?

[chrisrenrut]

Yeah, pretty much. Although, it’s important to note that while bidens actions haven’t really had a big impact, the democrats policies and pressure from environmental groups have had a huge impact. Obama basically killing Keystone XL is one reason for the hurt we are feeling now. These large infrastructure projects are needed in the future and the more they are delayed the costlier it is down the road. If keystone XL is up and running then there would be more crude flowing from the oil sands stuff. Right now, instead of increasing capacity up there, Conoco and Total are going status quo since it’s expensive and the margins aren’t great since it all has to be railed to the gulf coast, at least what won’t fit in the Hardisty terminal.

Also most oil and gas companies have very limited financing. Large pension funds and sovereign funds have made a policy decision to no longer invest in fossil fuels, so large institutional buyers of debt and equity are limited. Private equity is what’s fueling any growth now and even that is being down with kid gloves.

So no, it’s not really bidens fault per se, but his policies may hurt us in 5-10 years if the alternative energy stuff doesn’t finally take off.

I appreciate your insight here. Its good to hear a perspective from both side, especially on a complex issue like this. Regarding financing, why are oil companies recording record profits, and using the funds for dividends and stock buybacks? Could or should they be using at least some of the increased revenue to offset the loss of capital financing that you referenced? On the surface, it seems they are more concerned about stock prices and keeping stockholders happy at the cost of the consumer.

[Bo Diddley]

So if I understand the issue correctly, when Romney and Cox speak against Biden's policies, they're really arguing for the future. Anything that any of the current US players are doing right now really has zero effect on the price at the pump today--only years down the road.

[Moliere]

Cool. So the sitting on lease argument sounds like it's about as viable as the "mortarium on leases" argument. Neither is impacting the current situation. Meaning basically nothing Biden has done since becoming president has contributed to these prices. It's a supply/demand issue driven by the market. Though the supply is down because oil companies tempered their drilling post covid because they didn't want to create an over supply like they had during 2020.

Yeah, pretty much. Although, it’s important to note that while bidens actions haven’t really had a big impact, the democrats policies and pressure from environmental groups have had a huge impact. Obama basically killing Keystone XL is one reason for the hurt we are feeling now. These large infrastructure projects are needed in the future and the more they are delayed the costlier it is down the road. If keystone XL is up and running then there would be more crude flowing from the oil sands stuff. Right now, instead of increasing capacity up there, Conoco and Total are going status quo since it’s expensive and the margins aren’t great since it all has to be railed to the gulf coast, at least what won’t fit in the Hardisty terminal.

Also most oil and gas companies have very limited financing. Large pension funds and sovereign funds have made a policy decision to no longer invest in fossil fuels, so large institutional buyers of debt and equity are limited. Private equity is what’s fueling any growth now and even that is being down with kid gloves.

So no, it’s not really bidens fault per se, but his policies may hurt us in 5-10 years if the alternative energy stuff doesn’t finally take off.

[Donuthole]

The “sitting on lease” argument is BS. A lot of those leases are either not profitable or haven’t been explored. Oil companies are just doing what any company would do, drilling the leases with the least amount of risk and highest amount of production. Right now that is the Permian.

It’s basically impossible to drill in Colorado now and other places make it too risky to drill. Texas and New Mexico have the most proved acreage and the infrastructure necessary to drill. No one is going to spend billions to out in infrastructure in a new area when oil prices will likely be much lower when the drilling finally happens there. So oil companies are drilling like crazy on the acreage they have.

Also, oil companies can’t just sit on leases. Most of them require at least a well to be drilled or the lease can be lost. Some require continuous drilling. An oil company won’t let a good lease go. They plan out several years to make sure they drill and keep the good stuff.

Cool. So the sitting on lease argument sounds like it's about as viable as the "mortarium on leases" argument. Neither is impacting the current situation. Meaning basically nothing Biden has done since becoming president has contributed to these prices. It's a supply/demand issue driven by the market. Though the supply is down because oil companies tempered their drilling post covid because they didn't want to create an over supply like they had during 2020.

[Moliere]

Yeah, let me rephrase. The oil companies snagged a bunch of leases before the mortarium, and were sitting on them and intentionally not drilling on them so as not to create an over supply of oil and dilute their prices. Now that oil is spiking, the oil companies don't have the materials to drill on them. Over the years, Democrats have created policies that have made it more difficult to drill, but even if those policies and the moratorium were lifted yesterday, oil companies wouldn't have the ability to drill more right now. Ergo we would be in the exact same situation no matter the president, but Biden is more at because he is a Democrat. Got it.

The “sitting on lease” argument is BS. A lot of those leases are either not profitable or haven’t been explored. Oil companies are just doing what any company would do, drilling the leases with the least amount of risk and highest amount of production. Right now that is the Permian.

It’s basically impossible to drill in Colorado now and other places make it too risky to drill. Texas and New Mexico have the most proved acreage and the infrastructure necessary to drill. No one is going to spend billions to out in infrastructure in a new area when oil prices will likely be much lower when the drilling finally happens there. So oil companies are drilling like crazy on the acreage they have.

Also, oil companies can’t just sit on leases. Most of them require at least a well to be drilled or the lease can be lost. Some require continuous drilling. An oil company won’t let a good lease go. They plan out several years to make sure they drill and keep the good stuff.

[Donuthole]

Um, they are drilling and pumping as much as they can. They aren’t stupid. Oil is at record highs so they are going like crazy but you can only drilling if you have materials, which materials are either crazy expensive or long lead times. They aren’t intentionally holding back. The red tape to drill on some of those leases is ridiculous. Conoco’s Willow Project is a great example.

Its not Biden specifically that is causing the problems. It’s a decade worth of a thousand cuts with a global pandemic added on top. But it’s fair to say it is the democrats fault as they like to work in synch with climate groups and the like.

Agreed, each of the players have an impact. Let's not pretend Biden doesn't.

Yeah, let me rephrase. The oil companies snagged a bunch of leases before the mortarium, and were sitting on them and intentionally not drilling on them so as not to create an over supply of oil and dilute their prices. Now that oil is spiking, the oil companies don't have the materials to drill on them. Over the years, Democrats have created policies that have made it more difficult to drill, but even if those policies and the moratorium were lifted yesterday, oil companies wouldn't have the ability to drill more right now. Ergo we would be in the exact same situation no matter the president, but Biden is more at because he is a Democrat. Got it.

[Northwestcoug]

You don't even want to know what I paid for gas recently in Calgary, the epicenter of Canadian oil and gas exploration.

Let's up the ante here. It's Biden's fault, it's the dems fault, but they have to be in lockstep with some global cabal that can influence prices outside of the US. C'mon, think big!

[Bo Diddley]

Aren't there lots of oil and gas leases on federal lands which are currently not being used by oil companies? Why would we grant more leases when all the ones granted aren't being used? Seems like the leases need to be reworked to say that if you aren't using a lease to full capacity, you lose it. So it comes back to capitalism. These companies are intentionally not maximizing oil production because it benefits them. Republicans love themselves some big oil, until it hits them in the pocketbook when a Dem is in office.

Re: the article you linked, that sounds like a future issue, but definitely not what has caused prices to spike in the last 6 months.

Agreed, each of the players have an impact. Let's not pretend Biden doesn't.

[Moliere]

Aren't there lots of oil and gas leases on federal lands which are currently not being used by oil companies? Why would we grant more leases when all the ones granted aren't being used? Seems like the leases need to be reworked to say that if you aren't using a lease to full capacity, you lose it. So it comes back to capitalism. These companies are intentionally not maximizing oil production because it benefits them. Republicans love themselves some big oil, until it hits them in the pocketbook when a Dem is in office.

Re: the article you linked, that sounds like a future issue, but definitely not what has caused prices to spike in the last 6 months.

Um, they are drilling and pumping as much as they can. They aren’t stupid. Oil is at record highs so they are going like crazy but you can only drilling if you have materials, which materials are either crazy expensive or long lead times. They aren’t intentionally holding back. The red tape to drill on some of those leases is ridiculous. Conoco’s Willow Project is a great example.

Its not Biden specifically that is causing the problems. It’s a decade worth of a thousand cuts with a global pandemic added on top. But it’s fair to say it is the democrats fault as they like to work in synch with climate groups and the like.

[Donuthole]

Spencer Cox has been harping on it for a year and a half now. Moritorium on oil and gas leases on federal lands.

Also regulation touched on here:

https://www.forbes.com/sites/davidbl...d-gas-expands/

Aren't there lots of oil and gas leases on federal lands which are currently not being used by oil companies? Why would we grant more leases when all the ones granted aren't being used? Seems like the leases need to be reworked to say that if you aren't using a lease to full capacity, you lose it. So it comes back to capitalism. These companies are intentionally not maximizing oil production because it benefits them. Republicans love themselves some big oil, until it hits them in the pocketbook when a Dem is in office.

Re: the article you linked, that sounds like a future issue, but definitely not what has caused prices to spike in the last 6 months.

[Bo Diddley]

And Romney has something to say about it as well:

https://www.romney.senate.gov/bidens...sen-inflation/

[Bo Diddley]

What impact is he having? Please do tell.

Spencer Cox has been harping on it for a year and a half now. Moritorium on oil and gas leases on federal lands.

Also regulation touched on here:

https://www.forbes.com/sites/davidbl...d-gas-expands/

[Donuthole]

Let's not kid ourselves that Biden isn't having a negative impact on the cost of gas at the pump, particularly in the US.

What impact is he having? Please do tell.

[Bo Diddley]

That's correct. Trump also kept prices low in Europe and as soon as Biden was elected he tore down all of Trump's righteous, benevolent global policies that were keeping gas prices low and raised them because he's wicked and God won't protect his people from high gas prices when we use our agency to elect wicked men.

Let's not kid ourselves that Biden isn't having a negative impact on the cost of gas at the pump, particularly in the US.

[Moliere]

That's correct. Trump also kept prices low in Europe and as soon as Biden was elected he tore down all of Trump's righteous, benevolent global policies that were keeping gas prices low and raised them because he's wicked and God won't protect his people from high gas prices when we use our agency to elect wicked men.

Wait, I thought the oil companies were artificially keeping prices up? I guess the state run oil companies are doing it as well??? Crazy!!