How much is gas where you're at?

[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.

[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]

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]

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.

[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.

[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.

[The_Tick]

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.

It is not just on the surface...it is in fact what they are doing. They have a responsibility to return an handsome return on their stockholders investment. The stock holder does not care about the consumer.

The stock holder and the company also don't care about the employees either. I know that for a fact. Lol.

[Moliere]

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.

It’s a good question. The short answer is that investors are demanding their cash back, this the concept of variable dividends that started last year. The companies could put that money back into the ground but they’d have a hard time spending it now since logistics are so tight (there’s only so much drill pipe and frac crews now) and many are afraid if they pay a premium on the investment now their return won’t be good if prices fall.

So yeah, there is some greed there but it’s not any different than any other industry. When oil prices were negative $35 in 2020 I didn’t hear anyone say we should bail out the oil companies and many went bankrupt so I guess they wonder why we should cap their profits now.

[Uncle Ted]

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How much did gas prices jump recently?

[Jeff Lebowski]

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How much did gas prices jump recently?

Classic example of why the dems will get waxed tomorrow. So incredibly tone deaf.

[Moliere]

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How much did gas prices jump recently?

And people wonder why no one in oil and gas trusts the democrats. They lie, constantly.

[Joe Public]

$6.20/gal. this morning at a Shell station.

I’m guessing it’s not quite that high outside of California.

[Moliere]

$6.20/gal. this morning at a Shell station.

I’m guessing it’s not quite that high outside of California.

3.19 yesterday at a Shell station

[Bo Diddley]

$6.20/gal. this morning at a Shell station.

I’m guessing it’s not quite that high outside of California.

It's about $4.25 in Northern UC, but I saw $3.99 at the truck stop in Springville Friday night.

[falafel]

3.19 yesterday at a Shell station

5.21 at a Shell yesterday in Vegas.