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It would depend a bit on how the war concludes, right?
As I understand it, Russia's still selling oil and natural gas though in slightly less volume and at a discount from what they normally would have because there's sanction risk inherent in it so the price in terms of what they get for it drops relative to what would be the case were it not for sanctions. So if you have a lower volume and lower margins, it's not great for them and which they would probably like undone after the war.
The question then is if there's any permanent, irreversible changes even were Russia to no longer be a pariah state. Russia sends a lot of its fossil fuels to other European countries as the demand has been high there and the transit costs relatively low with the pipelines they built such that European countries were recipients of half of Russia's oil exports. Europe was already steadily moving towards lowered oil consumption due to the shift towards electric vehicles (as has China), but it's arguable that this war has quickened that pace and urgency as well as caused other European oil producers to continue or expand their output and to invest in expanding infrastructure for receiving oil by shipping. If that's the case, then Russian oil even if no longer a pariah state becomes far less valuable as their main customers have less overall demand, larger internal production, have put in the capital costs to make shipping oil slightly more competitive, and have made some countries leery of importing from them. This then means they need to turn to other, less wealthy markets and put in a lot of investment for new pipelines elsewhere and/or go by shipping which is less efficient and therefore loses its competitive edge.
You left out the fact that once Biden took office he put a stop to the oil pipeline
The Keystone XL that he stopped had zero to do with anything. Why? Because it was to carry basically bunker oil to the Gulf of Mexico to be delivered to China. It would NOT have gone to any of our refineries AND it would have taken 2 more years to become operational (which means it woudl have been able to help out oil prices even IF it was going to us). AND that oil is ALREADY being delivered by truck and rail, so capacity would NOT increase only oil company profits.
Please, understand how oil works before spouting off.
When President Trump left office, the United States was energy independent, and gasoline was in the neighborhood of $3/gallon. What changed??? The answer is quite obvious, and all we have to do is revert back to the Trump policies, and we'd be energy independent, once again. Think about that......and if you choose to indeed give it some thought, be honest with yourself!
Please—take it to the political forum to beat that drum
Ummm Trump handled the pandemic very well and started the process to get two vaccines approved in record time.
He ignored the pandemic, ignored science. Yes, he fast tracked the vaccines (and I give him full credit for that), then told everyone NOT TO TAKE THEM. And your side did NOT take them. He wasted the perfect opportunity to ACTUALLY fix the problem in the US. Democratic run states (and Democratic areas) actually took the vaccines and worked to fix the actual problem (with a couple of exceptions.. Maryland's Republican Governor was a big proponent of the vaccines (and an outspoken anti-trumper) and we did them pretty quickly).
At any rate, Covid lockdowns were why demand for oil dropped. Taking the vaccines allowed us to open up and increased oil demand. The pipeline would not have helped, and Biden didn't cause the increase in prices.
If even one country buys Russian oil, then the whole world is effectively consuming Russian oil. It's a global commodity. For example, imagine India used to buy oil from Pakistan but then figured they can get a discount on Russian oil, so they switch over to Russian oil. Now Pakistan has more oil to sell, so sells it to Europe who refuses to buy Russian oil. At the end of the day all the oil produced still gets consumed, but everyone is worse off because now people are buying oil that is geographically further away from them meaning transportation costs are higher and the environment is worse off due to burning more oil to transport the oil.
Ok, since you want to get political... We are honest. When Trump was in office he had a pandemic that he dealt with really badly, demand cratered as no one was flying, or on cruise ships and everybody started working from home and not commuting. So supply and demand meant oil prices tanked, with gasoline prices following. Trump's policy of making sure that Saudis stopped producing (a policy and trade agreement that ends this year) also meant that there wasn't enough production and supply when demand went back up now that everyone is back to work, flying, and on cruise ships... Since production and supply remained low when demand shot up, the laws of supply and demand meant prices shot up.
Trump was hit by a pandemic, the likes of which the entire world hadn't seen in a little over 100 years. Given the fact that the 'Dems fought everything he did, or tried to do, I think he handled the Covid situation pretty well.
With respect to the oil situation, all Biden did, driven by his infatuation with the "left wing, green energy" people, was to shut down new oil exploration....period. So, when demand began to return, there wasn't enough oil to meet what was essentially, former levels of demand. We met the demand in previous decades, but now it's an issue??? And WHO is currently in the driver's seat???
Quote:
Originally Posted by Deuce88
Ummm Trump handled the pandemic very well and started the process to get two vaccines approved in record time. It was democratic run states the had the worst problems and still do.
Correct!
Quote:
Originally Posted by victimofGM
You left out the fact that once Biden took office he put a stop to the oil pipeline and put a stop to measures Trump had enacted, both of which caused a spike in oil prices and a reduction in oil production within USA lands and waters. Sadly environmentalist claim to want to protect the environment but by trying to restrict oil production in USA they are hurting US workers and harming the environment by sending oil production to countries whose oil production do not have the EPA restrictions placed on US oil production. While many foreign oil production pay virtually slave wages on workers, US oil production pays living wages and supports many surrounding businesses and industries. While US oil production must meet strict EPA standards on pollution, many of their foreign counterparts don’t have such restrictions and freely pollute the air, land, and water. While a newly built refinery can produce gas and diesel in a much more efficient manner in higher volumes, environmentalist prevent such refineries from being built through lawsuits and like minded government officials.
He ignored the pandemic, ignored science. Yes, he fast tracked the vaccines (and I give him full credit for that), then told everyone NOT TO TAKE THEM. And your side did NOT take them. He wasted the perfect opportunity to ACTUALLY fix the problem in the US. Democratic run states (and Democratic areas) actually took the vaccines and worked to fix the actual problem (with a couple of exceptions.. Maryland's Republican Governor was a big proponent of the vaccines (and an outspoken anti-trumper) and we did them pretty quickly).
At any rate, Covid lockdowns were why demand for oil dropped. Taking the vaccines allowed us to open up and increased oil demand. The pipeline would not have helped, and Biden didn't cause the increase in prices.
Do you read non-fake news at all?
When did Trump say to not take the vaccines he actually fast tracked?
It was current democrat administration (during campaign) what was telling people to not trust "Trump vaccines" and as usual switched 180 once they got in power and took credit for the vaccines.
And yes stopping the pipeline did hurt immensely the oil industry, why do you ignore that when Biden himself was bragging about it (his was voted for his mandate to hurt oil industry)?
I don't think there is an easy answer to that question. From the perspective of keeping petroleum product prices down, you want to draw from a wide variety of sources, which would include Russia. On the other hand, Russia was already an adversary, and they now look to be an even more dangerous one, and oil is their biggest money maker - which in turn helps to support their war machine. Even now, some nations continue to buy Russian petroleum products, and I imagine that more will do so if the Ukraine situation can be resolved in something less than a heinous manner. But some nations will simply say they don't want to give their money to Russia, and I don't think that's wrong.
When President Trump left office, the United States was energy independent, and gasoline was in the neighborhood of $3/gallon. What changed??? The answer is quite obvious, and all we have to do is revert back to the Trump policies, and we'd be energy independent, once again. Think about that......and if you choose to indeed give it some thought, be honest with yourself!
The US was NOT oil independent. US production peaked at 12 million or so barrels per day, while consumption is 19 million barrels per day. Much of the marginal production that took the total to 12 million bbls/day was completely uneconomic, and lost money.
You left out the fact that once Biden took office he put a stop to the oil pipeline and put a stop to measures Trump had enacted, both of which caused a spike in oil prices and a reduction in oil production within USA lands and waters. Sadly environmentalist claim to want to protect the environment but by trying to restrict oil production in USA they are hurting US workers and harming the environment by sending oil production to countries whose oil production do not have the EPA restrictions placed on US oil production. While many foreign oil production pay virtually slave wages on workers, US oil production pays living wages and supports many surrounding businesses and industries. While US oil production must meet strict EPA standards on pollution, many of their foreign counterparts don’t have such restrictions and freely pollute the air, land, and water. While a newly built refinery can produce gas and diesel in a much more efficient manner in higher volumes, environmentalist prevent such refineries from being built through lawsuits and like minded government officials.
Oil production has not been restricted.
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