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if you compare it to 2020 when the world was shut down...
but compare it to 2018 or 2019 and US oil production is lower
2019 13 million barrels of oil per day (November was the peak of 13m)
2020 dropped down to 9 million barrels daily
2021 peaked at 11.5 million in November
2022 11.8 million barrels of crude oil per day
if you compare it to 2020 when the world was shut down...
but compare it to 2018 or 2019 and US oil production is lower
2019 13 million barrels of oil per day (November was the peak of 13m)
2020 dropped down to 9 million barrels daily
2021 peaked at 11.5 million in November
2022 11.8 million barrels of crude oil per day
"When the pandemic crushed oil demand in 2020, some oil companies went out of business. Some small stripper wells — which accounts for a respectable amount of U.S. oil production — were permanently capped given the bleak outlook. Some workers left the oil industry.
Thus, we have oil production that can’t bounce back quickly because some has been shut in, and new production that can’t proceed as quickly due to manpower and material shortages (e.g., fracking sand). It’s not simply that oil companies are sitting on permits. They are working through them. The number of rigs drilling for oil and gas has risen by 60% over the past year. But it can take years for a permit to translate into oil production (if the location even yields oil).
Oil companies regularly lose money. In four of the past ten years, the oil industry lost money. Big oil lost $76 billion just two years ago. Therefore, they are proceeding with caution. They are maintaining more capital discipline. They aren’t rushing to do projects with the assumption that oil prices will remain above $100/bbl. They are doing projects with the assumption that in a year or more when the projects might pay off, oil prices will have retreated to well below $100/bbl."
Yup -- but to say oil producers are not producing more because of Biden policy is most definitely misleading -- as per the oil producers themselves.
I 100% agree that they are not coming right out and saying this is because of Biden.
At the same time, one cannot ignore that Biden went over to SA to try to patch up relations and get them to pump more oil....and now oil production is being cut.
It would be foolish to try to claim that Biden angering two countries that combine to produce over 20% of the worlds oil is having no impact.
Secondly, policies to cut gas cars and promote EV are impacting investment in US drilling and refining.
"When the pandemic crushed oil demand in 2020, some oil companies went out of business. Some small stripper wells — which accounts for a respectable amount of U.S. oil production — were permanently capped given the bleak outlook. Some workers left the oil industry.
Thus, we have oil production that can’t bounce back quickly because some has been shut in, and new production that can’t proceed as quickly due to manpower and material shortages (e.g., fracking sand). It’s not simply that oil companies are sitting on permits. They are working through them. The number of rigs drilling for oil and gas has risen by 60% over the past year. But it can take years for a permit to translate into oil production (if the location even yields oil).
Oil companies regularly lose money. In four of the past ten years, the oil industry lost money. Big oil lost $76 billion just two years ago. Therefore, they are proceeding with caution. They are maintaining more capital discipline. They aren’t rushing to do projects with the assumption that oil prices will remain above $100/bbl. They are doing projects with the assumption that in a year or more when the projects might pay off, oil prices will have retreated to well below $100/bbl."
Holy crap that's insane. Let me get this straight, Trump somehow mismanaged a global pandemic which forced mostly Blue state Gov. to shutdown businesses (red states like Florida not so much as it was business as usual) reducing the need for fuel which is the reason why oil production fell?
So it's not Biden who wanted to end subsidies for fossil fuels and wanted "no more drilling including offshore" That's Trump who said that not Biden?
*January 20, 2021: One of Biden’s first actions was to revoke approval for the Keystone XL pipeline and impose a moratorium on oil and gas leasing on federal lands and waters. Roughly 25% of U.S. production comes from federal areas. The Keystone XL cancellation confirmed to many policy-watchers Biden’s willingness to use one of climate activists’ favorite tactics – blocking "midstream" pipelines – to restrict "upstream" production. The moves were part of Biden’s broader climate agenda and target to reduce U.S. greenhouse gas emissions by 50% by 2030 and achieve net-zero emissions by 2050.
Quote:
February 26, 2021: Biden updates the "social cost of greenhouse gas emissions," dramatically altering the way the U.S. government calculates the real-world costs of climate change. The move could reshape a range of consequences, from whether to allow new fossil fuel leasing on federal lands and waters to what sort of steel is used in taxpayer-funded infrastructure projects. The administration plans to boost the figure it will use to assess greenhouse gas pollution's damage inflicts on society to $51 per ton of carbon dioxide – a rate more than seven times higher than that used by former president Donald Trump. But experts say it could reach as high as $125 per ton once the administration conducts a more thorough analysis. This would apply to any new oil and gas lease sale, raising producers’ costs to deliver new supplies.
Quote:
June 1, 2021: Biden proposed eliminating a slew of tax benefits for oil, gas and coal producers in favor of electric vehicles and other low-carbon energy alternatives as part of his $6 trillion budget for the next fiscal year. It proposed repealing: the pass-through exemption from corporate income tax for partnerships that derive at least 90% of gross income from natural resources; use of percentage depletion for oil and gas wells; expensing of intangible drilling costs; capital gains treatment for royalties; enhanced oil recovery credit; $3.90 per barrel credit for marginal oil wells; expensing of exploration and development costs, and other tax incentives. Eliminating these tax provisions imperils U.S. energy security by raising costs for domestic producers and would increase America’s reliance on foreign energy supplies.
oh and from your own link
Quote:
the Biden Administration and the oil industry. Given the circumstances, as I wrote previously I believe the Biden Administration should convene a summit with the heads of the major oil companies. There should be frank dialogue, and the outcome should be clearly communicated to the world
I 100% agree that they are not coming right out and saying this is because of Biden.
At the same time, one cannot ignore that Biden went over to SA to try to patch up relations and get them to pump more oil....and now oil production is being cut.
It would be foolish to try to claim that Biden angering two countries that combine to produce over 20% of the worlds oil is having no impact.
Secondly, policies to cut gas cars and promote EV are impacting investment in US drilling and refining.
He did go and OPEC did increase "temporarily" the output...key word "temporary" increase.
This never would have happened if Trump were still in office. Great job Biden voters.
True and its important these mid terms to vote for the GOP so they can stifle Biden's agenda and the threat of Biden wanting to harm big oil will go away!!
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