It’s an odd problem. Biden isn’t holding back oil and gas production. But the progressive flavor in the air is. Capital is tight. The Blackrocks of the world don’t want to give their money to oil and gas companies anymore. Or at least not as much of it. So US production is slow to rebound. OPEC has market control so they aren’t incented to accelerate their ramp up. Globally we are underinvesting in long-cycle offshore oil because peak demand seems to be around the corner. So, we get this volatility.
The US became a net exporter because there was a land grab for held by production in the Permian basin that led to literal 2 million barrel per day annual increases in US production. That wasn’t policy. It started in 2016 and ran through 2018 and was a massive land grab and production race. That was beginning to fade in 2019 but don’t forget even in 2018 oil prices reached $80/bbl. Keystone XL improved profatibility for Canadian oil majors but those barrels are still moving. It was a nice to have not a must have and we’re it operating the US and the world would be seeing very little incremental oil. Over time better profits would mean more oil but even with Keystone XL these guys weren’t going to be pumping a million more barrels a day.
They can have control. They can create regulatory environments that encourage drilling and those that don’t. They can grease skids or they can create friction. With that said, the US isn’t the world’s only source of oil. And this problem is much bigger than Biden. Even the US dynamic is bigger than him. But I will also scream to the mountain tops that this freeze the supply side bullshit doesn’t end well for anyone. Starving supply rather than incenting changes in demand creates volatility. It’s not good for anyone.
I'd like to see even more incentivizing of carbon capture and reduced methane emissions (which every time I turn around it seems we find out are a little greater than previously thought).
Why do that to yourself? It's not a bad time to look at electric, especially up around you, where you probably have more charging stations available than most, 3 years of 1k fuel would pay for a model 3. 6 months of 1k fuel would pay for a used battery and a crate electric motor.
Fugitive methane emissions need to be reigned in and I think that’ll happen to a large degree. There are sectors where carbon capture is the only effective way to significantly abate CO2 emissions today. Industry is definitely one of those. Part of my role is commercial development for a project where we have announced we will do that for the first time in our industry. The expense is quite high. So it does need incentives but it also requires a market that will meet you along the way and pay you a premium for that product. The real question in all of this is to what extent will customers demand it. Without that you can’t carry the shear volume of projects that must be done on subsidy alone. And with global trade, just ramping the carbon tax in your geography becomes difficult vs retaining businesses if they can’t develop the market for decarbonized products.
Why doesn't anybody post about unemployment anymore? Is it because unemployment benefits fell to the lowest levels since 1969? I don't attribute that to Biden, but it is funny how everything is his doing right up until it isn't a problem.
The Ford Lightning may be the one that breaks the market open for the mainstream driver. https://www.ford.com/trucks/f150/f150-lightning/2022/
Same. I don't drive much so I don't have the need. But I keep telling the wife I'd put a drop in electric into my truck if I could get a hold of one easy.
Are people still sitting at home not working and that's why unemployment is both low and and everyone is hiring?
Ford has a drop in motor too, but they sell out fast. I bet getting the lightning will be tough, as well. But a lot of the majors are pushing out electric vehicles this year.
Says the guy from a large (by today's standards) family with no kids. Produce workers, damn you! I want to retire one day too.
Every damn week there is another person hitting the retirement button at my work. We were already in a period of growth and needing to expand, but we can't keep up with the retirements to actually grow. I am amazed that the news coverage doesn't talk about the obvious demographics factor to the current worker shortage/inflation situation. Over a quarter of American residents are over 55. The bulge in the "pyramid" is 25-34, this situation won't abate for at least 10 years, and is likely the reality for the rest of the working life of everyone on this forum.
I will, as soon as I pay off my student loans. So, when I am 43. But I may adopt, so I will be still [uck fay]ing you over.
