I just read an opinion stating that the current adm has nothing to do with the high price of oil. They state that contrary to reports, govt land being blocked from development is either not happening or insignificant and the high price is a function of the oil industry, not politics.

My research leads me to believe it has to do with “expectations”. Markets are affected by investor expectations. If the party in power states that it’s going to end petroleum use, then the future of petroleum use looks limited and investors become hesitant and money for exploration and future production dries up. Domestic production slows and we once again depend on OPEC.

I think this is one force acting on gas prices. I feel there are other factors too. Does anyone know what other verifiable actions attributable to the Biden adm directly affect our domestic oil production and drive up gasoline prices?

Post the link to the story so we can read it. Other than that, a simple understanding of Econ 101 will lead you to understand that anytime a good is restricted or limited through one means or another, while demand remains constant or increases, price will go up. Biden limited the availability of US based petroleum products by doing what's he does, so he absolutely owns responsibility for this mess.

quote:

Originally posted by bigdeal:
Biden limited the availability of US based petroleum products by doing what's he does, so he absolutely owns responsibility for this mess.

Absolutely. Any other spin stories exist simply to deflect from this truth.

And to finish my previous point, Biden 'could' fix much of this issue (if this wasn't totally political), by simply undoing what he's done and going back to what Trump left in place for him (not sure about the viability of Keystone though) rather than begging Saudi Arabia and Russia to pump more product to try and solve our problem(s). This was a total unforced error on the part of this ridiculous administration.

But how did he limit supply? Specifically what actions did he take other than the investors reluctance I mentioned? I know there have to be steps or actions he took.

Meanwhile I’ll try to look up the note and post?

quote:

Originally posted by maxdog:
I just read an opinion stating that the current adm has nothing to do with the high price of oil. They state that contrary to reports, govt land being blocked from development is either not happening or insignificant and the high price is a function of the oil industry, not politics.

My research leads me to believe it has to do with “expectations”. Markets are affected by investor expectations. If the party in power states that it’s going to end petroleum use, then the future of petroleum use looks limited and investors become hesitant and money for exploration and future production dries up. Domestic production slows and we once again depend on OPEC.

I think this is one force acting on gas prices. I feel there are other factors too. Does anyone know what other verifiable actions attributable to the Biden adm directly affect our domestic oil production and drive up gasoline prices?

You answered your own question, right? "But how did he limit supply?" With words, Biden said he was going to end petroleum use, and with action, he shut down the Keystone XL Pipeline, and now we are dependent on OPEC again. No matter how you slice it, this administration is directly responsible.

quote:

Originally posted by maxdog:
But how did he limit supply? Specifically what actions did he take other than the investors reluctance I mentioned? I know there have to be steps or actions he took.

Meanwhile I’ll try to look up the note and post?

Keystone, stopping drilling in AK, stopping leases of federal land, rejoining Paris Climate Accord, rolling back various policies favorable towards oil, etc.

None of those things rasies prices in the short term from a supply side, but it does cause speculators to hop in and make bets which increases demand.

If someone tells you a new regulation will come into effect in the future, you may buy something now to avoid pain later. A good example for me was replacing a hot water heater at eight years old with no problems. I know they are good for 10-15 years, but I have a tight space to fit it in, so when they changed the insulation requirements I replaced a perfectly good HWH with a new unit so I didn't have to reconfigure walls in two to seven years.

Additionally, he's affected the supply side with his additional regulations. Think about whatever your job is, if you found yourself in an environment which was likely to to become harder to be profitable in, would you sink a ton of money into growing that business?

None of his actions have really lead directly from A → B in higher prices. What they do, do is make speculators and producers react to future forecasts. It's more of a self fulfilling prophecy.

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Does anyone know what other verifiable actions attributable to the Biden adm directly affect our domestic oil production and drive up gasoline prices?

The executive order that he signed on his first week in office was enough to drive things to crap.

Honestly, if DJT were POTUS, gas would be far less right now.

quote:

Originally posted by maxdog:
I just read an opinion…

Think about your five opening words for just one minute.

quote:

Originally posted by Twist:

quote:

Originally posted by maxdog:
I just read an opinion…

Think about your five opening words for just one minute.

He "just read an opinion", when he posted that, and hours later, still no link. Maybe it was his opinion.

quote:

Originally posted by 12131:

quote:

Originally posted by Twist:

quote:

Originally posted by maxdog:
I just read an opinion…

Think about your five opening words for just one minute.

He "just read an opinion", when he posted that, and hours later, still no link. Maybe it was his opinion.

Y'all are being a little rough here. If I understand correctly he's looking for a counterargument against it's not Joe's fault.

Examples:

The 1002 Area (1,500,000 acres) in ANWR was set aside by Congress in 1980 for oil & gas development. Years of political battles and outright lies by the opposition (e.g. The 1002 Area is further north than trees can physically grow so if you see an article with pictures of trees you know they're lying their ass off. I've been in ANWR in the winter and it looks like the planet Hoth from Empire Strikes back.). Trump administration opened it for lease sale at the request of the State of Alaska. Biden administration suspended the leases.

One of the last lease sales in the Gulf of Mexico by the Trump administration was 78 million acres and the Biden administration cancelled it.

The previously mentioned cancellation of the Keystone XL pipeline. Of particular note, is the lefties applauding the EPA's violation of federal law by "assessing" environmental impacts outside the United States (i.e. Canada).

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Ego is the anesthesia that deadens the pain of stupidity

DISCLAIMER: These are the author's own personal views and do not represent the views of the author's employer.

Had to work directly with the energy policies directly coming out of the Obama and Biden administrations, it is all about killing Petrolleum and pushing the false narrative that Solar, Wind and anything else environmentally friendly will save the day. It is all complete BULLSHIT! You cannot simply kill one industry to standup another.

Yes exactly, I am looking for a counter argument. Yes, I provided what I feel is a part of the argument: Expectations and their effect on the petroleum market. Reducing the use of the internal combustion engine, killing the oil industry etc., which could itself be the sole answer, but I feel that it’s not.

Here is the posted argument that was written by Robert Rapier trying to defend Biden:

"If you are one of those people still raging about Biden and gasoline prices, then I can put you into one of three categories. You are either 1). A partisan who knows better, but doesn't care; 2). Someone who prefers simple answers even if they are wrong; or 3). Someone who doesn't understand the factors that move gasoline prices. (As someone pointed out in a comment, it's possible to be all three).
Let's assume you are in that third category. There is some hope for reaching you with facts. Here they are. Last summer U.S. oil production dropped by 3 million barrels per day (BPD). See the graph below. It was the largest short-term drop in history, and that was on Trump's watch. It wasn't his fault, but he also was powerless to prevent it.
Incidentally, it is perhaps a great historical irony that President Obama oversaw the largest oil production gains of any president in history. Again, not because of him. He just happened to be in office when fracking took off.
Since last summer's plunge, oil production has bounced back by 1.5 million BPD, but we are still 1.5 million BPD below where we were in January 2020. But demand started to recover last summer. The people raging against Biden surely don't know this: During the last five months that Trump was in office, oil prices increased by 43%. Again, not his fault, but he was also powerless to prevent it.
What we have seen since Biden took office is a continuation of the same trend that started in September 2020. Demand has recovered, and supply has not. When you are missing 1.5 million BPD of oil supplies -- which has also played out in many other countries -- you are going to have surging prices. There is absolutely nothing a President can do about it. He can scream at the oil companies. He can scream at OPEC. But there is nothing he can practically do to move the needle in the short term when 1.5 million BPD of oil supplies are missing.
Oh, and if you are one of those "Biden is preventing drilling" people, consider this. Since he took office, the number of rigs drilling for oil has risen by 62%. Again, not because of him, and not despite him. A function of the rising price of oil.
You can argue with me about this if you want, but you will be wrong."

So, my counter argument is about how expectation drives markets and the negative effects on investor confidence brought about by administrative vows to hamstring the domestic oil industry. But I feel that there's more.

I was once in the oil industry but left 40 years ago. I no longer informed about the industry.


I see that Tatortodd added some good info thanks! That's the sort of thing I'm looking for.

Meanwhile, any responses to the "opinion" piece?

This message has been edited. Last edited by: maxdog,

quote:

Originally posted by maxdog:
Here is the posted argument that was written by someone trying to defend Biden:

1. Why in the hell are you reading the Dailykos? By the way, that's how you post a link.

2. The EIA chart right in the OP-ed shows US production hasn't recovered. The rest of the economy is making a v shaped recovery like Trump predicted, but US oil production hasn't.

3. On the Biden is preventing drilling, see my previous post on cancelling leases and pipeline permits. Crude oil is a commodity and when a government administration becomes unfriendly the money moves elsewhere. Who wants to invest billions in the US and feel like a long tailed cat in a room full of rocking chairs?

4. Nothing Biden can do about it is bullshit.
a. All of the federal agencies (i.e. the executive branch taking direction from the White House) is back to the unfriendly Obama Days.
b. He's the head of the Demonrat party. If he didn't want Demonrat controlled Congress to drag 4 of the supermajor oil company CEOs, the president of the American Petroleum Institute, and Presdident of the US chamber of commerce before the House Select Committee on Climate Crisis it wouldn't have happened. They treat climate change being caused by man as a fact, and then use subpoenas and activist judges to bully. Hell yes the oil & gas money is going to friendlier countries.

Price of Petroleum, now that’s something we all can laugh about.
At least if you are part of the Biden administration.

Let’s all have a good laugh, bring down gas prices, no we are relying on OPEC for that.

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Demand has recovered, and supply has not. When you are missing 1.5 million BPD of oil supplies -- which has also played out in many other countries -- you are going to have surging prices. There is absolutely nothing a President can do about it.

If you have fresh supplies (leases continue, and are being sold for the future, pipelines are expected to be open or opening - look up Chesapeake), the price doesn't surge. If you don't, buyers and sellers have to assume the existing supply is all there'll be and prices for it will surge.

You haven't been following the prices of steel-cased ammo since Biden decided that no new import permits will be issued, have you?

Biden has been the worst president of my lifetime when it comes to energy policy. I’ve been an independent oil operator for the last forty five years and I can tell you that even Jimmy Carter with his screwball windfall profit tax on oil had better sense than Biden. At least Carter only tried to overtax the oil industry, not destroy it like Biden clearly means to do. The clowns attending COP26 which Biden has been deeply involved in, have trumpeted their desire to eliminate oil, natural gas, and coal as energy sources. I’ve never seen anything like it.

Domestic oil and gas producers hear the anti oil rhetoric loud and clear. Accordingly, there is no rush to “drill here, drill now,” as we heard during the Trump years. Biden and the Democrats plan to ram through every tax and regulatory disincentive they can to discourage oil and gas production. Would any sane person work hard to grow and expand a business if it became obvious the federal government intends to snuff it out? Biden doesn’t care if oil supplies are constrained, a factor that inevitably leads to higher gasoline and diesel prices. He and the green revolution crackpots actually want you to pay more, so you will switch out of vehicles powered by evil internal combustion engines.

Jennifer Granholm has as much business being Energy Secretary as a one legged man has in an ass kicking. When she was Governor of Michigan her incompetence led to a large number of residents fleeing the state.

What was the price 11 month's ago again.

We are not knee deep in bullshit these days. We are belly button deep and better get those shovels out and get rid of it soon folks.

This climate change bullshit is nothing more than a global scam trying to take a 500 plus year supply of fossil fuels with so much technology to move us into a clean energy future.

This green energy deal is simply a scam that will only destroy the environment on a scale that is much worse than what we can do as we move forward.

It is a mechanism to enrich a few and enslave the rest. It is such a screwed up plan except for those who will become filthy rich and have power over the mass'.