Fuel prices around the world.

[jyoutz]

I would call plateau the correct word. I am sorry if I am struggling to make my point. A person (or company's) desire to ramp production temporarily, could adversely be effected by being treated like an enemy of the state. Most of the activity you noted above had been in the planing stages for many years.

Policy changes are like mating elephants, it is done at a very high level, and takes a long time to see the results.

Again, not picking at you, or really anyone, if I was a little smarter, or more eloquent, I could get people to see how/why things are done. The deficit is with me.

Best,

ed

I have watched the rig counts in my state’s portion of the Permian basin fluctuate for the past twenty years, driven by the price per barrel, increasing when prices are above $60 and decreasing as prices slide below that benchmark. If that’s what you mean by policy: ok. Seems like plain old supply and demand to me. And I have also seen crews and rigs move here from North Dakota and Wyoming because the Permian is the mother lode of oil and production costs are lower. Lots of lands in the Bakkan have been abandoned from production because they are seeking the the plentiful and cheap production in the Permian. All pointing to market forces being the primary “policy.”

 

[MossRoad]

Despite people thinking that it's the government's fault we aren't producing more oil... it's the oil industry that's making the decision.

Why Colorado drillers are unlikely to pump more oil amid Russia-Ukraine crisis • Colorado Newsline

As Republicans make "drill, baby, drill" demands, large oil companies in Colorado and beyond are holding back on new production.

coloradonewsline.com

 

[sd455dan]

Some more rig count info from Natural Gas Intelligence:

Including increases of six natural gas-directed rigs and four oil-directed units, the combined U.S. count jumped 10 units higher to 645 for the week ended Friday (Feb. 18). That follows a 22-rig surge in the week-earlier period. The 645 active U.S. rigs as of Friday represented a 248-rig year/year increase, according to the BKR numbers, which are partly based on data from Enverus.

Land drilling rose by 13 units week/week, partially offset by a four-rig decline in the Gulf of Mexico for the period. One rig was added in inland waters for the week. Horizontal drilling rose by 15 units, partially offset by net declines of three vertical rigs and two directional rigs.

https://www.naturalgasintel.com/u-s-drilling-activity-maintains-upward-momentum-as-haynesville-permian-see-growth/

 

[jyoutz]

Despite people thinking that it's the government's fault we aren't producing more oil... it's the oil industry that's making the decision.

Why Colorado drillers are unlikely to pump more oil amid Russia-Ukraine crisis • Colorado Newsline

As Republicans make "drill, baby, drill" demands, large oil companies in Colorado and beyond are holding back on new production.

coloradonewsline.com

That’s been my point all along with this discussion. Everyone should read this report.

 

[dirttoys]

I have watched the rig counts in my state’s portion of the Permian basin fluctuate for the past twenty years, driven by the price per barrel, increasing when prices are above $60 and decreasing as prices slide below that benchmark. If that’s what you mean by policy: ok. Seems like plain old supply and demand to me. And Iaproval have also seen crews and rigs move here from North Dakota and Wyoming because the Permian is the mother lode of oil and production costs are lower. Lots of lands in the Bakkan have been abandoned from production because they are seeking the the plentiful and cheap production in the Permian. All pointing to market forces being the primary “policy.”

Sorry jyoutz,

How fast do your rigs go up? I believe it is 2-3 year project post planning and approval.

I think this goes to our fundamental disagreement. If you could prognosticate oil prices out even a few months you would be doing so well as a futures investor you wouldn't have to screw with wells.

No rig is being started today, using today's oil price as a justification.

Policy = governing bodies stated or presumed position on general topic. e.g. elimination or dramatic reduction in the use of fossil fuels over several years. Policy.

Best,

ed

 

[jyoutz]

Sorry jyoutz,

How fast do your rigs go up? I believe it is 2-3 year project post planning and approval.

I think this goes to our fundamental disagreement. If you could prognosticate oil prices out even a few months you would be doing so well as a futures investor you wouldn't have to screw with wells.

No rig is being started today, using today's oil price as a justification.

Policy = governing bodies stated or presumed position on general topic. e.g. elimination or dramatic reduction in the use of fossil fuels over several years. Policy.

Best,

ed

Read the report that Moss Road posted. It makes my point very well. Sorry, but it doesn’t take 2-3 years to move in rigs once permits are issued, and companies have 10+ years worth of state and federal permits in their hip pocket. I have no clue about private lands leases.

 

[sd455dan]

Despite people thinking that it's the government's fault we aren't producing more oil... it's the oil industry that's making the decision.

Why Colorado drillers are unlikely to pump more oil amid Russia-Ukraine crisis • Colorado Newsline

As Republicans make "drill, baby, drill" demands, large oil companies in Colorado and beyond are holding back on new production.

coloradonewsline.com

Thanks for that article Moss

It really points out how the collapsing market and financial pain, led to some major consolidations in Colorado.

 

[hornett22]

That’s been my point all along with this discussion. Everyone should read this report.

 

[jyoutz]

If you can’t add any intelligent thoughts, it’s best to remain silent.

 

[Williy]

Diesel here is $3.99 to $4.85
regular gas is $3.45 to $3.79
Premium gas is $3.99 to $4.66

willy

 

[Hay Dude]

Sorry jyoutz,

How fast do your rigs go up? I believe it is 2-3 year project post planning and approval.

I think this goes to our fundamental disagreement. If you could prognosticate oil prices out even a few months you would be doing so well as a futures investor you wouldn't have to screw with wells.

No rig is being started today, using today's oil price as a justification.

Policy = governing bodies stated or presumed position on general topic. e.g. elimination or dramatic reduction in the use of fossil fuels over several years. Policy.

Best,

ed

It’s true. If it’s going to be policies unfriendly to fossil fuel production, then prices will go up.
Then throw in a war with the aggressor being a top 3 fossil fuel producer and anyone can see why where we are now.

Fuel prices more than doubling in under a year doesn’t happen for no reason. It’s not “cyclical”, it’s not “seasonal”. Sure demand is up a bit, but not enough to cause a 100+ % increase in fuel.

Anyone who doesn’t think it’s because of policy is in denial.

 

[Citydude]

Despite people thinking that it's the government's fault we aren't producing more oil... it's the oil industry that's making the decision.

Why Colorado drillers are unlikely to pump more oil amid Russia-Ukraine crisis • Colorado Newsline

As Republicans make "drill, baby, drill" demands, large oil companies in Colorado and beyond are holding back on new production.

coloradonewsline.com

A small Colorado company isn't the "oil industry".

 

[Hay Dude]

We also need to understand that the act of drilling isn’t the only action in oil production. It has to be permitted, drilled, stored, transported, refined, blended, sold, etc. Investment capital is required.
There’s more than just drilling affecting the price.

I think we are seeing price gouging now. As much as it pains me in my profitability, I see hope in a way to get people fired up.

 

[hornett22]

If you can’t add any intelligent thoughts, it’s best to remain silent.

You should consider following your own advice.

 

[MossRoad]

A small Colorado company isn't the "oil industry".

More oil supply could stop massive price spikes. But US producers won't fill that gap | CNN Business

Oil prices are soaring to seven-year highs, but don't expect US oil producers to ramp up supply.

www.cnn.com

 

[MossRoad]

Hold That Drill: Why Wall Street Wants Energy Companies To Pump Less Oil, Not More

After bankrolling oil companies for years and seeing poor returns, investors are now pressuring companies to keep their oil output lower, instead of higher.

www.npr.org

 

[Hay Dude]

Hah
CNN & NPR... Now there’s a reliable source


From Mossy’s CNN article:

…..Looking ahead, the industry is more eager to increase production than it was in the fall, said McNally, in part because they are less concerned about US government efforts to limit fossil fuel production in an effort to fight climate change.

“The Biden administration is suddenly interested in more drilling, not less,” McNally said. “People are more worried about high oil prices than anything else.”

That part that is underlined tells me a lot right there.

 

[MossRoad]

Hah
CNN & NPR... Now there’s a reliable source


From Mosses CNN article:

…..Looking ahead, the industry is more eager to increase production than it was in the fall, said McNally, in part because they are less concerned about US government efforts to limit fossil fuel production in an effort to fight climate change.

“The Biden administration is suddenly interested in more drilling, not less,” McNally said. “People are more worried about high oil prices than anything else.”

That part that is underlined tells me a lot right there.

If you'd have read the articles, they quote people. Look who they quote. They aren't quoting CNN or NPR. They're reporting what the industry is telling them.

 

[Hay Dude]

If you'd have read the articles, they quote people. Look who they quote. They aren't quoting CNN or NPR. They're reporting what the industry is telling them.

I did read them.
Be Kinda hard for me to quote them verbatim if I didn’t….

The part I quoted that’s underlined tells you just about all you need to know.
Proves what me and about 10 others in this thread have been trying to convince you of, but you blame it on other things.
Look, you have your opinions. I rarely agree with CNN, but they nailed it in the last paragraph.
Its B.A. policy.
The energy sector is highly regulated, perhaps no other industry but pharmaceutical is regulated more. Policy means regulations.

 

[MossRoad]

I did read them.
Be Kinda hard for me to quote them verbatim if I didn’t….

The part I quoted that’s underlined tells you just about all you need to know.
Proves what me and about 10 others in this thread have been trying to convince you of, but you blame it on other things.
Look, you have your opinions. I rarely agree with CNN, but they nailed it in the last paragraph.
Its policy.

…..Looking ahead, the industry is more eager to increase production than it was in the fall, said McNally, in part because they are less concerned about US government efforts to limit fossil fuel production in an effort to fight climate change.


“The Biden administration is suddenly interested in more drilling, not less,” McNally said. “People are more worried about high oil prices than anything else.”



That part that is underlined tells me a lot right there.