New Tractor Sales Are Declining

[jyoutz]

I only pose the question; and I do that because I don't know the answer.

My boots don't cover enough ground, and I don't know how to tell trusted sources from others.

But I do know some places not to expect the truth. I certainly don't expect truth from sources or publications within an industry. So I know not to trust the oil industry to publish the truth about what they are doing or the number of their rigs ...only their skewed version of it.

And the same goes for journalists and news sources who accept advertising..... unfortunately for us all.

So the question remains, and now there is another: "If it is truth we are after, who pays the bills?"

rScotty

BTW, this one IS my President. So were the last dozen or so. That doesn't make them always right. They get to make the same amount of mistakes that I do.
One such mistake is the most recent three have permitted "Quantitative Easing" as a financial policy.
That's as good an example as any of a policy that works short term and is ultimately proving to be a mistake.

eia.gov keeps the official statistics for energy production in the US.

 

[lman]

The quantity of oil produced is more important than the number of rigs. And 2022 is near the all time high.

It would be even better if we had as many rigs pumping as we had in 2019.

 

[Torvy]

One such mistake is the most recent three have permitted "Quantitative Easing" as a financial policy.
That's as good an example as any of a policy that works short term and is ultimately proving to be a mistake.

To be clear, Quantitative Easing is a monetary policy enacted by a central bank, in our case, the Fed. Presidents appoint individual members for 14 year terms. No modern president has much to say about QE either way. The Fed is independent. President appoints, but that ends his power, other than empty words.

Congress and the President handle fiscal policy. Together, monetary and fiscal policy adjust the money supply. When money supply is too high, we get inflation. When it is too low, we get deflation. The biggest component of fiscal policy is government spending. More spending equals bigger money supply.

QE is a small factor to our current problem.

 

[ArlyA]

Having spent many years in the energy business, I will added. Its about the price. If the price or its furtur outlook looks good, companies will be spending $$$ to add wells or keep old one ones going. Its that simple.

 

[Torvy]

Having spent many years in the energy business, I will added. Its about the price. If the price or its furtur outlook looks good, companies will be spending $$$ to add wells or keep old one ones going. Its that simple.

So many people think they (or any business) sets the price. The market ultimately sets the price. In other words, supply and demand.

 

[zoedog2012]

It would be even better if we had as many rigs pumping as we had in 2019.

Does the fact that many more well being drilled are horizontal , meaning less vertical wells affect the rig count?

 

[ArlyA]

Does the fact that many more well being drilled are horizontal , meaning less vertical wells affect the rig count?

Probably not. In the Bakken formation, they drill horizontally because that rock formation is very shallow, like in the feet. So they must drill into it horizontally to extract any oil. Most places that is not the case. Compnaies will only do it because they have to.

 

[jyoutz]

It would be even better if we had as many rigs pumping as we had in 2019.

We are producing as much oil as 2019.

STEO

“U.S. crude oil production in our forecast averages 11.7 million b/d in 2022 and 12.4 million b/d in 2023, which would surpass the record high set in 2019.”

 

[Cahaba Valley Farm]

So many people think they (or any business) sets the price. The market ultimately sets the price. In other words, supply and demand.

It's a little more complicated then that. For example some businesses have lower overhead which give them cost advantages over competitors that have higher overhead. Those savings are at times passed onto the customer depending on the sales and market strategy that the business is using to win market share. In other words, the market price is a range rather than a fixed number.

 

[zoedog2012]

Probably not. In the Bakken formation, they drill horizontally because that rock formation is very shallow, like in the feet. So they must drill into it horizontally to extract any oil. Most places that is not the case. Compnaies will only do it because they have to.

Most of the wells being drilled here in Colorado are directional, we have 2 on our pad that are going 1 mile in each direction. The other 4 wells that we receive a royalty from are situated in an adjoining section but extend into our section. Very common in Colorado.