Sky News economics and data editor Ed Conway has produced another short and information filled segment looking at how the U.S. become the biggest oil producer in the world. Well worth the 5-minutes and helps to contextualize many of the geopolitical shifts currently underway. WATCH:
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When you factor in the U.S. control over Venezuela oil production, well, things look even stronger.
I wish there was a way to price oil differently.
The dems have zero policies and price is all they can run on 🙁
Price is largely dictated by supply and demand, but heavily attenuated by laws and regulations, industry standards, etc. All between overlapping Federal, State, and local jurisdictions.
That’s to say that bureaucrats make things needlessly more expensive with the costs of regulatory compliance. Speaking of which, I will pick on California for this one. Between specialized fuel blends, stricter emissions standards then Federal limits, and a plethora of State and local laws and ordinances California is quite hostile to industry.
Sacramento also gains more net revenue on every gallon of fuel in that State sold then anyone else does in the production, refining, and distribution chains with respect to their margins.
The City of London has a lot to say about the price of oil. They are the Insurance Carrier (Lloyd’s of London) and dominate the oil spot market. They are doing their best to keep prices high to hurt Trump.
The world, quite stupidly, has moved off of petroleum as an energy source. This sets us up for the future and AI energy needs.
WoW!!! Thanks, SD!
When do we start paying down the debt? Billions being sold in oil and gas tax revenues and fraud exposure in the billions being identified and prosecuted.
Let us pray this “Golden Age” opportunity is not squandered away. PDJT and We The People cannot work fast enough to protect our national interest.
What does it look like without all the withdrawals from the US Strategic Petroleum Reserve?
A choke point for the price of refined product is the lack of refining capacity here in the USA
President Trump can use this new lead in world oil/gas production to America’s great advantage.
Remember, while Senator Ted “Splash” Kennedy was publicly calling for the Federal Nationalization of US O/G production (that thankfully failed) President Reagan set the stage for the fall of his Evil Empire (USSR) by getting the OPEC’s Minister, Zaki Yamani to drop the price per barrel of oil from appx. $ 37 to $ 7 bll.
Having already pushed Brezhnev/USSR into a very expensive missile Arms race that consumed their capital, the $ 7/bbl of oil put a Hugh drop in the USSR’s primary revenue source, O/G sales.
Viola, their pending bankruptcy lead Gorbachev into perestroika and his glasnost policy reform to deal with his new economic reality in the USSR after Brezhnev passed. Reagan helped him out through the process of change.
And that lead to the economic constraints in the USSR that eventually led to it’s collapse without a kinetic shot or missile being fired by Reagan,… cuz the population just eventually refused to continue to go along with a Commie Command/Control economy that no longer worked for them,… too many blocks long bread/grocery lines and empty shelves, among other political factors.
So, Yes,… this leadership in world O/G production can give Trump tremendous opportunities to effect world politics, economies, trade and hopefully, a more peaceful and productive world.
This opportunity with well timed and adroit application can lead to Donald Trump to becoming the most important and accomplished President in USA history.
Keep Spuding in and,…. Drill, Baby, Drill in the USA!
( I write this now cuz I worked with my clients, Dresser, Ind. (now Halliburton) and Hughes Tool (Baker Hughes) among other O/G major players in Houston, TX in the early to late 1980s.
However,…Regan’s move to drop the price back then also had the side effect of bankrupting many in Texas and Louisiana. 3D tech and then Fracking (first applied by B. J. Titan in about 1947) finally brought the US O/G Industry back to profits and the success that we are experiencing and enjoying now.
Oh, when the Straights of Hormuz are soon opened and hundreds of oil tankers leave to create an immediate big O/G supply on the world market that will drive down prices quickly,… domestic US gas/diesel prices will fall fast and to new lows than before Epic Fury,… IMHO).
Add to the US extra production, including Venezuela, with UAE and Saudi Arabia bypassing the Straight of Hormuz with pipelines and we are only 5 million bpd below pre war volume. (Out of the world consumption of 100 million bpd, 20 of which was out of Hormuz
Too bad we can’t refine our own oil and give the middle finger to the rest of the world. How our domestic oil companies continue to insist that it makes more sense to export our sweet crude and import sour crude, I’ll never understand it. Unfortunately, our refining capability is mostly for sour.
You’d think we would work on building refining capability for domestic oil, but there has been near zero progress in that area. Maddening.