Biden administration begging OPEC+ to save its midterm bacon..

noble cane

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"Some of the draft talking points circulated by the White House to the Treasury Department on Monday that were obtained by CNN framed the prospect of a production cut as a “total disaster” and warned that it could be taken as a “hostile act.”"

"The administration has made it clear to OPEC+ for months, the senior US official said, that the US is willing to buy OPEC’s oil to replenish the SPR. The idea has been to convey to OPEC+ that the US “won’t leave them hanging dry” if they invest money in production, the official said, and therefore, that prices won’t collapse if global demand decreases."

 

URedskin54

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FeT39-CXEAAcqdK


There’s a little bit of manipulation in this chart with the Y axis starting at 250, but still a bit concerning
 
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Gmoney4WW

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we dont need opec to produce our own oil
Once again, if we produced enough for our own use, and OPEC reduced it's output to the world supply, we'd be paying the higher price anyway.

It's a free market, and our oil gets the free market price just like everybody else's. That is dictated by the major supplier, namely OPEC.
 

aTUfan

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la la land
Once again, if we produced enough for our own use, and OPEC reduced it's output to the world supply, we'd be paying the higher price anyway.

It's a free market, and our oil gets the free market price just like everybody else's. That is dictated by the major supplier, namely OPEC.
if we produce our own we wont be dependant on opec, russia, iran, saudi arabia, or anyone else.

Energy Independance
 

rusty-c

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Once again, if we produced enough for our own use, and OPEC reduced it's output to the world supply, we'd be paying the higher price anyway.

It's a free market, and our oil gets the free market price just like everybody else's. That is dictated by the major supplier, namely OPEC.
It would sure be nice to see the Strategic Petroleum Reserve filled with American oil that is putting American's to work. Keep the dollars in this country rather than sending it to the middle east.
 
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Gmoney4WW

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It would sure be nice to see the Strategic Petroleum Reserve filled with American oil that is putting American's to work. Keep the dollars in this country rather than sending it to the middle east.
I don't disagree.

I'm just continually trying to straighten out aTUfan's,(rivalcane) poor understanding of the energy situation. We are back up to levels of production approaching pre covid. We need to get it at those levels and plus, but it is not far from there.

And aTUfan thinks it is all because Biden/his administration cut off oil production. That is not true. He cut off NEW production on federal lands,(drilling) but that is such a small percentage of our oil production, that it is almost insignificant.

The way they could and should bring it up is through loosening of regulations that were already in place during the Trump administration. Only way that happens is if you loosen regulations enough that our oil companies go against the market forecasts. It won't cure it in the immediate future, but it would help in a year or two.

Problem is, in a year or two, the crisis might be over, and the Democrats won't be in office to put restrictions back in place. Thus they are hesitant to loosen them. You are going against the grain of the Democratic party asking them to do this. It's a conundrum.
 
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noble cane

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I don't disagree.

I'm just continually trying to straighten out aTUfan's,(rivalcane) poor understanding of the energy situation. We are back up to levels of production approaching pre covid. We need to get it at those levels and plus, but it is not far from there.

And aTUfan thinks it is all because Biden/his administration cut off oil production. That is not true. He cut off NEW production on federal lands,(drilling) but that is such a small percentage of our oil production, that it is almost insignificant.
I wouldn't call over 25% a small portion... especially when you consider the amount of unexplored land the Feds control.
 

Gmoney4WW

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I wouldn't call over 25% a small portion... especially when you consider the amount of unexplored land the Feds control.
That 25% is not all due to federal lands ban. I'd say a large portion of it is due to other causes.
 

noble cane

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That 25% is not all due to federal lands ban. I'd say a large portion of it is due to other causes.
We produce 25% of our domestic production from federal lands...

90% of my frac ops are on federal lands in New Mexico, Wyoming and Utah...
 

lawpoke87

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My question is this: Biden has spent almost two years trying to reduce domestic petroleum production. Whether it’s by increasing regulations, taxes or taking federal lands off the table. Yet he is doing everything he can to entice foreign production. From “begging” to threats to promising market guarantees. Why?
 

Gmoney4WW

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We produce 25% of our domestic production from federal lands...

90% of my frac ops are on federal lands in New Mexico, Wyoming and Utah...
Yeah, but the only thing that has been stopped over the past couple of years is new drilling on federal lands. Not the 25% that has been drilled over the last several decades. I think that is a small segment.

Some of that would have been a dry hole 🕳️, some of that would have just started producing, and some of that would have been in the planning/early stages. I doubt our production would have seen any kind of dramatic increase right now, if the ban was not enacted.
 

Gmoney4WW

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My question is this: Biden has spent almost two years trying to reduce domestic petroleum production. Whether it’s by increasing regulations, taxes or taking federal lands off the table. Yet he is doing everything he can to entice foreign production. From “begging” to threats to promising market guarantees. Why?
That's the better question to ask.
 

noble cane

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Yeah, but the only thing that has been stopped over the past couple of years is new drilling on federal lands. Not the 25% that has been drilled over the last several decades. I think that is a small segment.

Some of that would have been a dry hole 🕳️, some of that would have just started producing, and some of that would have been in the planning/early stages. I doubt our production would have seen any kind of dramatic increase right now, if the ban was not enacted.
The majority of unexplored lands are federal lands... the feds own vast quantities of lands that should be returned to the states or turned over to private ownership.

The percentage of unexplored private land is miniscule compare to what the feds have shut the industry out of...

Some companies entire inventory of new drills were cancelled.
 

noble cane

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Please save my bacon in the midterms... JRB


 

lawpoke87

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Biden Admin told OPEC any cut in production would be seen as an “hostile act towards the United States”. OPEC of course told Biden to pound sand. What is our response to a “hostile act”? One would think there must be one.
 

Gmoney4WW

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That pig is looking lovely.

The Biden administration is getting really practiced at putting lipstick on a pig. In the wake of the OPEC reduction, the administration announces they are going to sell more reserves.

Wow, the couple of barrels of oil you are going to sell is really going to put a dent in the 2 million barrels/per day that OPEC has reduced production.

Only a few ignorant folks are going to buy that bridge in Brooklyn.
 

Gmoney4WW

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That reserve sale is 15 million barrels total for now. That covers 7 1/2 days. Essentially that covers nothing of any consequence. Are they going to do this for six months? At that point our reserves(400mil barrels) would be empty if not resupplied.

They say they are resupplying it in the immediate future. Do we resupply it for a month at current prices, to maintain its current level? That would mean $4.66 billion dollars of our tax money per month would be propping up the oil prices. Not a well designed policy for our tax dollars. They won't be doing this every week. Prices will go up. Lipstick on a pig.
 

lawpoke87

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That reserve sale is 15 million barrels total for now. That covers 7 1/2 days. Essentially that covers nothing of any consequence. Are they going to do this for six months? At that point our reserves(400mil barrels) would be empty if not resupplied.

They say they are resupplying it in the immediate future. Do we resupply it for a month at current prices, to maintain its current level? That would mean $4.66 billion dollars of our tax money per month would be propping up the oil prices. Not a well designed policy for our tax dollars. They won't be doing this every week. Prices will go up. Lipstick on a pig.
Only until November 8th. This is solely a political move.
 
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Gmoney4WW

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Only until November 8th. This is solely a political move.
Yeah, that was kind of the point of me posting on it. It was obviously a political move. They wouldn't have the balls or political capital to waste all that money on any kind of consistent basis. Lost cause political move.
 

noble cane

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Only until November 8th. This is solely a political move.
Best political move was trying to get the Kingdom to use the market to influence the election and then promise them they would buy Saudi oil to refill the SPR... weird, a sitting president trying to use his postion to coerce a foreign nation to influence domestic elections in his favor...hmmm..