Trump wants US oil producers to ‘drill, baby, drill. They’re not interested: Report
Trump wants US oil producers to ‘drill, baby, drill. They’re not interested: Report
“Our stocks will be absolutely crushed if we start growing our production the way Trump is talking about it,” Bryan Sheffield, a Texas oilman who contributed more than $1 million to Trump’s latest campaign, told The Wall Street Journal.
May leopards eat face
This wasn't for the industry, it was for the voters who are anti-environment, coal rolling, gas guzzling idiots who want to stick it to dem librils.
Trump obviously doesn't understand artificial demand, and demand pricing. The only way to guarantee consumers are going to pay a low baseline price is for the government to offset that price difference so that Big Oil can still make the graph go up.
Well that, or regulate them, but that's socialism communism deranged leftist talk. /s
Maybe the plan is to invade Gaza, get the Arabs to pull another Oil Boycott, and then use the chaos to get more American oil.
It's so crazy, it might just work.
s/
It's almost like there are strong economic trends towards wind and solar, but conservatives only like to bleat about the free market when it favors them.
Oil prices were at basically the ideal price when he took office. Everything he's doing is only driving that price higher, which oil producers don't want because it hurts demand.
Oil is just in a precarious position with supply and demand.
High prices will accelerate demand destruction, as people and businesses move to cheaper energy sources, like solar/wind/geothermal/nuclear, plus spur the continued development of grid scale storage and demand management technologies. Sustained high prices could cause lifestyle and consumption habits to change, too: fewer gas guzzlers, fewer supercommuters, improved shipping efficiency, etc.
Low prices would put strain on the finances of producers, whether for profit corporations in the West or state owned (or closely affiliated) producers in places like Saudi Arabia or Russia, and would weaken those countries' influence on geopolitical issues.
There's a reason they want a strong cartel, which is what OPEC tries to be, but that cartel has been weakened considerably by non-OPEC Plus nations becoming huge producers. OPEC cut supply to try to hurt Biden, but it ended up being a handout to American, Canadian, and Norwegian companies, by propping up prices while losing market share. Meanwhile, sanctions on Russia (and Iran and Venezuela) add a bunch of friction (and some cost) to their exports, so that they need higher prices to break even.
For the first time in modern history, societies have access to non-fossil-fuel energy sources in competitive volume and price, to where an oil oligopoly can't push around consumers. Trump can't put that back in the bottle.
Fucking lmao.
What a dunce.
The US better start their own state owned oil company..
Oh wait that's communism 🤡🤡🤡🤡
I mean they have been talking about a "sovereign wealth fund" (yeah, right), they could use that as a cover to acquire oil companies and then pump all the money into their own pockets.
A lot of Americans voted for Trump because they were hoping he would be able to bring prices down. Cheaper oil could help with that. Who doesn't want to pay less at the pump? But, also, because petroleum based fuels and other products are ubiquitous along essentially every supply chain, it could help bring down other prices, as well. I don't think it would help that much, though. It might bring down costs for producers a little (or maybe a lot, depending on the industry), but there's no guarantee those cost savings are going to be passed on to the consumer in the form of lower prices. Most producers would just pocket the savings. And why shouldn't they? Businesses exist to make the highest possible profit for their owners.
To even get cheaper oil, though, oil producers would need to over produce. They'd need to drive down the price of their own product. Why would they do that? Why would oil producers choose to reduce their own profits? That doesn't make any sense. Plus, as more and more oil is pumped out of the ground, what remains is harder and more costly to extract. So, it costs more to extract a barrel of oil than it used to, and that means that oil producers have to sell each barrel of oil for a higher price to cover the higher costs of extraction. Drop the price of a barrel of oil too much, and it no longer becomes cost effective for oil producers to extract oil from the ground. The price of oil has to stay over a certain threshold for continued oil extraction to even be financially viable.
For prices to come down, demand would have to come down, and that would likely lead to a recession. For prices to come down significantly, it would probably require a significant recession. That's it, that's how you bring prices down. So, pick your poison: higher prices or recession.
Too much oil lowers prices and burns up profitability, even though it might make consumers happy. American shale firms are already pumping historic amounts of oil. And there’s a supply glut in the global market.
"As crude prices come down, we expect the industry revenues to go down and profits to go down," ExxonMobile CEO Darren Woods told CNBC last week.
Too much oil lowers prices and burns up profitability, even though it might make consumers happy. American shale firms are already pumping historic amounts of oil. And there’s a supply glut in the global market.
Exactly, and I'm betting that glut is a result of one of two factors (or a combination of the two): either oil producers thought there would be a higher demand than there actually is and/or they were incentivized to over produce, probably through government subsidies, of one kind or another.
Yeah, there's already thousands of wells literally sitting idle because prices are too low. They drill them when they can get a good deal with the drilling company, and let 'em sit idle until the economics make sense, or until the infrastructure has been developed better in the area.
Business genius doesn't understand supply and demand.
If I’m not mistaken, this is actually what he meant when he said “Drill, baby, drill”
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Wow, another industry Trump thinks he's an expert on but actually knows nothing about? Shocking.
remember this last election when Harris and Trump were both screaming to 'drill, baby, drill'
both sides think they are experts
Next time you go to write a comment that contains the phrase "both sides" please stop, think, re-read your comment, then set fire to your device.
What an irony coming from you.
I personally loathed Harris' stance on fracking, because we need to actively decrease fossil fuel reliance... however, she was talking about unimpeded continued production - not ramping up production.