Gas prices are high. Oil CEOs reveal why they're not drilling more

They do not want to expand supply, because they are not sure that prices will remain this high.

There is also the possibility of another pandemic which could reduce oil demand again.

To be willing to make investments, they need certainty that those investments are going to pay off.

 

They are not expanding supply because they are making a huge profit by limiting supply.

 

I know that's what those on the Left think. But that explanation does not make too much sense, because there is competition. There has always been competition, which prevents the prices from going higher than they otherwise would be.

Basic free market theory tells us that eventually as prices rise, one of the companies will decide to be the first to expand supply and increase their profit.

 

That only happens if there is a shortage of customers. "unfriendly" countries such as Russia, and smaller oil producing companies who went bust during the pandemic, are in general the companies who initiated price reduction leaving just the large oil companies who set their prices as high as possible. There is effectively a monopoly. We have seen this same effect in the domestic energy suppliers

 

Why is it that Democrats(voters and politicians) like to argue simultaenously: A: Their policies have absolutely no effect at all(at least this is honest, given the administration's failings) but then B: It's all those mean racist Republican and corporate masters fault, and if they'd just go away(circa argument: Roosevelt's administration in the Great Depression), we'd all be living in a prosperous, happy America.

No one has a more convenient excuse than the Democrats. When all else fails, blame the Republicans. And it amazes me(when you consider again, the argument picked up during the Roosevelt administration), how long and convincing this argument has become. Why not advocate for a Democratic single state then? At least then we'd be without the Republicans who by virtue of tying to their corporate masters are keeping us from prosperity.

(Unless of course, it's a bunch of BS.)

 

Some people do not realize the oil production is in private hands. It is not some government entity where politicians decide how much to produce, and throw in taxpayer money whenever prices are high, and then let the taxpayers eat the losses when prices crash. Its not as simple as that.

Private companies make their risk analyses before pouring in their money into new investments, and if they think it will go bust as soon as prices fall, then they won't invest their money (should I say "their HARD EARNED money").

Yes, but no one can promise them that, and history had taught them that going "all-in" when prices are high it a foolish strategy.

They ARE expanding it, but they are not going overboard because bigger expansion would cost A LOT of money and take a long time, and by the time they get oil out of the ground, the price is probably low again.

Awwww.......Isn't politics a bitch.

 

When you see it's a CNN article you know it's bullshit.

 

That is a pretty simplistic view, because even they sometimes simply report the news. They are talking about a survey put out by the Federal Reserve Bank of Dallas. The Fed surveyed 141 oil and gas firms and they said the biggest reason is pressure from investors and lenders, not from government regulations. I read the same thing from other sources.

 

The rise in oil prices since the invasion started IS Putin's fault. And there are several other factors at play that require a deeper understanding than just "Biden did it".

I know there are right-wingers who understand that kind of concept, because they defended Trump for four years when people just blamed him for everything whether it was really his fault or not. They were willing to look deeper then, because it was their guy in the White House and they thought it was stupid that people were just mindlessly blaming Trump for things.

I guess that's something that folks take turns on, just like they take turns being the presidential vacation police.

 

They can increase production using the same wells that they are using now at no extra cost and straight away ie the wells are not being operated 24/7. That would reduce cost per barrel but daily income would be roughly the same. So it is in their interest to not drain these wells quickly hence keeping the price high

 

Not necessary. They will provide all the oil we need as soon as federal government stops being their enemy.

 

The prices was increasing at the same rate before the invasion up to date
https://www.macrotrends.net/2516/wti-crude-oil-prices-10-year-daily-chart

 

That is what they are doing. Its not true what they won't increase production at all, because they are increasing it, they just don't want to go "all-in" with massive investments.

US struck a new energy deal with EU, where exports to EU will be increased by 15 billion cubic meters this year.

 

lol, a job market so flooded it pays less then a automobile or diesel mechanic

 

In the current shitstorm this President and party has us in, at least what they were under Trump and balls to the walls leases and drilling and capping good wells..

Having it available does no harm to the environment, shortages of it is going to hurt our nation and the poorest of this country will be the first to go hungry..

 

Clearly you have trouble differentiating LEASES and PERMITS. It's not uncommon to drill thousands of holes without success on a fraction of leases. Of course, some folks might think a lease is like two maybe three acres of public land and only one or two holes are drilled on it, but those folks are clueless

 

Should have glutted the market with domestic energy! You should know how it works, to much of something always drives the price down..

 

I'm sure all that really honest information from the oil companies and CNN must be true You want the truth, talk to the guys that frack, cement and supply the derrick with heavy water and sand..

You know, the little guys like you and I that make it happen

 

Oh FFS….so the right has been claiming for a long time now that it was government policies by Joe Biden that are causing the increased prices, and now we literally have the leaders of the very companies that have increased the prices telling us why the prices were high (which everyone on the left has said was the reason), and the excuse and spin machines are now in high gear. IT is with 100% surety that I know the rigth will somehow spin this to be Joe Biden Bad, and with 1000% surety I know that not one of the righties will admit they were wrong.

I have said all along that they weren’t drilling on purpose, and pointed to the excess leases already in their hands, and I wasn't sure why they would want to drill more when they are getting increased PROFITS in the current environment. Now they are telling you the very same thing, and the rights excuse machine is now in high gear. So to be clear, the actual CEO of these oil companies (you know, the EXPERTS) are telling you that prices are up because they want to make even more profits. AND….They are actually risking future prices by trying to save money now by not exploring, in the name of profits today !!!!

Corporate greed is increasing gas prices, and its NOT Joes fault. Im sure this thread will die very soon as the righties cant defend their untenable position anymore as the actual experts are now telling them they were wrong

 

The answer is one word GREED !!!!

 

SO your saying that the industry will shut down because they might loose a point in profits, so they would rather just close up shop ?

Friggen LAUGHABLE !!!!

 

We should be cautious here. It seems now that Zelensky et al have declared their political rivals illegal that Democrats have more openly supported the guy under the guise of, you guessed it, "democracy" and all... Democrats have always been the party of shut up and obey.

 

Democrats don't care about the poor. They're importing at record rates these days. They want servants/slaves to ensure their comforts in life are cheap.

 

Yup. Democrats do seem to be some pretty petty greedy folk....

 

Tru dat! But they believe that every time they are told they do Decade after decade they fall for the same historic lies! You would think every man and women would support hard work and job opportunity as top priority, but alas they have been conditioned to take from the rich and give to the lazy