The U.S. economy grew at a 3.3% pace in the fourth quarter, much better than expected

Trump’s days; In an effort to become the LARGEST, our producers ended up spending more cash than they took in, and in Trump’s mind, that’s good business.

NO MORE! Today’s oil&gas investors no longer want to invest in companies that will burn their cash, and carryover losses over X number of years.

 

NONE OF THAT DENIES THAT BIDEN RAISED THE ROYALTIES about 50%. This is 2024. Do you need a calendar?

 

Trump lost the 2020 election because a great majority believed he mishandled the Covid crisis, and “more verbally” than the actions that were taken. In other words, his B.S. turned me off, and back then, MAGA’s refused to accept the fact that his mouth was the problem.

In Biden’s case, I haven’t defended the man, however, I’ve defended the Truth, for example;

As of December 31st, 2020, consumers have amassed an excess saving of over $1 trillion, (mainly unspent covid-related government transfer payments).

Trump’s fault? NO

Congress? ABSOLUTELY! Congress shot itself in the foot, because their overly generous transfer payments that Treasury disbursed to approx 280 million recipients created a huge “inflationary” excess saving, inflationary due to the fact it was entirely spent during 2021’s pent up demand, and during a period when the supply chain was severely disrupted.

Source; FRED Personal Saving…..the graph and its figures are self-explanatory.

 

Question; Which of the following royalty rate increase has actually raised the price at the pumps?

a. Biden’s on-shore 18.75%

b. Bush’s off-shore 18.75%

Anticipated answer from a West Point graduate; (a. only)

Note; I’m a CU Boulder graduate, and my answer is “none of the above.”

 

Your post is too vague to respond to.

Bush is ancient history and irrelevant.

If you think raising royalties at the well head by 50% has no effect on prices at the pump... there's no point in further discussion.

Did you graduate from CU before or after Colorado legalized dope?

 

Your analogy shows that you are bemused. In fact, you haven’t made an analogy.

Your Quote; “If the federal government were to tax each pair of shoes at a rate of $100”

????????????

1. “If the FEDERAL government”

CORRECTION; In the U.S., there’s no Federal sales tax on a pair of shoes.

2. “If government were to tax at a rate of $100”

CORRECTION; Although that a tax rate equates to a dollar amount, a tax rate is a PERCENTAGE.

3. Unlike crude oil, shoes aren’t commodities, and aren’t sold at a benchmark price.

LAST, what are you paying when you buy gasoline?

1. The price of a benchmark crude

NOTE; NO ROYALTIES!….however, a royalty is paid to XYZ government when an oil producer receives a cheque from a refinery.

2. Refining Cost

3. Distribution cost

4. Taxes

 

SOOOOO your saying you don’t understand what you’re debating ?

 

Avoiding the point and getting buried in semantics..... how lib can one get?

 

Not at all. But its difficult to respond top a post that has no specifics at all in it. How does one respond with facts to to a post devoid of facts to dispute?

 

You keep doubling down on yourself. But by all means, keep debating something you dont understand

 

1. I’ve long been a center-right independent conservative

2. Oil royalties based on gross sales haven’t increased the price at the pumps, Period.

 

Difficult to understand posts so vague as to be un-understandable. Some facts would help if you want a reply.

 

Increased royalties haven't increased the price at the pump? LOLOL.... Too funny. Oil companies don't pass on costs to the consumer? They just take the hit themselves? LOLOL

Look, I have this great deal for you. Its a bridge, well-travelled, cheap. Cash only. Its in Brooklyn. Interested?

 

Crude oil prices are driven by global supply and demand.

Retail gasoline/diesel prices are “mainly affected” by crude oil prices, and the amount of gasoline/diesel available to meet demand.

“mainly affected”, and here’s the reason why;

Nationally, the current average price for gasoline is $3.25/gal. One barrel = 42 gallons, thus, the average price of one barrel of gasoline equates $136.5.

Now, let’s assume XYZ Refinery bought their crude at a WTI benchmark price of $74/bbl.

Thus, $74 + refining cost + distribution cost + taxes = $136.5 for one barrel of gasoline. If WTI benchmark price were to increase to $80, then more than likely, the price of gasoline will increase.

 

Oil from wells within a state, refined in that state, distributed in that state, and sold as gasoline in that state does not cross state lines and is not subject to federal commerce laws let alone the laws of OPEC.

 

Can you tell me why it took Texan oil producers over 3 years to achieve their pre-Covid production?

January 2020 production; 5.450 million barrels per day

March 2023 production; 5.454 million barrels per day

Source; EIA Texas Crude Oil Production

Note; Please give me an intelligent answer.

 

I don't even remember what I paid for gas 4 years ago. I just know what I'm paying now. Can you tell me the price of chicken when Herbert Hoover was President?

 

You don’t remember what you paid for gas 4 years ago??????

No problemo, the CU Boulder graduate took less than 1 minute to find the info that you don’t remember;

U.S. Energy Information Administration
Weekly Retail Gasoline and Diesel Prices
Area; TEXAS
2000 - 2023

Regular gasoline
4 Years ago
February 2020, Week 2…..$2.056 a gallon

——————

 

Who cares about 4 years ago? Trump was President then and gas was cheap(er). Compare with Biden's prices in in his first two or three years.

Nice try though. Good spin.

 

Huuuuummm, still NO intelligent answers.

Oh well, there are at least 10 reasons why it took Texan oil producers over 3 years to achieve their pre-Covid production;

In chronological order;

Number 1; The post-consequences of the oil market crash….

a. 2020 and 2021’s capital expenditures were significantly reduced.

b. Due to overwhelmed storage capacity, Texan’s oil producers had no choice but to shut in their wells. Google; “Why oil producers don’t like to shut in their wells”, and according to my Texan Pioneer buddies, the shut-ins have caused a long term loss of 400,000 barrels per day.

c. The oil market crash killed over 100,000 jobs, and thousands of workers haven’t come back to work for the energy sector. Note; A shortage of labour is in fact a supply chain issue.

d. Texans were severely affected by the bankruptcies. Note; An oil producer who files for bankruptcy don’t usually spend money to service and/or reactivate their low producing wells, thus, thousands of pre-Covid/active wells remained dormant.

e. In 2020, when the price of crude fell below breakeven prices, oil producers took on huge debt, and they began trimming their debt in 2021.

f. Lack of capital money; Although some investors have stopped investing in the energy sector due to Biden’s policies, a whole lot of loyal investors have grown tired of boosting production at zero returns, thus, gone are the days, (Trump’s days), when oil & gas companies could persuade investors to write cheques by simply pumping lots of oil.

g. In 2021, oil producers, domestic and abroad were just lowering their agreed production cuts, and oil future prices kept climbing.


Next, reason # 2……Texas Deep Freeze

 

In addition to Reason # 1…..In 2020, the permanent closure of several refineries, for example;

a. Calcasieu Refining, Louisiana, citing demand
loss during the pandemic…..135,000 bpd

b. Hollyfrontier, Cheyenne, Wyoming…..52 bpd

c. Marathon Martinez, California, citing lower fuels demand….161,000 bpd

d. Marathon Gallup, New Mexico, citing lower fuels demand…..27,000 bpd

e. Shell Convent, Louisiana, citing the refinery became unprofitable due to the pandemic….240,000 bpd

Jan 2020 total refining capacity; 18.9 million barrels per day

Jan 2021 total refining capacity; 18.1 million barrels per day

A differential of MINUS 800,000 barrels per day, however, a significant loss when Demand for fuels exceeded Supply.

 

So why don't people like the direction of the economy:

 

Biden's inflation has done its damage. My $4 steak is now $12. If inflation goes down, the price of my steak doesn't.