Tractor lots are full

[scootr]

If government was limiting domestic drilling, why has production remained near record levels? Crude oil and natural gas production hasn’t fallen off. US production has remained on a high plateau. The US also exports a good portion of production to take advantage of high worldwide prices. These products sell for higher prices on the world market than they do domestically. That has some effect on prices. Congress authorized the export of fuel around 2015, causing worldwide supply to have a greater effect on U.S. prices.

US crude oil production:

 

[jyoutz]

US crude oil production: View attachment 797711

From Energy Institute of America: report: “According to the EIA, an average of 11.9 million barrels of U.S. crude oil were produced per day in 2022, below the record in 2019 of an average of 12.3 million barrels per day. The EIA is forecasting a new record for this year, but barely higher, at an average of 12.4 million barrels per day.”

This report shows that US production has been at a plateau since 2019, with a dip in 2020 during the peak of Covid.

 

[Rdrcr]

Government creates policy which affects the business environment which can lead to businesses increasing pricing, hence inflation.

Printing more money certainly doesn’t help, and it too, in most cases, leads to inflation.

Supply and demand also play their part as well.

Mike

 

[rScotty]

From Energy Institute of America: report: “According to the EIA, an average of 11.9 million barrels of U.S. crude oil were produced per day in 2022, below the record in 2019 of an average of 12.3 million barrels per day. The EIA is forecasting a new record for this year, but barely higher, at an average of 12.4 million barrels per day.”

This report shows that US production has been at a plateau since 2019, with a dip in 2020 during the peak of Covid.

Agreed, and it is a very high plateau. From your graph, we are up some 40 to 50% on oilfield production since 2016. What happened to all the oil? If we are producing more now, how come prices are so much higher than they were 10 years ago?
Is that mostly inflation? Or mostly greed?
rScotty

 

[airbiscuit]

 

[jyoutz]

Agreed, and it is a very high plateau. From your graph, we are up some 40 to 50% on oilfield production since 2016. What happened to all the oil? If we are producing more now, how come prices are so much higher than they were 10 years ago?
Is that mostly inflation? Or mostly greed?
rScotty

Since it is traded on the world market; the larger market has significant effects on pricing.

 

[BnRidge]

There are over 9,000 independent oil and natural gas producers in the United States.
Independent producers develop 91 percent of the wells in the United States – producing 83 percent of America’s oil and 90 percent of America’s natural gas.
I haven't heard of any American oil cartel. And if there was, wouldn't they regulate output to effect pricing, on an open market? Of those 9000 producers, who's going to step up and cut production first.

 

[2manyrocks]

Refinery capacity and regulation also affects gas prices.

 

[Borane4]

Reduce oil production and see how fast prices go up. I can't think of a single product that doesn't depend on oil at some point--Manufacturing through Delivery.

Well, while you are ROFLYAO (or whatever that emoji means) you might consider that oil production is at a record high, yet oil prices are still outrageous. Perhaps it could be over-production of another commodity (hint: money) that has lowered the value of that commodity (money). Print more money, make it less valuable. Only one entity can print money - the government. Why is it that people so quickly blame corporations for inflation and never blame the government for producing too much of their commodity (money)? One reason is that the government has told you for years that the oil companies are to blame for inflation. It's a lie that helps them because they shift everyone to a higher tax % bracket and they collect that back in higher tax collection. It's a great scam and they have people drinking it up. Oil prices are a side effect of increased money production, not the other way around.

 

[sd455dan]

Well, while you are ROFLYAO (or whatever that emoji means) you might consider that oil production is at a record high, yet oil prices are still outrageous. Perhaps it could be over-production of another commodity (hint: money) that has lowered the value of that commodity (money). Print more money, make it less valuable. Only one entity can print money - the government. Why is it that people so quickly blame corporations for inflation and never blame the government for producing too much of their commodity (money)? One reason is that the government has told you for years that the oil companies are to blame for inflation. It's a lie that helps them because they shift everyone to a higher tax % bracket and they collect that back in higher tax collection. It's a great scam and they have people drinking it up. Oil prices are a side effect of increased money production, not the other way around.

The FED is only partly Governmental

12 regional Reserve Banks—Located around the country,

the 12 Federal Reserve Banks are chartered as PRIVATE Corporations.

Employees are not civil service.

 

[Borane4]

They are starting to switch to CaCl in my area too. It’s less damaging to vegetation than MgCl. Neither are corrosive to vehicles.

Uh, I think you are mistaken about this. CaCl2 (calcium chloride) is way more corrosive than NaCl (sodium chloride). Pre-treatment before snow is one way to minimize corrosive effects, and calcium and magnesium salts are more expensive, so they use less.

 

[jyoutz]

Uh, I think you are mistaken about this. CaCl2 (calcium chloride) is way more corrosive than NaCl (sodium chloride). Pre-treatment before snow is one way to minimize corrosive effects, and calcium and magnesium salts are more expensive, so they use less.

They do pre-treat before heavy snow events.

 

[jyoutz]

Well, while you are ROFLYAO (or whatever that emoji means) you might consider that oil production is at a record high, yet oil prices are still outrageous. Perhaps it could be over-production of another commodity (hint: money) that has lowered the value of that commodity (money). Print more money, make it less valuable. Only one entity can print money - the government. Why is it that people so quickly blame corporations for inflation and never blame the government for producing too much of their commodity (money)? One reason is that the government has told you for years that the oil companies are to blame for inflation. It's a lie that helps them because they shift everyone to a higher tax % bracket and they collect that back in higher tax collection. It's a great scam and they have people drinking it up. Oil prices are a side effect of increased money production, not the other way around.

Your comment ignores the fact that US oil and fuel is now an internationally traded commodity. Supply/demand factors around the world establish market rates, not just US domestic monetary policy.

 

[Hay Dude]

Well, while you are ROFLYAO (or whatever that emoji means) you might consider that oil production is at a record high, yet oil prices are still outrageous. Perhaps it could be over-production of another commodity (hint: money) that has lowered the value of that commodity (money). Print more money, make it less valuable. Only one entity can print money - the government. Why is it that people so quickly blame corporations for inflation and never blame the government for producing too much of their commodity (money)? One reason is that the government has told you for years that the oil companies are to blame for inflation. It's a lie that helps them because they shift everyone to a higher tax % bracket and they collect that back in higher tax collection. It's a great scam and they have people drinking it up. Oil prices are a side effect of increased money production, not the other way around.

Moreover, it explains why nearly everything else costs a lot more. This 2+ year period of inflation is crushing this country. Food, fuel, electricity, parts, supplies, even insurance…..everything is ridiculously expensive.
It’s mostly because of an increase in the money supply. This G________t could be doing so much more to help this country, but it’s’ myopic-focused on green energy too much.

 

[Hay Dude]

Agreed, and it is a very high plateau. From your graph, we are up some 40 to 50% on oilfield production since 2016. What happened to all the oil? If we are producing more now, how come prices are so much higher than they were 10 years ago?
Is that mostly inflation? Or mostly greed?
rScotty

But that doesn’t explain the nationwide increase in electricity costs. The only thing we do know about them are additional taxes on energy.

 

[jyoutz]

But that doesn’t explain the nationwide increase in electricity costs. The only thing we do know about them are additional taxes on energy.

There is not a nation-wide increase in electricity. Many of us co-op members are seeing little to no changes in costs, and co-ops are widespread in rural parts of this country.

 

[Tinhack]

Gasoline was about 18 cents in 1931.

Maybe where you came from. I worked at my dad's gas station in 1967 while still in high school in San Antonio, Texas. I remember it being 18-19 cents a gallon. There were occasional "gas wars" that put the cost at 16 cents a gallon. Sometimes it went to 21 cents a gallon. Gas prices were set by the supplier, not the station owner. Prices even varied in different areas of the city. It still does to this day.

 

[Torvy]

The FED is only partly Governmental

12 regional Reserve Banks—Located around the country,

the 12 Federal Reserve Banks are chartered as PRIVATE Corporations.

Employees are not civil service.

The Fed doesn't print the money. That would be the Treasury Department. The Fed controls monetary policy and has the ability to affect the money supply, but Congress controls fiscal policy and that has a much bigger effect on the money supply. The Fed works to stabilize interest rates, inflation and unemployment through various means. When Congress spends money they don't have, the Treasury prints it and voila, more money. Now the Fed is pushing up interest rates to counter the inflation caused by spending. The rapid rise is due to them believing their former chair and current SecTreas in saying inflation would be transitory. People spending money has AN effect on inflation, but it is miniscule. Businesses do not set prices. They propose a price and consumers either accept those prices or not. That is supply and demand. It is much more complicated than that, but ultimately money supply is the biggest factor. This is the way.

 

[DK35vince]

But that doesn’t explain the nationwide increase in electricity costs. The only thing we do know about them are additional taxes on energy.

We had a 45% increase last June

 

[scootr]

Maybe where you came from. I worked at my dad's gas station in 1967 while still in high school in San Antonio, Texas. I remember it being 18-19 cents a gallon. There were occasional "gas wars" that put the cost at 16 cents a gallon. Sometimes it went to 21 cents a gallon. Gas prices were set by the supplier, not the station owner. Prices even varied in different areas of the city. It still does to this day.

I pumped gas, checked the oil, and washed the window while filling cars in 1970 - 71. Gas was about 25 cents.