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.