Posted on 05/27/2022 1:07:26 PM PDT by blam
Heard something on the radio today. Gustavo Petro, a radical socialist presidential candidate in Colombia, has been saying that he’ll stop oil exports if elected.
Several years ago, there was so much oil produced that the per barrel dropped below $30. The giant oil depot at Cushing, Oklahoma was full, and surplus oil was being stored on tanker ships. Producers in this country stopped drilling, stopped pumping, etc. because that was costing a lot more than $30 a barrel. Apparently they have not been real eager to start pumping again because they are getting paid well for what they already have above ground. Putin has done these guys a big favor, and they don’t care who in this country gets blamed for the high prices of gas. Market forces are market forces whether we like them or not.
Ten days ago I drove from the DC beltway to Chincoteague, Va. Thirty miles from the beltway almost all gas prices were $4.59/9 for regular at places like Royal Farms, Exxon, Shell, etc. Three days ago, Royal Farms regular was $4.49/9, and today driving back that was pretty much the standard price everywhere. So, 10 cent drop for the Memorial Day holiday weekend, are the oil copanyies scared we may start driving less and stay-cationing near home?
“Apparently they have not been real eager to start pumping again because they are getting paid well for what they already have above ground. “
Consider this info: Oil forecasters are expecting a return to pre-covid levels production by the middle of next year. We’re at 12 million barrels per day now. Another million to go.
Rig count is 721, up from 244 in the middle of 2020. Pre-covid was 790.
See post 24. Those are the real numbers. It is happening.
“Meanwhile, Russia is having no problem selling its oil to India and China.”
Selling and delivering are not the same. Russian has to invest a lot of money to get oil and gas to China, to avoid 4 month month tanker routes. This is what the Russian head said.
“Crude oil production in Russia could shrink by up to 8 percent this year, Deputy Prime Minister Alexander Novak said today, as quoted by RIA Novosti.”
The US is kicking their ass in oil production.
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