Bush Lifts Ban On Offshore Drilling July 2008
Ping
Sure there is, bring the Trump team back. They will fix it.
Bull crap. OPen the pipelines. Gives tax breaks to oil companies. Authorize drilling everywhere Trump did. It will change practically overnight.
If the US government stated and acted as if energy (not BS green scams) was a National security interest the price fall immediately. The announcement of nuclear, coal, Natural gas power plants and new refineries being approved for domestic and international production would do wonders. Executive orders, permits, reduction of regulations … the announcement with actions will make the USA powerful with energy at reasonable prices, jobs. … Not hard.
The market moves on what they believe the future holds. If looking forward they see a tight market, prices jump now, not next month. Likewise if looking forward they see a lot of new oil coming on line, the prices start to drop now, ahead of the glut.
If a president, whoever, reverses everything Biden has done, opens the floodgates for permits, gets the regulators out of the way, lets them finish the almost finished pipeline, lets the refinery projects go forward, it wouldn’t matter that the new oil wouldn’t hit the market for a few months. The market sees it coming and prices start to soften and fall.
Along with the cost of everything that moves by diesel.
Every tool except to increase the production of domestic oil and complete the Keystone pipeline.
Didn’t change today. I suspect south jersey will hit 5/gallon tomorrow. 4.97 today.
Bush Lifts Ban On Offshore Drilling July 2008
The problem is not crude oil supply it’s refinery capacity. At $120 bbl there is 44 gallons of products made from that bbl thats 2.72 a gallon in crude costs if equally distributed. It’s not jet fuel sells for a premium $6.70’to $12+ according to AIRNAV that monitors 3700+ FBO and airport’s. Diesel is well over $5 so the markup is in the refinery margins taxes are only 18 or 21 cents federally for octane or #2 diesel the states have varying rates but none are over a $1 a gallon so again the markup is in the margins for refineries which are running at 95% or more capacity. The problem is over a million bbl per day was shut down during the demand loss of the pandemic that’s never coming back so the shift is structural even halving the crude price would only take that 2.72 down by half the refinery margins would not budge they are the bottleneck. Since no new refineries will be built in the USA China, India, or.Latin America could build more it would take 5 years to get new capacity up and running at least. There is no short term solution to more refinery capacity.