Posted on 02/24/2024 5:59:01 AM PST by SpeedyInTexas
The problem with excessive drilling is that when too much oil is available the price goes so low that drilling and pumping in fracking and other more complicated production sites stops making money when the price of oil goes above $80 a barrel. I wonder if the governor of N. Dakota is prominently there to keep reminding Trump and campaign ad people of that fact. Apparently a number of ND wells had to shut down and stop pumping when the price of oil went too low. I loved $2 gasoline, but one result was there was such a flood of oil in the market there was no more space to store it. Cushing, OK was full, oil tankers were full, and for a day or two people were actually being paid to take delivery of free oil. I think the low $3 price point is probably the one that will work. High enough to keep most drillers busy, and low enough to not be too painful to the American drivers.
Drilling where the cost is $80 a barrel or more have been slow to come back into production which probably has caused prices to be higher than they should need to be. A while ago I saw reports that a lot of leases granted by the current administration were not yet being drilled on.
How much influence could Zelenskyy’s recent bombings of oil ports had on Putin’s oil plans in both the Baltic and Black Sea areas?
Oh, those GD Ukranian Nazis are hitting companies that supply the Russian military. Why aren’t they hitting condos , schools, and cancer hospitals like good little Nazis? they are simply not supplying good lines for the Russian propaganda effort. Shame on them!
I believe it was 2012 when Ukraine signed exploration contracts with 2 US oil majors. In 2014 these contracts were canceled. I think oil was mentioned for eastern Ukraine, but the big gas pot is Crimean surrounding sea.
Does Trump really understand the delicate balance between oil prices, production costs, especially in fracking site, and oil storage? What effect is the Houti attack on Suez, and drought in Panama having on transportation issues, and inflation? How feasible is drill, drill, drill with these issues to consider?
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