Why Nobody Wants to "Drill, Baby, Drill" [or disagree?]

https://www.fool.com ^ | Jul 20, 2022 | Travis Hoium

[UMCRevMom@aol.com]

Gasoline prices are high for consumers, but why don't oil companies want to drill for more oil? There's a good reason.

Oil prices are high, and there's a desire for greater energy independence around the world. It seems natural that drilling would increase in the U.S., Europe, Brazil, Africa, and even the parts of Europe where oil is available. So, why isn't drilling increasing at a rapid rate?

There are a number of reasons, and the market dynamics can give us some answers. While gasoline prices are high at the pump, the market won't be pricing in elevated oil prices forever, so oil companies and investors are hesitant to put too much money into the ground. There are good reasons why "Drill, baby, drill" isn't the refrain in the industry today.

Oil companies are licking their wounds

In the oil crash of the mid-2010s, investors in oil companies lost over $1 trillion in value in equity and debt markets. You can see below that even industry leaders like Royal Dutch Shell (SHEL 0.52%), Occidental Petroleum (OXY 1.02%), Transocean (RIG 2.54%), and Halliburton (HAL -1.72%) all reported losses for at least one 12-month period; Shell is the only one of these four to make a significant profit from 2014 to 2018.

[UMCRevMom@aol.com]

"American Energy Plan"

The "American Energy Plan" will:

-End America's addiction and reliance on "dirty oil" from OPEC, muslim/middle-east countries.

-Make America Energy Independent

-Creates 3-5 million new American jobs

-Retains the >$500 billion in the U.S. every year, we now transfer to foreign countries to buy the "dirty oil" we need from countries that do not like us.

-Abolish the Department of Energy

Working initially from within the beast, the American Energy Plan replaces the massive inefficiencies and tax-payer WASTED dollars of "crownie-capitalism" programs that made themselves rich but failed to solve any problems.

History proves time and again that central planning, top-down government socialism is a failed socio-economic model and that decentralized, "free market capitalism" ideas and solutions that made America great and successful. The same holds true with producing and distributing power and energy, the decentralized model provides the most efficient and economic solution with the fewest externalities.

FIRST step to a renewable energy future is to IMMEDIATELY END all foreign oil purchases, and putting Americans back to work producing America's oil!

This will end the WORST DEPRESSION in American history and keep the $1/2 Trillion dollars we now send to OPEC / muslim countries for the oil we need. America produces oil cleaner and greener than ANY other country. And, by producing America's oil here, we save ENORMOUS amounts of greenhouse gas emissions that are generated when shipping foreign oil to the USA.

http://www.americanenergyplan.org/

[ProtectOurFreedom]

...oil companies and investors are hesitant to put too much money into the ground. There are good reasons why "Drill, baby, drill" isn't the refrain in the industry today.

A major reason is the radical leftist ESG craze has made it very hard to finance fossil fuel projects. There are glimmers that ESG is finally being called out for what it really is. Until that ends, you won't see investment in fossil fuel production or projects that use fossil fuels. Companies are very fearful of stranded investment, especially under a strongly anti-American regime.

[eyeamok]

FIRST step to a renewable energy future is to IMMEDIATELY END all foreign oil purchases, and putting Americans back to work producing America's oil!

I respectfully disagree, this should be step 2.

The first step should be a Federal Law prohibiting ALL Public Employee's Nationwide from using any means or mode of Transportation that uses any type of Fossil Fuel. GIVE THEM WHAT THEY WANT FOR US

[cableguymn]

would you drill if with the stroke of a pen a president could cancel your permit/lease?

ya I wouldn’t either.

[Cletus.D.Yokel]

:: The first step should be a Federal Law prohibiting ALL Public Employee’s Nationwide from... ::

But, before that, A Federal Law prohibiting ALL Public Employee’s Nationwide from collective bargaining rights.

[PGR88]

At the end of 2020, FACEBOOK’s market cap was $1 Trillion (yes, with a “T”)

The USA’s largest natural gas driller and supplier, EQT, which supplied enough gas for 6% of America’s total electricity supply - was valued at under $4 billion (yes a “B”)

That insane ratio has reversed a bit now, but it shows the priorities of our monetary/fiscal/political policy, and political ideology.

[Navy Patriot]

Why Nobody Wants to "Drill, Baby, Drill"

America must sacrifice oil, energy self sufficiency, export and freedom because it is more important to send weapons and money to Ukraine.

[100%FEDUP]

Why drill more than you have the capacity to refine? Oil companies have no desire to drill more than they need to and who can blame them.

[9YearLurker]

As a presumably paid shill, do you ever post anything that isn’t baloney?

We’re clearly undergoing an engineered takedown of our economy and the carbon-based fuel that makes it go.

This is not a market issue.

[mewzilla]

Drilling isn’t the problem.

Exporting it is.

[mewzilla]

https://www.lpgasmagazine.com/propane-continues-to-lead-us-petroleum-product-exports/

[mewzilla]

https://oilprice.com/Energy/Energy-General/Biden-Is-Running-US-Energy-Security-Into-The-Ground.html

[cotton1706]

Because they think oil is some evil substance.

But what are you going to burn to boil the water that creates the steam that goes over the turbines that creates the electricity that runs their fancy cell phones every day.

Not to mention keeping us warm in the winter.

They don’t have an answer.

[vpintheak]

The #1 reason why they are hesitant, is because CONgress has seeded their power to the executive and allow that office to simple write executive orders for all sorts of crap.
Allowing the President to do this creates terrible instability across all sorts of sectors as we have seen. Swinging policies back and forth. It is a terrible way to govern.

[TBP]

“Drill, bay, drill” is EXACTLY what we should do.

[Rainwave]

The US will drill in ANWAR, open the keystone pipeline and drill new wells in places that are abundant in oil bringing the US once again into a status of energy independence once the Republicans get back in charge of the Senate and Congress. When Trump gets back in office hopefully with DeSantis as his VP, America will slowly get back on track, bringing gas prices way down, the borders secured, the Woke agenda neutered and the US once again being respected in the world of foreign policy. This Biden administration was like a terrible nightmare. It will be over soon.

[central_va]

You don’t have the stop purchasng foreign engery and oil. We just need to tariff the hell out of it.

[KobraKai]

A bunch of mumbo jumbo blaming oil companies for not drilling while completely avoiding Biden’s part in all this.

[PGR88]

If Keystone Pipeline had been allowed to continue, it would be coming on line this month

Now would be a good time to have, would it not?

[SaxxonWoods]

“Why drill more than you have the capacity to refine? Oil companies have no desire to drill more than they need to and who can blame them.”

Yes, the article made good points but didn’t touch on this problem. Oil producers can’t afford to store oil while it wait to be refined. Doing so would increase the price at the end point.

The assault on oil is multi-faceted and until it is beaten back we will pay higher prices for everything except housing, which has already entered decline in most areas due to mortgage rates running higher to fight the inflation caused by the leakage of oil/gasoline/nat gas/diesel prices into everything we buy.