Posted on 10/31/2021 1:50:01 PM PDT by Hojczyk
The world’s biggest energy companies are producing the most cash in years, but don’t expect them to spend it on bringing on fresh supplies of oil and natural gas to combat shortages in Europe and China this winter
It’s a step-change from previous energy rallies, such the early 2010s when emerging U.S. shale plays and fears over fossil fuel shortages prompted a massive upswing in capital spending. That boom ended painfully for the industry, with overproduction and a lack of cost control. This time around, Big Oil appears content to take the cash and hand it over to shareholders, who are both weary of poor returns over the last decade and concerned about the companies’ significant climate risk.
Producers can satisfy both groups by simply not ramping up spending on fossil fuels. But that’s bad portent for consumers crying out for more supply. Europe and Asia are currently competing for natural gas, sending prices to record levels, while the U.S. and India have asked OPEC+ to produce more oil. China has called on state-owned companies to secure energy supplies at any cost.
(Excerpt) Read more at finance.yahoo.com ...
“Politicians will look up and shout ‘Save us!’... and I’ll look down and whisper ‘No.’”
- Rorschach.
Might not be a good strategy in the long run. The closer prices of oil and natural gas get to so called ‘renewable’ energy sources, the harder it will be to argue that the renewable sources are going to bankrupt consumers.
Why should they help? They have a finite supply of a resource and it is their duty to shareholders/countrymen to make the most money from it as possible for as long as possible.
A little suffering is good for the soul.
It’s called supply and demand. Biden has intentionally artificially restricted supply at a time when demand is increasing. The price must necessarily skyrocket as those who need the the oil products the worst pay as much as they can afford to pay and stay in business. Team Biden is bragging on they restricted supply with stated intent to limit fossil fuel use.
Every day it takes learning all over again for these people.
What brings energy prices down? More supply of energy! But this administration has done everything they can do to prevent more drilling, more discovery, and more easy transportation e.g. oil and gas pipelines.
OPEC is in their sweetest spot right now. There is just enough supply to bring in a maximum price. They have no incentive to pump more and compete with themselves. Oil may crack $100 in a few months. We, the USA, could do something about it by becoming competitors but instead they want to give taxpayer money to the Chinese for solar panels and windmills.
Interesting-the headline. Oil in the ground is like money in the bank. It’s like selling high in the market. The solution is tax breaks for the small oil drillers. What’s the libertarian solution?
“””It’s a step-change from previous energy rallies, such the early 2010s when emerging U.S. shale plays and fears over fossil fuel shortages prompted a massive upswing in capital spending.”””
The writers for mainstream media are becoming more incompetent each day.
BIG OIL had nothing to do with the massive upswing in capital spending beginning 2010.
It was the small companies like EOG, Continental Resources, Whiting, Noble, Devon and a bunch of other small oil producing companies that explored and developed the shale oil in Texas, New Mexico, and North Dakota.
And what did the Democrats do then and continue to this day—namely harass them in any way possible to curtail oil production in the USA.
It is these small oil companies who own most of the leases producing shale oil and they are not in any big hurry to start drilling again. Maybe when oil is $300 a barrel they might get enticed to drill.
....and we’re back to begging OPEC. Let’s go Brandon!
The problem is not the oil companies, the problem is a demented evil fool in the white house.
I certainly hope that people will remember when the time comes that it was the left and people like Biden who created the disaster that is about to happen. And we will help them remember with lots of I told you sos.
The hope is that during after and after the Great Reset, that Americans will be so desperate that they will accept anything. We need to remind people that they did this to us.
Like asking a guy you just punched in the face to help move.
What a bunch of baloney. No mention of the Biden regime’s punitive actions against oil companies and their threats of even more in the near future? No mention on the extreme pressure on banks and other funders by Green fanatics to defund energy projects?
This Yahoo site seems to be more of a propaganda site than a news site.
“It’s called supply and demand. Biden has intentionally artificially restricted supply...”
I am continually (but sadly) amazed that so very few people understand this very basic and unalterable economic fact. It is because of this that Biteme can get away with blaming the oil companies for his own screw up.
Never underestimate the stupidity of the American voter.
When Trump was in, 1) the US was a net EXPORTER of oil and gas for the first time in 70 years; 2) the price of a barrel of oil was $ 40 and they couldn’t give it away; 3) shale was booming; 4) gas was below $ 2.00 a gallon; and as a result, working people, including many blacks and Hispanics, saw a rise in real incomes for the first time in decades. And the lying liberals secretly funded traded all this for a fraudulent “president” who craps in his pants. You can thank the damned Chamber of Commerce for being a major part of it, along with Zuckerberg, Dorsey, Soros, the Murdock family and the neocon failures known as the Bush clan.
So the evil fossil fuel industry that actually produces tangible goods for free and enslaved peoples of the world are bad.
But big tech socialists who really produce nothing get a pass?
F-Yahoo
We didn’t have this problem a year ago, and the US was exporting oil. There was even talk of the US exporting liquified natural gas to Europe.
The oil producers should make all buyers produce a sworn, notarized affifdavit that the buyer thinks climate change is total bs, and that oil or it’s derivatives do not contribute to it, else no sale. Oh, and those companies have to enforce all end-users of any derivatives, i.e. gas, plastics, lubricants, etc. to sign one too.
Two can play the game... lol
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.