I wanted to find out why this was happening as we ARE drilling as much as in 2019’s peak. This is what I came up with :
I was doing a little research on oil prices and production-—the media will spin it as “Biden is pumping more oil than Trump”. Yes and no—2019 peaked with 13 million BBls per day. 2021 dropped to 10.1 and 2022 was 11.4 and now it’s around 12.7. But I believe this is what’s causing price increases. Mostly from red tape and leftist rhetoric.
1-—Biden has red tape on leases and it’s more expensive to drill on the available leases.
2-—Constant pressure on refineries has caused them to close down or cut production.
3-—Banks tightening money lending to oil companies and refineries creates more risk, higher costs, etc.
4-—Of course, he pissed off the Saudis, so there’s that as well.
5-—Printing of money at the center of it all.
6-—Trucking regulations, fines, hours, red tape.
It’s pretty simple. More regulation, the devalued dollar and limited leases. That equals, in order of the prior sentence: too much government, too much government spending and too much government.