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Posted on 04/25/2025 10:34:31 AM PDT by con-surf-ative
"There cannot be "U.S. energy dominance" and $50 per barrel oil; those two statements are contradictory. At $50-per-barrel oil, we will see U.S. oil production start to decline immediately and likely significantly (1 million barrels per day plus within a couple quarters),” an executive at an exploration and production firm said.
Another executive put it even more bluntly, “The administration’s chaos is a disaster for the commodity markets. "Drill, baby, drill" is nothing short of a myth and populist rallying cry. Tariff policy is impossible for us to predict and doesn't have a clear goal. We want more stability.”
(Excerpt) Read more at oilprice.com ...
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Either Trump understands this and is willing to make this sacrifice, or he is not nearly as smart as I think he is.
There’s simply no way in hell these will BOTH happen.
OPEC increased production in Feb and set a new price target of $65bbl.
They probably knew it would go to $55bbl.
US production usually stalls and eventually just drips at $60.
Another ‘tariffs are gonna kill us all’ hit piece. Screaming about $50 oil when it’s at $63 is anticipating a 25% decrease. Or stop drilling and go home because life sucks and you’re a loser.
Several countries have already promised to buy more of our liquified natural gas and other energy as part of upcoming trade deals. More demand will make it profitable, and it was Trump himself that put pressure on OPEC from what I hear to increase their production to lower prices. Eventually prices will stabilize.
Since Trump has made other countries purchasing more of our energy such a priority in his talks with other countries, I expect the American gas, oil, and maybe even coal industries to be some of the biggest beneficiaries of his tariff negotiations, though it will take a bit of time to fully work out.
I get what you are saying, but my view is that both will happen. Ten percent will not shut off all trade, which means the tariff will generate income. Those industries that move onshore to avoid the tariffs will generate GDP and pay directly into the tax base with both corporate taxes and income taxes from their employees.
Well when will gas prices come down ? It’s around 2.85 and up near me
Contrarian cross-currents are at work to obfuscate and discourage the Team Trump initiatives. Petroleum extraction and refining capabilities stand at an impasse here, in that the lower the world price of oil, the more negatively impacted the extraction industry, while the refining capabilities have to search for higher and higher valued crude petroleum to keep their distribution going. And pass the costs along to the consumers.
There is a stable price/supply strike point, but there will be a little unevenness before the market can set it.
Can we live with $55/barrel oil?
You are, they are drilling and mining hard in this energy state, even with a useless governor.
Yes because we should all be glad to pay $5.00 or more a gallon to keep them afloat (sarcasm).
Almost no one wants to "drill baby drill" with oil <$60/barrel. Even the Saudis.
Like most commodities, the short-medium term price of oil is set through sentiment (and manipulation) of futures markets. Right now, economic sentiment, and fears of a slow-down in oil demand globally are in control on NYMEX and ICE.
Having said that, Trump is able to show Americans reduced gas prices, and subdued inflation, which is all they really want.
remember that virtually every trade mag was overtaken by the Left
Is that not down for you?
I think it is safe to say that President Trump is saving the oil and gas industry from being legislated out of existence over the next decade by the Democrats Biden Administration the global climate zealots.
Trump is trying to put the nail in the coffins of the political movement to ban oil drilling completely and resume the expansion of the US oil industry.
That said, $60/bbl is a good sustainable price in today's world.
The key to US energy long term is to develop low cost of extraction fields but given how oil and gas have become a political football that flips from "Drill, Baby Drill" to " fossil fuels and oil /gas exploration is banned and you are legislated out of business in 10 years" with each change of political leadership it's really hard to execute a long term energy strategy.
The market will adjust to both increases and decreases to oil prices.
This magazine didn’t bitch when prices were $80+ for oil.
It’s been around that price for about a month
“ Well when will gas prices come down ? It’s around 2.85 and up near me”
We were paying over $4 per gallon. $2.85 is down. It will dip a little bit more but I think $2.60 is probably the floor in a good economy.
And of course everyone except the USA gets to keep their tariffs. “If you like your tariffs, you can keep your tarrifs—unless you’re Trump’s USA!”
How much of that gas price is state tax? 25% of the price of gas in California is taxes and fees.
Bkmk
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