How President Trump is Undermining US Oil Producers

OilPrice.com ^ | Nov. 26, 2018 | Robert Rapier

[con-surf-ative]

President Trump recently took credit for the plunge in oil prices since early October. As I noted in a recent article, it’s true that the President’s actions have contributed to the drop in oil prices, but at a cost that has been largely ignored. This week the President decided to share the credit for lower oil prices on Twitter:

(tweet omitted)

President Trump thanks Saudi Arabia for low oil prices. How President Trump Affected Oil Prices. Let’s review. The trade war with China resulted in China halting imports of U.S. oil. Prior to that, U.S. oil producers had been shipping half a million barrels a day to China. This loss of market hurt U.S. oil producers, and helped push inventories higher in the U.S. This further hurt U.S. oil producers by pushing prices down.

[con-surf-ative]

Trump loves to boast about American energy independence. He has to know that oil production growth in the US is dependent on a market price that incentivizes exploration and investment. He needs to let the market dictate price, and quit trying to manipulate it through his tweets and deals with the Saudis. A lot of people are about to be put out of work if he keeps this up.

[digger48]

A lot of people in my area are lining up to fill their tanks with $1.88 gas, leaving them more money to spend on bills and Christmas

[Attention Surplus Disorder]

Basically, whatever the outcome, Trump sucks. Does that about cover it?

[babble-on]

It was not the Saudis it was the US relaxation of the Iran sanctions that crashed oil.

Oil prices is one of those things where the public interest and the interests of frackers don’t necessarily align perfectly.

[vette6387]

Yeah, well I’m tired of gas prices between $3. and $4. per gallon. And I am further pi$$ed off how the oil companies diddle the consumers with their price manipulations such as the Springtime an Fall spikes as “supply is reduced as a consequence of refinery shutdowns for maintenance and/or changing over from winter to summer formulations.” These are nothing more than thinly disguised methods of price gouging. The other disgraceful practice is pricing their products on “the ability of the local consumers to pay!” We buy nearly all of our gasoline from Costco here in the Bay Area, and we are buying fuel every week. So you have to wonder why there is at least a $.30 per gallon difference in pricing between the poorer areas and those that are wealthy.

[Balding_Eagle]

Yes, that does cover it.

But isn’t it great that we have a president who doesn’t give two s**** about what people say, he just keeps MAGA

[Repeal The 17th]

People in the oil business like high oil prices.
People driving cars like low gasoline prices.
You just can’t make everybody happy.

[RegulatorCountry]

This is far superior to the OPEC-led attempts to drive US production into the ground back in the day, though, isn’t it? Or are we just hunting for ways to bitch about Trump, never mind how much worse it’s been in very recent history? We’re nowhere near jeopardizing US production as far as price per barrel.

[central_va]

Oh give me a break. American love lower oil/gas prices. You to help US oil producers? Tariff imported crude oil and imported finished product.

[Grampa Dave]

Good summary.

[A Formerly Proud Canadian]

ASSUMING that PDJT is 'undermining US oil producers' (which I believe to be false), he is a piker, as far as 'undermining oil producers', compared to this 46 year old teenager, who resides in d'Ottawa.

Through inaction on FOUR pipeline proposals in Kanaduh, he has lost AB over 20,000 DIRECT jobs and 100,000s of indirect jobs. Canadians (especially conservative Canadians) aren't big on protests but last week, several thousands protested Justine Turd-owe's appearance at the Calgary Chamber of Commerce last week. With his 'fiddling while Kanaduh burns', he also has lost the Government Motors Oshawa plant. Keep your eyes open for FedGovCan to offer GM additional billions to keep Oshawa open until the 2023 election, to purchase ON votes with AB taxpayers' money!

[Beagle8U]

Oil companies should get used to low oil prices in the USA, and concentrate on selling more oil overseas.

[woodbutcher1963]

bingo

[Wonder Warthog]

"And I am further pi$$ed off how the oil companies diddle the consumers with their price manipulations such as the Springtime an Fall spikes as “supply is reduced as a consequence of refinery shutdowns for maintenance and/or changing over from winter to summer formulations.”

Uh, you do realize that those summer and fall reformulations are a matter of both pollution prevention law, and car performance?? Colder weather requires a higher fraction of more volatile components. And refineries "do" require shutdowns for maintenance.

[vette6387]

“Uh, you do realize that those summer and fall reformulations are a matter of both pollution prevention law, and car performance?? Colder weather requires a higher fraction of more volatile components. And refineries “do” require shutdowns for maintenance.”

Yes, I understand all of that, I am a Registered Professional Mechanical Engineer. But none of these requirements should be affecting pricing as they are normal course of business activities that in most businesses are factored into their costs. But in the case of the oil companies, they’ve decided that these are “opportunities” for price gouging, because the idea that they are significantly affecting supply/demand are bull$hit! Here in California, Governor Brown farts, and the price of gas goes up!

[mountainlion]

Colorado had a vote issue of not allowing a will within 2,500 feet of a building and shut down all state land to oil drilling. They wanted to destroy 100,000 jobs and help destroy rural America as per Agenda 2030. We could be free or under the thumb of a micromanaging guberment.

[867V309]

He needs to let the market dictate price...

don't make me laugh. I live in a big city and there are many times when every gas station has the same price for the cheapest grade of gas. where is market participation in this?

[TheConservativeTejano]

It was not the Saudis it was the US relaxation of the Iran sanctions that crashed oil. Oil prices is one of those things where the public interest and the interests of frackers don’t necessarily align perfectly.

Partner, you hit it right on the nose. The Texas renaissance in fracking will produce an additional 3.5 Million barrels of oil per day by 2024 which is in addition to the already 3 million barrels increase of oil per day.

As a native Texan from West Texas, I knew we were going to be the New Saudi Arabia in Oil.

The Midland Odessa area has the largest Oil Field in the world period and this is a big thanks to fracking.

[DuncanWaring]

In SW Michigan the price of gasoline generally gradually decreases over a period of a couple of weeks, then nearly every station in four counties jumps to the exact same price within a couple of hours.

Then gradually decreases over a period of a couple of weeks ...

Repeat ad infinitum.

[DoughtyOne]

Oh the horrors...