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To: semimojo

RE: US crude and natural gas production are both up significantly since he took office.

If this is so, can you explain to us the sharp increase in the price of gas from $2.75 ( in my area ) on January 2021 to $3.80 today? And it can’t just be the war in Ukraine, it was significantly up before February 2022.


25 posted on 11/22/2022 6:34:21 AM PST by SeekAndFind
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To: SeekAndFind
If this is so, can you explain to us the sharp increase in the price of gas from $2.75 ( in my area ) on January 2021 to $3.80 today?

Almost he entire world came back online after the pandemic, greatly increasing demand in a time when a lot of production had gone offline. Greater demand, higher prices.

Our crude output today is about 1 million barrels/day from it's all time peak. Adding a million barrels to the global production numbers isn't going to appreciably affect the price for crude.

Oil prices have dropped substantially this year, not because production has increased but because demand, and more importantly projected future demand, have dropped. Economists are projecting a global economic slowdown so oil prices drop.

That's also why US production has been slow to bounce back. It takes a huge amount of capital to crank up production and the payback is over years. Investors got burned the last time and aren't in any hurry to put money into a market where projected prices are dropping.

Regardless, it's simply a fact that our production is up since January 2021.

26 posted on 11/22/2022 6:54:18 AM PST by semimojo
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