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.
RE: 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.
That was true Long before Biden became President. I was already traveling on October 2020 and Italy and France ( where I traveled to ) were not shut down and everything looked normal then.
Now, WHAT IF the Keystone Pipeline was not stopped, drilling in the ANWR was not banned, and permits for additional drilling were not made more stringent, would the price of crude not be EVEN CHEAPER than they are now, and more supply would be available ? Or are you saying that it does not matter if Biden’s policies are in place, it has absolutely no effect on the price of oil and gas?
RE: prices have dropped substantially this year, not because production has increased but because demand, and more importantly projected future demand, have dropped
1. I am not seeing prices drop substantially this year. In fact, in my tri-state area, I’m seeing PRICE INCREASES even as I write this.
2. You said demand has dropped. How can that be when winter is here? Shouldn’t we expect demand to INCREASE instead?
RE: it’s simply a fact that our production is up since January 2021.
Yes it is, but how many barrels compared to the months before the Pandemic? If prices are to drop to a relatively affordable level, production should at least be at the November 2019 level.