RE: Oil Demand went up substantially in 2021
But Oil PRODUCTION is STILL down compared to what it was pre pandemic.
At this time 2 years ago, we were producing over a million more barrels than we are today.
And if as you say, demand is projected to go higher in the next few years, it is argument to encourage MORE Oil production than our previous peak, not less.
Are we encouraging and supporting such increased production? Or are we doing the opposite?
Of course, and I never said otherwise.
We were at a record pace before the pandemic but production all over the world collapsed when it hit. Because demand collapsed.
US production hasn't gotten quite back to that level but it has increased substantially, which was my sole initial point.
There are complex reasons why, and the regulatory environment is one, but the reluctance of the producers - and more importantly their investors - to plough big capital into more production has been a bigger one.
Companies are looking to reward long-suffering shareholders by nursing profits off of higher crude prices rather than asking for more money to put into speculative drilling when the projected future price isn't so high.
And if as you say, demand is projected to go higher in the next few years, it is argument to encourage MORE Oil production than our previous peak, not less.
Well, I didn't actually say that. I said demand jumped up after the pandemic but current forecasts are for it to soften as the global economy slows.
But if the oil producers think demand is going up they'll invest the money to increase production. That's the element that's been missing in the US.