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.
RE: But if the oil producers think demand is going up they’ll invest the money to increase production.
Regardless of Biden’s threat to limit oil production?
Biden has OPENLY stated that he wants to end our use of Fossil fuels.
See here:
https://m.youtube.com/watch?v=viAXGth3gQA
And here:
https://apnews.com/article/9dfb1e4c381043bab6fd0fa6dece3974
Now, there are several ways oil producers can interpret this:
1. Biden is simply playing to his Green base but isn’t really serious about it.
2. Biden REALLY wants to eventually end fossil fuel use.
If #1, then I can see how producers can still take the risk of investing. But if it’s going to be #2, they’re going to be risking another Keystone Pipeline debacle.
RE: There are complex reasons why, and the regulatory environment is one,
Ok, we seem to have come to some sort of agreement. The only question I have for you is this: How much of a factor does regulatory environment play in the rise in gas prices? Is it major or minor?
The Energy companies are asking Biden to do the following:
1. Reinstate canceled sales and valid leases on federal lands
2. Authorize critical energy infrastructure projects to support the production, processing and delivery of energy ( Keystone XL Anyone?)
3. Revise the National Environmental Policy Act (NEPA) process by establishing agency uniformity in reviews, limiting reviews to two years, and reducing bureaucratic burdens placed on project proponents in terms of size and scope of application submissions.
4. Tell the The Securities and Exchange Commission to reconsider its overly burdensome and ineffective climate disclosure proposal to access capital markets
5. Ensure that future federal agency rulemakings continue to allow U.S. refineries to use the existing critical process technologies to produce the fuels needed for global energy markets.
6. The Federal Energy Regulatory Commission should cease efforts to overstep its permitting authority under the Natural Gas Act and should adhere to traditional considerations of public needs as well as focus on direct impacts arising from the construction and operation of natural gas projects.
How much of the above were policies under Trump carried over to Biden?
How much of the above policies were set down by Biden after he became President?
The energy companies KNOW what it takes to meet future and present demand and have highlighted the above as obstacles. Surely, these are factors causing energy prices to spike.