Are gas prices up because of Biden (Page 2): Says you---...

Coos Bay Tom Loc: coos bay oregon

bylm1-Bernie wrote:

This lame excuse certainly isn't the truth!

Says you---

bylm1-Bernie

Coos Bay Tom wrote:

Says you---

It's pretty basic econ, Tom. Cut supply; prices increase. If you think Biden's policies didn't cut supply, you're dreaming. This has been the plan of the left all along - He stated it; Obama stated it with regard to coal and fossil fuels, and they haven't been the least bit reserved in stating that intention. Now they are trying to blame it on someone else. Incredible!

nwtk2007 Loc: Texas

bylm1-Bernie wrote:

It's pretty basic econ, Tom. Cut supply; prices increase. If you think Biden's policies didn't cut supply, you're dreaming. This has been the plan of the left all along - He stated it; Obama stated it with regard to coal and fossil fuels, and they haven't been the least bit reserved in stating that intention. Now they are trying to blame it on someone else. Incredible!

guzzimaestro

bylm1-Bernie wrote:

I guess it's too obvious and clear to be accepted by the left.

It's sad what this country has become

chuckybrass

I'm firmly convinced that all Democrats are Egyptian by heredity. The are always in da nile........

Blade_Runner Loc: DARK SIDE OF THE MOON

Airforceone wrote:

Sorry you Trump Putin lovers there up because the oil companies like to screw the right wing dingers because they know you will blame Biden.
It always amazes me how stupid the Trump Putin supporters are.
So let’s get Trump back in offices they already gave them a 19% tax cut and more oil subsidies as the oil companies continue to screw this country.

How President Biden’s Executive Orders Impact The Oil Industry

In late 2019, as various candidates jockeyed to win the Democratic nomination for president, Elizabeth Warren made the statement that she would “ban fracking everywhere.” It was just the kind of hollow campaign promise that I loathe, and I explained why that was an unrealistic promise.

Then Joe Biden came along and pandered to the same crowd Warren was trying to impress. He promised “no new fracking”, but once again I explained why that promise wouldn’t be fulfilled.

Now that President Biden has issued a pair of executive orders that are viewed as hostile toward the oil and gas industry, many people have asked me whether Biden has in fact banned fracking.

On his second day in office, President Biden signed Executive Order on Protecting Public Health and the Environment and Restoring Science to Tackle the Climate Crisis. The biggest takeaway from the Executive Order was the cancellation of the Keystone XL pipeline permit. The project had been rejected by President Obama in late 2015, fast-tracked by President Trump in 2017, and now once more rejected by President Biden in 2021.

But there is no mention of fracking in this executive order.

Last week the administration also issued Secretarial Order No. 3395, which implemented a 60-day suspension of new oil and gas leasing and drilling permits for federal land and water.

This week President Biden followed that action up with Executive Order on Tackling the Climate Crisis at Home and Abroad. The biggest takeaway from this order was an indefinite “pause on new oil and natural gas leases on public lands” until a comprehensive review on the climate change impacts can be completed.

The sound bite for many from this executive order was that President Biden had banned fracking as a consequence of this action. But as with the previous order, fracking isn’t mentioned in this executive order. Further, if an operator has an existing lease and permit but haven’t drilled yet, they can still drill the well and frack it.

The order does potentially impact some future fracking operations, but Biden did reiterate before he signed it "Let me be clear, and I know this always comes up, we're not going to ban fracking."

But what Biden can’t do by executive order is an overall ban on fracking, because most fracking takes place on private land. A complete ban would have to be passed by Congress, and that looks like a longshot.

For a more in-depth interpretation of Biden’s recent executive orders, I spoke with Stacey Morris, who is Director of Research for midstream index and data provider Alerian. She explained that the orders were certainly not as bad as they seemed:

“These executive orders were pretty well-telegraphed. They were even a little bit softened from what was said during the campaign. The language on the Biden website discussed banning permitting on federal land. The executive order is a pause on new leases. They aren't looking at a full out fracking ban.”

When I asked how companies might be affected, she explained “Companies have been stockpiling permits in anticipation of a move like this. Right now there are 7,700 unused permits. For example, Devon Energy DVN -1.6% has over four years of permit backlog and drilling inventory. They expect to be able to execute on their federal lands program based on comments made in November.”

She added that some states that could be most impacted longer term are New Mexico, Wyoming, North Dakota, and Colorado. In the long run, she said that a ban on drilling on federal land could lead to more imports. In that case we could end up using oil that is produced with more associated carbon emissions than if it had been produced in the U.S.

I remarked that President Biden seemed to be going further left than President Obama on these issues, and she said that is probably because climate change is widely viewed as a more pressing problem now. Hence, Biden feels compelled to pursue more aggressive actions.

She said that the bottom line is the bark was worse than the bite: “The headline looks scary, but we don’t see any immediate impact from these executive orders.”

For those who are worried about your gasoline prices going up, this is definitely not the reason.

Why Biden energy policies have contributed to surging oil prices

Thomas Barrabi and Ariel Zilber

If President Joe Biden came out forcefully on the side of increasing US oil production, the price of a barrel could fall quickly, experts told The Post — even if it takes a while to bring that new energy online.

Just look at what happened Wednesday in the wake of the United Arab Emirates and Iraq saying they’d up production by an estimated 800,000 barrels a day: The global price of oil dropped by $22 a barrel within minutes.

If Biden signaled full-throated support for US drillers to get to work — and perhaps allowed the re-starting of the Keystone XL Pipeline from Canada — global oil prices could similarly fall sharply, the industry experts told The Post.

“Biden could go to the oil and gas industry and say, ‘OK, I’ve said we’re going to get off oil and gas and that you guys are yesterday’s industry, but I’m going to drop that,'” surmised Myron Ebell, the director of the Competitive Enterprise Institute’s Center for Energy and Environment. “Part of the run up in oil prices is the psychology of it,” he said.

Biden could say to the industry: “‘I need your help,'” Ebell said. But so far, it’s been crickets, according to oil executives who’ve been willing to speak out.

Just last week, CEO Rick Muncrief of Devon Energy — a large driller worth around $40 billion — told Bloomberg that he’d be happy to talk to US officials about upping production. But there’s been no call. “I’m a little mystified that there hasn’t been some dialog,” he said. “It’s not been that long ago that we were asked to drill less, not more,” he said. “They need to be talking about what is it they would really like U.S. producers to do.”

That’s the kind of inaction that’s keeping prices high — up more than 40% since Russia invaded Ukraine and the war has worsened — and up nearly 90% over the past year when looking at the global Brent crude benchmark, which has risen as high as $123 a barrel in recent days when compared to its level of around $63 a year ago.

Biden is facing renewed criticism over his restrictive energy policies – with experts noting the administration’s frosty relationship with US producers has added to the problem.

“There’s an invisible hand in the oil market – If there’s a perception that, ‘Hey, if this guy is going to free up this pipeline, he might start freeing up some leases and stuff,’” then that could help push prices down, said Phil Flynn, senior market analyst at Price Futures Group.

“It would have an immediate psychological impact on price,” Flynn said – noting a Keystone reboot announcement that would bring oil from the tar sands of Canada could knock off up to $10 from the price of oil just at the stroke of a pen, even if the pipeline were years away from production.

The president, meanwhile, blamed Vladimir Putin this week as national average gas prices hit a record $4.25 in response to the US import ban.

But US firms have less incentive to produce more oil while facing heavy regulations – meaning they’re more likely to leave the oil in the ground and drill in the future when prices are higher, says Benjamin Zycher of the American Enterprise Institute. He contends under the “Green New Deal” regulatory environment, the atmosphere in Washington is decidedly anti-oil.

“If you really believe they’re going to be imposing regulatory and other constraints on the development of fossil fuel resources and investment in fossil fuel infrastructure, then higher prices are the result down the road — and therefore are the result now,” Zycher told The Post.
see also
Main: President Joe Biden announces actions to continue to hold Russia accountable for its war on Ukraine in the Roosevelt Room of the White House, in Washington, DC. Inset: Gasoline prices are displayed on a pump at a gas station in Manhattan in New York City.
Biden says he ‘can’t do much’ about rising gas prices, blames Russia

The administration is reportedly in diplomatic talks with longtime foes Venezuela and Iran as it looks for alternative sources to stave off the financial crunch facing US motorists — but outreach to US firms has been limited.

Republicans and other Biden critics say his actions and proposals since taking office – such as canceling the Keystone pipeline, suspension of new federal oil and gas leases, higher drilling fees on federal land and a Democratic-led push for the Federal Reserve to implement climate change policies – have sent a clear signal to US producers.

Tom Kloza, the global head of energy analysis for OPIS, noted the Biden administration has developed an “adversarial relationship” with US producers who now face calls to increase their output.

“You’ve got diplomacy on Ukraine. You’ve got diplomacy with Iran. Now you’ve got diplomacy with Venezuela,” Kloza said. “You know, it might be advisable to have some diplomacy with oil and gas companies.”

The Biden administration may not be able to do much in the short term to affect gas prices, but it could be doing more to ease the long-term pressure on the energy markets.

Jay Hatfield, the chief investment officer of ICAP, said the president would do well to reach out to the CEOs of domestic oil producers and to personally urge them to boost output – though the benefit would be “marginal” and take months to show up for consumers.

The Biden administration recently put further restrictions on pipeline construction after the Federal Energy Regulatory Commission announced new guidelines requiring that any new projects meet climate change thresholds. The FERC ruling is part of a pattern in which the administration is making it harder for energy companies to operate more freely, according to Hatfield.

And the administration erred when it canceled the Keystone pipeline, which “effectively canceled all pipelines,” according to Hatfield. “If you cancel a major pipeline project that, that’s a hugely negative signal to the market,” he said.

The Biden administration has pushed back on criticism of its approach. In one heated recent exchange, White House Press Secretary Jen Psaki dismissed the idea that the administration could do more to boost in oil production – arguing companies had plenty of money to fund drilling and were leaving existing leases unused.

Some experts say the energy crisis goes beyond Biden’s policies. Oil prices have experienced wild fluctuations during the COVID-19 pandemic, with demand plunging during its worst days and now skyrocketing as the latest Omicron surge recedes – leaving producers unable to keep pace.

Oil prices turned negative as recently as 2020 – so companies risk spending more money on production only to see their prospective profits disappear by the time it came to market.

“It doesn’t come out overnight. Even the quickest assets, like shale assets, take six months to yield their first barrel,” said Energy Word founder Dan Dicker. “Now I’ve got to be assured that when that stuff comes to market, I’m still going to make a profit on it. Oil has this terrible ability to go up and down real fast.”

Coos Bay Tom Loc: coos bay oregon

bylm1-Bernie wrote:

It's pretty basic econ, Tom. Cut supply; prices increase. If you think Biden's policies didn't cut supply, you're dreaming. This has been the plan of the left all along - He stated it; Obama stated it with regard to coal and fossil fuels, and they haven't been the least bit reserved in stating that intention. Now they are trying to blame it on someone else. Incredible!

The Us produced 10.3 barrels a day in 2020 and today it is 10.6 barrels a day. Opec cut production in respnce to the pandemic with people driving less. It always comes down to who ever is president when the blame game starts. Well I'm tird of kicking this worn out ball around. I'm going on to a more upbeat subject-- Peace to you my fine patriotic fellow American

Milosia2 Loc: Cleveland Ohio

Liberty Tree wrote:

Spin all you want. The American people know who is to blame.

The American people don’t care who is responsible , they only want it stopped.
There’s seems to only one culprit.
Greed.
When you control the market, you can dictate your own prices. All this on top of
Knowing you’ll never lose a penny.
Un Regulated Capitalism.
Is nothing more than Theft !

Milosia2 Loc: Cleveland Ohio

guzzimaestro wrote:

It's sad what this country has become

Reaganomics !
VooDoo Economics.
It’s time to stop this Reagan nonsense today.
We need to begin manufacturing our own things.

cbpat1

Oh contraire my friend. The president has quite a bit to do with this situation. It’s not quite as simple as oil is a global market, blah blah, the Biden mantra. Oil prices are now and always have been a supply and demand issue. If you don’t have enough to go around you can set your price, it’s a sellers market. If there is more oil on the market than there is demand, the price goes way down, it’s a buyer’s market. The same rule applies to real estate or just about anything of value. What Biden did when he took office was he on his very first day signed executive orders cutting the Keystone Pipeline, but also federal lands for drilling and banned fracking. This essentially cut the amount of oil that we are producing, thus cutting supply, creating a demand side problem and higher prices. So, yes Biden did have a hand in higher gas prices, in fact his executive orders created the shortfall. Now Biden wants to blame everyone and everything for the high prices and refuses to admit he’s the real problem.

guzzimaestro

cbpat1 wrote:

Oh contraire my friend. The president has quite a... (show quote)

Finally someone who passed economics 101

Gatsby

cbpat1 wrote:

Oh contraire my friend. The president has quite a... (show quote)

Supply and demand has nothing to do with current prices, there are no gas shortages, no gas lines, no purchase

limits! The price spike is the result of rampant speculation. If the price of oil drops too quickly, many of the

biggest speculators will lose their asses, and Biden doesn't want that to happen. Buy a horse.

bylm1-Bernie

Coos Bay Tom wrote:

The Us produced 10.3 barrels a day in 2020 and tod... (show quote)

Peace to you as well, Tom. I hope you find a good subject. I don't think you're through here. I hope not.

Milosia2 Loc: Cleveland Ohio

guzzimaestro wrote:

Finally someone who passed economics 101

I was not as impressed. What was laid out is , of course , how things should work.
We passed that bridge a long time ago.
Supply and Demand went out the window years ago, along with the so called Free Market , once they took control of the entire market. Now they make money on oil regardless of what the market does.
A win win .
You pay . It’s now only a matter of how much.

Milosia2 Loc: Cleveland Ohio

Gatsby wrote:

Supply and demand has nothing to do with current prices, there are no gas shortages, no gas lines, no purchase

limits! The price spike is the result of rampant speculation. If the price of oil drops too quickly, many of the

biggest speculators will lose their asses, and Biden doesn't want that to happen. Buy a horse.

I don’t think anyone has lost their shizzle on oil. If the price goes up they make money.
If the price goes down they don’t unload it and it floats around until the price goes back up. So, lower oil prices inadvertently cause shortages . We have tankers that only haul oil port to port until the price is right.