When you call the King of KSA a murderer........

[PawsFan_]

OPEC+ to cut oil production by 2 million barrels per day to shore up prices, defying U.S. pressure

Oil prices have fallen to roughly $80 a barrel from more than $120 in early June amid growing fears about the prospect of a global economic recession.

www.cnbc.com

Don't think he won't forget.

Fill your tank now. It's about to get bad again. Oh, and that 75 point interest raise is sure going to help our 401K's out.

Remember when you vote, it's about the economy stupid. We have 81 million idiots to thank for this.

 

[97ClemsonMac]

Lol and now WH announced they are releasing 10 million barrels from the reserve, I get it, especially given its an election year, but still terrible for our national defense

 

[WapPride]

oil is sub $100/barrel currently. not surprising opec is pushing back bc they prefer it over $100/barrel. domestic producers and refiners won't pick up the slack since it doesn't make economic sense for them to do it.

we need to be cozying up to VZ. our refineries are specifically designed to process the heavy crude they extract, they're much closer than SA so trans costs should be diminished, and they have a host of other rare earth minerals available that are typically only found in Africa and China. it's a shame all of our economic sanctions the last however many years have absolutely crippled their oil production and export abilities

 

[97ClemsonMac]

oil is sub $100/barrel currently. not surprising opec is pushing back bc they prefer it over $100/barrel. domestic producers and refiners won't pick up the slack since it doesn't make economic sense for them to do it.

we need to be cozying up to VZ. our refineries are specifically designed to process the heavy crude they extract, they're much closer than SA so trans costs should be diminished, and they have a host of other rare earth minerals available that are typically only found in Africa and China. it's a shame all of our economic sanctions the last however many years have absolutely crippled their oil production and export abilities

Isn't it crazy that these countries actually want to make a profit now so they raise the price? Guess they figured out that they can treat oil like a business lol

I'm no expert on this but VZ seems smarter, even though I loathe their dictator. But in the end, get oil from VZ or Russia, both options suck (i.e. Maduro vs Putin), may as well do what's closer and probably cheaper

 

[WapPride]

Isn't it crazy that these countries actually want to make a profit now so they raise the price? Guess they figured out that they can treat oil like a business lol

I'm no expert on this but VZ seems smarter, even though I loathe their dictator. But in the end, get oil from VZ or Russia, both options suck (i.e. Maduro vs Putin), may as well do what's closer and probably cheaper

SA turns a profit when it's like $30/b thanks to the dreadfully cheap labor they use. US refineries currently make about ~$20/b profit and the price is about $86/b right now, which is about a 30% margin.

 

[jakefest]

Tell me you need votes without telling me you need votes.......

 

[jakefest]

SA turns a profit when it's like $30/b thanks to the dreadfully cheap labor they use. US refineries currently make about ~$20/b profit and the price is about $86/b right now, which is about a 30% margin.

This is the largest cut at the highest price per /b in history. Only reasoning I can think of is they want Joe/America to buy it back at a much higher rate to replenish the reserve.

 

[WapPride]

This is the largest cut at the highest price per /b in history. Only reasoning I can think of is they want Joe/America to buy it back at a much higher rate to replenish the reserve.

i wouldn't rule that out. i also think that this is an attempt to hurt the outrageously strong USD right now which is pounding the global economy. USD's been on a crazy bull run relative to other global currencies thanks to a number of things, mainly i think due to the Fed rapidly raising interest rates more quickly than anyone else globally. that's not to say that the European energy crisis, China loan crisis, Japan being in the toilet, Turkey inflation crisis, Ukraine war, and the Brazil Election aren't all having an effect

 

[nytigerfan]

oil is sub $100/barrel currently. not surprising opec is pushing back bc they prefer it over $100/barrel. domestic producers and refiners won't pick up the slack since it doesn't make economic sense for them to do it.

we need to be cozying up to VZ. our refineries are specifically designed to process the heavy crude they extract, they're much closer than SA so trans costs should be diminished, and they have a host of other rare earth minerals available that are typically only found in Africa and China. it's a shame all of our economic sanctions the last however many years have absolutely crippled their oil production and export abilities

You always seem to know this subject, and there is so much misinformation out there. Help me out with a little true and false if you would. Are these statements true?


We have increased our oil production in the last year by 1MM barrels per day.

We will increase by another 1MM per day in the next year, putting us at 13MM total per day.

We require 15MM per day to be truly energy independent (which we have never been before).

Even if we produced that many barrels per day, we would only be able to refine 70% of it.

 

[WapPride]

You always seem to know this subject, and there is so much misinformation out there. Help me out with a little true and false if you would. Are these statements true?


We have increased our oil production in the last year by 1MM barrels per day.

We will increase by another 1MM per day in the next year, putting us at 13MM total per day.

We require 15MM per day to be truly energy independent (which we have never been before).

Even if we produced that many barrels per day, we would only be able to refine 70% of it.

From Jan '21 to Oct '21 we've increased by about 800k bpd. there was a major dip in Feb where we dropped to around 10m bpd, but for the most part all of '21 we averaged around 11.1-11.3mbpd production.

I doubt we'll increase by another 1m bpd in 2023, unfortunately our refineries are already at 95% capacity (the limit), and in addition to labor and service shortages, it takes about 6 months for a new top performance drilling rig to get set up. on top of these things a lack of capital and pressure from investors to boost returns are dampening output as well.

energy independence is tricky, especially in the US since our refineries aren't designed to process the kind of crude that we can extract in country. that's not to say that you can't use heavy crude refineries to use light crude to produce diesel/gas - it's just not efficient and drives margin down and costs up. if we had all light crude refineries we'd be kings of the gas/diesel world, but the US petrochemical industry would be hurt dramatically.

i didn't really answer question 3 because it really depends on what you mean by "energy independent." if you mean we don't import any crude oil, then no you'd likely need more than 15 mbpd to cover both petro chemical and gas/diesel needs. if you mean that we export more than we import, then we're already there. we attained that in 2019 and it hasn't changed since then. you could even argue that in 2021 we had our highest level of energy independence since the '40s when we didn't import anything.

i'm not sure of the exact % we'd be able to refine, but yes we don't have the ability to fully refine the US' needs for both the fuel and petrochemical industries. correction, we have the ability but they'd operate at margins unacceptable to the O&G industry.

 

[nytigerfan]

From Jan '21 to Oct '21 we've increased by about 800k bpd. there was a major dip in Feb where we dropped to around 10m bpd, but for the most part all of '21 we averaged around 11.1-11.3mbpd production.

I doubt we'll increase by another 1m bpd in 2023, unfortunately our refineries are already at 95% capacity (the limit), and in addition to labor and service shortages, it takes about 6 months for a new top performance drilling rig to get set up. on top of these things a lack of capital and pressure from investors to boost returns are dampening output as well.

energy independence is tricky, especially in the US since our refineries aren't designed to process the kind of crude that we can extract in country. that's not to say that you can't use heavy crude refineries to use light crude to produce diesel/gas - it's just not efficient and drives margin down and costs up. if we had all light crude refineries we'd be kings of the gas/diesel world, but the US petrochemical industry would be hurt dramatically.

i didn't really answer question 3 because it really depends on what you mean by "energy independent." if you mean we don't import any crude oil, then no you'd likely need more than 15 mbpd to cover both petro chemical and gas/diesel needs. if you mean that we export more than we import, then we're already there. we attained that in 2019 and it hasn't changed since then. you could even argue that in 2021 we had our highest level of energy independence since the '40s when we didn't import anything.

i'm not sure of the exact % we'd be able to refine, but yes we don't have the ability to fully refine the US' needs for both the fuel and petrochemical industries. correction, we have the ability but they'd operate at margins unacceptable to the O&G industry.

Thanks for the response. I really feel like Oil / Gas and the border are political footballs that get tossed back and forth but people are very misinformed about them. So much misinformation, including the OP here.

Do you think we should build more refineries? If so, who does that responsibility fall to? Biden? Congress? Private sector?

 

[WapPride]

Thanks for the response. I really feel like Oil / Gas and the border are political footballs that get tossed back and forth but people are very misinformed about them. So much misinformation, including the OP here.

Do you think we should build more refineries? If so, who does that responsibility fall to? Biden? Congress? Private sector?

Yeah we should imo. I think Biden should offer incentives for light crude refineries to be built, but that’s a tough swallow in today’s environment bc a large swath of the population thinks we should get away from gas/diesel. I was honestly surprised trump didn’t do something similar while in office as it’s a great step in making the US more energy independent.

a big problem is private lenders being hesitant to pull the trigger on financing companies looking to build more refineries. There’s no shortage of available wells and leases for more extraction, just a lack of availability at the refineries to increase production. There’s expected to be a global increase of about 2.5-3m bpd in 2023, and we need to figure out a way to make up for that need or we’re going to keep seeing rising prices.
It’s why I want us to do more with VZ as they’re producing a fraction of what they can due to sanctions and funding issues. We should be doing more to build up that relationship as they not only have the world’s largest oil reserves, but also some of the largest rare earth mineral reserves (2nd largest lithium reserves.)

 

[PawsFan_]

Isn't it crazy that these countries actually want to make a profit now so they raise the price? Guess they figured out that they can treat oil like a business lol

I'm no expert on this but VZ seems smarter, even though I loathe their dictator. But in the end, get oil from VZ or Russia, both options suck (i.e. Maduro vs Putin), may as well do what's closer and probably cheaper

Or here's an idea. How about get oil from our own soil? Or have it transported south from Canada in a pipeline which ensures a steady flow from an ally.

Crazy idea I know.

 

[PawsFan_]

From Jan '21 to Oct '21 we've increased by about 800k bpd. there was a major dip in Feb where we dropped to around 10m bpd, but for the most part all of '21 we averaged around 11.1-11.3mbpd production.

I doubt we'll increase by another 1m bpd in 2023, unfortunately our refineries are already at 95% capacity (the limit), and in addition to labor and service shortages, it takes about 6 months for a new top performance drilling rig to get set up. on top of these things a lack of capital and pressure from investors to boost returns are dampening output as well.

energy independence is tricky, especially in the US since our refineries aren't designed to process the kind of crude that we can extract in country. that's not to say that you can't use heavy crude refineries to use light crude to produce diesel/gas - it's just not efficient and drives margin down and costs up. if we had all light crude refineries we'd be kings of the gas/diesel world, but the US petrochemical industry would be hurt dramatically.

i didn't really answer question 3 because it really depends on what you mean by "energy independent." if you mean we don't import any crude oil, then no you'd likely need more than 15 mbpd to cover both petro chemical and gas/diesel needs. if you mean that we export more than we import, then we're already there. we attained that in 2019 and it hasn't changed since then. you could even argue that in 2021 we had our highest level of energy independence since the '40s when we didn't import anything.

i'm not sure of the exact % we'd be able to refine, but yes we don't have the ability to fully refine the US' needs for both the fuel and petrochemical industries. correction, we have the ability but they'd operate at margins unacceptable to the O&G industry.

If only US investment in the oil industry didn't flow to some other fantasy gimmick pushed by environmental fear mongers..

 

[DW4_2016]

Or here's an idea. How about get oil from our own soil? Or have it transported south from Canada in a pipeline which ensures a steady flow from an ally.

Crazy idea I know.

Almost like you guys will bite on the hook with no bait. How many times does it have to be explained to you morons, the Canadian pipeline will have 0 oil for your car. Ever.

 

[anon_5e8aassgcbjz1]

Yeah we should imo. I think Biden should offer incentives for light crude refineries to be built, but that’s a tough swallow in today’s environment bc a large swath of the population thinks we should get away from gas/diesel. I was honestly surprised trump didn’t do something similar while in office as it’s a great step in making the US more energy independent.

a big problem is private lenders being hesitant to pull the trigger on financing companies looking to build more refineries. There’s no shortage of available wells and leases for more extraction, just a lack of availability at the refineries to increase production. There’s expected to be a global increase of about 2.5-3m bpd in 2023, and we need to figure out a way to make up for that need or we’re going to keep seeing rising prices.
It’s why I want us to do more with VZ as they’re producing a fraction of what they can due to sanctions and funding issues. We should be doing more to build up that relationship as they not only have the world’s largest oil reserves, but also some of the largest rare earth mineral reserves (2nd largest lithium reserves.)

Why would Trump do anything when he can do nothing and bloviate about everyone else hurting the country?

 

[WapPride]

got a chuckle out of this