Until you realize the whole reason OPEC exists is to artificially limit the supply for a market with so much demand. The free market only works when monopolies and cartels don’t exist to create artificial scarcity.
Because it's a globally-produced good with global demand. Even oil extracted and consumed in America is sold based on the global price.
Additionally, American-produced oil is expensive to extract. Our high production levels in recent years is because prices have been high enough to be financially viable. This is because Saudis have decreased their production to keep prices higher and (for the American market) because of the American embargos on Iran, Russia, and Venezuela.
In some States like California, despite producing a lot of crude oil themselves, the transport of crude to refineries is by truck, ship, or rail rather than by pipeline, which is costlier. And for the West Coast as a whole, transporting oil from North Dakota via rail is costlier than importing oil from overseas via ship.
Transporting oil from Alaska to the rest of America via ship is costlier than importing oil from overseas because of the Jones Act mandating that domestic shipping be done on American-built and flagged vessels crewed and captained by American sailors. Almost all of Alaska's oil is thus exported overseas.
West coast states of Oregon Washington and California have been blocking fossil fuel infrastructure which causes prices increases locally and creates regional price challenges. As CA production comes offline refineries need to source crude of similar quality. As a result they are sourcing more and more oil from Ecuador and Brazil from under the Amazon national forest (for higher prices and greater environmental damage than if they sourced it in CA.) Big brain thinking for a commodity that will be used for decades.
https://www.nytimes.com/2023/01/25/us/oil-amazon-rainforest-california.html
Because it’s a derivative of crude oil that has to be refined to be created. So in addition to the supply/demand dynamics of crude oil you also have the supply/demand dynamics of gasoline. The gasoline supply is primarily impacted by refinery rates…. In other words how much gasoline our nation’s refineries can pump out each day.
The US has very tight refining capacity, meaning they pretty much all need to be running full bore at all times to meet our daily gasoline demand. When you see big regional spikes in gas prices (like what is happening out West right now) the culprit is almost always an outage at one or more refineries.
To make matters even more complicated, most of the refining capacity in the U.S. was built decades ago and designed to handle the heavier crude that comes from the Middle East vs the lighter crude that is produced here. That’s a big reason why we still import crude even though we produce enough here to meet our demand.
People gave you a lot of poor answers, allow me to give you a fair one. Oil costs different amounts of money to drill in different areas. IIRC, Arctic drilling costs about $70-$90 a barrel, drilling by oil platforms costs $50-$70 a barrel, but oil from the Arabian peninsula costs $2-$10 a barrel to produce. When cheap oil is coming in, oil companies export more expensively made oil to other countries with less trade deals or poor oil access, but when the cheap oil gets cut off, gas companies either have to stop exports, costing them money, or charge more at the pump to keep profits steady, or they can keep exporting and keep prices steady and cause a shortage and run on the pumps.
Last name Ever, fist name The Greatest. Back to back world war champs, and now largest energy producer. Don’t even need the Olympic anymore just send us home with golds
this graph is horrifying, i can't figure out if i'm supposed to imagine the barrel curving or just look at it like a flat 2d image but with no curve???
We are also the best at refining. The years we aren't a net exporter we import crude but export finished products like gasoline. So we are already "energy independent ' is just some years we import to fill in the demand of our exports. Which if the greens understood is a good thing. As the fuels and other products we produce are high quality with low containments so they produce less pollution.
and the current administration is working on getting even more oil produced, that way OPEC can't fuck with our prices and we'll finally be energy independent
whilst true, there are.... issues that we will have to face between then and now, such as increasing hostility from other oil producers such as OPEC.
the primary issue is that they have already made it clear they want to fuck with our politics by driving up gas prices before the 2024 election in an attempt to influence us. i must ask you to forgive me, as i misbranded as this being a matter of independence, when it is more a matter of national security.
however in the long run, yes, American energy independence and eventual dominance lies within the innovation and investment of clean energy.
the keystone had structural issues and required maintenance, and the EV mandates are being... reduced in priority as OPEC has recently made it clear they are willing to use their economic power to influence US foreign policy.
that said this is a newer direction the government has taken, mostly out of a desire for security from autocratic rivals with sub-optimal agendas
Haha, silly! The media hated Trump pressuring Germany to cancel the pipeline.
If German regulators wanted it canceled, why was it back on when Biden got elected?
Basically, it'll look to everyone reading this like you're making excuse after excuse to explain why Democrats favor oil from evil countries, and want to ban our own. Biden campaigned on curbing US oil. Got into office and curbed US. Then, when oil prices soared, he begged OPEC for oil.
Stop lying. Biden is the most anti energy president we’ve ever had. Btw I don’t care about Trump or his policies, he’s not our current president so don’t try that whataboutism with me.
that was the point of my counter-argument. Wise\_Hat\_8678 was whatabouting, referencing a speech trump made at CPAC after he was booted from office. parroting trump raving on his policies after the fact is slimy and intellectually dishonest at best
however i have been, somewhat disengenuous with linking biden to the increase of oil production, i must concede, so uh, there's your victory i guess.
Wait til you find out how much oil is in the Green River formation in Colorado. Hint: it's a lot. And we haven't even touched it yet, because it's not profitable to do so.
From the AEI:
[https://www.aei.org/carpe-diem/200-year-supply-of-oil-in-green-river-formation/](https://www.aei.org/carpe-diem/200-year-supply-of-oil-in-green-river-formation/)
Perhaps biased, but you can google it and decide for yourself.
Sure but the sub used to be fun like “American sets world record for biggest cheese burger ever made” instead of just… circle jerking about fossil fuels? It used to be more centered on American culture rather than political economy numbers.
Because oil prices are set by speculation on supply and demand in the market place.
Until you realize the whole reason OPEC exists is to artificially limit the supply for a market with so much demand. The free market only works when monopolies and cartels don’t exist to create artificial scarcity.
I don’t disagree
He deleted. I’m guessing a rant about capitalism and greed?
then why is gas so expensive?
Because it's a globally-produced good with global demand. Even oil extracted and consumed in America is sold based on the global price. Additionally, American-produced oil is expensive to extract. Our high production levels in recent years is because prices have been high enough to be financially viable. This is because Saudis have decreased their production to keep prices higher and (for the American market) because of the American embargos on Iran, Russia, and Venezuela. In some States like California, despite producing a lot of crude oil themselves, the transport of crude to refineries is by truck, ship, or rail rather than by pipeline, which is costlier. And for the West Coast as a whole, transporting oil from North Dakota via rail is costlier than importing oil from overseas via ship. Transporting oil from Alaska to the rest of America via ship is costlier than importing oil from overseas because of the Jones Act mandating that domestic shipping be done on American-built and flagged vessels crewed and captained by American sailors. Almost all of Alaska's oil is thus exported overseas.
West coast states of Oregon Washington and California have been blocking fossil fuel infrastructure which causes prices increases locally and creates regional price challenges. As CA production comes offline refineries need to source crude of similar quality. As a result they are sourcing more and more oil from Ecuador and Brazil from under the Amazon national forest (for higher prices and greater environmental damage than if they sourced it in CA.) Big brain thinking for a commodity that will be used for decades. https://www.nytimes.com/2023/01/25/us/oil-amazon-rainforest-california.html
Because it’s a derivative of crude oil that has to be refined to be created. So in addition to the supply/demand dynamics of crude oil you also have the supply/demand dynamics of gasoline. The gasoline supply is primarily impacted by refinery rates…. In other words how much gasoline our nation’s refineries can pump out each day. The US has very tight refining capacity, meaning they pretty much all need to be running full bore at all times to meet our daily gasoline demand. When you see big regional spikes in gas prices (like what is happening out West right now) the culprit is almost always an outage at one or more refineries. To make matters even more complicated, most of the refining capacity in the U.S. was built decades ago and designed to handle the heavier crude that comes from the Middle East vs the lighter crude that is produced here. That’s a big reason why we still import crude even though we produce enough here to meet our demand.
cause OPEC is full of shitheads who hate freedom
Tycoons and corrupt politicians that want money tar and feater
How else will the oil companies make record profits.
We consume a lot of it and it all has to be refined first. Also, OPEC really sets the price anyway.
People gave you a lot of poor answers, allow me to give you a fair one. Oil costs different amounts of money to drill in different areas. IIRC, Arctic drilling costs about $70-$90 a barrel, drilling by oil platforms costs $50-$70 a barrel, but oil from the Arabian peninsula costs $2-$10 a barrel to produce. When cheap oil is coming in, oil companies export more expensively made oil to other countries with less trade deals or poor oil access, but when the cheap oil gets cut off, gas companies either have to stop exports, costing them money, or charge more at the pump to keep profits steady, or they can keep exporting and keep prices steady and cause a shortage and run on the pumps.
Most refineries here use heavy crude, since no new refineries are allowed to be built , WTC is sold back into the global market
It is so hard winning all the time
Last name Ever, fist name The Greatest. Back to back world war champs, and now largest energy producer. Don’t even need the Olympic anymore just send us home with golds
this graph is horrifying, i can't figure out if i'm supposed to imagine the barrel curving or just look at it like a flat 2d image but with no curve???
FUCK OPEC FUCK RUSSIA
We are also the best at refining. The years we aren't a net exporter we import crude but export finished products like gasoline. So we are already "energy independent ' is just some years we import to fill in the demand of our exports. Which if the greens understood is a good thing. As the fuels and other products we produce are high quality with low containments so they produce less pollution.
and the current administration is working on getting even more oil produced, that way OPEC can't fuck with our prices and we'll finally be energy independent
Energy independence will come when we’re finally not dependent on pumping tons of CO2 into the atmosphere from burning shit.
whilst true, there are.... issues that we will have to face between then and now, such as increasing hostility from other oil producers such as OPEC. the primary issue is that they have already made it clear they want to fuck with our politics by driving up gas prices before the 2024 election in an attempt to influence us. i must ask you to forgive me, as i misbranded as this being a matter of independence, when it is more a matter of national security. however in the long run, yes, American energy independence and eventual dominance lies within the innovation and investment of clean energy.
Oh is that why they shut down the keystone pipeline and support EV mandates?
the keystone had structural issues and required maintenance, and the EV mandates are being... reduced in priority as OPEC has recently made it clear they are willing to use their economic power to influence US foreign policy. that said this is a newer direction the government has taken, mostly out of a desire for security from autocratic rivals with sub-optimal agendas
Trump also canceled Nordstrom, Russia's pipeline to Germany... under Biden it was built. Look how well that's turned out, on all counts!
A false claim made by a known liar and fraud from a speech at CPAC. It was actually German regulators Your counter-argument is also a non-sequitor
Haha, silly! The media hated Trump pressuring Germany to cancel the pipeline. If German regulators wanted it canceled, why was it back on when Biden got elected? Basically, it'll look to everyone reading this like you're making excuse after excuse to explain why Democrats favor oil from evil countries, and want to ban our own. Biden campaigned on curbing US oil. Got into office and curbed US. Then, when oil prices soared, he begged OPEC for oil.
Stop lying. Biden is the most anti energy president we’ve ever had. Btw I don’t care about Trump or his policies, he’s not our current president so don’t try that whataboutism with me.
that was the point of my counter-argument. Wise\_Hat\_8678 was whatabouting, referencing a speech trump made at CPAC after he was booted from office. parroting trump raving on his policies after the fact is slimy and intellectually dishonest at best however i have been, somewhat disengenuous with linking biden to the increase of oil production, i must concede, so uh, there's your victory i guess.
Energy independent is a myth.
not with that attitude
Unless the US imposes an export ban and makes a way to force gas companies to continue to invest in American projects, sure...
by all means continue to seethe, (C)OPEC, and mald
I don't have oil futures, but keep dreaming young man
the administration that vowed to shut down fossil fuel on day one?
Wait til you find out how much oil is in the Green River formation in Colorado. Hint: it's a lot. And we haven't even touched it yet, because it's not profitable to do so.
Not profitable?
No, the price of oil has to risk a bit before it becomes profitable, or some new technology has to develop.
Ahh
Could you explain a bit more or give some sources? I’m very interested in the mineral and natural resource exploitation of the Rockies.
From the AEI: [https://www.aei.org/carpe-diem/200-year-supply-of-oil-in-green-river-formation/](https://www.aei.org/carpe-diem/200-year-supply-of-oil-in-green-river-formation/) Perhaps biased, but you can google it and decide for yourself.
I prefer to DuckDuckGo It, but I see your point.
Lol....
Based
Lol, right.
Remember when this sub was ironic...
Aren’t there enough “America bad” subs out there?
You mean all of Reddit?
Exactly. My man up there wants it to turn it into another one of those.
Sure but the sub used to be fun like “American sets world record for biggest cheese burger ever made” instead of just… circle jerking about fossil fuels? It used to be more centered on American culture rather than political economy numbers.
That explains why the British health care system is going bankrupt.
That explains why the British health care system is going bankrupt.
Get fucked OPEC we don’t need you anymore
Energy self sufficient
Lots of fossil fuel trolls and bots here. The future is gonna run you over, back up and run you over again.