Research that Simon. The XL pipeline has nothing to do with the current oil price. All the oil it would have carried is currently carried by rail and existing Keystone pipeline already in place that is not near capacity. Never mind it would not be near completion yet anyway. The new pipeline was not cancelled because of concern about green energy (tho it might get a few votes to say so), it was because it was unpopular, illegally permitted and ultimately unnecessary. It was about profits for the Candian oil company TC energy Corp vs. the legitimate concerns of US citizens.
I got robbed this morning!
by Iamallcool 36 Replies latest jw friends
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Simon
Its simple supply and demand. The supply doesn't match the demand, so prices rise.
Supply can't be provided because the pipeline doesn't exist. You can rabbit all the propaganda you want, but anyone with half a brain can see that western governments have pursued some pretty dumb policies when it comes to energy supply and they are now paying the price.
Whether that is the US trying to pretend that it won't use oil, to Europe thinking wind and solar will replace nuclear, it's all made us more dependent on the Saudis and Russia, a devastatingly dumb and short-sighted plan driven by faulty science and propaganda.
Ironically, some of it Russian propaganda that the left normally sees everywhere.
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skin
Hi Blondie...long time no hear. Welcome back.
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pistolpete
Here are some replies from the article on forbes
Here's a little simplification of reality...First, you can drill as many oil wells as you want but that won't make a difference with the price of gas or anything... Why? the number of holes in the ground has nothing to do with production. To put it in simple terms, think of it like this, you have a water spigot, imagine this as a oil well... when you open the valve water comes out just like with a oil well, when you close the valve it stops... Now, think of your neighbor as OPEC. The landlord tells you you can't use your water spigot and that you have to buy your water from your neighbor... THIS IS HOW THE AMERICAN OIL IS BEING RAN UNDER COMMIE Joe!!!
"This recent spike is not a product of President Biden" Blame/Complain/Victim...Typical Narcissist. spoken like a true democrat!
Starting on January the beginning of Biden's Presidency, the first thing he did was Halt new oil, gas, and coal leases on Federal land.
The Biden administration announced Thursday the suspension of new oil and gas leasing and drilling permits for U.S. lands and waters, effective for 60 days, as officials moved quickly to reverse Trump administration policies on energy and the environment.
Yes supply and demand determine gas prices, but a simple Econ 101 class at a University, teaches students how to determine THE DRIVERS of supply and demand.
We were energy independent on President Trump's watch.
Once Biden started his presidency, all the shit hit the fan.
Instead of going to the library and "Reading" tons of literature like jws do to get their information, (Reading WT publications) and DJW, read the bills passed by Congress to find out what is happening in America.
https://www.youtube.com/watch?v=yamgv2NYEbo
https://www.latimes.com/business/story/2021-01-21/biden-oil-coal-leases-federal-land
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Simon
It was about profits for the Candian oil company TC energy Corp vs. the legitimate concerns of US citizens.
I find it amazing how people don't understand commerce. Guess who profits from selling anything? The seller! They get the money - it's how trade works!
What do you expect happens when you order something from Amazon? You get to keep the money and get the product you wanted? Of course not, the seller profits from selling the goods and you get the product you wanted. Even Homer Simpson understood that "money can be exchanged for goods and services".
It's the same with oil and gas - the US wants it because the US needs it because the US uses it. That isn't changing anytime soon. The only question is who do you buy it from, and instead of buying ethically sourced oil from the closest ally, Biden ensured that the US instead has to buy it from dictators and has to compete with other idiots who also made themselves dependent on them. So the price goes up.
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pistolpete
Biden ensured that the US instead has to buy it from dictators and has to compete with other idiots who also made themselves dependent on them
Biden is following the ideology of the new liberal progressives like Alexander Cortez who believe that if the United States DOES NOT GO Green, the whole world will end in 12 years. That's worse than the Watchtower.
https://www.youtube.com/watch?v=oHk8nn0nw18&t
They and the people that vote for them are to stupid to realize that if the USA goes green, China, Russia, Venezuela, Africa, India and about 7 billion people WILL NOT GO GREEN.
So the USA going Green will have NO IMPACT on Climate Change. It will only make the USA citizens fall into deep poverty and make the America a pure socialist Country like Russia
It the same ideology that claims that men can have babies, that a women cannot be defined, that there are over 100 genders.
Even Strong Leftist Democrats like Bill Maher are finally waking up and leaving the Democratic party.
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Anony Mous
A Marxist is just a person that doesn’t understand economics. You don’t trade on past production, most oil trades is on futures. You pay for the expected future cost of drilling and transporting and consumption of oil.
Once you understand that, you understand why Keystone XL reduced costs under Trump. Why the Germans wanted Nordstrom2 despite the fact that it hasn’t moved a drop yet and would mean Russia invading Ukraine (this was predicted 2 years ago FYI by Trump, by Ted Cruz and a host of others).
So Biden was the direct cause of both the invasion of Ukraine and the price of gas rising besides all the other idiotic things he did (the extension of COVID, the variants since, economic depression etc)
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peacefulpete
Reality check. When a lease to drill is auctioned there is an expectation but not requirement that the winner will drill. In the real world 2/3-3/4 of these leases are purchased without intention to drill, it is done for accounting reasons (lower loan rates and attractive to investors based upon lease assets) and to basically have the ability to control the market somewhat. Many are shocked to learn just how cheap these leases go for. Somewhere around $6k an acre for the lease and an annual fee of $1.50-$3 per acre per year to just hold. The oil industry predictably denies this and, as they always have, claims government red tape is what is holding up production.
As to the temporary pause in new leases by the Biden admin. it was to give time for determining the social cost of greenhouse gas formula being resolved in court. When a Fed Judge blocked the pause claiming only Congress can modify the sale of leases the administration resumed sales of leases at a pace exceeding even Trump's. As to permits for existing leases, the Biden admin issued more than 3,500 drilling permits it's first year, 900 more than Trump's first year. Biden also put 80 million acres in the Gulf of Mexico up for auction in the largest lease sale in history.
What you are hearing from oil company lobbyists and political pundits is a mix of half truths and distortions. The simple supply and demand claim is only a small part of the puzzle.
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truth_b_known
The U.S. federal government has blocked any new oil drilling rigs from being built for over 47 years.
In January of 2020 President Biden blocked oil pipelines that would bring Canadian oil into the U.S. while oil companies continued to purchase Russian oil.
January 2020 President Biden issues an order mandating that U.S. auto manufactures' produce 50% electric vehicles by 2035.
In January 2020 President Biden issues an order shutting down all mining of rare earth elements in the U.S. which are required to manufacture the batteries for electric vehicles, thus forcing the U.S. auto industry to purchase batteries from China. In turn Chinese owned mines in Africa use child labor to mine rare earth elements and now China is working with the Taliban to mine rare earth elements in Afghanistan.
Yes, oil companies make huge profits from processing crude oil into gasoline. Yes, oil companies have huge reserves of oil. In short, profit margins for shareholders rule the day in the U.S. Our corporate overlords always pass the increased cost of production to the consumers (us).
However, I never saw a child roughneck out in the oil fields in the U.S. or Canada. If my choices are putting Russian gas in my car to the tune of $7.00 a gallon or use an electric car with a Chinese battery made with cobalt mined by African children I think I will just walk.
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pistolpete
That pic of the kids is rough to see 😭
Maybe a nuke war is inevitable.
Maybe the Human Species isn't worthy of living on this planet.
There is no other animal that is this cruel to its own species.
Even wild animal only kill for survival and not profit.
