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- cross-posted to:
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We can drill as much as we want but it won’t make a difference. We’re already drilling more than we can refine. If we want to produce more usable oil, and we shouldn’t, we will need more refineries. Those will take years to get up and running.
This is another big nothing burger to appease his mindless base who know nothing about how the world works. Same as how tariffs are going to reduce grocery prices lol
They know that perfectly well. This is simply about creating more profits for the fossil fuel industry by delaying the inevitable switch to renewable energy.
The only emergency is that they want to make hay in the context of an extraction economy (see: Venezuela in the past) and siphon off all of that wealth for themselves. And they realize this may be one of the last chances to do that in North America.
It doesn’t matter. When it fails he will blame Democrats, immigrants, and trans people, and then double down on whatever he is doing.
Concerns about a looming glut have weighed on the price of oil, which has been hovering around $70 a barrel in the United States. U.S. companies generally need prices above $60 a barrel to profitably drill new wells, according to the Federal Reserve Bank of Dallas.
Oil producers aren’t going to overproduce to the point that the price of a barrel of oil goes so low they can’t profitably drill new wells. Oil producers would be incentivized to increase production if demand increased significantly, but that’s not going to result in lower prices at the pump, or lower consumers prices down the supply chain.
You wanna see prices come down? You need a significant decline in demand, but that would lead to a recession.
Exactly this. No one is going to borrow $500 million to drill a bunch of new wells in order to drive down the selling price of the thing they need to sell in order to repay the loan.
I know that expanding oil production doesn’t do anything, because it takes so long to ramp up extracting the oil from the ground, and then more time to refine it. By the time it’s in a form that’s ready to sell, it’s been years.
On the other hand, tariffs on Canadian products will work have a quick effect on oil and the US economy. Except in the wrong direction.
It’s a land grab in the form of a subsidy to oil and gas in the form of “inflation reduction”
It won’t fix shit, but it’ll certainly scratch the backs of all
the people that bribed himof his wealthiest supporters.Biden produced more oil than Trump and it didn’t do shit for inflation.
Because most of “inflation” was corporate greed.
Throw some CEOs in the pokey for price gouging, and that shit would have been fixed right quick.
But they are the protected class. Can’t do that
