Like it or not, "green" energy has had an effect on gas and oil consumption. And while the rush to electric vehicles is waning, those cars are still on the road. Add to that warmer than normal winters, (sensationalist news stories not withstanding), heating energy consumption is also down. And while solar and wind energy isn't a 'round the clock provider source, increased innovations in battery storage technology has also expanded grid capacity.
Add that all up, and you get a marginal reduction in oil dependance.
Also note the increase in use, (and supply), of natural gas and plans for more nuclear energy and the future prices of oil aren't exactly rosy.

Yes, and agree. Typically, when we have Dem. president oil goes up in price and of course at the pump. On the flip side less regulation and all bureaucracy is less with a rep. pres.








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Only a few guys here understand much about the oil and gas business.

Up front disclaimer - yes we have a financial stake in petroleum. We lease mineral rights in relatively small amounts for wells that are in production. In order to do so, required 10 years of work, investment, monetary expense, and legal work.

Today crude oil is $70 per barrel.
It should not sell for less. $75 is about right, and $80 is better.

Energy prices should not be lower than they are presently.
Why? Because energy is that valuable.
People should stop whining about the true cost of necessary energy.

Exploration, development, production, transportation and delivery, administrative and office overhead all cost big.
Supply and demand also come into play in the price equation.
As price decreases, production is reduced. Nobody is willing to sell anything at a loss. Or work for free, unless intentionally volunteering.

There is a creative way to lower domestic petroleum prices. Add a 50% or more surcharge to the price that we charge on international sales. Let foreigners who are begging for our energy subsidize domestic use.

Although we are the worlds single largest producer of oil, OPEC has a pretty strong finger on the pulse of the market.

My guess is these oil companies got too fat during covid. Too many people working from home providing little and keeping employees that are underperforming and they would have normally let go yet didn't because it was impossible for a time to find replacements.

JP Morgan has begun job cuts, a local industry here, Polaris, has reduced by 20 percent. Meta, Amazon, Apple, Google account for 20k plus reductions.

Those number could prove small when trump gets done.

Seems like finding g employees will be easier, job market will tighten up. Typically a lot of unemployment slows the economy I guess thats one way to move the metrics and get lowered interest rates.
Im interested in seeing how it will play out and the effects on gdp

the USA already out produces any other country by 6 million barrels a day and still buys 60% of its oil from Canada which is number 3 in the world so how is ramping up production even going to come close to demand without driving the price through the roof first

Trump would love to see lower rates, the administration before him would have as well.

What would that do to inflation?

Would it lower the strength of the dollar?

What would happen to the price of oil if the DXY market dropped below say 95?

IMHO I think oil is in a pretty range right now. 2.50 to 3.00 gas is tolerable to me and I drive a lot.

Too high isn't good and too low isn't either.

I worry as much about availability as price.

Yeah, I never knew why the conservative talking heads on TV kept harping on "high price gasoline". Sorry, we're not going back to 1972, far more people in the world now in quest of petrol products.

Now, sink a few tankers in the Straits of Hormuz and have a sustained war with Iran and I suspect that Exxon and Chevron will be ramping up production

Not quite correct. Easy to confuse the numbers that are out there.

The US does not buy 60% of its oil from Canada.

But the US DOES buy 60% ...of the oil we import........from Canada.......or about 4 million barrels per day...........which is about 20% of ALL oil refined in the US.


Demand and supply are already in rough balance. That is why increasing production will just lower the price worldwide.

Hey White...how much is the all mighty egg ..per dozen ..in your neck of the woods ?

Laying off DEI division. !! LOL

Couldn't say right off. I may have to make a run to the store tomorrow. I'll check. Might need a co-signer.

When Musk bought Twitter, he laid off at least 80% of the employees. Some articles say 90% but I'm doubtful of that.

Either way, it goes to show how much dead weight companies have! Twitter is still going strong with a fraction of the employees.

They laid off those who weren't needed. it takes less workers to process oil from the pipe lines that are opening back up. They pump right to the plants. The plants down by the ship yards are shut down. Not shipping it in for now. So I was told. (Second or third hand info).

The last 10 years the private sector has learned to do more with less labor. IMO you can thank Whopper floppers asking for $18.00 per hour. That kind of thinking entered other service sectors etc….

Now we are truly seeing the results of robotics and AI stepping into the workforce. It is all about costs and profit

Oil and gas industries are no different. But they learned and paid dearly the last time Trump said drill baby drill. Barrel of oil went negative. I don’t think we will see that again. We will see oil rise especially if China gets in the game.

Just my 2 cents

I'm just throwing darts here but how many employees were kept around because of payroll protection hand outs?

Steve. Probably many. IMO. But bottom line is profit. That is all that matters in the private sector. A company wants to retain employees until it can’t. Then things go south

I agree stinky.

Most don't realize it but there was still a ton of money floating around in programs like PPP.

I'm just spit balling it could be another reason why they are trimming the fat.

On another note it's always good to reassess and trim even in times of record profits. Maybe more so during good times.

X2

"The NYT story said that oil and gas executives were in zero rush to drill just because the President had asked them to. A recent story in the Wall Street Journal said the same thing, citing unnamed industry sources. Essentially, everyone is quoting the energy industry as saying it will not drill more. Axios also recently cited estimates by the Energy Information Administration that expected production across most regions to decline over the next two years, with only the Permian seeing significant growth and coming to account for over half of the U.S. total.

This puts Trump in a bind because he aims for more than one thing with his calls for lower oil prices. First, of course, there is retail fuel prices, overall inflation, and eventually, interest rates. Trump understandably wants all of these to fall. Yet his other stated goal is to boost global crude oil supply and tank prices as a way of pressuring Russia to sit at the negotiations table about Ukraine.

Over the past decade, Russia has demonstrated that it is perfectly capable of surviving whatever oil prices international trade dynamics throw its way, but Trump has insisted that lower oil prices will force it to negotiate peace with Zelensky. His special envoy to Russia and Ukraine has an exact price in mind: $45 per barrel. Unfortunately, that price—while certain to cause Russia economic pain—will also cause pain to U.S. shale drillers—and a greater one.

As the Wall Street Journal recalls, the last time prices sank to $45 per barrel, a short oil war ensued between Russia and Saudi Arabia, from which both survived, But this was not the case for many U.S. shale producers. Shale, while making huge strides towards drilling efficiency and cost cuts over the last couple of decades, remains highly sensitive to global prices because its production costs are still generally higher than those for conventional production—and now natural depletion is kicking in as well.

This is one more reason U.S. oil and gas producers are in no rush to do the President’s bidding. There may still be hundreds of millions of untapped crude in the shale patch, but drillers are going to tap it in a measured way rather than the initial burst of activity that saw so many go under when debt burdens became unsustainable. This led to that strict financial discipline everyone’s been praising for years now, and that has become the new normal in shale."


Source: Oil Price.com

Nobody wants 2014 again.