Oil

[Stewy]

(03-03-2022, 06:45 PM)Sociopathicsteelerfan Wrote: An excellent response to my obviously tongue in cheek post.  I always love having a subject matter expert on hand.  I can tell you first hand that many people will claim to know a lot about a profession and how it operates and then demonstrate absolutely zero knowledge of how it actually works.  My main point, and please tell me if I'm wrong, is that Biden's obvious hostility to the industry, and limiting their ability to operate, will drive speculators to raise the price of oil through their investment patterns, hence the higher prices we are seeing now.  Or at least that's a significant factor.

Bidens only been in office a year.  He has been no friend to the industry, but what he's doing will affect prices far further into the future.  He's not hampering production, but delaying finding new opportunities.

All oil fields come on strong producing a lot of their oil in the first 2-10 years (depending on geology and setting and a bunch of other stuff) and then severely declines.  The decline gets replaced by the next oil field find.  When the industry can't find new fields, production goes down in the future, not right now.  Different geology has different decline curves.  Figuring out what a fields decline curve will look like keeps petroleum engineers in business.  And if this persists, there is absolutely NOTHING that can be done in the short term to fix the problem.

https://www.eia.gov/analysis/drilling/curve_analysis/