Worst Thing Biden has Done?

[GMDino]

(07-20-2022, 10:33 AM)Stewy Wrote: Wow - these statements on the US Energy industry are so full of propaganda, ignorance and bias, it is amazing you can even write them without Sarcasm emoji's.  Read the entire thread entitled "Oil" if you want to know the truth.  It sounds like you've been getting your information from "The Onion".

That the US Oil companies can control global prices is one of the largest piece of bull you can spread.  You realize, that of the worldwide majors, only two of them are US companies, right?  And if the oil companies could control prices then the crash of 2014 would never have happened and the recovery wouldn't have taken 7 friggin years.

There was a lack of investment, because prices CRASHED.  Energy is a worldwide for profit business.  When oil crashed, investment was slashed. Especially exploration to find new O&G.  With a worldwide historical success rate of only 32% one has to drill three wells to find a success, and that doesn't means economic success, the 32% is the historical number just to find oil.  A majority of oil finds are not economic.  You could imagine since drilling wells offshore can cost 50-200 mUSD, having to drill three to find one can be very capital intensive.  Also as time goes on, oil is more and more difficult to find with the industry having to look in more complex areas (geologically or surface conditions)  So oil is not cheap nor easy to find.  It can cost billions of dollars and a decade of time to bring a project online.  Also, sometimes oil is found in a play, where  the technology doesn't exist to produce it.  That technology has to be created, innovated, engineered, which makes producing it economically even more of a question.  Best example:  I am an expert on the geology of an emerging play in the USGOM, called the Wilcox.  It has been produced in structures in the Southern USGOM since the early 2000's.  However, in the 2008-2012 timeframe oil was discovered in the Wilcox further "inboard" toward the coast line, in much deeper, much higher pressure reservoirs.  The pressures are so high and so deep, that wellheads that can handle the 20,000 psi seafloor pressures did not exist at the time, thus bringing into question whether they could be produced at all.  It took an industry consortia, hand in hand with the US DOI, over a decade to engineer, test and get approval for a safe wellhead to produce these fields.  The wellheads got approval to be used in the just the last year or two.  The first field, Anchor in Green Canyon 807, is just now coming online (operated by Chevron).  While this is a single example, it is the situation that the industry is in today and shows what it takes to find new O&G in new places.

On leasing - propaganda.  It is an absolute lie that "leases have not been taken away".  The Nov. 2020 USGOM lease sale results have been canceled by a lawsuit associated with a flawed 5 year plan.  The DOI allowed the sale, but who do you think encouraged the lawsuit that canceled the sale afterward?  Why the Biden Admin. of course.  And don't think Biden isn't against the US oil industry.  He campaigned on the fact that he would "tear down" the US energy industry.  Feel free to do a little research of your own.  He said those very words, multiple times in pre-election campaign speeches and as he promised he has done nothing but hinder the US energy industry.  Several of his initial executive actions were directly related to stopping leasing and drilling.  Of course he didn't have the authority to do that and got sued, and lost.  But his DOI, on his orders, is doing everything they can to delay future leasing.  It will come back of course.  It is Federal Law that the Govt is responsible for the responsible management and exploitation of the countries resources for the benefit of the people, which even a President's executive actions cannot get around legally.

Ahhhhh....propaganda born of ignorance of how oil companies operate.  While the fact is true that there are thousands of permits unused, it has nothing to do with oil price AND it is not a recent occurrence as it is standard operating procedure.  In other words, it is how the system works.  There are ALWAYS thousands of permits unused.  It is not a recent occurrence and has been that way for decades.   Let me explain, if you care to listen to truth.  Permitting wells takes time even with a Republican DOI.  Companies do them in batches even on single leases.  Why you might ask?  Onshore or seafloor environmental conditions demand optionality.  Even though companies are required to study the seafloor or land surface and place theoretical wells to avoid environmental concerns.  Looking under the earth is not like taking an MRI of a human.  We have resolution problems and surprises happen.  So we go to spud (start) a well, and we get a surprise and have to move the well head (happens all the time)......regulations limit how far you can move the well before you have to use a different permitted drilling location.  If the company has to move more than 500 feet (offshore), then they can't use the permit/exploration plan (EP) of the original well, so they have to file a new one or use a different one already filed.  And at 1.0-1.5 mUSD per day (offshore), letting rigs sit waiting on a permit that take 3-6 months to get approved, just isn't an option.  Thus it is standard practice to permit 4-8 wellbores in a batch at the same time on a lease for safety, environmental and optionality concerns, with the knowledge from the company and the DOI that most of them will never be used for the reasons I stated above.  Thus to point at the number of unused permits as a sign that the O&G companies are manipulating things, shows a complete lack of knowledge of how the system works OR is political posturing.  In this case it is political posturing, because while I fully believe that Biden doesn't have a clue how oil prices actually and the energy actually industry works, his DOI certainly does or at least the lifelong employees of the BLM and BOEM understand it.  Only the leaders of the DOI change with each administration, the people who the day to day work are lifelong federal employees.


No wells have been shut in by Biden - truth.  Wells get shut in when it is no longer economic to continue to let them flow.  Thousands of wells got shut in during the pandemic due to economics and demand destruction during the pandemic.  Do you expect Energy companies to operate at a loss?  If so, then you're in the wrong country.  This was not a US issue, it was a global issue.  HC's are a global commodity, which has pricing based upon supply and demand like any other commodity.  No one entity controls it and if anyone tells you it does, they're either lying, ignorant, both or politically motivated.  Again how oil prices work is in the thread entitled "oil".

I basically proved everything you said in your first paragraph was absolutely wrong in the thread entitled "oil", which you obviously didn't read.  I provide links, data and discussions on how oil prices work.  You claiming people won't look it up because it won't fit their narrative is the epitome of irony considering everything you posted is 100% wrong or manipulated political narrative.  lol

Always appreciate your insight.

Also though, DJT made a deal with OPEC to cut production to help with prices for us and Russia.  I believe that deal just ended around the same time oil prices/gas prices started their month long downward slide.