Biden adds one more attack on drilling for oil.

[Luvnit2]

Biden's energy policies have already caused inflation to spike (just a F.Y.I. the price of gasoline is not included in inflation numbers). The price of gasoline is up over 50% Nationally since Biden took office. His solution, add costs to drilling on public land, not a little, but from $10,000 to $150,000.

Read the article, Biden's inflation reduction act also is taking more of the profits from oil companies. Those of you crying big oil is over charging for profit, keep in mind the government is making money off big oil profits (in addition to federal income taxes).

If gas prices continue to go up, keep it top of mind, one more Biden policy to hurt the cost of a gallon of gasoline.

https://www.foxbusiness.com/economy/energy-prices-soar-biden-administration-jacks-costs-drill-public-lands

As energy prices soar, Biden administration jacks up costs to drill on public lands
The bonds companies must secure before they start drilling has now increased tenfold – from $10,000 to $150,000

The Department of the Interior announced it has revised the Bureau of Land Management’s (BLM) oil and gas leasing regulations, which will raise royalty rates for the first time in 100 years and update the federal onshore oil and gas leasing framework. Under the new rule, the minimum royalty rate the government is paid will jump from 12.5% of revenue to 16.67%.

The move also increased the amount of the bonds that companies must secure before they start drilling tenfold – from a bond minimum of $10,000 set in 1960 to $150,000.

Several of the provisions in the rule were already codified by the Inflation Reduction Act, such as raising the rent the government charges to oil companies for using its land and increasing the government’s share of the profits from that oil.

[GMDino]

I agree.  It is time to nationalize our energy industry.

Let the government control it 100% and control the pricing.  Then it will be the government an our tax money that goes to cleaning up any disasters that happened due to the drilling...BUT...the government and the taxpayers will also get all the profit too instead of it going to a private company.

Then there is no need for a bond to drill to cover those possible disasters and their clean up.

[JustWinBaby]

(04-13-2024, 02:36 PM)GMDino Wrote: Then there is no need for a bond to drill to cover those possible disasters and their clean up.

But if the price of the bonds is set to cover the clean up, how does that save the taxpayer any money?

Yes, nationalize the energy industry.  What could go wrong?

[Luvnit2]

(04-13-2024, 02:36 PM)GMDino Wrote: I agree.  It is time to nationalize our energy industry.

Let the government control it 100% and control the pricing.  Then it will be the government an our tax money that goes to cleaning up any disasters that happened due to the drilling...BUT...the government and the taxpayers will also get all the profit too instead of it going to a private company.

Then there is no need for a bond to drill to cover those possible disasters and their clean up.

Is the same government that has trillions in debt?

I am just pointing out, one more financial policy that will impact gasoline prices negatively. Oil reserves are way down, I hope we don't end up in a war as we will need those reserves. Biden's policies have already impacted gasoline prices by an increase of over 50%.

His Bidenomics has killed the lower and middle class. His plan, drive oil prices higher????

[GMDino]

(04-13-2024, 02:53 PM)JustWinBaby Wrote: But if the price of the bonds is set to cover the clean up, how does that save the taxpayer any money?

Yes, nationalize the energy industry.  What could go wrong?

(04-13-2024, 03:15 PM)Luvnit2 Wrote: Is the same government that has trillions in debt?

I am just pointing out, one more financial policy that will impact gasoline prices negatively. Oil reserves are way down, I hope we don't end up in a war as we will need those reserves. Biden's policies have already impacted gasoline prices by an increase of over 50%.

His Bidenomics has killed the lower and middle class. His plan, drive oil prices higher????

We, the tax payer are paying for it either way.  Might as well get the profits too.

I mean unless we're going to admit that the US is producing more oil and natural gas than ever and that the price of both is mostly based on speculators and not entirely on the whims of the current POTUS.

[JustWinBaby]

(04-13-2024, 04:45 PM)GMDino Wrote:  and that the price of both is mostly based on speculators and not entirely on the whims of the current POTUS.

No, it's supply & demand in almost it's purest form.  For starters, oil producers don't generally hedge in the futures market.  There's virtually no storage, which means whatever is produced that day is priced determined according to good old supply & demand. 

The futures market CAN result in demand for delivery of the commodity, but that's rare.  Generally futures contracts are settled with cash, so it's doesn't have nearly the impact on the market spot price that you've been led to believe.  Also, "speculators" need someone to trade with.  That is sometimes companies looking to hedge, such as airlines, and thus speculators are adding a valuable service to the market.  Or it is another speculator taking the OPPOSITE bet on the futures price, which is a zero sum game.

[JustWinBaby]

(04-13-2024, 04:45 PM)GMDino Wrote: We, the tax payer are paying for it either way.  Might as well get the profits too.

Well, if you want to get rid of profits in Oil, giving the keys to the government is probably a case where you're actually right.

[*pally*]

(04-13-2024, 04:45 PM)GMDino Wrote: We, the tax payer are paying for it either way.  Might as well get the profits too.

I mean unless we're going to admit that the US is producing more oil and natural gas than ever and that the price of both is mostly based on speculators and not entirely on the whims of the current POTUS.

Not only are we producing record levels of oil and gas but refineries are operating at capacity as are storage facilities so I’m not really sure what they would do with this mythical new supply.

[JustWinBaby]

(04-13-2024, 06:50 PM)pally Wrote: so I’m not really sure what they would do with this mythical new supply.

Maybe refill the strategic reserves Biden drained a couple of years ago to lower the price of gas 2 cents?  It's still only about 60% of what it was.


https://ycharts.com/indicators/us_ending_stocks_of_crude_oil_in_the_strategic_petroleum_reserve