Is the cost of anything not going up?

[Malcolm McLeod]

... propaganda because they believe they are being deceived by an evil movement to destroy America. ...

Is Big Oil evil? Run by the Devil himself? All 1.5M-ish US O&G workers are mindless automatons, not to mention the shareholders? Deluded by the clearly sustainable business model of destroying the planet and killing all of their customers? Or maybe they all just bought in?

Perhaps that propaganda boulevard is a 2-way street.
****************
ETA - Almost forgot this:

They simply let high demand and low supply create a spike in prices.

My company punched as many new holes in the ground as the BLM in NM would permit.
****************
ETA2 - Since you edited as well:

...So, US oil companies let the high prices ride for a while, THEN they slowly started to increase production until the US became the world's largest producer of petroleum.

I'm on the pointy end of this particular stick, and I'm afraid you would be wrong on this point. There has been nothing slow about the last 4 years. An oil well cannot be simply stopped and re-started at will. Once shut-in, many will never recover; they are plugged and abandoned. Others are P&A'd due to contractual issues (produce-it-or-lose-it, basically, and Uncle Sugar is the landowner). Some will require artificial lift - and all of the supporting infrastructure - to restore flow. And then consider that a given well's yield is ever-diminishing; you have to drill another one in another spot - and provide the infrastructure to collect its production ....if policy makers will issue the permit. BLM's back log of permit applications in Delaware Basin was 55,000 last time I heard. Policy, I guess.

Come spend a day in the desert with me; happy to shed some light.

[Pat Germain]

Is Big Oil evil? Run by the Devil himself? All 1.5M-ish US O&G workers are mindless automatons, not to mention the shareholders? Deluded by the clearly sustainable business model of destroying the planet and killing all of their customers? Or maybe they all just bought in?

Perhaps that propaganda boulevard is a 2-way street.
****************
ETA - Almost forgot this:

My company punched as many new holes in the ground as the BLM in NM would permit.
****************
ETA2 - Since you edited as well:

I'm on the pointy end of this particular stick, and I'm afraid you would be wrong on this point. There has been nothing slow about the last 4 years. An oil well cannot be simply stopped and re-started at will. Once shut-in, many will never recover; they are plugged and abandoned. Others are P&A'd due to contractual issues (produce-it-or-lose-it, basically, and Uncle Sugar is the landowner). Some will require artificial lift - and all of the supporting infrastructure - to restore flow. And then consider that a given well's yield is ever-diminishing; you have to drill another one in another spot - and provide the infrastructure to collect its production ....if policy makers will issue the permit. BLM's back log of permit applications in Delaware Basin was 55,000 last time I heard. Policy, I guess.

Come spend a day in the desert with me; happy to shed some light.

I'm really not sure what you're getting at. I used to live in Oklahoma and I knew a lot of oil field workers. No, I don't think they are evil. And I don't think oil company executives are evil, but as I said, they do tend to be villains. I don't pretend to have an intimate knowledge of oil well operations on teh ground, but I stand by everything I wrote. OPEC and US oil companies can and do decide how much oil they are going to produce. When I say "US Oil Companies", I'm talking about the big dogs and not the small companies.

[Malcolm McLeod]

I'm really not sure what you're getting at. ... When I say "US Oil Companies", I'm talking about the big dogs and not the small companies.

I work for a big dog. I know your 'villains' personally. Good people. Smart people. Damn smart. We are all proud to meet the world's energy needs. All 7B of 'em. Or is it 8B now? ...Is that 9B I see on the horizon?

Getting at: There was no 'slow walk'. Ever. We shut-in when there was no place left to stack the oil. It was crystal clear to management that the recovery was going to be a proverbial house-fire, so we spent >$1B in TX/NM in 1 year to recover; only the BLM, the time required to drill and move a rig, and exhaustion slowed us down.

Happy even to point out the small dogs who will do nearly anything to be big dogs. Including refusal to collude on production cuts.

Trust me, there are enough US small dogs to ensure the big dogs don't monopolize the market. OPEC has tried several times to drive these pups out of business: OPEC ups production which puts independents in a cash bind (high production costs>>low revenue>>no reserves>>bankrupt). Their only success in recent memory is BOPCO (~12-13yrs ago?). Most independents have gotten wise to the strategy.

Offer stands. Come see me. I'll drive you around and point at the facts; no need for internet links to biased interpretations and someone's propaganda. I'll even show you the drill rigs that 'policy' says aren't there. I'd really like for you to get it.

[Pat Germain]

I work for a big dog. I know your 'villains' personally. Good people. Smart people. Damn smart. We are all proud to meet the world's energy needs. All 7B of 'em. Or is it 8B now? ...Is that 9B I see on the horizon?

Getting at: There was no 'slow walk'. Ever. We shut-in when there was no place left to stack the oil. It was crystal clear to management that the recovery was going to be a proverbial house-fire, so we spent >$1B in TX/NM in 1 year to recover; only the BLM, the time required to drill and move a rig, and exhaustion slowed us down.

Happy even to point out the small dogs who will do nearly anything to be big dogs. Including refusal to collude on production cuts.

Trust me, there are enough US small dogs to ensure the big dogs don't monopolize the market. OPEC has tried several times to drive these pups out of business: OPEC ups production which puts independents in a cash bind (high production costs>>low revenue>>no reserves>>bankrupt). Their only success in recent memory is BOPCO (~12-13yrs ago?). Most independents have gotten wise to the strategy.

Offer stands. Come see me. I'll drive you around and point at the facts; no need for internet links to biased interpretations and someone's propaganda. I'll even show you the drill rigs that 'policy' says aren't there. I'd really like for you to get it.

Thank you for the offer, but I don't think the logistics will work out.

I'm not disagreeing with anything you posted above. But again, I stand by my statement: Big oil companies are villains for spending tens of millions of dollars over the past few decades to deliberately mislead people with exaggeration, misinformation and outright lies. I don't think this contradicts anything you have written. And, oh yeah, if you're in any room with oil company people, they are the smartest people in the room. I completely agree.

[Malcolm McLeod]

Thank you for the offer, but I don't think the logistics will work out.

Surprise, surprise. I tried.

I'm not disagreeing with anything you posted above.

...and yet this is where you started. So, I'll take this as a tiny win for reality.

... villains for spending tens of millions of dollars over the past few decades to deliberately mislead people with exaggeration, misinformation and outright lies.

I left this one alone until now to keep from laughing.

Good thing no one has done this to Big Oil. You know.... like there is no fracking exaggeration, no 300mpg technology suppression misinformation, no outright lies and fraud on groundwater contamination, no internet forum myths. And no one in PA has ever drilled a hole in a crude pipeline then reported the evil 'spill' to the EPA, all while they were on security cameras. ...Right?? Right. ROFLMAO

EVs? Gotta keep O&G prices up, but down just enough to discourage switch to EVs?
Imagine that! Competition! Really good thing this has never happened before. Right?
Except the same dilemma has existed since the Model T. Even the villains know it is in no ones best interest to keep prices high: prior to EVs, if gasoline prices got too high, people simply quit driving. Rode bikes. Soda sales plunged. Huge drag on the economy. Big Oil went broke. Then who would make gear oil for wind turbines, skins for solar cells, straws, fertilizer, Crocs, performance fabrics for The North Face, or elastic for my lacy delicates? Terrible horrible very bad no good. Best we not go there. Teehee.

Yep. A sundown industry. Enjoy. Out.

[Pat Germain]

Surprise, surprise. I tried.


...and yet this is where you started. So, I'll take this as a tiny win for reality.


I left this one alone until now to keep from laughing.

Good thing no one has done this to Big Oil. You know.... like there is no fracking exaggeration, no 300mpg technology suppression misinformation, no outright lies and fraud on groundwater contamination, no internet forum myths. And no one in PA has ever drilled a hole in a crude pipeline then reported the evil 'spill' to the EPA, all while they were on security cameras. ...Right?? Right. ROFLMAO

EVs? Gotta keep O&G prices up, but down just enough to discourage switch to EVs?
Imagine that! Competition! Really good thing this has never happened before. Right?
Except the same dilemma has existed since the Model T. Even the villains know it is in no ones best interest to keep prices high: prior to EVs, if gasoline prices got too high, people simply quit driving. Rode bikes. Soda sales plunged. Huge drag on the economy. Big Oil went broke. Then who would make gear oil for wind turbines, skins for solar cells, straws, fertilizer, Crocs, performance fabrics for The North Face, or elastic for my lacy delicates? Terrible horrible very bad no good. Best we not go there. Teehee.

Yep. A sundown industry. Enjoy. Out.

To be clear, I know the planet depends heavily on petroleum; energy, plastics, synthetic rubber, lubricants and so on. That's why petroleum prices are a big part of inflation. And again we agree that oil prices can't stay too high or it has a negative affect on profits.

Sure, oil companies have been unfairly accused of things they didn't do. But they definitely, most absolutely, without question spend money on misinformation campaigns. This is not my opinion. Laughing at something doesn't make it false. Ironically, it was oil company scientists who first figured out burning fossil fuels is affecting the climate.

[Malcolm McLeod]

... This doesn't make them villains, ...

.. is a villain. ...

mmmm "Methinks the gentleman dost lack consistency of thought. And perhapseth a grandiosity of shame for a lifetime of fossil fuelethed boiler building?" -Shakespeare??? ...Nah. Probably not.

...
Sure, oil companies have been unfairly accused of things they didn't do. But they definitely, most absolutely, without question spend money on misinformation campaigns. This is not my opinion. Laughing at something doesn't make it false. Ironically, it was oil company scientists who first figured out burning fossil fuels is affecting the climate.

Pardon, your hypocrisy is showing.

If you don't like fossil fuels, simply don't use them or their derivatives. This includes the keyboard you are typing on. It will help moderate inflation as well.

[Pat Germain]

mmmm "Methinks the gentleman dost lack consistency of thought. And perhapseth a grandiosity of shame for a lifetime of fossil fuelethed boiler building?" -Shakespeare??? ...Nah. Probably not.

Pardon, your hypocrisy is showing.

If you don't like fossil fuels, simply don't use them or their derivatives. This includes the keyboard you are typing on. It will help moderate inflation as well.

This is funny because I actually really like fossil fuels. I own a classic car with a 351 Cleveland and a 750 double-pumper on top. It burns premium. Now, some might say it's hypocritical to talk about climate change while driving a muscle car. But my classic car spends the vast majority of its time parked in the garage. It's a simple fact that burning fossil fuels is negatively affecting the climate and influencing economic inflation. How I feel about it is irrelevant. Moving to renewable energy is a good thing and as electric vehicles become more practical and inexpensive, I will eventually buy one.

I welcome your insight as a petroleum professional, but you keep arguing points which have nothing to do with what I'm saying. Sure, increasing capacity is complicated and difficult, but oil companies can still control how much they produce. You would know first hand that everything oil companies do daily is difficult and complicated.

[Malcolm McLeod]

I knew better than to include my last paragraph. Que sera.
I'll make it simpler and try again...

...
Sure, oil companies have been unfairly accused of things they didn't do. But they definitely, most absolutely, without question spend money on misinformation campaigns.

Your hypocrisy is showing. ^Here.^ 2 Sentences. Plain as day.

... but oil companies can still control how much they produce. ...

Certainly they can. And they can certainly go bankrupt.

And you just as certainly fail to grasp - or accept, since this about my 3rd repetition of this - is that what one company can cut, another can increase - and gladly will - to meet current market demands. Big vs small doesn't even play into it, and collusion is illegal anyway.

You clearly resent oil companies' behavior. Don't patronize them.

[Nicholas Lawrence]

I welcome your insight as a petroleum professional, but you keep arguing points which have nothing to do with what I'm saying. Sure, increasing capacity is complicated and difficult, but oil companies can still control how much they produce. You would know first hand that everything oil companies do daily is difficult and complicated.

The US produced more oil last year than any country ever.

https://www.eia.gov/todayinenergy/detail.php?id=61545

The groups trying to reduce production and increase prices are not oil companies.

[Pat Germain]

The US produced more oil last year than any country ever.

https://www.eia.gov/todayinenergy/detail.php?id=61545

The groups trying to reduce production and increase prices are not oil companies.

I made that exact point about production in an earlier post.

I never said oil companies are trying to reduce production. Rather, I'm saying they simply took their time increasing production as post-lock-down demand increased which increased prices and thus generated record profits.

I also posted multiple times that oil companies know they can keep prices high only so long because it creates incentive for renewable energy.

[Doug Garson]

mmmm "Methinks the gentleman dost lack consistency of thought. And perhapseth a grandiosity of shame for a lifetime of fossil fuelethed boiler building?" -Shakespeare??? ...Nah. Probably not.



Pardon, your hypocrisy is showing.

If you don't like fossil fuels, simply don't use them or their derivatives. This includes the keyboard you are typing on. It will help moderate inflation as well.

No, my statements weren't hypocritical, your taking single words out of context distorts what was said. I said "Demand for gasoline is still increasing but not forever and a lot of production facilities were cut back during the pandemic and I believe companies are hesitant to make large investments to increase production knowing they may not get a return on their investment as demand falls off in the not to distant future. This doesn't make them villains, they have a responsibility to their investors to maximize profits not responsibility to the public to keep prices down."
and later I said "Agreed, anyone who downplays the severity of global climate change to protect their own future profits is a villain."

I don't call that hypocrisy, I'll let you define what your editing of my posts is. Based on our past discussions on this, I thought you were better than that.

[Malcolm McLeod]

No, my statements weren't hypocritical, ...

This was not directed at you.

[Doug Garson]

This was not directed at you.

OK I see that now but what about saying there was a lack of consistency of thought in my two uses of the word villain?