Quick Update on Domestic Oil

I've been saying for about a year that MAGA's "Drill, baby, drill!" makes no economic sense. The premise that lower oil prices would result from domestic drilling, when many other countries have a lower cost structure than the US is nonsense.

"The total rig count in the US fell by 6 to 578 rigs, according to Baker Hughes, down 25 from this same time last year."

"The latest EIA data showed that weekly U.S. crude oil production fell, from 13.465 million bpd to 13.367 million bpd. The figure is 264,000 bpd down from the all-time high reached during the week of December 6, 2024."

"WTI is trading up on the day, but still below what the Dallas Fed Survey says is the breakeven for Permian players, with drilling activity in the basin falling by 2 again this week to 285—a figure that is 29 fewer than this same time last year."

Let's see what happens as OPEC+ starts flooding the market with their new production numbers. Could I have been right about everything, all the time, everywhere, again? We shall see!

US Oil Drillers Slow Activity As Prices Hurt, Even in Permian | OilPrice.com

Er mah gerd, short term statistics.  Yer right Al the time

"Drill, baby, drill" is stupid, baby, stupid, because the oil companies have no intention of flooding the market with cheap crude. It's as stupid a slogan as "energy independence."

When we finally shove MAGA out of government once and for all, we'll regard crude oil for the obsolete energy source that it already is. God knows, for the last century, consumers have been bled dry and we've forfeited our national honor, all to serve Big Oil. That's going to stop.

  Look,moron, much of the oil that will be produced will be for export - the oil companies will increase oil production because they will make more money - you really are obtuse...

Not if it costs more to produce than they can sell it for, this is what this sentence means. 

"WTI is trading up on the day, but still below what the Dallas Fed Survey says is the breakeven for Permian players, "

The Permian Basin is located in Texas and New Mexico. WTI is West Texas Intermediate, it's a type of crude oil used as a benchmark in oil pricing.

It's really basic, basic economics, I mean really, really basic. A 4th grader could understand, but I know why you're unable to grasp the simple idea of it.

In the previous administration some people on this board who will remain anonymous explained how "less domestic drilling" was a direct reflection of poor leadrship in the White House.      Companies dont determine their own production - the siting US president does.    Otherwise they would all drill themselves to full capacity even if it meant lowering prices do an unprofitable level.

I, of course, pointed out how ridiculous that argument was.    And I'm sure now that we have a new administration whom they voted for - they probably agree.  Especially since the companies are now drilling less.

Its always fun wathching them do their little "um...er....I...uh....."   routine when they have to confront their own past statements.

Liberals complain when energy prices go up and complain when they go down.  President Trump promised lower energy prices and we are getting it.

By opening the permitting process this insures that there will be a steady supply of oil/gas when the present wells run dry.

Lower oil prices means less money for Iran and Russia to continue their wars.

It takes years to bring a permit to full production.  Liberals think all one has to do is put a stick in the ground and oil flows out direct to the gas stations and homes.

Stupid Tom ran a lemonade stand when he was in high school (best seven years of his life!), and he decided to make a killing by mixing up fifty gallons of the stuff. He was all ready to make a huge profit, but after he'd sold a glass to everyone in the neighborhood, he still had forty-six gallons left.

He still doesn't understand what went wrong.

 Stupid Kevin spent 7+ years (at his parent's expense) going to college and did not learn a thing except how to distort the truth ....