Is the "energy independence" of the USA effected by oil prices?

[turbguy + 1,537]

Let's see if this train o' thought holds water.

The ONLY way we can have high oil production in the US is when oil prices are high, because our production costs are so high.

Why do you think #45 worked so hard in his last year to get foreign oil producers to cut production? Because the oil price had collapsed, due to a fall off of demand… that’s what caused the cheap gas prices that his supporters talk about, like it was some kind of genius #45's leadership that made it so. In reality, it was due to the Covid shutdowns and the resulting collapse in demand, that would go on to lead the double digit unemployment spike experienced in the wake of it.

You can’t have high US oil production without high oil prices.

You want cheap gas, you get it by being reliant on places like Saudi Arabia and Russia. You want energy independence and you don’t want to do it through electrification because you want to stick with gas (cuz: stupid reasons), then you’re going to live with high gas prices.

It costs Saudi Arabia about 10 bucks to produce a barrel of oil because they have so much easy-to-get-at oil. In the US, that cost is about 36 bucks. 3.6 times more. And that’s just an average… Some of our oil is far more expensive to get at.

You don’t get cheap oil AND energy independence while staying on oil, it’s one or the other.

 

 

[Ecocharger + 1,446]

On 10/28/2024 at 9:21 PM, turbguy said:

Let's see if this train o' thought holds water.

The ONLY way we can have high oil production in the US is when oil prices are high, because our production costs are so high.

Why do you think #45 worked so hard in his last year to get foreign oil producers to cut production? Because the oil price had collapsed, due to a fall off of demand… that’s what caused the cheap gas prices that his supporters talk about, like it was some kind of genius #45's leadership that made it so. In reality, it was due to the Covid shutdowns and the resulting collapse in demand, that would go on to lead the double digit unemployment spike experienced in the wake of it.

You can’t have high US oil production without high oil prices.

You want cheap gas, you get it by being reliant on places like Saudi Arabia and Russia. You want energy independence and you don’t want to do it through electrification because you want to stick with gas (cuz: stupid reasons), then you’re going to live with high gas prices.

It costs Saudi Arabia about 10 bucks to produce a barrel of oil because they have so much easy-to-get-at oil. In the US, that cost is about 36 bucks. 3.6 times more. And that’s just an average… Some of our oil is far more expensive to get at.

You don’t get cheap oil AND energy independence while staying on oil, it’s one or the other.

 

 

Why did oil prices rise today? 

I think that you will find that many prices will fall during a recession...I can recommend some good starter books for your economics education.

Edited Thursday at 08:03 PM by Ecocharger

[TailingsPond + 680]

32 minutes ago, Ecocharger said:

Why did oil prices rise today?

Why don't you tell us? 

Define a recession and show what market metrics you are using to say there is currently a recession? Low oil alone does not make recession. 

Employment, price of gold, GDP, stock market, what explanation do you have?

Don't get too excited about the little bump today when long-term trends show oil in decline.

[notsonice + 1,248]

2 hours ago, Ecocharger said:

Why did oil prices rise today? 

I think that you will find that many prices will fall during a recession...I can recommend some good starter books for your economics education.

Recession????????????? what are you babbling about now.....

 

sorry Luddite it did not happen in 2023 as your fellow Economists all were predicting

and 2024.....................oh my once again it did not happen and instead the US GDP is booming today........

 

and the forecasts for 2025 is more of the same unless some nutjob imposes massive tarrif/taxes on the American Consumer

 

and now the Fed is cutting interest rates.........................BOOOOOOOOOOOOM BOOOOOOOOOOOOOM BOOOOOOOOOOOOOM
 

and everyone has a job, except those with Econ degrees (well maybe you think we are in a recession as you might not have an Econ job....too many people with worthless Econ degrees that are unemployed does not mean the rest of us are in your fantasy recession)

and inflation is now at 2% 

 

 

....so much for forecasts that those with Econ degrees make ......worthless predictions from those with worthless degrees.......

 

PS the fundamentals of your Oil demand is hot and getting hotter BS never existed......Pesky EVs in China and LNG Semis in China is cratering the long term oil demand outlook and this is the cause of falling oil prices......Technology is not the Luddites or Oil lovers friend...

 

Enjoy the Green Agenda... The price of oil  is dropping because of China is all in on EVs and LNG trucks

Edited Thursday at 10:11 PM by notsonice

[turbguy + 1,537]

On 10/31/2024 at 2:01 PM, Ecocharger said:

Why did oil prices rise today? 

I think that you will find that many prices will fall during a recession...I can recommend some good starter books for your economics education.

While commodity prices may decrease during falling "economic activity" (which reduces demand for a commodity), it appears you are indicating that a recession may be either close at hand or underway.  Commodity markets for oil are predominantly "futures" to my understanding (rather than "spot").

So the price of the "futures" is dependent upon a market-maker predicting the future, so he/she can sell it at a profit.  Or go short, and hope the price declines.  Either way, these markets have the appearance of not much more than a casino, where a gambler predicts his bet will hit pay dirt,or at least break even.

Anyway, did you have a more substantial response to the proposition about the energy independence of the USA vs the price of oil?

I wonder what the price of oil would do IN the USA, if the USA were to cease all imports AND exports.  I predict (that casino again), it would skyrocket. 

You?

Edited 13 hours ago by turbguy