Daily update on Biden tanking america

[TBoneTX 45,023]

5 hours ago, Crazy Cat said:

fossil fuels is Biden's "Great Satan".

The American people is (are?) Bidementia's Great Satan.

[Dashinka 24,372]

10 hours ago, Boiler said:

I was in shock following a visit to the Supermarket

 

And then saw gas was $4.40

 

Remembered to thank Joe and Kamala.

Let's Go Brandon!

[spookyturtle 9,465]

Home heating oil has crossed the $5 gallon barrier here. Up $1.30 in 9 days. At least now we can blame it on Putin.

[Mike E 11,739]

8 minutes ago, spookyturtle said:

Home heating oil has crossed the $5 gallon barrier here. Up $1.30 in 9 days. At least now we can blame it on Putin.

You go right ahead and do that.  

Edited March 9, 2022 by Mike E

[Crazy Cat 41,608]

1 hour ago, spookyturtle said:

Home heating oil has crossed the $5 gallon barrier here. Up $1.30 in 9 days. At least now we can blame it on Putin.

Yep.  That is exactly Biden's plan.....shift, deny, misdirect.........I just saw my first $4+ regular gas here in Rowlett, Texas.  Diesel is over $5........Everyone I know (except me) is topping off his/her tank because they all know the price hasn't peaked yet.

 

Thanks, Joe.  Your war on fossil fuel will be one of the things which will give Republicans the House, Senate, and White House in the very near future....beginning in a few months.

[millefleur 5,046]

50 minutes ago, Crazy Cat said:

.I just saw my first $4+ regular gas here in Rowlett, Texas.  Diesel is over $5........Everyone I know (except me) is topping off his/her tank because they all know the price hasn't peaked yet.

Wow, even in Texas??? 😵 Inflation is going to go up because everything in the US is transported by diesel, so it's only a matter of time right?

[Mike E 11,739]

4 minutes ago, millefleur said:

Wow, even in Texas??? 😵 Inflation is going to go up because everything in the US is transported by diesel, so it's only a matter of time right?

Since September 11, 2001, every President  but one has admired the problem of the cost of energy and the implications for peace and prosperity.  And here we are … another war involving  fossil fuels.  

[Crazy Cat 41,608]

48 minutes ago, millefleur said:

Wow, even in Texas??? 😵 Inflation is going to go up because everything in the US is transported by diesel, so it's only a matter of time right?

Yep. I had to look twice.... $5 for diesel is crazy.

[millefleur 5,046]

4 minutes ago, Crazy Cat said:

Yep. I had to look twice.... $5 for diesel is crazy.

How high can it go? I know Russia was only a marginal supply of our oil imports, I didn't think cutting off that source would be so bad. Anyone know what the other causes are?

[Crazy Cat 41,608]

5 minutes ago, millefleur said:

How high can it go? I know Russia was only a marginal supply of our oil imports, I didn't think cutting off that source would be so bad. Anyone know what the other causes are?

I don't know how high.  There is more to the equation than Russia....Speculation, itself, is driving oil prices, to a degree.

[laylalex 7,284]

There's a good primer in a recent Atlantic article which gives three possible reasons (but these are not exhaustive by any means -- a friend I was talking with also mentioned oil and gas companies taking record profits, gouging prices and blaming it on inflation).

Quote

 

1. The Scare Theory

This one is very simple: Investors are spooked.

What are they spooked about? A lot of things. The chance of a major war in Ukraine, for one. The possibility that Iran will not reach a new nuclear deal. But above all, they’re worried about something pretty basic: American and European oil companies have less fuel on hand than they used to.

When the pandemic struck, U.S. and European oil companies bought up huge amounts of crude oil. Since then, they’ve sold those reserves off. Instead of sitting on a few months’ worth of inventory, many companies are down to a few weeks’ worth.

That is pretty normal. But oil speculators around the world watch American and European oil inventories very closely. Although the two markets represent only about a third of the global oil stockpile, the data from the U.S. and Europe are much more reliable than data from anywhere else. So the two markets get used as a proxy for the rest of the planet—and given their falling stockpiles, investors everywhere are getting nervous.

...

2. The Structure Theory

For more than a century, the oil market has been split into two categories.

Some oil drillers produce as much oil as they can, as fast as they can. For financial or geological reasons, these smaller drillers don’t have the ability to increase or decrease their oil flow. As long as they’re turning a profit, they pump oil and then they sell it. But a few companies or countries can form a cartel and sit on so much oil that they have what’s called “spare capacity,” which is the ability to produce more oil at will at any time. By turning their oil faucet all the way on, this spare producer can flood the market with so much oil that other drillers struggle or go out of business. By turning it off, they send oil prices soaring.

In other words, in the oil business, “spare capacity” is what bestows market power on companies and gives them the ability to set prices.

...

3. The Scarcity Theory

Actually, that second theory is completely wrong, Robert McNally, the president of Rapidan Energy, an energy-research firm, told me. The OPEC Plus countries don’t care about how high the oil price is; they care about how stable it is, he said. Any story of the past two years has to account for the fact that OPEC Plus saved the global oil market. Soon after the pandemic hit (and an accompanying oil-price war ended), Russia and Saudi Arabia agreed to slash production, allowing global oil prices to reach an equilibrium.

That search for stability also explains why they are not pumping more oil right now, even though they can, McNally said. In July 2021, OPEC Plus promised to pump a combined 400,000 additional barrels a day every month. Oil demand has since risen faster as expected, and OPEC Plus is still not meeting its initial target: For the past few months, it’s achieved something closer to an extra 200,000 barrels a day, McNally said. That’s because the smaller countries in OPEC Plus, such as Kuwait and Venezuela, have tapped out their oil production. The countries with excess capacity remaining are hesitant to use it, because that excess supply is what drives their market power.

 

 

 https://www.theatlantic.com/science/archive/2022/02/why-gas-got-so-expensive/622887/

 

We have to remember that presidential policy has only so much influence on gas prices. Much of this is on a global scale and no matter how much clout a president has on the global stage, he isn't capable of doing it on his own. It's easy to look at one boogeyman and say "it's all his fault" but that's far too simplistic, especially when we're talking about an industry that transcends borders. This isn't to say the Biden administration gets a pass but it is to say that we need to stop thinking that there are any easy solutions here.

 

This morning, the S&P 500 went back up significantly (biggest increase since June 2020) on the back of oil prices dropping and news of the Ukrainian and Russian foreign ministers meeting. Eventually as we settle into the war and production outside of Russia ramps up, prices at the pump will drop. I don't think that eventually will necessarily even be that long since gasoline prices basically go up and down on the strength of a fart at an OPEC meeting. 🙄

[Mike E 11,739]

1 hour ago, millefleur said:

How high can it go? I know Russia was only a marginal supply of our oil imports, I didn't think cutting off that source would be so bad. Anyone know what the other causes are?

https://americansforprosperity.org/biden-policies-raising-gas-prices/
 

 Russian energy supplies won’t be cut off. China and India will just buy more Russian energy  and less non Russian energy. That leaves more non Russian energy for everyone else. 
 

Gas prices are going up because of Biden policy. 

[Dashinka 24,372]

28 minutes ago, Mike E said:

https://americansforprosperity.org/biden-policies-raising-gas-prices/
 

 Russian energy supplies won’t be cut off. China and India will just buy more Russian energy  and less non Russian energy. That leaves more non Russian energy for everyone else. 
 

Gas prices are going up because of Biden policy. 

Maybe John Kerry is really the President.

[Boiler 45,314]

It is quite simple fossil fuels generally requires significant investment and a long pay back which in the current climate sic is unattractive and high risk

 

Consequence is higher prices 

 

As Kamala said by a Tesla, aka let them eat cake

[spookyturtle 9,465]

3 hours ago, Mike E said:

https://americansforprosperity.org/biden-policies-raising-gas-prices/
 

 Russian energy supplies won’t be cut off. China and India will just buy more Russian energy  and less non Russian energy. That leaves more non Russian energy for everyone else. 
 

Gas prices are going up because of Biden policy. 

There’s a wee bit more to it than that.