Quote:
Originally Posted by nevergaveitathought
tiny, you're a big man
|
Quote:
Originally Posted by Tiny
So are you nevergaveitathought. And a Black Gold god.
|
After Jethro Bodine and Jed Clampett finish their lovefest....we'll get back to Realpolitik. How low prices are not always great for all. But I'm sure yall knew that.
Btw Tiny...I was in the industry 14 years....not that that means anything as you two are demonstrating
https://oilprice.com/Energy/Oil-Pric...d-In-2018.html
President Trump has done some good things for the oil industry, but he has a blind spot when it comes to oil prices. He has been vocal about the need to keep oil prices low, even as the U.S. becomes an increasingly important global oil producer.
This would have been an understandable position a dozen years ago, when net imports had reached 14 million barrels per day (BPD). But today, with net imports of crude oil and finished products transitioning into net exports, it’s becoming a different ballgame.
Low oil prices are a threat to the dream of U.S. energy independence, as they reduce the incentive to invest in new oil production. Low oil prices are also a threat to renewable fuels like ethanol, which become less competitive in a low oil price environment.
Related: UBS: Expect $80 Brent Next Year
Most of the states that benefit from high oil prices are states that voted for President Trump: Texas, Oklahoma, North Dakota, Iowa, Pennsylvania. There are a handful of exceptions, such as California and Colorado, but the oil states are mostly Trump country.
However, President Trump has taken actions that have hurt U.S. oil producers.
Why Oil Prices Fell in 2018
This past summer, China had become a major importer of U.S. oil to the tune of 500,000 BPD. But the trade war with China resulted in China halting imports of U.S. oil. This loss of market hurt U.S. oil producers, and helped push inventories higher in the U.S. This further hurt U.S. oil producers by pushing prices down.
But then President Trump also undercut oil producers by waiving sanctions on Iran. Leading up to the implementation of sanctions on Iran that would cut off their oil exports, Trump persuaded Saudi Arabia to begin pumping more oil to compensate for Iran’s pending lost exports.
Then, just before sanctions were set to go into effect, Trump announced that waivers would be given to a number of countries to allow them to continue to import Iranian oil. Among those countries was China, which ironically means U.S. oil producers lost business to Iran as a result of this decision.
