Saudi Arabia is slashing oil supply. It could mean higher gas prices...

avatar for gammanu95
gammanu95
Have you ever tried to stick a silver dollar into a stripper's G-string?
https://apnews.com/article/opec-oil-pric…

I remember the last time this happened was the first time in my life that we had gas prices spike past inflation-adjusted increases not seen since the Iraqi invasion of Kuwait. It also provided the financial reward necessary to make fracking and oil sands/shale oil extraction profitable. That, in turn, provided the increase in oil production infrastructure that Trump would use to turn the US into an oil-independent net exporting nation.

I was working in New Orleans manufacturing sector at that time. Oil refineries were a large part of my revenue, but nowhere near the largest. That changed around 2012 when OPEC squeezed production and the US domestic production exploded. All of the refineries were adding second and third shifts, reopening long-shuttered furnaces, and rapidly expanding existing infrastructure. Not only was this helping to contain skyrocketing oil prices, but hundreds of Americans were getting high-paying jobs with OTJ skills training, full benefits, and advancement opportunities. Even more shockingly, they were able to pull this off under the Obama administration, due in large part to a Republican controlled congress which Obama had earned through his ceaseless Communist activisim and expansion.

Eventually, OPEC would increase production and pull the rug out from underneath the US domestic production industry. Overnight, oil was too cheap and it was no longer profitable to extract using the expensive processes necessary for shale, sands, and fracking extraction. However, the infrastructure and processes were in place and these companies continued to work at refining their craft until they had a Republican president and Congress which help them to activate again and create the first net-exporting US oil industry in modern history.

Then, Joe Biden killed it on day one as part of his anti-American barrage of executive orders. No liberals are allowed to whine about gas prices. If you voted for Joe Biden, you are a liberal and it is you who gave this power to OPEC (including Russia). Remember that.

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avatar for dha
dha
2 years ago
Biden and his team of dopes are ruining this country. We can't get rid of them fast enough.

The USA is being manipulated, robbed, and taken advantage of, internationally.

He is the worst, most corrupt president in US history. And, he does it right out in the.open What a clown show.

Trump is obnoxious but he got things done and was respected and feared internationally.

We need a leader with some balls and appreciation for hot women.
avatar for shailynn
shailynn
2 years ago
When fracking was going on in the area I live (around 2010) it was such a marvelous time. Yeah I’m probably going to have cancer in 5 years from contaminated ground water but the wages that people earned and what it did to the regional economy was so amazing.

If people made wages like that everyday there would be a lot less complaining going on.

A lot of men and women with “not a ton of work skills” were able to make great livings but they had to work hard, and most were willing to do so.
avatar for sinclair
sinclair
2 years ago
Saudi Arabia used to be one of the United States' strongest allies. The Biden administration has been pushing away our allies the last few years. Far worse than cutting oil production is Saudi Arabia ditching the US dollar for the yuan and BRICS. With more and more countries abandoning the dollar, the United States will become a poorer country. The fact that the dollar was the world's reserve currency allowed Americans to live outside of their means, unlike most of the rest of the world. Those days are coming to an end.
avatar for shailynn
shailynn
2 years ago
^ so are we moving to Sweden now? I like meatballs.
avatar for CostaTheCrazyGreek
CostaTheCrazyGreek
2 years ago
You understand that if we really wanted to, we would't NEEEEEED to import ANY foreign oil The problem is we sell our oil to the highest bidder, which is WHY we have to import foreign oil into this country. AAR, high gas prices.
avatar for Papi_Chulo
Papi_Chulo
2 years ago
I guess we can look-forward to higher-gas-prices for the summer/vacation/road-tripping season
avatar for mike710
mike710
2 years ago
One of the strong selling points for our current President was supposed to be his handling of foreign policy. Since he's been in office, he's pissed off the Saudis, China won't talk to us, Putin invaded Ukraine, North Korea is going crazy again and Iran is getting close to being a nuclear power.

I guess it's a good thing our President is so good at foreign policy.
avatar for gammanu95
gammanu95
2 years ago
This should have been posted to the "politics" forum. My bad.

Anyone with a brain could have looked at his track record and have seen Biden only ever made the WRONG decisions on foreign policy. He was even against the raid in Pakistan to get UBL. Don't forget that Dementia Joe has also pissed off our allies - the UK, France, several Arab states, and he let the Afghan gov't die. This was all foreseeable and predicted by many.
avatar for londonguy
londonguy
2 years ago
They are cutting production to stabilise or increase prices? FFS , how fucking rich do they want to be beyond their immense wealth. How about they do something for the world economy instead of thinking about their own fucking wealth.
avatar for shailynn
shailynn
2 years ago
^ I would guess their theory is they aren’t going to have oil forever And/Or the world isn’t always going to need oil, so they’re getting what they think is as much money as they can get away with to keep building these super cities and other revenue producing projects so they won’t have to live in tents again like they did 100 years ago.

At least that’s what Matt Damon’s character said in the movie Syriana.
avatar for Tetradon
Tetradon
2 years ago
"One of the strong selling points for our current President was supposed to be his handling of foreign policy."

Obama's own defense secretary said he's been wrong about everything his whole career. And he's delivered. Don't forget that now we've pushed KSA and Iran together. And China is building relationships in South America and Africa while we're more concerned about our standing in sclerotic, declining Europe.

Pushing the world away from the dollar means goodbye borrowing power, too. That alone should put him in the bottom quartile of presidents.
avatar for mark94
mark94
2 years ago
The biggest mystery to me is why there aren’t nuclear plants being built. The new, modular plants are safe and efficient. They are the size of a large house and provide energy for 300,000 houses.
avatar for Mate27
Mate27
2 years ago
The Permian basin isn’t as volatile as the past. They’re holding steady the # of rigs online, and are slowly adding more. They used to start up and shut down just as fast in correlation to prices peaking and dropping. Today they’re steady and can pick up the slack for domestic needs. We also got Canada and North Dakota that can ramp up production when needed. It’s just the Saudi’s but not other opec members cutting. Saudi’s can make their own bed and fuck off, they’ve been trying to manipulate prices for decades
avatar for Hank Moody
Hank Moody
2 years ago
In other news, the PGA and LIV have agreed to merge. I guess all that Saudi blood money stuff doesn’t matter anymore. They should put Rory’s locker right next to Phil’s. Lol.
avatar for Longball300
Longball300
2 years ago
Nuclear is the only "clean" reliable source of non fossil fuel energy that can meet 100% demand 24/7. Wind and Solar is pure bullshit that does more to harm the environment than help.You would need a battery the size of the moon to supply 100% demand 24/7.
avatar for Longball300
Longball300
2 years ago
Poor Rory.... didn't get to cash in like the others and now has to play with them anyway.
avatar for Longball300
Longball300
2 years ago
Yeah Canada.... our closest oil rich ally right next door... they can just send us more oil using that Keystone pipeline........ wait, what? Oh that's right, Biden fucked that up too.
avatar for Longball300
Longball300
2 years ago
But at least Joe has done a great job of Unifying.....
avatar for Hank Moody
Hank Moody
2 years ago
Considering he just got the debt deal done with a bipartisan coalition that cut off all the extremists on both sides of the aisle, Biden is a unifier. This week at least.
avatar for mark94
mark94
2 years ago
“Biden is a unifier”

Joe doesn’t know what day it is. He spends three days a week at one of his Delaware mansions hiding out.

Unlike in past administrations, the President wasn’t personally involved. He sent underlings to negotiate.

I don’t know who is running the WH, but it isn’t Joe.
avatar for twentyfive
twentyfive
a year ago
OP really nailed it with this prediction far as I see gas prices are down substantially, but the bigoted dope thinks I threatened him.
What a stupid poster.
avatar for mark94
mark94
a year ago
It takes 10 years to develop a new oil field. Maybe 20.

Now that consensus is that BEVs are the future, it would be stupid to put billions into a new field. Or, a new refinery, for that matter.

Let’s hope BEVs can really replace ICE vehicles. If not, we’ll be screwed in 15 years. No gas.
avatar for Mate27
Mate27
a year ago
World demand has dropped, therefore cut in production is warranted. Demand hasn’t dropped significantly, just notably. There’s definitely the push to continue to lessen demand, and as they develop better tech, it’s likely the demand dropping albeit slightly will continue.
avatar for mark94
mark94
a year ago
Elon says we’ll need 3 times as much electricity in 10 or 15 years, as electric cars and heat pumps replace fossil fuel. That’s a tall order. Solar and wind won’t be enough. Neither will our existing transmission lines and transformers.
avatar for minnow
minnow
a year ago
^^^^ Above post seems to imply that too much of a rush towards EV's and away from ICV's will leave a lot of people SOL when they can't charge their vehicles with the existing infrastructure.
avatar for mark94
mark94
a year ago
Elon is a proponent of nuclear. If we started building new nuclear plants NOW, we’d be fine. I don’t think that’s going to happen.

My guess is that some states ( California ) will be SOL by 2035. They are delusional that wind turbines will meet LA’s needs, they shut down nuclear and gas plants.

As an Arizonan, I’d like to see us build a shit load of Nuke plants on the California border, then charge them out the ass for electricity when they run out.
avatar for Hank Moody
Hank Moody
a year ago
The argument against EVs is always there isn’t enough material for butteries or infrastructure for charging. It’s kinda stupid. EVs are an alternative, as is solar and wind power. All of it reduces demand on fossil fuels. Both the left and right should see green energy for what it is, a means to cheaper fossil fuel and less reliance on OPEC and not to replace fossil fuels. But instead the left wants to outlaw ICEs and the right wants to cut funding for development of green energy. It’s all so stupid. I don’t have an EV yet but I’d love to have one for commuting. Performance is fantastic and not having to waste time filling the tank once a week would be great.
avatar for funonthaside
funonthaside
a year ago
So if green energy is only a backup, then we all need to buy 2 vehicles? 1 ICE and 1 EV?

With an EV, you won't need to waste time refueling each week, but if you travel more than a few miles from home, you will need to wait for an hour at a random charging station, rather than spending 5 minutes refueling with gasoline.

If one drives so few miles that an EV is adequate, you're likely better off Ubering.
avatar for Hank Moody
Hank Moody
a year ago
EVs are an option. Do what you want.
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