And so it begins - if you were wondering what the government could do to push down oil prices without the SPR or a way to get OPEC+ to say they'll boost production.......the EIA has no way of knowing what production in either one of those basins will really be, but they'll be watching how the market reacts to this to see if it works.
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After all these years in the industry it's still fascinating that the Prisoner's Dilemma still applies. If everybody drills when prices go up they push prices back down. Even if there weren't rules about getting together to agree not to do this they wouldn't work. So "dril baby drill" sounds great for everyone - the industry's happy not to have the government get in the way of our driving prices down as usual, and the consumers are happy because we do. All works out, until supply doesn't grow enough to keep up with GLOBAL demand since our next customer if overseas.
Despite WTI exceeding $80+ the last month, drillers keep dropping fracs; https://aogr.com/web-exclusives/us-frac-spread-count/2024… This must be due to negative Permian nat gas prices? and is bullish higher oil prices, no?
I agree with this statement 5 x 5. The headline of the actual article is designed to be misleading and is an effort to effect the trade of crude oil. It is a lie. Like the DOJ who lies about the job numbers, the EIA also works for this administration and has orders from headquarters.