BDKJMU wrote: ↑Mon Apr 04, 2022 10:31 am
Short of the Government taking over the oil industry, I'm not sure what more the Gov't can do. Companies are making the business decision to drill more/less. Are you saying you want more government? They're already rewarding more leases and permits. Last month the administration said it'll allow more drilling on federal lands. It won't happen overnight, though. It sucks but we have to be patient.
The problem isn't just supply (which most people critical of prices seem to only care about or think about.) Demand is equally important in pricing and high right now with RTO, supply chains re-opening and moving, the US is heading into spring break and summer vacation months, etc...
I'd be willing to be that labor shortages in the oil industry are also a contributing factor. About 15k people left the oil industry in 2020...in an industry that saw it's highest levels of employment under Obama, and then it fall greatly and level out under Trump.
Look at the price of lumber, supply is returning to it's pre-pandemic levels (but with labor shortages there are problems getting it back up) and demand remains high which equals to high prices. Home construction took a huge hit and with many people not wanting to pay an extra $18,000 (on average) for a home, many have put off home building.
Perhaps things wouldn't be so bad if our government and leaders had taken the pandemic and shut down seriously and made it possible for us to return to normal quicker. Or not shut down at all...or mot shut down critical infrastructure. There are a lot of "what ifs" in hindsight. Lot of what ifs and everyone in power since 2020 has a role in this mess.
Oil output in the Permian in Texas and New Mexico, the biggest U.S. shale oil basin, is due to rise 70,000 barrels per day (bpd) to a record 5.208 million bpd in April, the U.S. Energy Information Administration (EIA) said in its productivity report on Monday.
Total output in the major U.S. shale oil basins will rise 117,000 bpd to 8.708 million bpd in April, the most since March 2020, EIA projected.
https://www.reuters.com/business/energy ... 022-03-14/