Domestic oil production has gone up thousands of barrels a day, steadily, since 2020/early 2021, when there was a dip for some weird reason (It seems to be everywhere in the world around that time ... I wonder if something happened?).
COVID caused an economic slow down world wide that slowed energy use.
Domestic oil production is higher now than at any point in U.S. history before 2018:
https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=MCRFPUS2&f=M
I just watched Jen Saki cite the demo talking points.
You might not remember this, but sometime in 2020, a barrel of oil was actually worth LESS than nothing and a deal was cut for everyone to stop producing so much oil for a while. (Again, something mysterious affected worldwide oil production that might still have global effects):
https://www.bbc.com/news/business-52350082
To save you the trouble of clicking on a link and reading,
don't worry I won't click
"Earlier this month, Opec members and its allies finally agreed a record deal to slash global output by about 10%. The deal was the largest cut in oil production ever to have been agreed."
OPEC+ slashing output is to support higher prices... But oil over $100 barrel is too high even for OPEC, Putin probably doesn't mind. But President Biden is looking at mid term elections in a few months. Administration personnel met with Manduro to investigate bringing in Venezuelan sour heavy crude, that our Gulf coast refineries were built for. The Biden administration is also meeting with Russia and Iran trying to restart the Iran nuclear deal that could get Iranian oil back on the market. I am not a fan of helping either authoritarian enemy.
That happened in 2020, by the way. The deal terminates this year.
TL;DR: Domestic oil production has gone up all year, it was temporarily slashed in 2020 as part of a global deal.
www said:
Since assuming the office of the Presidency, Joe Biden has taken several actions to obstruct oil production in the United States, including a suspension of new oil and gas leases on federal lands and blocking oil sales in the Arctic National Wildlife Refuge (ANWR). He also canceled the Keystone XL pipeline within hours of assuming office.
The US oil industry is reluctant to invest large amounts into new drilling/fracking with the future government energy policy so negative.
Here's a similar chart for natural gas production:
https://www.eia.gov/dnav/ng/hist/n9050us2a.htm
Natural gas production is HIGHER now than it was in 2019 & 2020. So where's the idea that it's being discouraged coming from?
Thanks for schooling me about fossil fuels..
Building new LNG export terminal in the NE has been stalled. NY state has blocked NG pipelines that could bring plentiful low cost NG from PA and west to NE.
If we had more LNG export capacity we could supply the EU with NG so they don't have to depend on Russia for energy. World NG prices are higher than here because we have so much of it, and not enough pipelines, export terminals.
The Biden administration will be blaming Putin for the high prices as long as that rowboat holds water. While secretly trying to keep rising gas prices from hurting their Nov election chances. Reportedly President Biden is even considering visiting Saudi Arabia to lobby them to pump more oil. Maybe just send VP Harris, but the Saudis are still upset about the US handling of the Jamal Khashoggi, saudi journalist(dissident) killing.
Maybe President Biden should just ask American oil companies to drill/pump more. The real reason gas/oil prices are rising now is because we are recovering from the COVID pandemic, finally.
But if we screw this up the economy is past due for a recession.
JR
