Biden Releases 50 Million Barrels of Oil Pretending Fight the Biden Inflation

[Lord Tammerlain]

Exactly.

Which tells you that demand dropped off drastically last year, suppliers cut production in response. Now demand is coming back, supply is slower to return.

The pipeline Biden stopped would not provide any supply for a year and as such has no impact on prices today. In a year yes, not now.

Oil shale companies were losing money for the last few years and are unlikely to drill like they were before, another reason for a cut in supply

 

[code1211]

This is not good news for Republicans, who want everything to be bad so Biden looks bad, damn America.

It is no different than the Republican attempt to prolong the Great Recession in order to undermine Obama.

How did those attempts that you fantasize manifest in the real world?

 

[bicycleman]

A band aid and kicking the can down the road won't help.

 

[Tbird19482]

Again, transport of oil by pipeline is cheaper and safer.

If the costs to do a thing are increased, trucks and trains vs pipelines, then the price to the ultimate customer is also increased.

We aren't quite up to 2 million miles of pipelines in use in the US right now, but we're getting there. The annual growth of pipeline miles is evidence of the efficiencies they provide.

U.S. Oil and Gas Pipeline Mileage | Bureau of Transportation Statistics

KEY: N = data do not exist; R = revised. a Excludes service pipeline. Data are not adjusted to common diameter equivalent. Mileage as of the end of each year. b Before 1985, data include field line mileage.

www.bts.gov

Oh there is no doubt pipe lines are cheaper and safer if they are watched and maintained
The pipeline company that was building the XL pipeline doesn't have the best safety record and that is one reason the people didn't want that pipeline running over the only fresh water supply they have.
it is when it leaks not IF it leaks ( because it will leak transporting Tar sand oil )
if it was a major leak the tar sand oil could destroy the only fresh water supply they have
and with the Tar sand oil being as corrosive as it is the pipelines that transport it have more leaks in them then normal oil pipelines
Have a nice night

 

[code1211]

Which tells you that demand dropped off drastically last year, suppliers cut production in response. Now demand is coming back, supply is slower to return.

The pipeline Biden stopped would not provide any supply for a year and as such has no impact on prices today. In a year yes, not now.

Oil shale companies were losing money for the last few years and are unlikely to drill like they were before, another reason for a cut in supply

Actual Supply and Demand of any commodity will always impact the price.

Perceived supply and demand issues can also do so.

Are asserting that nothing done by Biden has had any impact on the supply of oil to the US Market?

 

[Lord Tammerlain]

Actual Supply and Demand of any commodity will always impact the price.

Perceived supply and demand issues can also do so.

Are asserting that nothing done by Biden has had any impact on the supply of oil to the US Market?

In a few months, the ban on new leases on federal lands will impact supply. But realistically that would be the only effect that is impacting actual supply. The low supply right now was caused by the shutdowns in 2020

 

[code1211]

Oh there is no doubt pipe lines are cheaper and safer if they are watched and maintained
The pipeline company that was building the XL pipeline doesn't have the best safety record and that is one reason the people didn't want that pipeline running over the only fresh water supply they have.
it is when it leaks not IF it leaks ( because it will leak transporting Tar sand oil )
if it was a major leak the tar sand oil could destroy the only fresh water supply they have
and with the Tar sand oil being as corrosive as it is the pipelines that transport it have more leaks in them then normal oil pipelines
Have a nice night

If's and but's adding up to the prediction of dire consequence.

When the lights go out, the people will want them back on and they will not care what needs to be done to make it happen.

 

[Alexios Makaris]

I would say little that Biden has done in his ~11 months in office has significantly affected U.S. domestic petroleum supply. The United States is a net oil exporter now, producers operate in a global market and look to maximize profits under very basic laws of supply and demand. If our domestic producers chose to take less profits and keep domestic prices low, they could do so by foregoing exports abroad. That isn't how for-profit companies operate, and for a number of reasons it is usually not a good idea for government to try and force for-profit companies to behave in that way. Some "petrostates" which do not have free market economies, force domestic oil producers to provide fuel to their citizens at below market rates, and that keeps people happy. It has larger negative consequences broadly speaking though. The Keystone XL cancellation did not and would not ever have significant impact on U.S. domestic petroleum supply. His suspension of issuing new leases for oil drilling on public lands will have an effect, but more long term. Keep in mind all of the major oil producers have huge leases already that are undeveloped, and they are still allowed to develop them. Another thing to keep in mind is the current per barrel oil price is in the $68-70 range, there's wells in the United States and drilling projects that are only profitable at around $100 a barrel, 10 years ago $100 / barrel oil was not uncommon (it was regularly in that price range) and some oil projects are only viable with that assumption. The fact that gas pump prices have surged while oil prices are not all that high is a fairly obvious economic indicator that supply issues, delivery issues and refinery issues are likely the biggest culprits in pump prices, not the baseline price of oil, which by historical standards is not even all that high right now.

Overall inflation is also, despite the U.S.-centric dreams of people here, not controlled by the President. Most countries on earth right now are experiencing inflation, which should probably make you think a little bit about basic economics and why that might be, instead of engaging in the fantasy of the U.S. President as a God-King who controls the world's oil prices and inflation.

 

[code1211]

In a few months, the ban on new leases on federal lands will impact supply. But realistically that would be the only effect that is impacting actual supply. The low supply right now was caused by the shutdowns in 2020

The low supply right now is due to the reluctance to re-open quickly.

Is there anything that the controlling authority could do to either quicken or slow the response from the private sector in re-opening?

 

[Tbird19482]

If's and but's adding up to the prediction of dire consequence.

When the lights go out, the people will want them back on and they will not care what needs to be done to make it happen.

Most people are NOT against pipelines it was with the XL pipeline the company that is building it doesn't have a great record for safe pipelines and it mostly was where they wanted to run it that people were against
with the Tar sand oils being as corrosive as they are it isn't a matter IF these pipelines will leak but when and where they will leak and they will leak
people did not want that company running a pipeline transporting the dirtiest and highly corrosive Tar sand oils over / under /through their only source of fresh water / rivers , creeks , large aquifers and when these pipelines do leak if it is a major leak it could destroy their water supply for years and years.
IF they would have rerouted it over near where the other Keystone pipelines are there may not have been any problems
and as I have asked people yes they did shut down the XL pipeline but I haven't heard very much out of people on the right about the Keystone LINE 3 coming back on line delivering oil starting back in March
yes it is as big as the XL was going to be and is already delivering oil to the mid west and not a word from either side about it
Have a nice day

 

[code1211]

I would say little that Biden has done in his ~11 months in office has significantly affected U.S. domestic petroleum supply. The United States is a net oil exporter now, producers operate in a global market and look to maximize profits under very basic laws of supply and demand. If our domestic producers chose to take less profits and keep domestic prices low, they could do so by foregoing exports abroad. That isn't how for-profit companies operate, and for a number of reasons it is usually not a good idea for government to try and force for-profit companies to behave in that way. Some "petrostates" which do not have free market economies, force domestic oil producers to provide fuel to their citizens at below market rates, and that keeps people happy. It has larger negative consequences broadly speaking though. The Keystone XL cancellation did not and would not ever have significant impact on U.S. domestic petroleum supply. His suspension of issuing new leases for oil drilling on public lands will have an effect, but more long term. Keep in mind all of the major oil producers have huge leases already that are undeveloped, and they are still allowed to develop them. Another thing to keep in mind is the current per barrel oil price is in the $68-70 range, there's wells in the United States and drilling projects that are only profitable at around $100 a barrel, 10 years ago $100 / barrel oil was not uncommon (it was regularly in that price range) and some oil projects are only viable with that assumption. The fact that gas pump prices have surged while oil prices are not all that high is a fairly obvious economic indicator that supply issues, delivery issues and refinery issues are likely the biggest culprits in pump prices, not the baseline price of oil, which by historical standards is not even all that high right now.

Overall inflation is also, despite the U.S.-centric dreams of people here, not controlled by the President. Most countries on earth right now are experiencing inflation, which should probably make you think a little bit about basic economics and why that might be, instead of engaging in the fantasy of the U.S. President as a God-King who controls the world's oil prices and inflation.

The drive toward energy independence started in about 2006 and continued into 2019. Pretty steady gains year over year. This started in the W era, continued through Obama and hit Energy independence in 2019 under Trump.

Not only increased production of oil, but also conversion to Natural Gas.

Oil is a world commodity. When ANY source adds to the whole, the whole is increased. As the whole is shrunk, the whole is shrunk.

Currencies are not like international commodities. Each Currency is controlled by the government that issues it. When money is "printed" as every Western Democracy has done during Covid, inflation occurs.

Simply pointing out that inflation occurred everywhere does not excuse the stupidities of those who ALL did the dame stupid stuff.

It only indicates that they all did the same stupid stuff.

 

[Alexios Makaris]

The drive toward energy independence started in about 2006 and continued into 2019. Pretty steady gains year over year. This started in the W era, continued through Obama and hit Energy independence in 2019 under Trump.

Not only increased production of oil, but also conversion to Natural Gas.

Oil is a world commodity. When ANY source adds to the whole, the whole is increased. As the whole is shrunk, the whole is shrunk.

Currencies are not like international commodities. Each Currency is controlled by the government that issues it. When money is "printed" as every Western Democracy has done during Covid, inflation occurs.

Simply pointing out that inflation occurred everywhere does not excuse the stupidities of those who ALL did the dame stupid stuff.

It only indicates that they all did the same stupid stuff.

My post made it fairly clear that I'm fully aware oil is a fungible global commodity, unclear on your reason for restating it. China and Russia have also experienced inflation as well, so this isn't a "Western Democracy during Covid" issue.

As I said, inflation is not typically directly controlled by the U.S. President. The lion's share of U.S. monetary policy is actually controlled by the Federal Reserve, which the President does not directly control. While any form of "stimulus spending" has long been known to contribute to inflation, there isn't a simple or basic economic formula for predicting the degree to which this will occur. There was actually expectation of high inflation from every stimulus program in the last 15 years, including ones done at the end of the Bush Administration, early Obama, early Trump, covid Trump and now the Biden stimulus. We did not see any significant inflation until late in Trump's Presidency, and it started to be seen globally. That is highly suggestive it is not linked to a specific stimulus plan. The 20 year battle in Japan with deflation would also be educational for you to read about, they actually wanted inflation because of the various issues in their economy from having a deflationary currency, and despite aggressive anti-inflation stimulus measures, and even the extreme tactic of basically charging a tax for putting money in savings accounts, Japan still continued to suffer deflation for years.

Now, if you just directly print trillions of dollars and flood the market with them, you can generate crazy hyperinflation, but stimulus spending and quantitative easing have a more complex relationship with inflation, and there is actually no known formula for how much stimulus or QE is expected to relate to a given amount of inflation. That means even the people with PhDs and 30 years' experience in this field don't know these answers, so people on message boards should not really pretend to either.

All told though, we have engaged in serious stimulus and QE for over a decade, it is entirely possible that we (and this includes Europe and many other economies) have hit some sort of threshold that caused inflation. But no one actually has any solid proof of that yet, and likely it wouldn't be known for years until economists can do full studies. But it is also possible that like Jerome Powell has said inflation is because of consumer sentiment combined with supply chain shortages. Either way what we have almost no evidence for is that Presidents Trump and Biden had some sort of inflation magic wand they waved to raise inflation.

 

[code1211]

Most people are NOT against pipelines it was with the XL pipeline the company that is building it doesn't have a great record for safe pipelines and it mostly was where they wanted to run it that people were against
with the Tar sand oils being as corrosive as they are it isn't a matter IF these pipelines will leak but when and where they will leak and they will leak
people did not want that company running a pipeline transporting the dirtiest and highly corrosive Tar sand oils over / under /through their only source of fresh water / rivers , creeks , large aquifers and when these pipelines do leak if it is a major leak it could destroy their water supply for years and years.
IF they would have rerouted it over near where the other Keystone pipelines are there may not have been any problems
and as I have asked people yes they did shut down the XL pipeline but I haven't heard very much out of people on the right about the Keystone LINE 3 coming back on line delivering oil starting back in March
yes it is as big as the XL was going to be and is already delivering oil to the mid west and not a word from either side about it
Have a nice day

The simple truth of this matter is that pipelines transport MUCH MORE oil and gas than do any other methods.

Another truth is that mishaps per gallon, if you will, are much more frequent when non-pipeline methods are used.

Yet another truth of this is the fact that the environmental kooks have made it so difficult to build new refineries that none are built.

The Refinery in Louisiana, that is most ideal for refining the oil from the Tar Sands of Canada, actually cannot refine the Sweet Crude that is drilled for in much closer wells.

By shutting down construction of the Keystone XL Pipeline, the same kooks that stop the building of additional refineries are forcing the transport of the Tar Sands Oil by the more dangerous rail and road Routes.

Which Is Safer For Transporting Crude Oil: Rail, Truck, Pipeline Or Boat?

News of increased crude oil transportation by rail from Canada has raised this question again. The short answer is: truck worse than train worse than pipeline worse than boat. But it depends on your definition of worse - human deaths, property destruction or environmental impact. You choose.

www.forbes.com

 

[danielpalos]

Biden released 50 million barrels of oil from the Strategic Petroleum Reserve trying to slow down inflation rising due to his failed planning at the fastest rate in decades across the economy in general and in gas prices in particular.

50 million barrels of oil amounts to about 2 1/2 days of US oil use. Big whoop! Similar to bringing a half eaten bag of vending machine Lay's to the Thanksgiving Dinner when asked to bring "the potatoes".

Stated another way, the US was producing about 13.1 Million Barrels of oil in February 2020. November 2021? That's down to 11.4 Million Barrels of oil of US production per day.

We are producing almost 2 Million Barrels of oil less per day than in 2020. The shortfall of our production will eat away Biden's oil leaked from the SPR over the course of about a month's time.

Biden CREATES THE SHORTAGE PROBLEM and then, USING THE RESERVES that were FILLED UP BY TRUMP, he is now trying to claim credit for SOLVING THE PROBLEM HE CREATED.

Like EVERYTHING ELSE BIDEN HAS DONE, we'd have been better off IF HE JUST STAYED ASLEEP AND DID NOTHING, EVER, TO ANY OF US.

He just can't help himself. He has to meddle and make things worse. This is not unexpected. He and his gang WANT to inflate the price of gas. IT'S A PART OF THEIR MASTER PLAN.

It's too bad he's working against the American people rather than working for us. Well... At least there are no mean Tweets. He's likely too stupid to learn how to work the Twitter machine.

In passing, when asked, our idiot Secretary of Energy did not know how much oil the US uses in a day. Stupidity is a real confidence builder. Doesn't know her numbers. A buffoon. WTF is she doing?

U.S. Crude Oil Production - Historical Chart

Interactive historical chart showing the monthly level of U.S. crude oil production back to 1983 from the US Energy Information Adminstration (EIA). Values shown are in thousands of barrels produced per day.

www.macrotrends.net

Imagine, democrats doing something instead of simply proclaiming it is a republican Hoax.

 

[danielpalos]

The simple truth of this matter is that pipelines transport MUCH MORE oil and gas than do any other methods.

Boring technologies can put mass storage underground.

 

[code1211]

My post made it fairly clear that I'm fully aware oil is a fungible global commodity, unclear on your reason for restating it. China and Russia have also experienced inflation as well, so this isn't a "Western Democracy during Covid" issue.

As I said, inflation is not typically directly controlled by the U.S. President. The lion's share of U.S. monetary policy is actually controlled by the Federal Reserve, which the President does not directly control. While any form of "stimulus spending" has long been known to contribute to inflation, there isn't a simple or basic economic formula for predicting the degree to which this will occur. There was actually expectation of high inflation from every stimulus program in the last 15 years, including ones done at the end of the Bush Administration, early Obama, early Trump, covid Trump and now the Biden stimulus. We did not see any significant inflation until late in Trump's Presidency, and it started to be seen globally. That is highly suggestive it is not linked to a specific stimulus plan. The 20 year battle in Japan with deflation would also be educational for you to read about, they actually wanted inflation because of the various issues in their economy from having a deflationary currency, and despite aggressive anti-inflation stimulus measures, and even the extreme tactic of basically charging a tax for putting money in savings accounts, Japan still continued to suffer deflation for years.

Now, if you just directly print trillions of dollars and flood the market with them, you can generate crazy hyperinflation, but stimulus spending and quantitative easing have a more complex relationship with inflation, and there is actually no known formula for how much stimulus or QE is expected to relate to a given amount of inflation. That means even the people with PhDs and 30 years' experience in this field don't know these answers, so people on message boards should not really pretend to either.

All told though, we have engaged in serious stimulus and QE for over a decade, it is entirely possible that we (and this includes Europe and many other economies) have hit some sort of threshold that caused inflation. But no one actually has any solid proof of that yet, and likely it wouldn't be known for years until economists can do full studies. But it is also possible that like Jerome Powell has said inflation is because of consumer sentiment combined with supply chain shortages. Either way what we have almost no evidence for is that Presidents Trump and Biden had some sort of inflation magic wand they waved to raise inflation.

Good post!

The old saying, "If you want to climb out of the hole, the first step is to stop digging" comes to mind.

I believe the goal of the Fed and the US Government is to maintain inflation at or slightly below 2%. When the Inflation Rate gets too big and grows too fast, it's bad.

Increased inflation in the US seems to be pretty easy to predict as a result of the post covid dynamics.

When the economy "heats up" with the removal of the artificial shut downs removed, predicting a speed up is not a wizard level prediction to make.

In the face of this "heat up" due simply to removing the road blocks, NOT SEEING that additional government spending will be inflationary is borderline insane.

Allowing folks to build fires again is one thing. Demanding they pour gasoline on the roaring flames is something else.

The dementia involving the trucking problems at the California ports is something else entirely.

 

[Tbird19482]

The simple truth of this matter is that pipelines transport MUCH MORE oil and gas than do any other methods.

Another truth is that mishaps per gallon, if you will, are much more frequent when non-pipeline methods are used.

Yet another truth of this is the fact that the environmental kooks have made it so difficult to build new refineries that none are built.

The Refinery in Louisiana, that is most ideal for refining the oil from the Tar Sands of Canada, actually cannot refine the Sweet Crude that is drilled for in much closer wells.

By shutting down construction of the Keystone XL Pipeline, the same kooks that stop the building of additional refineries are forcing the transport of the Tar Sands Oil by the more dangerous rail and road Routes.

Which Is Safer For Transporting Crude Oil: Rail, Truck, Pipeline Or Boat?

News of increased crude oil transportation by rail from Canada has raised this question again. The short answer is: truck worse than train worse than pipeline worse than boat. But it depends on your definition of worse - human deaths, property destruction or environmental impact. You choose.

www.forbes.com

I am not disagreeing with you
I have been reading and from what I see and understand if they would have run this pipeline along their oil pipelines they

The simple truth of this matter is that pipelines transport MUCH MORE oil and gas than do any other methods.

Another truth is that mishaps per gallon, if you will, are much more frequent when non-pipeline methods are used.

Yet another truth of this is the fact that the environmental kooks have made it so difficult to build new refineries that none are built.

The Refinery in Louisiana, that is most ideal for refining the oil from the Tar Sands of Canada, actually cannot refine the Sweet Crude that is drilled for in much closer wells.

By shutting down construction of the Keystone XL Pipeline, the same kooks that stop the building of additional refineries are forcing the transport of the Tar Sands Oil by the more dangerous rail and road Routes.

Which Is Safer For Transporting Crude Oil: Rail, Truck, Pipeline Or Boat?

News of increased crude oil transportation by rail from Canada has raised this question again. The short answer is: truck worse than train worse than pipeline worse than boat. But it depends on your definition of worse - human deaths, property destruction or environmental impact. You choose.

www.forbes.com

I don't disagree with you
only thing is when they lay out the route the pipeline is going to take it should not be under /over thru or even near these major Aquifers or any major fresh water source that millions and millions of people depend on for their only drinking water
especially pipelines that are going to transport the very corrosive ,dirty tar sand oil
I believe they could have gotten permits for the XL if they had re-routed it and put it in the area of the pipelines they have coming from Canada now
have a nice night

 

[code1211]

Imagine, democrats doing something instead of simply proclaiming it is a republican Hoax.

Imagining Democrats doing something is not difficult.

Imagining Democrats doing something helpful is difficult.

 

[code1211]

Boring technologies can put mass storage underground.

Pipelines are, I think, modes of transport, not storage.

 

[danielpalos]

Imagining Democrats doing something is not difficult.

Imagining Democrats doing something helpful is difficult.

Only for right-wingers. Some on the left may believe, right-wingers have no "gospel Truth".

 

[danielpalos]

Pipelines are, I think, modes of transport, not storage.

Yes, but they also happen to "store the capacity" they transport.

 

[code1211]

I am not disagreeing with you
I have been reading and from what I see and understand if they would have run this pipeline along their oil pipelines they
I don't disagree with you
only thing is when they lay out the route the pipeline is going to take it should not be under /over thru or even near these major Aquifers or any major fresh water source that millions and millions of people depend on for their only drinking water
especially pipelines that are going to transport the very corrosive ,dirty tar sand oil
I believe they could have gotten permits for the XL if they had re-routed it and put it in the area of the pipelines they have coming from Canada now
have a nice night

The rail lines and the roads over which the more dangerous transport methods will occur threaten the same resources you hope to protect.

 

[Tbird19482]

The rail lines and the roads over which the more dangerous transport methods will occur threaten the same resources you hope to protect.

Yes
now how many barrels of oil does a truck hold or a raid car?
how many of them would it take to create a spill of 10/15/20 thousand barrels
now the Keystone XL pipeline was going to be about 1200 miles long and have 32 to 35 workers traveling up and down it a day to watch for leaks
that is over 100 miles per person running 3 shifts with no days off
with days off and having at least one person just to fill in your talking more like 150 miles each worker has to patrol a day
so at say 50mph that would be about 1 and 1/3 trips a shift so if you have a leak by the time somebody finds it there could be 15/20.000 barrels of tar sand oil leaking into an Aquifer destroying the only drinking water millions of people depend on
you know it wasn't the pipe line people were against it was where they wanted to run it
if they had run it along side parts of the one that is there it may not have been such a big thing
Have a niceday

 

[jmotivator]

Cut oil supply from Canada, stop oil leasing on Public land, beg Saudi Arabia for more oil, and deplete the national reserve....

It's almost like Biden doesn't know what the **** he is doing...

 

[Threegoofs]

Cut oil supply from Canada, stop oil leasing on Public land, beg Saudi Arabia for more oil, and deplete the national reserve....

It's almost like Biden doesn't know what the **** he is doing...

It’s even clearer that you don’t understand that we don’t need a pipeline, don’t need more drilling on public lands, asking is not begging, and the strategic oil reserve is nowhere near ‘depleted’.