Oil Gouging: It's real

[grip]

Corporate assholes tell this kind of misleading lies all the time.

“Oil companies don’t get to decide what to sell their oil at,” says Patrick De Haan, head of petroleum analysis at the fuel-savings app GasBuddy. “Oil prices are decided by (global) buyers and sellers.”

We all know that oil producers control pricing with output and storage. If they increase output, then prices drop and if they decrease, etc. It's like when the corporate apologists say inflation is controlled strictly by market forces, not by greedy executives.

Are oil and gas companies price gouging consumers at the pump?

Analysts say oil and gas companies generally aren't price-gouging consumers at the pump but sometimes their comments raise concerns

news.yahoo.com

OPEC chief says there's 'no capacity in the world' that could replace Russia's 7 million barrels a day in oil supply

There's no substitute for Russia's daily 7 million barrels, and OPEC has no sway over events driving the market, Secretary General Mohammed Barkindo said.

news.yahoo.com

Russia warns of $300 oil, threatens to cut off European gas if West bans energy imports

The U.S. has been considering whether to impose a ban on Russia's oil and gas exports as a way of punishing Moscow.

www.cnbc.com

 

[jonny5]

Corporate assholes tell this kind of misleading lies all the time.

“Oil companies don’t get to decide what to sell their oil at,” says Patrick De Haan, head of petroleum analysis at the fuel-savings app GasBuddy. “Oil prices are decided by (global) buyers and sellers.”

We all know that oil producers control pricing with output and storage. If they increase output, then prices drop and if they decrease, etc. It's like when the corporate apologists say inflation is controlled strictly by market forces, not by greedy executives.

Except thats not true at all. If they increase output the price increases, or decreases, and if they decrease it, it increases, or decreases, or does neither. Thats because oil IS a global market and price is based on futures, and thus heavily on speculation. Its supply, its demand, its speculation, its regulation, its war and competition and technology and govt.

Gouging is not a thing in a free market as there is always a competitor to drive the price down, or demand to dry up at high prices.

 

[bave]

Jesus, this is some world class drivel.

Those statements are all correct. There is nothing that is going to replace 7mmbd of oil exports coming out of Russia. Total spare global capacity is at most 3mmbd. That's assuming Biden can convince SA/UAE to play ball, despite the fact he spent his first year crapping on them. Otherwise he can try and cut a deal with another dictator in Iran or Venezuela, that's about it.

US oil producers have little desire to ramp up production right now and even if so it is a 4-6 month lead time before it makes any difference at all.

Lastly, a commodity company in particular is going to sell their product for the best price they can get anywhere at any time. That's not gouging, it is the market determining price. I don't remember many people crying when oil was $30/bbl and these companies were losing billions.

 

[craig]

Jesus, this is some world class drivel.

Those statements are all correct. There is nothing that is going to replace 7mmbd of oil exports coming out of Russia. Total spare global capacity is at most 3mmbd. That's assuming Biden can convince SA/UAE to play ball, despite the fact he spent his first year crapping on them. Otherwise he can try and cut a deal with another dictator in Iran or Venezuela, that's about it.

US oil producers have little desire to ramp up production right now and even if so it is a 4-6 month lead time before it makes any difference at all.

Lastly, a commodity company in particular is going to sell their product for the best price they can get anywhere at any time. That's not gouging, it is the market determining price. I don't remember many people crying when oil was $30/bbl and these companies were losing billions.

Russian oil production isn't being stopped, just redirected to other markets.

Domestic production will rise to 12.6 million barrels daily in 2023, or 600,000 more barrels than in 2022, the U.S. Energy Information Administration (EIA) forecast this week. That would surpass the previous record production of 12.2 million barrels in 2019.

The increase in 2023 shows a recovery in oil pumping from the massive decline early on during the COVID-19 pandemic, when oil prices dropped below $19. Crude oil is currently at around $91 a barrel.

The EIA attributed much of the expected gains to new wells in the Permian Basin, in West Texas and Southeast New Mexico. The agency said that there were about 220 oil rigs added in the lower 48 states, and 114 of those were in the Permian region.

 

[Deuce]

Gouging is not a thing in a free market as there is always a competitor to drive the price down, or demand to dry up at high prices.

LOL libertarians are always so ****ing adorable.

 

[Questerr]

Maybe leaving a resource needed for the maintenance of modern civilization in the hands of billionaires and millionaires who only seek maximized profits isn’t a good idea?

🤷‍♂️

 

[jonny5]

LOL libertarians are always so ****ing adorable.

< - Debate forum, not an echo chamber. If you just want likes, try twitter.

 

[grip]

Except thats not true at all. If they increase output the price increases, or decreases, and if they decrease it, it increases, or decreases, or does neither. Thats because oil IS a global market and price is based on futures, and thus heavily on speculation. Its supply, its demand, its speculation, its regulation, its war and competition and technology and govt.

Gouging is not a thing in a free market as there is always a competitor to drive the price down, or demand to dry up at high prices.

Double talk is not impressive.

 

[Deuce]

< - Debate forum, not an echo chamber. If you just want likes, try twitter.

Really not sure what to debate with someone who thinks price gouging doesn't exist.

 

[lemmiwinx]

Oil company haters need to buy more electric vehicles and solar panels and STFU about fuel prices.

 

[Checkerboard Strangler]

Surprise! The U.S. is Still Energy Independent

However, the graph also shows that once we first gained energy independence — which happened in April 2020 on a rolling 12-month basis — we have never lost it. But the downward trend switched directions in June 2021 (which covers the period of June 2020 through May 2021 — portions of both the Trump and Biden presidencies).

The average got close to zero, but it never changed back to a net import situation on a rolling 12-month basis. I would add that it’s not quite as bad as it looks if we were to factor in net exports of coal and natural gas.

 

[Lord Tammerlain]

Oil is a in general a market set price, it can be influenced by withholding supply by not producing as much or by producing more. Storage is not a long term option for companies, it costs a lot of money in inventory and storage fees

 

[OrphanSlug]

No one has proved oil price gouging is happening, not that it ever stops anyone but will someone at least try?

 

[366h34d]

Oil is a in general a market set price, it can be influenced by withholding supply by not producing as much or by producing more. Storage is not a long term option for companies, it costs a lot of money in inventory and storage fees

The only organization that can influence the oil price is OPEC, not US oil companies

 

[Lord Tammerlain]

The only organization that can influence the oil price is OPEC, not US oil companies

Any country or company that produces oil can influence the price, the effect is based on the volume they produce. Russia will have a sizable impact because they export a good volume, enough to impact the price. OPEC of course has the largest potential impact on oil prices

 

[366h34d]

Any country or company that produces oil can influence the price, the effect is based on the volume they produce. Russia will have a sizable impact because they export a good volume, enough to impact the price. OPEC of course has the largest potential impact on oil prices

The problem is that US oil companies cannot produce the volume big enough to make a ding in the oil price

 

[poweRob]

Except thats not true at all. If they increase output the price increases, or decreases, and if they decrease it, it increases, or decreases, or does neither. Thats because oil IS a global market and price is based on futures, and thus heavily on speculation. Its supply, its demand, its speculation, its regulation, its war and competition and technology and govt.

Gouging is not a thing in a free market as there is always a competitor to drive the price down, or demand to dry up at high prices.

 

[tshade]

 

[jonny5]

Double talk is not impressive.

ok

 

[366h34d]

View attachment 67378955

ya, but it is not EOD, just ask EU countries, they need Russian LNG after they go green, only dare to give Ukraine expired weapons.