“We Can’t Just Drill Our Way to Lower Gas Prices”, Biden Edition

Guest “Remember this?” by David Middleton

March 2012

Obama: Nation can’t drill its way out of soaring gas prices
BY ANDREW RESTUCCIA – 05/06/11

President Obama called for the elimination of billions of dollars in oil industry tax breaks Friday, while stressing that the United States can’t drill its way out of high gas prices.

“We can’t just drill our way out of the problem,” Obama said during an energy policy speech in Indiana Friday. “If we’re serious about addressing our energy problems, we’re going to have to do more than drill.”

[…]

The Hill, May 2011

Let’s drill our way forward to 2018

Obama Was Wrong on Oil. We Did “Drill Our Way Out of the Problem.”

Nicolas Loris, Sep 14th, 2018

When gas prices topped $4 per gallon in May 2011, President Barack Obama said, “We can’t just drill our way out of the problem.”

Throughout his presidency, Obama stated some version of that sentiment every time he wanted to push to subsidize alternative energy sources.

More than seven years later, human ingenuity, technological innovation, and the power of the free market have proven him wrong. To the benefit of American families across the country, the United States is now the largest global producer of crude oil.

[…]

The dramatic increase in supply shows drilling is not just a “bumper sticker” slogan, as Obama called it in his weekly address in February 2012, but a path to energy independence, prosperity, and jobs.

Domestic extraction has lowered gas prices for millions of drivers and saved them hundreds of dollars a year at the pump. A number of factors contribute to the price of gasoline, but crude oil is the largest.

[…]

Nick is an economist who focused on energy, environmental, and regulatory issues as the Herbert and Joyce Morgan fellow.

The Heritage Foundation

“Throughout his presidency, Obama stated some version of that sentiment every time he wanted to push to subsidize alternative energy sources.”

Keep the quote above in mind when you read the following excerpt:

Biden Nat’l Economic Council Head Deese: ‘No Amount of Domestic Production We Can Do to Reduce’ Gas Prices

by TRENT BAKER 9 Mar 2022

White House National Economic Council director Brian Deese on Wednesday addressed the notion of increasing the use of domestic energy to stem the rising gas prices.

Deese argued on CNBC’s “Squawk on the Street” that “no amount of domestic production we can do to reduce” global prices. He suggested the only way to fix prices would be “shifting to cleaner sources of energy.”

[…]

“The medium and long term, I think … the path and the trajectory is clear — there is no amount of domestic production that we can do when we’re dealing with a volatile global commodity, where the price is set globally, there’s no amount of domestic production we can do to reduce or eliminate our vulnerability as a country to that volatility,” he continued. “The only way to do that is to reduce the energy intensity of the economy overall, which means shifting to cleaner sources of energy.”

Breitbart

[T]he only way to fix prices would be “shifting to cleaner sources of energy.”

Sound familiar?

The math isn’t linear and the relationships are somewhat convoluted, but the law of supply and demand is the driving process. US crude oil production is a very large factor in this “volatile global commodity.”

More drilling —> More crude oil production —> Over-supply relative to demand —> Lower gas prices

The increase in drilling activity from 2009-2014 during the shale boom led to an over supply of crude oil relative to demand. The same process played out from 2016-2020 and a new cycle is already underway.

US Rotary Rig Count and Crude Oil Production (data from EIA)

Note that with each cycle, the total number of rigs has fallen. Increasing production with less rigs is driven by drilling productivity improvements. Since 2014, the average initial production rate for Permian Basin wells has increased from 200 bbl/d to 1,200 bbl/d.

Permian Region Drilling Productivity Report, Feb 2022 (EIA)

More US crude oil production led to an over-supply relative to demand and falling gasoline prices.

US Crude Oil Production and Gasoline Prices (data from EIA)

Granted, the 2014 and 2020 price collapses involved more than just US production. 2014 was triggered by OPEC flooding the market with oil. However, they did that because US oil production had surged and they were losing market share. 2020 was a combination of OPEC+ again flooding the market with oil because US production was surging, coupled with the shamdemic-driven drop in demand.

There’s another interesting and very linear relationship. The rig rate goes up and down with gasoline prices (which have a linear correlation with crude oil prices).

US Rotary Rig Rate and Gasoline Prices (data from EIA)

While there are lag times between drilling, production and prices. The rig rate responds very quickly to price changes. Retail gasoline prices rise almost simultaneously with rising crude oil prices. There is a lag between falling crude oil prices and falling retail gasoline prices. However, the relationship is linear.

It is true that increased domestic production can’t fix this problem quickly, nothing short of OPEC+ flooding the market or another shamdemic could do that. However, it absolutely is a long term solution. That said, there’s another key point to address.

“The medium and long term, I think … the path and the trajectory is clear — there is no amount of domestic production that we can do when we’re dealing with a volatile global commodity, where the price is set globally, there’s no amount of domestic production we can do to reduce or eliminate our vulnerability as a country to that volatility,” he continued.

White House National Economic Council director Brian Deese

It is true that we can’t eliminate the volatility of a globally traded commodity. However, we absolutely can drastically reduce “our vulnerability as a country to that volatility” through North American energy independence. This would involve increasing our domestic production and increasing our imports from Canada and, hopefully someday, Mexico. We start with finishing the Keystone XL pipeline, opening up ANWR and other areas in Alaska that are off limits or restricted, fully resuming Federal lease sales and opening up the offshore areas that are currently closed to exploration. The less oil we import from nations outside of North America, the less exposed we are to global volatility.

The US is already energy independent in natural gas. The US produces more natural gas than it consumes. We are a net exporter of natural gas. In January 2022, the US actually became the global leader in LNG exports.

US Natural Gas Production, Consumption and Proved Reserves.
https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html

Europe, on the other hand, consumes far more natural gas than they produce.

Europe Natural Gas Production, Consumption and Proved Reserves.
https://www.bp.com/en/global/corporate/energy-economics/statistical-review-of-world-energy.html

The US exports LNG, Europe consumes LNG. Global LNG prices are far more volatile than US natural gas prices:

Our excess natural gas production and LNG exports have actually led to lower prices here relative to most of the rest of the world.

Negative net imports = Positive net exports
https://www.eia.gov/dnav/ng/hist/rngwhhdA.htm
https://www.eia.gov/energyexplained/natural-gas/imports-and-exports.php

The relationships between production, consumption, net imports and prices aren’t particularly difficult to comprehend. While many other variables come into play, natural gas prices have had a negative correlation with the volume of gas we export since 2007, our peak year of natural gas imports.

Negative net imports = Positive net exports
https://www.eia.gov/dnav/ng/hist/rngwhhdA.htm
https://www.eia.gov/energyexplained/natural-gas/imports-and-exports.php

While natural gas isn’t nearly as fungible as oil, the same principle would generally hold true if all of our imported oil came from North America. Nearly 60% of our imported oil already does come from North America.

North American oil independence would require us to replace the roughly 3.4 million bbl/d that we currently import from outside of North America.

We would already have 500,000 to 900,000 bbl/d of that total had Obama and Brandon not blocked the construction of the Keystone XL pipeline. A year before Brandon shut it down (again), Trans Canada had already secured commitments of 500,000 bbl/d.

Mar 10, 2022
Why Biden’s Killing Of Keystone XL Was An Energy Security Blunder

David Blackmon Senior Contributor
Energy

Watching the Biden administration go hat-in-hand to ask for more oil production from the despotic regime of Nicolas Maduro in Venezuela reminded me of the reason why the Keystone XL Pipeline was such a key system for U.S. energy security. According to the U.S. State Department in 2014, America’s energy system had a need for more heavy crude from Canada to replace declining volumes from Mexico and – you guessed it – Venezuela.

“Gulf Coast refiners’ traditional sources of heavy crudes, particularly Mexico and Venezuela, are declining and are expected to continue to decline. This results in a situation where the refiners have significant incentive to obtain heavy crude from the oil sands. Both the EIA’s 2013 AEO (EIA 2013a) and EnSys WORLD model indicate that this demand for heavy crude in the Gulf Coast refineries is likely to persist.” [emphasis added]

[…]

In a recent exchange with Peter Doocy of Fox News, White House spokesperson Jen Psaki offered this disingenuous statement about Keystone XL: “If we’re trying to bring about more supply that does not address any problem,” Psaki said. “The pipeline is just a delivery mechanism – it’s not an oil field, so it does not provide more supply into the system.”

This is, of course, a lot of stuff and nonsense, as the late James J. Kilpatrick would have said. It is completely fair to note that, had President Biden not cancelled the cross-border permit for Keystone XL on his first day in office, that pipeline system would likely be in service today, and would be bringing as much as 900,000 barrels of crude oil into the U.S. system. That’s more than enough to offset volumes of crude coming into the U.S. from Russia, and to eliminate a need to offset those now-banned Russian volumes by begging for more such heavy crude from Venezuela.

[…]

Forbes

Jen, you ignorant…

Psaki said. “The pipeline is just a delivery mechanism – it’s not an oil field, so it does not provide more supply into the system.”

Is she really that stupid?

Meanwhile, as discussed above, U.S. demand for imported crude is expected to grow heavier. Declining supplies from Mexico and Venezuela were partially offset by greater imports from Canada as well as small volumes from Colombia and Brazil, which are heavy crude producers where oil production has been growing.

Final Supplemental Environmental Impact Statement, Keystone XL Project

The Keystone XL pipeline would be providing 500,000 to 900,000 bbl/d of Canadian oil into the system. The additional Canadian oil would be replacing declining heavy oil imports from Venezuela and Mexico and meeting the growing demand from US refiners. Some of the relatively small volume of crude oil we were importing from Russia was replacing Venezuelan oil.

Canada can increase oil exports to U.S., but won’t be enough to fill Russia gap: experts
By Amanda Stephenson The Canadian Press
Posted March 8, 2022

[…]

In Houston, Texas, where he was attending the international energy conference CERAWeek, Alberta premier Jason Kenney said he was spreading the message that his oil-producing province is ready and willing to help the U.S. fulfil its need for energy.

“Instead of replacing conflict oil from Russia with conflict oil from Saudi, Iran and Venezuela, work with us,” Kenney said on Twitter on Tuesday. “Alberta is the solution.”

In recent days, Kenney has also called on Biden to reinstate the approval of the Keystone XL pipeline expansion, which Biden cancelled shortly after his inauguration, in order to increase Canadian oil exports to south of the border.

[…]

Tristan Goodman, president of industry group the Explorers and Producers Association of Canada, said this country has the ability to immediately increase that number, either through existing pipeline networks or crude-by-rail shipments.

“There’s an immediate ability to add some degree of production, and I do mean immediate — weeks to months. It will be a small amount, but it will be noticeable,” Goodman said.

However, Goodman said due to under-investment in pipeline infrastructure and the Canadian energy sector as a whole in recent years, the most Canada could expect to supply would be a maximum of 400,000 barrels per day, “if we’re lucky.”

[…]

Global News

Despite the cancellation of Keystone XL, Canadian operators were already gearing up to increase production in 2022.

In addition to Brandon’s Keystone XL energy blunder, he cancelled the ANWR Area 1002 leases that were awarded at the end of the Trump administration. The EIA estimated that, assuming significant discoveries were made, ANWR would be producing about 500,000 bbl/d from 2033 to 2050. The Trans Alaska Pipeline currently has about 1.5 million bbl/d of excess capacity. Other offshore and onshore areas controlled by the Federal government, could bring North Slope production up to about 3 million bbl/d from the current 500,000 bbl/d. It would take a decade or more to do this, if the areas were opened up. However, industry can’t get there unless they’re allowed to start.

BOEM estimates that the Atlantic OCS area has a most likely potential of 4.7 billion bbl. Canadian Atlantic offshore operators are currently producing over 230,000 bbl/d from plays that run right up to the boundary between US and Canadian waters. This area has been closed off to exploration since the early 1980’s. The industry hasn’t even been allowed to acquire modern 3d seismic surveys in the area.

  • Keystone XL: 500,000 to 900,000 bbl/d
  • Alaska North Slope: 500,000 to 2,500,000 bbl/d
  • Atlantic OCS: 250,000 bbl/d

That’s enough production to replace 1.25 to 3.65 million bbl/d of oil that we currently import from outside North America. It would also add to the global supply balance.

Until we start seriously drilling, we won’t know if ANWR and the Atlantic OCS yield giant oil fields, marginal production or nothing but dusters. Even if successful, it would take at least a decade to bring meaningful production online. However, if we never start, we will never know.

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fretslider
March 11, 2022 2:05 am

Post-modern economics

You have to suspend your disbelief when it comes to supply and demand

They should make the leaf the unit of currency…

Carbon Bigfoot
Reply to  fretslider
March 11, 2022 4:01 am

This morning mental midget Democrats’ answer on CNBC– tax hikes on BIG OIL excess profits. That will help foster Cap-X spending to bring more oil on line.

ThinkingScientist
Reply to  fretslider
March 11, 2022 4:11 am

I think the idea of a B Ark for all the enviro-idiots and politicians is getting more attractive by the day….

fretslider
Reply to  ThinkingScientist
March 11, 2022 4:27 am

I can’t see a downside to that idea.

Scissor
Reply to  fretslider
March 11, 2022 4:34 am

My favorite riddle as a youngster was, “How does an elephant get down from a tree?”

“He jumps on a leaf and waits til fall.”

This was followed up with, “You don’t get down from a tree, you get down from a goose.” So young at the time, I didn’t understand this part.

The leftists still think you get down from a tree.

H.R.
Reply to  Scissor
March 11, 2022 4:48 am

Why do ducks have flat feet?
Ans: From stamping out forest fires

Why do elephants have flat feet?
Ans: From stamping out flaming ducks.

Why do whales live in the sea?
Ans: To stay away from flaming elephants.


There are some who would believe that and don’t realize that it’s a joke… and they vote.

Doug S
Reply to  H.R.
March 11, 2022 5:57 am

The Elephant Joke book! Such fond memories reading that as a kid.

“How do you stop a charging elephant? Take away it’s credit card.”

griff
Reply to  H.R.
March 11, 2022 6:35 am

Why do elephants wear ripple soled shoes?
to give the ants a 50/50 chance…

Teddy Lee
Reply to  griff
March 11, 2022 6:49 am

Like that Griffy,droll! Now try to maintain the same standard for your unreliables pitch.

DonM
Reply to  Teddy Lee
March 11, 2022 10:02 am

That is the problem right there … it does use the same standard.

There is as much reality in giffs elephant logic as there is in its renewable logic.

David Anderson
Reply to  H.R.
March 11, 2022 11:39 am

What’s 15 feet long, green and hangs from trees?

Elephant snot.

Scissor
Reply to  David Anderson
March 11, 2022 3:51 pm

What’s green and skates?

Peggy Flem.

Tom in Florida
Reply to  Scissor
March 11, 2022 5:54 pm

What’s green and sits on your back porch?
Pattie O’Furniture

Ron Long
Reply to  fretslider
March 11, 2022 6:27 am

Right, fretslider, and add “speculation” to supply and demand. In this age of day-traders the beta in the various markets, including oil futures, is much larger than 10 years ago. Like this: I’m speculating that the idiots on the left are going to lose many elections this November.

Derg
March 11, 2022 2:13 am

Obama was 3rd worst President, Carter #2 and #1 and he hasn’t been in office long ?

Joe Biden.

The guy is a douche who cares nothing of people. He tells the American people that he must have a black female for Supreme Court. So how does this woman feel knowing she is a token and got the job not because of her qualifications but by the color of her skin. MLK spinning in his grave. Cripes Joe, your administration is an abject failure.

Philip Mulholland
Reply to  Derg
March 11, 2022 2:37 am

Derg,
And then there is the issue of assigning the appropriate gender pronoun representative:

A / ae / aer / aers / aerself / all / another / any / anybody / anyone / anything / as / aught /
B / both / bun / buns / bunself /
C / ce / cir / cirs / cirself / co / cos / coself /
E / e / each / each other / eir / either / em / emself / enough / everybody / everyone / everything / ey /
F / fae / faer / faers / faerself / few /
H / he / her / hers / herself / him / himself / hir / hirs / hirself / his / hu / hum / humself / hus / huself /
I / I / idem / it / its / itself /
J / jee / jeir / jem / jemself /
K / kye / kyne / kyr / kyrself /
L / lee / lim / limself / lis / liself /
M / many / me / mine / most / my / myself /
N / naught / ne / neither / nem / nemself / nir / nis / no one / noboby / none / nothing / nought / nym / nymself /
O / one / one another / other / others / ought / our / ours / ourself / ourselves /
P / per / pers / perself /
S / several / she / sie / sier / siers / sierself / some / somebody / someone / something / somewhat / such / suchlike /
T / tem / temself / ter / tey / that / thee / their / theirs / theirself / theirselves / them / themself / themselves / there / these / they / thine / thon / thons / thonself / those / thou / thy / thyself /
U / Us /
V / vae / vaer / vaers / vaerself / ve / ver / vers / verself / vi / vir / virs / virself /
W / we / what / whatever / whatnot / whatsoever / which / whichever / who / whoever / whom / whomever / whomso / whomsoever / whose / whosever / whosesoever / whoso / whosoever /
X / xe / xem / xemself / xie / xim / ximself / xyr /
Y / ye / yon / yonder / you / your / yours / yourself / yourselves /
Z / ze / zed / zeds / zedself / zes / zeself / zhe / zher / zhers / zerself /

That’s really going to pack the Supreme Court.

fretslider
Reply to  Philip Mulholland
March 11, 2022 2:54 am

“As well as living in an age of emotionalism, we live in a time of tribal politics. And these are a strange sort of tribal politics. They are no longer about left versus right, but more about feeling versus reason, of fashionable causes that earn you peer approval versus unfashionable causes that don’t.”

https://www.spiked-online.com/2022/03/11/the-tyranny-of-emotion/

Our Labour party’s women can’t bring themselves to say what a [real] woman is. They prefer to appease a woke minority rather than answer Woman: Adult human female.

According to Anneliese Dodds, their shadow minister for women and equality, ” ‘there are different definitions legally around what a woman actually is’.

Last edited 2 months ago by fretslider
Spetzer86
Reply to  fretslider
March 11, 2022 4:45 am

Brandon has clearly stated that he favors “truth” over facts. Does anything he says matter after that?

Teddy Lee
Reply to  fretslider
March 11, 2022 6:51 am

And a latent fear of rabbit holes.

Drake
Reply to  fretslider
March 11, 2022 8:03 am

“They are no longer about left versus right, but more about feeling versus reason,” 

That is. of course, incorrect. Left vs Right has ALWAYS been about “feeling” vs REASON. ALWAYS.

renbutler
Reply to  Philip Mulholland
March 11, 2022 7:14 am

The letters D, G, and Q are demanding more diversity and inclusivity.

Last edited 2 months ago by renbutler
Drake
Reply to  renbutler
March 11, 2022 8:05 am

Devil, God and Queer

There.

TonyG
Reply to  renbutler
March 11, 2022 10:59 am

I don’t know about G, but I’ll take DQ

Philip Mulholland
Reply to  renbutler
March 13, 2022 1:32 am

That leaves just poor lonely R

Allan MacRae
Reply to  Derg
March 11, 2022 3:32 am

Why exactly do people say Carter was so bad? I would say Obama and Biden were much worse – actually traitors to the USA. Carter may have had his problems, but he was dedicated to the USA – not to the WEF and other foreign powers like Obama and Biden – Traitors!.

jeffery p
Reply to  Derg
March 11, 2022 6:07 am

I tend to rate Obama worse as he had 8 years to reduce America and Carter only had one term. Obama also hated America, whereas Carter was misguided.

But yeah, Brandon is bad, really bad. At least Obama and Carter believed in something. Brandon only believes in himself. Like a lot of career politicians, he believes he deserved to be president and lacked any real vision.

Brandon’s always been a mental midget with a big ego to compensate for his lack of abilities. That makes him dangerous. Let’s not even get into his diminished capacity or his poor physical health.

Derg
Reply to  jeffery p
March 11, 2022 9:07 am

I can accept that.

Frank from NoVA
Reply to  Derg
March 11, 2022 4:09 pm

I certainly didn’t vote for any of your worst Presidential picks, but would not include Jimmy Carter, who is a pretty decent human being based on his work with Habitat for Humanity. He also got the ball rolling on deregulation, which Reagan continued to emphasize.

If you want nominees for the the worst stinkers, consider the presidents our historians drool over. These would be the guys who did the most to change the US from a decentralized, limited government, constitutional republic to the all-powerful centralized mega-government that we all know and love today. In no particular order these would include:

Wilson (arch progressive fiend – not enough time in the day to list transgressions)
Roosevelt, F (New Deal)
Lincoln (800K dead and implementation of total war to collect a tariff)
Roosevelt, T (proto neo-con / progressive)
LBJ (Great Society, Vietnam)

Last edited 2 months ago by Frank from NoVA
Frank from NoVA
Reply to  David Middleton
March 11, 2022 9:42 pm

Ha! Do you suppose Ted became a member?

Lee Sherman
Reply to  Frank from NoVA
March 11, 2022 8:12 pm

F Roosevelt got us wwII. He could have nipped in the bud by destroying the Jap navy when it approached HI. He wanted war. He didn’t share the 12/7 attack info w/ mil in Pearl. Traitor.
Lincoln wanted to end the embarrassment of slavery. No country can be great if it enslaves its people.
T Roosevelt was a great man.
But you are correct about the remaining two and Franklin. Scum of the earth, aka politicians.

roaddog
March 11, 2022 2:47 am

Unsurprisingly, the rabidly anti-American policies of Barack Obama survive into his third term.

Spetzer86
Reply to  roaddog
March 11, 2022 4:46 am

And few have thought out what this insane increase in fuel prices is going to do to farmers and truckers in the near term. Some might survive 2022, but I wonder if many will be able to plant come 2023?

Joseph Campbell
Reply to  Spetzer86
March 11, 2022 7:49 am

The most serious question of the day, for sure. Some farmers out there?…

Elle Webber
Reply to  Joseph Campbell
March 11, 2022 3:07 pm

Retired farmers here. It’s the cost (and shortages) of fertilizer that’ll be worse. Fertilizer was our biggest expense. Oh look!— that’s in crisis too.

Kevin kilty
Reply to  Spetzer86
March 11, 2022 11:34 am

Hopefully, some of the more forward looking managed to place hedges via the futures markets. Unfortunately one has to be very careful playing in a market that was used to let Hilary Clinton make $100,000 on a $1,000 speculation. It is not entirely on the up and up.

Hedging is not speculation by the way. Hedging is a way of straddle trading to help control your costs and lock in profits.

Oldseadog
March 11, 2022 2:50 am

In the paper this morning it says that in the last few weeks 5 new North Sea gas fields came on stream with another 4 due to start production during the next few months, and a couple of “giant” fields which will start production in 2024 have been “given the goahead”

Jay Willis
Reply to  Oldseadog
March 11, 2022 3:05 am

Oh, quelle surprise!. It was there all along?

Teddy Lee
Reply to  Oldseadog
March 11, 2022 6:53 am

Let’s hope someone lets Kwasi know.

Richard Page
Reply to  Teddy Lee
March 12, 2022 2:17 pm

I think Kwasi’s still trying to work out the onshore fracking situation. Somebody (probably Nicola Sturgeon) will catch him up on the sea situation.

Richard Page
Reply to  Oldseadog
March 12, 2022 2:15 pm

One of the positive stories in the news is that the drilling companies have axed all of the deals they had to sell North Sea Gas to Gazprom, instead going with western companies such as BP.

Tom.1
March 11, 2022 3:05 am

Nothing will ever sway the oil haters. They will always hate oil and do whatever they can to diminish its importance. It is pathological.

Tom.1
March 11, 2022 3:18 am

This is relevant.

…an abstract ideological project that serves as a not-so-subtle Trojan horse for the entire progressive agenda.

Environmentalist Politicize or Ignore Energy Crisis | National Review

Dodgy Geezer
March 11, 2022 3:27 am

I have been reading, as you do, about safety and resilience engineering with the emphasis on security.

In much of the advice, the point is made that problems are rarely directly related to the actual critical item – they often stem from some other unconsidered part entirely. One paper pointed out that an attacker wishing to destroy an important enemy asset would be unlikely to attack it directly – it would be well defended. Instead, it would be much more cost-effective to undermine it by attacking something it depended on, but was less well defended.

Barnes Wallis understood this in WW2 – he developed bombs which were NOT intended to impact the heavily-protected enemy asset directly, but rather the unprotected ground on which they stood. Blowing this away meant that they would collapse.

We have a fundamental service on which all aspects of our technical society depends – the power generation and distribution service. Supplies of both electricity and gas are essential for our critical assets – you can’t run a factory, a stock exchange, a city or a transportation system without them.

I wonder if an enemy has read the same documents as I have, and is busy undermining the ground on which we depend at the moment?

Leo Smith
Reply to  Dodgy Geezer
March 11, 2022 4:24 am

I wonder if an enemy has read the same documents as I have, and is busy undermining the ground on which we depend at the moment?

Read it – the Marxists WROTE it.
What does a wealthy happy stable society depend upon.?

A well understood set of cultural norms, based in general on Christian ethics like the nuclear family, heterosexual sex, father provides, mother nurtures, plus property rights, if you work for it you deserve to keep it and so on. Attack that with ‘gender politics’ and ‘LBGT rights’ and ‘all property is theft’ .
Access to affordable – and that means low man-hours and low energy-to-extract – energy. Attack that with ‘climate politics’ , nuclear scare stories, fracking scare stories, pollution scare stories..
A strong sense of national and cultural identity that allows a nation or a bloc to act as a cohesive whole in the face of an external threat. Attack that by an assault on its history, its national pride, and by setting one part of it against another.
A strong healthy technology and science base..Well, attack that by undermining the very assumptions on which its based. Science is now a ‘white male dominated cultural aberration’ .

These people, and we all know who they are, are not stupid misguided idiots – they are, whether they know it or not, foreign agents, fifth columnists. They may think they are only doing it for power and money – but they haven’t stopped to consider the implications.

Last edited 2 months ago by Leo Smith
OweninGA
Reply to  Leo Smith
March 11, 2022 5:00 am

 They may think they are only doing it for power and money – but they haven’t stopped to consider the implications.

This might be true of the rank and file. I believe the chief activists know full well what they are doing and what they hope for the end-state. They seem to forget that the successful revolutionaries are almost always eaten by the revolution. The new state can’t afford to have people around that have shown success at bringing down the state!

MarkW
Reply to  OweninGA
March 11, 2022 5:46 am

They know they are destroying everything, and that has always been their goal. Before you can “build it back better, you first have to destroy what was there before.

meiggs
Reply to  Dodgy Geezer
March 11, 2022 6:37 am

yes

Allan MacRae
March 11, 2022 3:47 am

Another very good article by David Middleton, who understands the petroleum business.

As David states, the shale oil business is very price-sensitive and can respond quickly to price. The Alberta oil sands industry takes longer to respond and has been effectively sabotaged by leftist phony-green groups, bought/corrupt politicians and judges.

To grow Alberta oil sands production, we must bring back the income tax and royalty changes that I initiated decades ago – 100% CCA rate and 25% DNP Royalty with a 1% gross minimum until payout. The federal Libs and NDP (the treasonous Left) killed the tax changes and Premier Ed Stelmach (idiot Conservative) ruined the Royalty agreement. The Stelmach sliding scale Royalty (increasing Royalty % with increased oil price) sterilized oil sands growth due to inflation. Destructive moves all around.

Atmospheric CO2 is still increasing, in a now-cooling world – one more disproof of the CAGW hypo. I predicted the current climate and energy debacle in papers published in 2002.

It is impossible to believe that rational politicians could be this wrong for this long. The Left are traitors, deliberately sabotaging North American energy production based on the frauds of CO2-driven catastrophic warming and intermittent, diffuse green energy schemes (scams).

We also need more export pipeline capacity to the Pacific, Atlantic and Gulf Coasts – as a National Strategic Priority, with stiff jail sentences for those who delay, including corrupted leftist judges.

We’ve been played for more than a decade by extremist anti-pipeline activists, who have gamed the system and corrupted the environmental process for political objectives.

Last edited 2 months ago by Allan MacRae
Joseph Campbell
Reply to  Allan MacRae
March 11, 2022 8:05 am

To see the “hill we have to overcome” look at https://www.opensecrets.org/industries/contrib.php?cycle=2020&ind=Q11. The top three environmental groups spent almost $30 million over the last election cycle; 99.9% to democrat-supporting groups/topics, 0.1% to republican-supporting groups. Gad!…

Allan MacRae
Reply to  Joseph Campbell
March 11, 2022 9:39 am

$1.3 billion of largely USA money entered Canada to sabotage our economy by opposing much-needed pipelines, as stated in the Steve Allan report. Cost to Canada in lost oil revenues: over $120 billion. Not a peep out of the Trudeau fraudsters. Read CorrectPredictions.ca for the full scam.
 
Freeland and Trudeau are TRAITORS plain and simple. Nuremberg 2.0 trials to follow.
 
EXCLUSIVE: Canada’s Deputy Prime Minister Chrystia Freeland’s Grandfather Was a Nazi and She Admires George Soros. It’s No Surprise She’s Labeling Freedom-Loving Canadians Terrorists
https://www.thegatewaypundit.com/2022/02/exclusive-canadas-deputy-prime-minister-chrystia-freelands-grandfather-nazi-admires-george-soros-no-surprise-labeling-freedom-loving-canadians-terrorists/

NSICOP found ample evidence that both Justin Trudeau and Chrystia Freeland are under the influence / control of foreign states and entities
http://ncio.ca/briefings/index.php/2021/07/10/nsicop-found-ample-evidence-that-both-justin-trudeau-and-chrystia-freeland-are-under-the-influence-control-of-foreign-states-and-entities/

OweninGA
March 11, 2022 3:56 am

Democrats can’t just drill their way out of high oil prices. It is true. If they did that they would not be Democrats. The idea is that they can herd us all into “renewables” if the energy prices “necessarily skyrocket.” After all, the only way to “fundamentally transform” the country is to break its economy first, causing all those who have been conditioned to think government is solution to all of life’s problems to clamor for Democrats to fix it.

John Garrett
March 11, 2022 4:19 am

Thank you, Mr. Middleton.

Let free markets do their job.

Will the citizen-voters of Rhode Island, Massachusetts, Vermont, Connecticut, New York, New Jersey, Delaware and Maryland ever wake up?

OweninGA
Reply to  John Garrett
March 11, 2022 4:54 am

Will the citizen-voters of Rhode Island, Massachusetts, Vermont, Connecticut, New York, New Jersey, Delaware and Maryland ever wake up?

Short answer: No!

Longer more complicated answer: The Urbans centers can’t comprehend the problem and they control the politics of those states. As long as they can still get their Starbucks and walk to the bus stop and go anywhere in the 10 sq miles or so from their home easily, they are content. Who cares about those uncool losers that make all the stuff and grow and haul all the food, they should just move to the city and be cool like us! or same as the short answer, NO!!!!

MarkW
Reply to  John Garrett
March 11, 2022 5:48 am

As long as the free money doesn’t run out, they will never wake up. These are the people who think that food comes from grocery stores and electricity comes from wall sockets.
They also believe that wealth comes from government and that more government means more wealth, at least for them.

George Daddis
Reply to  MarkW
March 11, 2022 7:01 am

Agreed! And this is not racial.
But when you buy votes by exempting on average about one half the US population from having any Federal tax “skin in the game” you then have even more folks willing to trade their vote for even more freebies.

But wait; it gets worse. I said on average about 1/2 the population doesn’t have to pay for the freebies; but what is the chance that that ratio is even higher in the NY metropolitan area states?

Jeff L
March 11, 2022 5:21 am

Much more important than ANWR in AK is getting full industry access in NPRA – a much larger area with many more wells already proving working petroleum systems, including the Nanushuk play which industry has made multiple large conventional discoveries in on adjacent lands that are open for exploration.

For those who don’t know NPRA stands for Nation Petroleum Reserve Alaska. This is a large portion of the North Slope of Alaska set aside by the government for petroleum development, of which large portions are currently off-limits because of enviromentalists & the government. There is no excuse for industry not to have full access for exploration and development in this region.

Bruce Cobb
March 11, 2022 5:54 am

Referring to the pandemic as a “shamdemic” is retarded, but the analysis of oil production and pricing is spot on, as usual.

jeffery p
Reply to  Bruce Cobb
March 11, 2022 6:15 am

I think shamdemic refers to how a virus that is dangerous to a small and well-known segment of the population was hyped into being the new plague. By well-known, I mean we knew by the middle of 2020 who was vulnerable and who was not. We knew healthy younger adults have low risk and healthy children have statistically zero risk. Yet we masked everybody, shut down the economy, closed schools, etc., etc., etc…

jeffery p
Reply to  David Middleton
March 11, 2022 7:25 am

Yep

DaveinCalgary
Reply to  jeffery p
March 11, 2022 7:24 am

Perhaps using the phrase “pandemic overreaction” would be more professional and consistent with the high standard of the rest of the essay.

Drake
Reply to  DaveinCalgary
March 11, 2022 8:33 am

Nope, that would be an understatement of the actions taken and would leave out the political component of the “overreaction”, i.e., leftists trying out their population control methods for future use.

“THE SCIENCE” never justified the restrictions, thus “shamdemic” is suitable.

If the common “flue” arrived from nowhere (although the China flue originated in a lab, not from nowhere) the death toll would be far higher than that of the China Virus. It would be much higher in the very young, although the death toll among the old and unhealthy might be the same as with the Wuhan Manufactured virus.

DaveinCalgary, you sound like a diplomat. They are always willing to equivocate with words to somehow soften the actual effect of some action.

Drake
Reply to  jeffery p
March 11, 2022 8:24 am

And Mass is STILL masking its school children.

meiggs
Reply to  Bruce Cobb
March 11, 2022 6:41 am

scamdemic

DonM
Reply to  Bruce Cobb
March 11, 2022 10:30 am

Early on (about 18 month ago) an Ivermectin study ( a reasonable one) showed a 70% reduction in mortality … it appears to have been suppressed with help from a guy named Andrew Owen (University of Liverpool; recipient of $40 million and with ties to more pharma/(usless) Remdesiver $$$).

A recent study showed the same potential 70% reduction in mortality given reasonable Ivermectin use. https://pubmed.ncbi.nlm.nih.gov/35070575/

Plandemic or Scamdemic or Shamdemic; all reasonable descriptors of the pandemic.

mkelly
March 11, 2022 6:08 am

Years ago deep water rigs were being dragged overseas. Have those come back or been replaced? Also rig daily rental fees went way up what effect if any does this have on drilling now?

ThinkingScientist
Reply to  David Middleton
March 11, 2022 7:37 am

Rig rates currently $200K+ per day?

mkelly
Reply to  David Middleton
March 11, 2022 8:36 am

Thanks.

Tom Halla
March 11, 2022 6:12 am

The truth is “we will not let you drill your way out of high prices”.

ResourceGuy
March 11, 2022 6:16 am

It just shows how strong the strings are that these political puppets dangle from. The American people are just a medium to manipulate and make fun of while serving the advocacy group masters.

meiggs
Reply to  ResourceGuy
March 11, 2022 6:41 am

stoopid as stoopid does

c1ue
March 11, 2022 6:34 am

The problem is that the most of the entire PMC (Professional/Managerial class) fundamentally thinks alternative energy can work, even though it is 100% clear that solar PV and wind cannot be base load until a miracle electricity storage solution is found. And the “greens” are almost all against nuclear.
So in their deepest hearts, they like high oil, gasoline, natural gas, etc prices – because they make enough money that $10/gas isn’t a big deal.
The problem is that for the rest of us – high energy prices = real suffering.

Teddy Lee
March 11, 2022 6:45 am

Deese is a idiot. Using domestic supply gives you the opportunity to disregard global prices.

Meab
Reply to  Teddy Lee
March 11, 2022 8:55 am

So, if increased domestic production doesn’t decrease oil prices why was WTI cheaper than Brent?

Elle Webber
Reply to  Teddy Lee
March 11, 2022 3:29 pm

No, not really. Because oil companies are private businesses and not state owned enterprises. So it doesn’t safeguard against high fuel prices, but it more or less safeguards your country’s fuel supply, in a crisis. At least though you are not at the mercy of dictators who may turn off your supply at a whim.

This was tried in Canada some years ago: Trudeau Senior decided to sell oil to Eastern Cdns at discount pricing, ripping off the Albertans and businesses who extracted/etc that oil and who regarded the program, rightly, as theft. Forty years later and you could still start a bar brawl in Alberta if you advocated NEP (National Energy Program).

Andy Pattullo
March 11, 2022 7:09 am

And by “fixing prices” they mean making energy unaffordable for all but th elites.

jeffery p
Reply to  Andy Pattullo
March 11, 2022 7:30 am

That’s not a design flaw, it’s a feature. When people can’t afford things that gives them the opportunity for a new big government program to subsidize energy prices. The more people become dependent upon the government for basic needs and wants the more power the politicians, bureaucrats and elites have.

Curious George(@moudryj)
Reply to  Andy Pattullo
March 11, 2022 10:03 am

Fixing is the practice of setting the price of a product rather than allowing it to be determined by free-market forces. Fixing a price is illegal if it involves collusion among producers or suppliers.
[Investopedia.com]

TallDave
March 11, 2022 7:46 am
March 11, 2022 8:22 am

Obama: Nation can’t drill its way out of soaring gas prices”

Contrary to a fundamental law of economics, idiocrats claim increasing supply won’t affect prices.

ResourceGuy
March 11, 2022 8:58 am

This should be proof positive of what DC and the Beltway think of American intelligence. This of course comes with complete confidence in their control of the media. That is the same level of confidence that Putin has in covering all his moves with confidence.

James F. Evans
March 11, 2022 9:01 am

The point: oil & gas production can’t turn on a dime.

What is needed is a sustained & consistent policy of “drill baby, drill.”

Democrat control of oil & gas policy will lead to economy killing restrictions.

But with consistent policy (North) America can regain “market maker” status.

Slowroll
March 11, 2022 9:55 am

What is ignored but all lefties politicians and their useful idiot followers is that oil prices rise and fall on anticipation of supply levels, not the actual events of more or less supply.

Tom in Florida
Reply to  Slowroll
March 11, 2022 6:05 pm

Correct. Oil prices are futures contracts. When policies point toward more production, futures contracts go lower. When government policies inhibit production, speculators buy up futures contracts anticipating reaping rewards when selling those contracts at a higher price. Those speculators have no intention of taking delivery of that oil but gamble they can sell those contracts to those that want the oil who are looking to buy those contracts at a lower price than what it may be in the future.

March 11, 2022 11:21 am

I hear the Saudis and UAE weren’t taking Biden’s calls, so he’s had to fly out to the Middle East to beg for more production.

ih_fan
March 11, 2022 11:37 am

Deese argued on CNBC’s “Squawk on the Street” that “no amount of domestic production we can do to reduce” global prices.

Then why did they release oil from the Strategic Petroleum Reserve knowing that it couldn’t reduce global prices?

What the Brandon Regime means instead is that “nothing that we are in favor of doing can reduce global prices”.

David Anderson
March 11, 2022 11:38 am

corollary: You can’t improve traffic by building roads. In fact we should start tearing them up.

Bob
March 11, 2022 12:40 pm

We can’t allow bad people to form our discussions. Obama, Biden and their minions regurgitate over and over that we can’t drill our way to lower prices or less global volatility. Doing that is not our job nor should it be. We need energy whether it is electricity or fuel it is our responsibility as a nation to get that energy at a reasonable cost. It is far more reasonable to use our own resources for the simple reason that we don’t have to rely on others. If we can buy energy cheaper elsewhere then we should take advantage of it. If outside sources become unreliable or more expensive then we use more of our own resources. It couldn’t be simpler. I am in favor of nuclear power for my electricity so we have lots of fuel for our hot rods.

Doonman
March 11, 2022 12:57 pm

“We can’t just drill our way out of the problem,”

But we can print our way out of an economic problem.

The stupidity of democrat policies doesn’t change. Enjoy your energy poverty and your kid’s future economic poverty.

Remember, anyone who reduces your standard of living is not your friend.

Last edited 2 months ago by Doonman
ResourceGuy
March 11, 2022 1:43 pm

I’m not sure Canada gets the signal to drill.

Baker Hughes rig count.png
Kip Hansen(@kiphansen2)
Editor
March 11, 2022 1:59 pm

Even if we stop the foolish burning of valuable fossil fuels, we will still need more and more oil and gas production — most everything is made out of petroleum products today.

A challenge to the nay-sayer: Walk through your house and throw out everything that contains a component made from petroleum. If there is anything still left worth saving, throw out those remaining items that could not have been made without a fossil fuel fired manufacturing plant — anything steel or any other metal, anything plastic, and cement….

Hope you like living in a canvas tent….

Tom in Florida
Reply to  Kip Hansen
March 11, 2022 6:06 pm

or a straw hut.

Kip Hansen(@kiphansen2)
Editor
Reply to  Tom in Florida
March 11, 2022 6:45 pm

Tom ==> One of the best lessons my youngest son’s greatest life lessons was being sent to a Dominican batey (where Haitian sugar cutters live in mud and trash huts) to do a report for his international high school class — his comment after videoing the batey and making a video report was “But Dad, these people have nothing…I ,mean NOTHING!”

That’s the worst case scenario.

Gunga Din
March 11, 2022 3:55 pm

How much did the CEO-Obama-Donors of Solyndra personally lose when it went bankrupt on the tax-payers’ many, many dimes?
And that was just one of the Green companies he funneled tax-payer dollars to.

john
March 11, 2022 3:56 pm

““We Can’t Just Drill Our Way to Lower Gas Prices”, Biden Edition”

There is a strong echo in the White House along with a tremendous amount of lying.

Lee Sherman
March 11, 2022 7:58 pm

Reagan had it right. He said “most of the stuff democrats know is just wrong”. Is it bc they are stupid or evil, or both?

Richard Page
Reply to  Lee Sherman
March 12, 2022 4:55 am

Neither – they are ignorant and arrogant, a very dangerous combination.

March 11, 2022 11:36 pm

Confusing this, so in the US gas for cars is a liquid?

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