Looking for more Oil

[MichealKnight]

Whether one is an oil worker, an oil investor, or oil consumer - energy production is FIRE relevant

https://www.nytimes.com/2022/10/05/us/politics/biden-oil-opec.html

"Biden Releases More Reserve Oil and Pushes Companies to Keep Up Production
U.S. officials have been in talks with oil-producing countries in an effort to prevent global oil prices from rising sharply."

 

[bloom2708]

Keep prices low until the Nov elections, then it won't matter for 2 more years.

I think we've created an interesting system.

Oil (and related products) essentially are the economy. People may want that to change, but we are nowhere close to replacing oil.

 

[MichaelB]

<mod note> Politics will cause this thread to shut down.

No doubt the thread dialog might be more interesting and useful if there were something more than a link and headline.

 

[MichealKnight]

Repostng with more than link and headline

Whether one is an oil worker, an oil investor, or oil consumer - energy production is FIRE relevant.

No political party nor entity is endorsed or critiqued by this writer, nor the reporter on the story that is linked - from a rather mainstream source, the New York Times.


https://www.nytimes.com/2022/10/05/us/politics/biden-oil-opec.html

"Biden Releases More Reserve Oil and Pushes Companies to Keep Up Production
U.S. officials have been in talks with oil-producing countries in an effort to prevent global oil prices from rising sharply."

I posted the headline - well - because I felt it encapsulated the story rather well, I apologize. Here's more from the article:

"..... officials have spent more than a week in discussions with their counterparts from oil-producing countries in the Middle East, seeking to minimize production cuts by OPEC Plus, the group led by Saudi Arabia, in an effort to keep global oil prices from rising drastically."

“We are always talking to all producers and consumers, including OPEC Plus partners,” said Adrienne Watson, a spokeswoman for the National Security Council. “That’s been the case for decades and across bipartisan administrations, including this one. We’ve been clear that energy supply should meet demand to support economic growth and lower prices for consumers around the world, and we will continue to talk with our partners about that.”

 

[38Chevy454]

Need to increase domestic oil production, but that's a political hot potato. I have said it many times that oil is the lifeblood of the economy. It will be many years in the future until this changes.

OPEC just gave Biden the finger by cutting their production. I figured oil had peaked and the corresponding oil stocks prices as well a little while back. With the recent actions, oil stocks may run up more. Certainly gas and diesel prices will rise further than the already in place increases this past week.

 

[frayne]

If our so called allies that control the oil spickets want to play games with supply, maybe we should reduce our military/tech support in proportion as reciprocity.

 

[Car-Guy]

Need to increase domestic oil production, but that's a political hot potato. I have said it many times that oil is the lifeblood of the economy. It will be many years in the future until this changes.

OPEC just gave Biden the finger by cutting their production. I figured oil had peaked and the corresponding oil stocks prices as well a little while back. With the recent actions, oil stocks may run up more. Certainly gas and diesel prices will rise further than the already in place increases this past week.

If our so called allies that control the oil spickets want to play games with supply, maybe we should reduce our military/tech support in proportion as reciprocity.

+1

 

[MichealKnight]

Pet Theory

If our so called allies that control the oil spickets want to play games with supply, maybe we should reduce our military/tech support in proportion as reciprocity.

(I am not endorsing, criticizing, mentioning, nor imagining any political party or entity).

My Pet Theory.....

We in the USA have tons of energy resources, including oil. And we get 'upset' when 'allies' do this stuff.

I've always wondered - maybe our quietly held strategy was to use as much of the world's oil supply as we can...... and ONLY THEN truly tapping our own to the max.

Then I ask if we're really that clever..... and well, I'm not sure.

 

[Car-Guy]

(I am not endorsing, criticizing, mentioning, nor imagining any political party or entity).

My Pet Theory.....

We in the USA have tons of energy resources, including oil. And we get 'upset' when 'allies' do this stuff.

I've always wondered - maybe our quietly held strategy was to use as much of the world's oil supply as we can...... and ONLY THEN truly tapping our own to the max.

Then I ask if we're really that clever..... and well, I'm not sure.

Nice thought but no. I think by the time everyone else starts to run low, alternative energy sources "should" be adequately developed and/or on line to satisfy a lot/most of the demand. I think what we need now "too" is an increase in refining capacity, either built, restarted, etc, but that takes time.


In summary, (IMO) we should be able to walk and chew gum at the same time.

 

[CRLLS]

I couldn't read the article as it is behind a firewall.

According to EIA.gov, the USA is already the largest oil producing country. Maybe it is not the most desirable "light crude". Our consumption is only about 6% greater than production Our import of oil has been steadily declining since around 2005.

Oil is a world commodity, so even though we produce the most of any country, the price is set by the world market. It wouldn't take much to be totally self-sufficient but the price of gas is what we are concerned about now. This is nothing like the 70's when we had rationing.

 

[Montecfo]

We are the untenable position of having to go hat in hand to foreign countries not aligned with our interests, begging them to produce more oil.

This is not only sad and wrong, it is strategically dangerous. We need to develop our own rich domestic resources and employ Americans to do the work.

 

[MichaelB]

According to the US Energy Information Administration, the US production matches consumption of crude oil. Still lots of imports and exports (which net out) but that has to do with matching specific requirements for refineries. https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php

 

[ExFlyBoy5]

According to the US Energy Information Administration, the US production matches consumption of crude oil. Still lots of imports and exports (which net out) but that has to do with matching specific requirements for refineries. https://www.eia.gov/energyexplained/oil-and-petroleum-products/imports-and-exports.php

Also, I would note that even if the U.S. could turn on a magic oil spigot, there is almost no extra capacity to refine more oil. U.S. refineries are running at over 95 percent - as refining capacity in the U.S. has dropped by 1.1 million barrels of oil per day since the Coronavirus outbreak; oil production is now at the highest point since the bottom fell out of the oil market in March of 2020.

Also, here is an interesting note about U.S. oil imports from OPEC: The U.S. brought in almost 6 million barrels per day in 2010. It's now less than 1 million barrels per day. It’s the lowest since the late 1960's.

 

[SecondAttempt]

Also, I would note that even if the U.S. could turn on a magic oil spigot, there is almost no extra capacity to refine more oil. U.S. refineries are running at over 95 percent - as refining capacity in the U.S. has dropped by 1.1 million barrels of oil per day since the Coronavirus outbreak; oil production is now at the highest point since the bottom fell out of the oil market in March of 2020.

Also, here is an interesting note about U.S. oil imports from OPEC: The U.S. brought in almost 6 million barrels per day in 2010. It's now less than 1 million barrels per day. It’s the lowest since the late 1960's.

We have about 200 million gallons of already refined gasoline, jet fuel, and other petroleum products in leaking storage tanks on Oahu that the Navy has been ordered to get rid of as soon as possible. If we truly wanted to push the price of gasoline down in the short term it would be happening.

Also, the purpose of the SPR includes aadjusting for supply problems. So OPEC cutting production is a perfectly legal reason to release from the SPR.

 

[REWahoo]

We have about 200 million gallons of already refined gasoline, jet fuel, and other petroleum products....

Hope the govt remembered to add 625,000 gallons of STA-BIL to keep it from going bad.

 

[Car-Guy]

^^^^^^

Correct % mix but, is that shaken or stirred?

 

[aja8888]

We have about 200 million gallons of already refined gasoline, jet fuel, and other petroleum products in leaking storage tanks on Oahu that the Navy has been ordered to get rid of as soon as possible. If we truly wanted to push the price of gasoline down in the short term it would be happening.

Also, the purpose of the SPR includes aadjusting for supply problems. So OPEC cutting production is a perfectly legal reason to release from the SPR.

Even if they could get that OLD product into a tanker (several), the costs to do that, and get it to a facility that could clean it up, put in the correct additives, etc, would be more than what it's worth. Old refined products, without additives, full of water, etc, stored on an island thousands of miles away are a liability.

 

[Exchme]

We have about 200 million gallons of already refined gasoline, jet fuel, and other petroleum products in leaking storage tanks on Oahu that the Navy has been ordered to get rid of as soon as possible. If we truly wanted to push the price of gasoline down in the short term it would be happening.

Also, the purpose of the SPR includes aadjusting for supply problems. So OPEC cutting production is a perfectly legal reason to release from the SPR.

Well, 200 million gallons is 69 minutes of world demand, so that's completely meaningless. Government is inefficient, but I'm sure if there were willing buyers for the waste oil, it would have been sold. I agree with aja8888 that it probably has all kinds of breakdown products and contamination in it. If it has to be disposed of, it will be classified as hazardous waste and that will be expensive. Obviously if it's leaking, it needs to go.

I read OPEC's desire to cut oil production as an acknowledgement that they do not have spare capacity any more. I believe they were overproducing for the last few months as a gesture of goodwill to the US and Europe over the Russian invasion of Ukraine. That risks damaging their reservoirs and hurting ultimate recovery by allowing the reservoir pressure to fall. So they have to fall back to match production to whatever rate they are injecting water (or sometimes gas or CO2). They hate to admit that so much that they would rather be seen as anti-West.

 

[SecondAttempt]

Even if they could get that OLD product into a tanker (several), the costs to do that, and get it to a facility that could clean it up, put in the correct additives, etc, would be more than what it's worth. Old refined products, without additives, full of water, etc, stored on an island thousands of miles away are a liability.

No, this is not OLD waste oil. This is the fuel supply for the Pacific Fleet and the air refueling tankers that patrol the Indo Pacific. It is constantly being cycled out.

And I realize it is a drop in the bucket for WORLD supply but it could make a small difference domestically. I mostly brought it up in response to the comment about low refining capacity. This stuff is already refined.

Also realize that the Navy must put it in tankers. They don't have a choice. They just have to figure out how to do it. And the Hawaii Department of Health just approved the Navy's plan on Friday. The defueling will be completed by July 2024.

 

[SecondAttempt]

... the costs to do that, and get it to a facility that could clean it up, put in the correct additives, etc, would be more than what it's worth.

The cost is estimated to be about $280 million. It's not clear if there are currently 100 million or 200 million gallons in storage so the defueling cost is between $1.40 and $2.80 a gallon. I can only hope that is more than it's worth at some point.

The tanks are already connected by a gravity feed system to fueling piers at JB Pearl Harbor-Hickam.

 

[eytonxav]

I suspect if the recession deepens and more layoffs occur, we will then see a drop in oil prices. Maybe then our strategic petroleum reserve will get replenished.

 

[TripleLindy]

I seem to recall that the current administration was pressuring oil companies to increase production (while also chastising them for high profits) earlier this year but they resisted, citing that they had “learned their lesson” in years prior when chasing high prices and then got burned. Given that, does that make American oil companies like OPEC, controlling supply to increase price? This isn’t meant to be a political question, but more of an observation.

 

[Montecfo]

I seem to recall that the current administration was pressuring oil companies to increase production (while also chastising them for high profits) earlier this year but they resisted, citing that they had “learned their lesson” in years prior when chasing high prices and then got burned. Given that, does that make American oil companies like OPEC, controlling supply to increase price? This isn’t meant to be a political question, but more of an observation.

They have asked *foreign* governments to increase production while putting up hurdles domestically.

 

[HarryHawk]

We have replaced the Drill. Drill. Drill mantra with Drain, Drain, Drain

 

[Oilcan]

We have replaced the Drill. Drill. Drill mantra with Drain, Drain, Drain

+1