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Completely wrong. When covid hit and the lock downs started, oil demand took a nose dive, and shortly afterward producers reduced output because of the lack of

Completely wrong. When covid hit and the lock downs started, oil demand took a nose dive, and shortly afterward producers reduced output because of the lack of demand. The reduction in demand was more than the entire oil production of the united states: 15m barrels per day. During the recovery, consumer demand increased at a faster rate than the production increase... leading to rising prices. It continues to be higher than world production. Right now, demand is back to pre-pandemic levels, but production is still a few million barrels (per day) short. You can see that clearly in the first chart on this page: https://www.eia.gov/outlooks/steo/report/global_oil.php https://www.eia.gov/outlooks/steo/report/global_oil.php

JacobThreeThree 5y ago
>but production is still a few million barrels (per day) short That fits perfectly with what OP said. If the production wasn't limited, there would be more production.
- colinmhayes 5y ago
  Except oil producers stopped producing on their own because prices were literally negative. THe government had nothing to do with that.
- xadhominemx 5y ago
  Production is limited by the choice of the oil and gas companies. There are plenty of sites available for extraction, but they are not being exploited because producers have been burned multiple times investing into a short-term spike in prices. If prices remain elevated for a while, they will start to drill.
- rgbrenner 5y ago
  The US oil production COVID low was 9.7m bpd.. we're currently at 11.4m bpd. We're already the #1 producer in the world. If you added the current global shortfall, it would put us way past record levels. Your belief that the US alone can make up this shortfall is entirely based on speculation and the belief of unlimited US production. Again, the COVID dip was larger than the entire US production. It's silly to believe a global problem can be solved entirely by the US. And the issue with OPS analysis is that he wants to blame biden, when his own chart clearly shows prices rising since the COVID dip... something that happened before he was elected. This has nothing to do with politics.

JacobThreeThree 5y ago

>but production is still a few million barrels (per day) short That fits perfectly with what OP said. If the production wasn't limited, there would be more production.

colinmhayes 5y ago
Except oil producers stopped producing on their own because prices were literally negative. THe government had nothing to do with that.
xadhominemx 5y ago
Production is limited by the choice of the oil and gas companies. There are plenty of sites available for extraction, but they are not being exploited because producers have been burned multiple times investing into a short-term spike in prices. If prices remain elevated for a while, they will start to drill.
rgbrenner 5y ago
The US oil production COVID low was 9.7m bpd.. we're currently at 11.4m bpd. We're already the #1 producer in the world. If you added the current global shortfall, it would put us way past record levels. Your belief that the US alone can make up this shortfall is entirely based on speculation and the belief of unlimited US production. Again, the COVID dip was larger than the entire US production. It's silly to believe a global problem can be solved entirely by the US. And the issue with OPS analysis is that he wants to blame biden, when his own chart clearly shows prices rising since the COVID dip... something that happened before he was elected. This has nothing to do with politics.