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"shutting down domestic energy production" which "inarguably happened" If oil companies slowed down their drilling, easily accounted for by decreased demand ca

"shutting down domestic energy production" which "inarguably happened" If oil companies slowed down their drilling, easily accounted for by decreased demand caused by a massive recession. The President had nothing to do with it. https://rigcount.bakerhughes.com/ https://rigcount.bakerhughes.com/ https://tradingeconomics.com/united-states/crude-oil-rigs https://tradingeconomics.com/united-states/crude-oil-rigs

leereeves 4y ago
> The President had nothing to do with it. You're just going to ignore all the ways the President has opposed the oil industry? The President's actions have repeatedly signaled that investing in oil right now is betting against the US government: Jan 2021: Keystone XL pipeline halted as Biden revokes permit https://abcnews.go.com/International/wireStory/work-keystone-xl-pipeline-suspended-ahead-biden-action-75371464 https://abcnews.go.com/International/wireStory/work-keystone... Jan 2021: Biden suspends oil and gas leasing in slew of executive actions on climate change https://www.cnbc.com/2021/01/27/biden-suspends-oil-and-gas-drilling-in-series-of.html https://www.cnbc.com/2021/01/27/biden-suspends-oil-and-gas-d... Mar 2021: The Biden EPA Withdraws a Key Permit for an Oil Refinery on St. Croix https://insideclimatenews.org/news/25032021/biden-epa-limetree-oil-refinery-virgin-islands-permit/ https://insideclimatenews.org/news/25032021/biden-epa-limetr... Aug 2021: Biden signs order aiming for half of new vehicles to be electric by 2030 [reducing future demand for oil] https://www.nbcnews.com/politics/politics-news/biden-sign-order-aiming-half-new-vehicles-be-electric-2030-n1275995 https://www.nbcnews.com/politics/politics-news/biden-sign-or... Oct 2021: Drillers Would Face First-Time Methane Fee Under Biden Deal https://www.bloomberg.com/news/articles/2021-10-28/biden-deal-includes-first-time-fees-on-super-pollutant-methane https://www.bloomberg.com/news/articles/2021-10-28/biden-dea... Oct 2021: Biden bill targets fossil fuel firms in hopes of raising more than $100 billion in taxes https://www.washingtonpost.com/climate-environment/2021/10/29/biden-fossil-fuels/ https://www.washingtonpost.com/climate-environment/2021/10/2... Nov 2021: Biden asks FTC to investigate oil and gas companies https://www.politico.com/news/2021/11/17/biden-ftc-investigate-oil-gas-companies-522804 https://www.politico.com/news/2021/11/17/biden-ftc-investiga... Feb 2022: Biden administration freezes new oil and gas drilling leases [again] https://www.cnn.com/2022/02/21/us/biden-climate-social-cost-of-carbon-court/index.html https://www.cnn.com/2022/02/21/us/biden-climate-social-cost-... Jun 2022: Biden Administration Considers A Windfall Tax On Oil And Gas Profits https://finance.yahoo.com/news/biden-administration-considers-windfall-tax-190000268.html https://finance.yahoo.com/news/biden-administration-consider...
- pron 4y ago
  A new lease on undeveloped land takes several years to reach production, so decisions made on leasing new lands now will have an effect only a few years from now.
  - leereeves 4y ago
    Beyond the impact of any specific policy, these decisions lead to the very obvious conclusion that oil faces significant political headwinds during the Biden administration and is therefore a bad investment right now. It's fair to argue that this is right decision for the future of humanity, but not to claim that these policies have no effect on short term energy prices. Long term, I think the country (and the world) are still divided (though HN clearly leans hard against oil). The future for oil could go either way, depending on the results of future elections.
    - deleted 4y ago
      [deleted]
    - jonnycomputer 4y ago
      I think people already knew that oil faces political headwinds because of global warming--which fewer and fewer people deny is happening, because they can see it for themselves.. Besides, from what I've read, Biden's executive action pause on new leases was overturned in court by June 2021. Figure 1 of this page (https://www.citizen.org/article/bidens-oil-letdown/ https://www.citizen.org/article/bidens-oil-letdown/) doesn't seem to indicate any real slow down in new oil leases [if someone has a more neutral source, I'd be happy to see it]. In any case, only about a quarter of US oil production is on federal land.
  - _-david-_ 4y ago
    How many years is a few? It has been a year and a half since his first action so I want to know when Biden is to blame.
    - pron 4y ago
jonnycomputer 4y ago
And if you zoom out further, you'll see that crude oil rig count dipped precipitously starting around 2015. In fact the trend is very similar between when Trump started his Presidency, and when Biden his, and yet the narrative that gets told about why this happened has everything to do with politics and political stereotypes, and very little with reality.
- leereeves 4y ago
  > In fact the trend is very similar between when Trump started his Presidency, and when Biden his Oil production under Trump grew much faster than under Biden. Apart from recovering from a one month crater immediately after Biden took office (Feb 2021), oil production has barely increased at all under Biden. Whereas it increased by over 10% per year during Trump's first two years. https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus2&f=m https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=m...
gruez 4y ago
And why did oil companies slow down oil drilling? Did they have an epiphany that drilling for oil is bad and they should stop? If they had drilled for oil they'd be making bank right now.
- jonnycomputer 4y ago
  Because there was a massive recession?
- Loughla 4y ago
  >And why did oil companies slow down oil drilling? Because there was a global, unprecedented reduction in demand? >If they had drilled for oil they'd be making bank right now. Yeah, and if I could see the future, I'd win the lottery also. What purpose does this sentence serve to you, genuinely curious.
- runako 4y ago
  An active oil well produces oil every day, whether you want it or not. When demand abruptly dropped, crude started piling up at storage facilities, leading the price of oil to drop below $0[1]. Cutting production is a rational market response when wholesale prices are negative. 1 - https://www.reuters.com/article/us-global-oil-crash-explainer/explainer-what-is-a-negative-crude-future-and-does-it-mean-anything-for-consumers-idUSKBN22301M https://www.reuters.com/article/us-global-oil-crash-explaine...
namelessoracle 4y ago
So one of the very first acts of Biden admin wasn't shutting down an oil pipeline and alienating the oil industry? If Trump gets elected in 2024 and shuts down say AWS, and someone says he's "Shutting down the tech industry", Im sure you will pedantically argue that too right?

leereeves 4y ago

> The President had nothing to do with it. You're just going to ignore all the ways the President has opposed the oil industry? The President's actions have repeatedly signaled that investing in oil right now is betting against the US government: Jan 2021: Keystone XL pipeline halted as Biden revokes permit https://abcnews.go.com/International/wireStory/work-keystone-xl-pipeline-suspended-ahead-biden-action-75371464 https://abcnews.go.com/International/wireStory/work-keystone... Jan 2021: Biden suspends oil and gas leasing in slew of executive actions on climate change https://www.cnbc.com/2021/01/27/biden-suspends-oil-and-gas-drilling-in-series-of.html https://www.cnbc.com/2021/01/27/biden-suspends-oil-and-gas-d... Mar 2021: The Biden EPA Withdraws a Key Permit for an Oil Refinery on St. Croix https://insideclimatenews.org/news/25032021/biden-epa-limetree-oil-refinery-virgin-islands-permit/ https://insideclimatenews.org/news/25032021/biden-epa-limetr... Aug 2021: Biden signs order aiming for half of new vehicles to be electric by 2030 [reducing future demand for oil] https://www.nbcnews.com/politics/politics-news/biden-sign-order-aiming-half-new-vehicles-be-electric-2030-n1275995 https://www.nbcnews.com/politics/politics-news/biden-sign-or... Oct 2021: Drillers Would Face First-Time Methane Fee Under Biden Deal https://www.bloomberg.com/news/articles/2021-10-28/biden-deal-includes-first-time-fees-on-super-pollutant-methane https://www.bloomberg.com/news/articles/2021-10-28/biden-dea... Oct 2021: Biden bill targets fossil fuel firms in hopes of raising more than $100 billion in taxes https://www.washingtonpost.com/climate-environment/2021/10/29/biden-fossil-fuels/ https://www.washingtonpost.com/climate-environment/2021/10/2... Nov 2021: Biden asks FTC to investigate oil and gas companies https://www.politico.com/news/2021/11/17/biden-ftc-investigate-oil-gas-companies-522804 https://www.politico.com/news/2021/11/17/biden-ftc-investiga... Feb 2022: Biden administration freezes new oil and gas drilling leases [again] https://www.cnn.com/2022/02/21/us/biden-climate-social-cost-of-carbon-court/index.html https://www.cnn.com/2022/02/21/us/biden-climate-social-cost-... Jun 2022: Biden Administration Considers A Windfall Tax On Oil And Gas Profits https://finance.yahoo.com/news/biden-administration-considers-windfall-tax-190000268.html https://finance.yahoo.com/news/biden-administration-consider...

pron 4y ago
A new lease on undeveloped land takes several years to reach production, so decisions made on leasing new lands now will have an effect only a few years from now.
- leereeves 4y ago
  Beyond the impact of any specific policy, these decisions lead to the very obvious conclusion that oil faces significant political headwinds during the Biden administration and is therefore a bad investment right now. It's fair to argue that this is right decision for the future of humanity, but not to claim that these policies have no effect on short term energy prices. Long term, I think the country (and the world) are still divided (though HN clearly leans hard against oil). The future for oil could go either way, depending on the results of future elections.
  - deleted 4y ago
    [deleted]
  - jonnycomputer 4y ago
    I think people already knew that oil faces political headwinds because of global warming--which fewer and fewer people deny is happening, because they can see it for themselves.. Besides, from what I've read, Biden's executive action pause on new leases was overturned in court by June 2021. Figure 1 of this page (https://www.citizen.org/article/bidens-oil-letdown/ https://www.citizen.org/article/bidens-oil-letdown/) doesn't seem to indicate any real slow down in new oil leases [if someone has a more neutral source, I'd be happy to see it]. In any case, only about a quarter of US oil production is on federal land.
- _-david-_ 4y ago
  How many years is a few? It has been a year and a half since his first action so I want to know when Biden is to blame.
  - pron 4y ago

jonnycomputer 4y ago

And if you zoom out further, you'll see that crude oil rig count dipped precipitously starting around 2015. In fact the trend is very similar between when Trump started his Presidency, and when Biden his, and yet the narrative that gets told about why this happened has everything to do with politics and political stereotypes, and very little with reality.

leereeves 4y ago
> In fact the trend is very similar between when Trump started his Presidency, and when Biden his Oil production under Trump grew much faster than under Biden. Apart from recovering from a one month crater immediately after Biden took office (Feb 2021), oil production has barely increased at all under Biden. Whereas it increased by over 10% per year during Trump's first two years. https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=mcrfpus2&f=m https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=m...

gruez 4y ago

And why did oil companies slow down oil drilling? Did they have an epiphany that drilling for oil is bad and they should stop? If they had drilled for oil they'd be making bank right now.

jonnycomputer 4y ago
Because there was a massive recession?
Loughla 4y ago
>And why did oil companies slow down oil drilling? Because there was a global, unprecedented reduction in demand? >If they had drilled for oil they'd be making bank right now. Yeah, and if I could see the future, I'd win the lottery also. What purpose does this sentence serve to you, genuinely curious.
runako 4y ago
An active oil well produces oil every day, whether you want it or not. When demand abruptly dropped, crude started piling up at storage facilities, leading the price of oil to drop below $0[1]. Cutting production is a rational market response when wholesale prices are negative. 1 - https://www.reuters.com/article/us-global-oil-crash-explainer/explainer-what-is-a-negative-crude-future-and-does-it-mean-anything-for-consumers-idUSKBN22301M https://www.reuters.com/article/us-global-oil-crash-explaine...

namelessoracle 4y ago

So one of the very first acts of Biden admin wasn't shutting down an oil pipeline and alienating the oil industry? If Trump gets elected in 2024 and shuts down say AWS, and someone says he's "Shutting down the tech industry", Im sure you will pedantically argue that too right?