You can't just start drilling and pumping more oil in the U.S. immediately. Sure, you can increase current production by 5% pretty easily, but anything more than that requires additional drilling, pipelines, pumping stations, refinery capacity increases, etc... . It requires money, transportation, logistics and infrastructure. If you want more than a 10% increase in U.S. oil production and start now... it will probably begin to happen by next December at best.
NOBODY will make that level of investment unless the price of oil and gas will remain high. Remember there was a reason why U.S. oil went below $30 / barrel for a long while, then recovered to the mid $40's for 2-years. People are driving less, have more fuel efficient cars and there is less overall demand for gasoline and other fuels now. There is also a reason why some very large refineries have changed ownership. Oil & gas industry is boom & bust. No company is going to invest $Billions... only to watch the Ukraine crisis get resolved in 6-months and oil prices go back to $50 per barrel again and gas to $2.50 per gallon. Unless there is a guarantee of future high prices, no company will spend that kind of money.
You can drill all the oil you want... but there hasn't been a major refinery expansion that I'm aware of in the U.S. for more than a decade. During Trump's 4-years, refineries were able to get permits to upgrade equipment, improve operations and make small expansions. Under Biden... all new permits to do anything came to a screeching halt. A company can spend 3-years and Tens of $Millions applying for permits, and likely get rejected. Petrochemical companies aren't even applying for permits for expansions or improvements, because it's not worth it. So... drill all the oil you want, but you can't supply at a higher rate than the refiners can refine it. That's a bottleneck.
Industry has watched time and time again how projects are nearly completed, $Billions spent... and the government steps in at the last moment and cancels the project. All that money spent and equipment sits there idle due to politics. Exhibit #1 is the Keystone Pipeline. Nearly completed at huge cost... and it's sitting there in the ground doing nothing. Investment wasted. Why would anyone build any new pipelines, develop oil or gas fields, etc... when the government can step in at the last moment and yank away any profit potential. You eat the $Billion cost of developing... and some politician decides you can't use it now.
Don't expect the industry to jump up suddenly and begin spending money to develop oil and gas. Not with Biden / Harris in the White House they won't.
Those aren't road blocks, those a re problems that can be solved. Over night is relative b3cause even though we didn't I ncrease oil refineries we didn't lose any recently since can go t back to cheap oil. Let trump talk to our providers I bet the price of oil drops in a day.
Keep in mind a few things.
You can't just start drilling and pumping more oil in the U.S. immediately. Sure, you can increase current production by 5% pretty easily, but anything more than that requires additional drilling, pipelines, pumping stations, refinery capacity increases, etc... . It requires money, transportation, logistics and infrastructure. If you want more than a 10% increase in U.S. oil production and start now... it will probably begin to happen by next December at best.
NOBODY will make that level of investment unless the price of oil and gas will remain high. Remember there was a reason why U.S. oil went below $30 / barrel for a long while, then recovered to the mid $40's for 2-years. People are driving less, have more fuel efficient cars and there is less overall demand for gasoline and other fuels now. There is also a reason why some very large refineries have changed ownership. Oil & gas industry is boom & bust. No company is going to invest $Billions... only to watch the Ukraine crisis get resolved in 6-months and oil prices go back to $50 per barrel again and gas to $2.50 per gallon. Unless there is a guarantee of future high prices, no company will spend that kind of money.
You can drill all the oil you want... but there hasn't been a major refinery expansion that I'm aware of in the U.S. for more than a decade. During Trump's 4-years, refineries were able to get permits to upgrade equipment, improve operations and make small expansions. Under Biden... all new permits to do anything came to a screeching halt. A company can spend 3-years and Tens of $Millions applying for permits, and likely get rejected. Petrochemical companies aren't even applying for permits for expansions or improvements, because it's not worth it. So... drill all the oil you want, but you can't supply at a higher rate than the refiners can refine it. That's a bottleneck.
Industry has watched time and time again how projects are nearly completed, $Billions spent... and the government steps in at the last moment and cancels the project. All that money spent and equipment sits there idle due to politics. Exhibit #1 is the Keystone Pipeline. Nearly completed at huge cost... and it's sitting there in the ground doing nothing. Investment wasted. Why would anyone build any new pipelines, develop oil or gas fields, etc... when the government can step in at the last moment and yank away any profit potential. You eat the $Billion cost of developing... and some politician decides you can't use it now.
Don't expect the industry to jump up suddenly and begin spending money to develop oil and gas. Not with Biden / Harris in the White House they won't.
Those aren't road blocks, those a re problems that can be solved. Over night is relative b3cause even though we didn't I ncrease oil refineries we didn't lose any recently since can go t back to cheap oil. Let trump talk to our providers I bet the price of oil drops in a day.