Biden’s Gas Crisis

[moko]

You quoted the wrong guy as I never said anything about Biden.

Oil goes up during a strong economy.

Anyone paying any attention at all knows both that the global energy crisis has nothing at all to do with a strong economy and that it has nothing at all to do with Biden.

I have no bone in this fight. Just breaking it down for you

[CountValentine]

I have no bone in this fight. Just breaking it down for you

Ok but I never said anything about a global energy crisis either.
Can you break that down. 

[moko]

Ok but I never said anything about a global energy crisis either.
Can you break that down. 

Crude oil reaches $80 a barrel for the first time since 2014.

=

global energy crisis

Thats the argument coupled with gasoline rationing in parts of the world.
Take or leave it. But I'm sure you already understood that was the point.

[aygart]

There are a number of items at play here.

Europe has had a disjointed and poorly planned energy policy. After Fukushima they trended away from nukes but only replaced them with renewables, heavily relying on wind. With a low wind period they were reliant on inadequate natural gas plants with inadequate gas pipelines. These pipelines are overly reliant on Putin. This all forces more reliance on petroleum bringing prices up.

In the US, the sustained low petroleum and natural gas prices led to drastically reduced rig counts. Natural gas was below the coast of production for a long time. This also affects petroleum rigs where methane is captured as a byproduct of the petroleum extraction. High energy prices worldwide divert resources to the higher priced areas. This is true for NG as well now that there are a number of LNG terminals.

Even rigs that were operating heeded to shut down due to hurricanes such as Ida and were slow to reopen due to other storms in the region.

Of course, difficulty finding workers is also a contributory factor, and to the extent that can be blamed on Biden, so can the cost of energy. On the other hand, high unemployment subsidies was a Trump policy.


This is not all inclusive

[CountValentine]

There are a number of items at play here.

Europe has had a disjointed and poorly planned energy policy. After Fukushima they trended away from nukes but only replaced them with renewables, heavily relying on wind. With a low wind period they were reliant on inadequate natural gas plants with inadequate gas pipelines. These pipelines are overly reliant on Putin. This all forces more reliance on petroleum bringing prices up.

In the US, the sustained low petroleum and natural gas prices led to drastically reduced rig counts. Natural gas was below the coast of production for a long time. This also affects petroleum rigs where methane is captured as a byproduct of the petroleum extraction. High energy prices worldwide divert resources to the higher priced areas. This is true for NG as well now that there are a number of LNG terminals.

Even rigs that were operating heeded to shut down due to hurricanes such as Ida and were slow to reopen due to other storms in the region.

Of course, difficulty finding workers is also a contributory factor, and to the extent that can be blamed on Biden, so can the cost of energy. On the other hand, high unemployment subsidies was a Trump policy.


This is not all inclusive

What about demand being up since the economy opened back up?

[aygart]

What about demand being up since the economy opened back up?

US NG consumption is slightly lower year over year and petroleum is slightly higher other than April and may where the difference is greater.

[yuneeq]

There are a number of items at play here.

Europe has had a disjointed and poorly planned energy policy. After Fukushima they trended away from nukes but only replaced them with renewables, heavily relying on wind. With a low wind period they were reliant on inadequate natural gas plants with inadequate gas pipelines. These pipelines are overly reliant on Putin. This all forces more reliance on petroleum bringing prices up.

In the US, the sustained low petroleum and natural gas prices led to drastically reduced rig counts. Natural gas was below the coast of production for a long time. This also affects petroleum rigs where methane is captured as a byproduct of the petroleum extraction. High energy prices worldwide divert resources to the higher priced areas. This is true for NG as well now that there are a number of LNG terminals.

Even rigs that were operating heeded to shut down due to hurricanes such as Ida and were slow to reopen due to other storms in the region.

Of course, difficulty finding workers is also a contributory factor, and to the extent that can be blamed on Biden, so can the cost of energy. On the other hand, high unemployment subsidies was a Trump policy.


This is not all inclusive

Informative post. You could be making this all up and perhaps no one would be able to tell

[Kobe Bryant]

Florida gas prices have risen to their highest level in seven years as Gov. Ron DeSantis said prices could continue to rise. A gallon of regular gas was up to an average of $3.17 on Monday, its highest price since October 2014, according to the American Automobile Association.

That's a 13-cent jump from just last week and more than a dollar above last year's price, which was $2.16 per gallon.

[avromie7]

Someone deserves credit for the fact that US energy price increases are a fraction of what they are in Europe and Asia. @aygart what are the primary reasons the US is not affected nearly as bad?

[Kobe Bryant]

Someone deserves credit for the fact that US energy price increases are a fraction of what they are in Europe and Asia. @aygart what are the primary reasons the US is not affected nearly as bad?

Gas in the US is always relatively cheaper.

[avromie7]

Gas in the US is always relatively cheaper.

Not just gasoline.

For example, Natural gas in the US on 2/1 was $.285 per therm, in the UK it was $.67, the difference is $.346 2.35x. Last week the US was at $.631 while the UK hit $4, the difference is $3.369 or 6.35x. The US is definitely not nearly as affected by this crisis.

[aygart]

Someone deserves credit for the fact that US energy price increases are a fraction of what they are in Europe and Asia. @aygart what are the primary reasons the US is not affected nearly as bad?

That we have our own resources that are adequate for now.

[aygart]

That we have our own resources that are adequate for now.

Issues in individual states are on the governors. NJ is barreling towards shortages headfirst. They put so many obstacles in the way of the Penn East pipeline that the shale gas in PA will likely max out pipe capacity in 2023. This will affect overall pricing as well since it will be preventing gas from getting to market.

[Kobe Bryant]

[CountValentine]

You can't ignore what you can't hear. 

[Kobe Bryant]

[CountValentine]

Keep going up as I am making a killing on AU. 

[Yehudaa]

It's better than Canada at least...

I filled up in Toronto last night at $1.45 CAD/liter, which is the equivalent of $4.44 USD per gallon for regular. I think these are record highs for Toronto.

[aygart]

It's better than Canada at least...

I filled up in Toronto last night at $1.45 CAD/liter, which is the equivalent of $4.44 USD per gallon for regular. I think these are record highs for Toronto.

Not even close!

[Yo ssi]

Memories..