Re: Macron is not dumb. This is BAD!
Posted: Tue Jun 28, 2022 9:10 pm
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My original statement was completely non-controversial. U.S. proven oil and natural gas reserves are heavily influenced by the market prices for fossil fuels, which are set by worldwide markets. That's because the cost of production for tight-oil is relatively expensive compared to conventional wells. If the price of oil or gas increases, more sites become profitable to harvest. So, all other things being equal, the increase in crude oil and natural gas prices would lead to more drilling of wells and production of product. That's what was expected at first with the price increases -- that the tight oil producers would jump back in. When they didn't, the people who keep track of such things talked to the producers to find out why. Links have been posted that provide the results of those enquiries: hesitancy based on getting burned by the price crash during the pandemic and demand for returns by investors who, in the past, had been wiling to have profits invested in the business as opposed to taking profits. None of them are talking about the Keystone pipeline, which has zero effect on domestic fossil fuel production.Binger wrote: ↑Tue Jun 28, 2022 8:26 pmThat is effing hysterical. mmmmmmmkay Res. Go ahead. Play the man again and then teach us. This is rich and awesome. Because offshore and offshore have different economics, that means I don't understand either and that means that cancelling capital projects because of feelings and favors is okay. Gotchya buddy. Go on. Fill us in on the economics.Res Ipsa wrote: ↑Tue Jun 28, 2022 8:22 pm
LOL. Nice bafflegab, but not responsive. The price elasticity of supply for today's onshore tight-oil wells is much greater than that of offshore wells. That you assume that what you know about the economics of offshore drilling applies to onshore tight-oil production shows that you don't actually understand supply and demand.
Are you suggesting that the pipeline, had it been finished, would’ve resulted in significantly cheaper fuel at the gas pump?Doctor CamNC4Me wrote: ↑Tue Jun 28, 2022 7:46 pm> “The other problem I identified was that a capital infrastructure project (Keystone) was cancelled after it was contracted and permitted. The solution for that is to not have politicians cancelling capital projects based on willy-nilly ideological BS.”
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Bump for Binger to address.Doctor CamNC4Me wrote: ↑Tue Jun 28, 2022 9:41 pmAre you suggesting that the pipeline, had it been finished, would’ve resulted in significantly cheaper fuel at the gas pump?Doctor CamNC4Me wrote: ↑Tue Jun 28, 2022 7:46 pm
> “The other problem I identified was that a capital infrastructure project (Keystone) was cancelled after it was contracted and permitted. The solution for that is to not have politicians cancelling capital projects based on willy-nilly ideological BS.”
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