k
A year from now, after we’ve been paying $5 a gallon for gas, we’ll find out the oil companies had the biggest record profit year in their history. Then they’ll announce layoffs.
This is TERRIBLE! We paid Trump MILLIONS of Dollars and FUNDED a War with Venezuela! HOW could he Do this to US!
-Oil CEOS!
So this makes me think. Did they attack Venezuela first to get access to the oil there and prevent a price spike from happening when they attacked Iran? Or am I giving the current regime too much credit?
Considering that representatives from the Trump cabinet appeared to be surprised that Iran can and did block the strait of Hormuz, I’d say you are giving too much credit.
Also, the US is a net exporter of oil. National supply concerns aren’t the issue so much as global supply shock. Restrictions anywhere lead to price hikes.
Wasn’t the Venezuela oil basically worthless because proper extraction would be too expensive to be viable?
It’s doubtful if most of the reserves can become viable at any price. (Because the cost of materials increase when oil price increase.) But some are perfectly viable.
But also, even in perfect conditions, if they started drilling right now (what they aren’t), it will take several month to start getting any of it.
Well if the price goes up then it becomes feasible to extract it. Same with the oil the US has at home. They could also extract it if the price gets too high, the reason they aren’t doing so now is because the Middle East oil is cheaper (well, WAS cheaper).
Venezuelan oil production fell off a cliff starting around 2015 and has only recovered to a third of what it was then. It will take years to build industry there back up, so it won’t do much right now. However, once it is built back up, it will be a major exporter again.
TBF 2015 is when the US started sanctioning.
deleted by creator
Demand destruction will start happening well before it reaches $200/bbl.
Prices of $120-140 begin demand destruction and economic recessions (as 2022 showed), with destruction accelerating past $160. Transportation costs doubling will put almost immediate halts on capex planning for most organizations. I would be surprised if sustained prices beyond $160/bbl could exist for more than a couple weeks before the global economy tail spins so fucking hard it immediately stops consuming the oil supply lost from the strait of Hormuz.
There’s also renewables. Solar is already cost competitive and there’s no way EVs aren’t flying off the shelves right now
Too late. Manufacturing and installing renewables or EV’s or literally anything requires diesel.
The entire industrial supply chain is still built on diesel with decades to go before the current glacial pace of electrification makes a significant dent. A massive energy crunch is just going to make renewable buildouts even more materially constrained and astronomically more expensive, there is no way out without economic collapse. The current economic system is not designed around anything other than fossil fuels and will refuse to complete a changeover until no other options exist, which will usually mean billions of homeless starving people getting fucked over.
Well of course our babies have been drilling nonstop since Trump arrived so surely production’s gone up 115% to offset the loss of 15 million barrels per day!
So how is a local rebellion supposed to work when a fat orange won’t take his short, weird fingers off the ‘fire missiles at everything’ button?
the black smoke was supposed to be cover so they can organize… right?
