White House: We Don’t Want to Be World’s Leading Oil, Gas Producer Forever

Good. If green energy is more efficient and pollutes less, why wouldn't we want to be leaders of green tech instead of leaders in oil and gas?

 

Gonna need to spell out the Utter Rage this causes RWers for those of us not hellbent on just being infuriated all day on general principle. Trying to keep inflation lower and moving away from poisons aren't stirring up the fury they want me to perpetually feel.

FTR, pretty sure there actually IS a plan to refill, and it starts with cancelling some of the sales mandated by Congress. That alone was something like 150 million barrels.

 

by definition NO ONE will be the world's leading petro producer forever as there is not a limitless supply.

 

Of course we don't want to be the leader forever. Why would we? China is about to become the leader in renewable energy. We're falling behind

 

All you need to do in a war is launch a satellite blocking the sunlight over China. As long as other nations are not democratic, gas and oil are required in abundance.

 

Just-In-Time-Shipping (JITS) is the most efficient way to sell goods. No storage fees and no product sitting on shelves getting old and not making profit. For years, better tracking and computer AI has made JITS more and more efficient. It helped keep inflation low for the better part of four decades.

One problem with JITS is if/when there is a kink in the supply chain. That kink was COVID, which shut down manufacturing sectors all over the world. With less supply in storage, this quickly caused supply shortages. Any idiot should know when supply goes down, prices go up. It's high school econ supply/demand curve. Once manufacturing reopened, there were still issues. JITS can't handle higher volume than normal. It's designed not to ship extra needed goods; the goods are supposed to arrive Just In Time.

Remember the dozens of shipping boats waiting to dock out in the ocean? All those supplies sitting on boats and not making anyone any money plus causing continued supply shortages was too inflationary. But eventually, the supply chain kinks worked themselves out and inflation started to drop.

Experts knew this was going to happen. And why they thought inflation would be transitory. The issue they missed on was COVID causing global labor shortages. Again, shortages cause inflation. COVID caused many near retirement age to choose to retire. COVID also caused more people of prime working age to pass than usual (30 - 59 years old).

US increase in oil and gas wasn't a major contributor. It's a global market, and globally, there wasn't a huge uptick in in production or refinery gains. And globally, we aren't producing more than we were in 2019.



Last, I'll ask again and echo other posters. Why would we want to continue to be the world's leading oil and gas producer when oil and gas is a non-renewable resource? Wouldn't it serve our future better to be leader in green energy, especially if it's renewable, more efficient, and cleaner?

 

Even if you believe oil is the primary source of energy forever it is a strategic mistake to blow through our stockpile faster than every other country in the world. In fact that would be a disaster just so conservatives can feel like they lowered a few cents of gas prices when we make almost no difference in world prices. Some but not much.

 

Conservatives whenever they see anything about reducing oil consumption/production:

 

Emotional because it is a litmus test to being woke. if you dont support gushing black smoke you are woke.

 

Biden's goal is 2036. And even if we only reach 80% to goal by then, we've come a long way to attaining a goal that would get us off oil. And even as the world's leading producer, we still need to import oil. This is because much of the oil we produce is too crude for what we need. If you are scared to be reliant on other country's green tech, why aren't you even more scared of OPEC countries, of which we are reliant for oil?

And like all new technologies, prices will come down as more and more adapt it. The cost of oil is unlikely to to come down significantly again. Especially if the world has reached peak oil, meaning we've already drilled about 50%+ of what we drill. The "easy" areas to tap are going to stop supplying so much oil, and leaving only the more difficult, and more expensive areas to drill. Meanwhile, as more and more green energy is adopted, prices will drop.

Last, just because you don't accept the truth about the global economy and call it BS, doesn't mean it isn't true. The US imports $3.2 Trillion, with a T, amount of goods every year. What do you think happens to prices when multiple areas that manufacture said goods shut down for significant periods due to COVID? What happens to prices when these factories turn back on, but we don't have the infrastructure to handle the now surplus supplies, and these goods sit in the ocean, waiting to be unloaded?

None of this is BS. Your explanation that a tiny rise in US oil output, that barely marked a rise in global oil output is what saved us from inflation is total BS.

 

One last note. Average household spending on gas has never been more than 5% of total household expenditures. How can this alone cause 9% inflation? And how can a tiny increase in world output be the cause for inflation to drop back to under 4%? Please show me the math how this can be possible.

 

Show me the math how less than 5% of the average household's spending can cause 9% inflation. And how a minor increase in global production on oil is the reason why inflation is now under 4%. And that global supply chain issues didn't have anything to do with inflation.

I agree with Hochstein. We can be the leading producer in oil and gas today, because we depend on gas on oil. But our dependence on a non-renewable resource is a very bad plan long-term. Again, the cheap and easy accessible oil has been tapped for decades. There is no way it will come down in price unless there's another gigantic drop in demand, like we had with COVID. Otherwise, prices will continue to go up over time.

And no matter how much we drill, we will still be dependent on foreign oil. Again, much of what we produce is too crude for our needs. Not all oil is created equal, and we simply need foreign oil to survive today. That makes us dependent upon OPEC countries, who represent a large portion of the global market. Imagine if we could create all the green energy we needed domestically? Can we do that by 2036? Unlikely, but the closer we get to the goal, the better.

You are willfully ignorant if you believe oil prices are to blame for the global inflation, and not major parts of the world shutting down and major supply chain kinks. You are equally ignorant if you believe relying on oil, a non-renewable resource, and one that requires imports from unfriendly countries, is a good, long-term policy.

 

Oil has a ripple effect? But production stopped on many of the $3.2 Trillion worth of imported goods doesn't have an effect? Or massive supply chain kinks that lead to freighters filled with said goods to wait weeks to dock has zero effect? LOL!!!!

 

Too funny. If everyone thought like you do about (not) adopting new and better technologies, we'd still be living in caves and getting our energy from fire wood.