Trump's pick for fracker-in-chief will have a tough time pumping a lot more oil
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Source: CNN Business
Updated 10:06 AM EST, Mon November 18, 2024
CNN — President-elect Donald Trump may find the road to cheaper gas prices is a little rocky. “Frack, frack, frack and drill, baby, drill,” Trump said at an October rally. Trump has said he wants to lower gas prices — which currently average $3.07 per gallon — to below $2 a gallon.
On Saturday, he tapped fracking proponent Chris Wright, the CEO of Denver-based Liberty Energy, to serve as the secretary of energy. Wright is among the industry’s most vocal supporters of fracking oil and natural gas and has said the world is not in the midst of an energy transition. But the American oil industry is already booming and increasing output doesn’t mean gas prices will drop.
The United States produces more than 13.4 million barrels of oil each day and oil production is projected to increase to an estimated 13.6 million by the end of 2025 — the most oil produced by any country ever, according to the US Energy Information Administration.
That record is “unlikely to be broken,” the EIA reports, because no other country has come close to 13 million barrels per day. US output has been so strong that it has sent supplies overseas — exporting the same amount of crude oil, refined products and natural gas liquids as Saudi Arabia or Russia produces, according to a report published in December 2023 by S&P Global Commodity Insights.
Read more: https://www.cnn.com/2024/11/18/business/trump-fracking-oil-demand/index.html
This is more proof of so-called "journalism" and their failure. The U.S. has been cranking out a record amount of oil, literally for a whole year straight. And it was tacitly reported by the business/energy media but not the M$ media covering the election and magnifying the GOP lies. And so now here we are at a "Hmmm.... oh by the way...".
Biden BROKE OPEC and OPEC+ and if OPEC/OPEC+ wants, they could crank it up enough to put ALL of those U.S. frackers out of business due to what price is needed to "break even", and sustain the more expensive fracking process. And the bigger issue that actually impacts gasoline, points to the refineries (and lack thereof).
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we were making up the difference for Europe when the Nordstream pipelines between Russia and Germany, were restricted or shut down due to the Ukraine War.
https://www.eia.gov/todayinenergy/detail.php?id=61483
So some of this might depend on where Europe is with their replacement fuels.
is typical bloviating nonsense from the GOP with the "drill baby drill" retro crap.
There have been numerous court rulings over the past 5 years (I have been posting this stuff in LBN) with respect to the leases, so there would be more coming on line in the future...
But at this point, we apparently have enough capacity and then some - https://www.democraticunderground.com/10143255368
They did recently ratchet it back some though - https://www.democraticunderground.com/10143288763
The variables are again with Russia and Saudi and OPEC+ (notably) and what they decide to do with their production. Some of us remember this - https://www.democraticunderground.com/100213319463
The "cuts" that they agreed to (now expanded into 2025) in order to loft the bbl price closer to $100 didn't quite work out thanks to the U.S. record production. And at this point, it is doubtful that Europe will go back to Russian-sourced oil/LNG, so we might end up being "it" (thus getting export facilities up and running).
The frackers need (on average to account for existing and/or new wells) at least $50/bbl price to maintain their "break even" - https://www.statista.com/statistics/748207/breakeven-prices-for-us-oil-producers-by-oilfield/
The price of crude is not completely correlated to the eventual price of GASOLINE (which is refined product). There needs to be more refineries constructed and/or brought back online.
