Trump aggressively supported fossil fuels. The Biden-Harris administration focused on replacing them with clean energy. Yet, data show the US oil and gas industries still thrived under both.
The US is the biggest producer and is not part of OPEC. There is no reason for the US to comply with OPECs supply targets, which is the way OPEC controls the market.
True enough, but between higher costs of drilling plus yet more cost for fracking, US oil is more expensive. US drillers can only be profitable if they can sell at a fairly high rate. OPEC can flood the market to lower all prices while still making a small profit, yet US drillers would be losing money
Oil is sold on the market at barrel cost, set by OPEC. Should that barrel cost be below US pumping costs the US will lower production. So far that isn’t the case and the result is a lower market and lower gas costs. I’m sure OPEC can flood the market making prices even lower. Speaking for the American consumer, I say “Bring it on”.
The US is the biggest producer and is not part of OPEC. There is no reason for the US to comply with OPECs supply targets, which is the way OPEC controls the market.
True enough, but between higher costs of drilling plus yet more cost for fracking, US oil is more expensive. US drillers can only be profitable if they can sell at a fairly high rate. OPEC can flood the market to lower all prices while still making a small profit, yet US drillers would be losing money
Oil is sold on the market at barrel cost, set by OPEC. Should that barrel cost be below US pumping costs the US will lower production. So far that isn’t the case and the result is a lower market and lower gas costs. I’m sure OPEC can flood the market making prices even lower. Speaking for the American consumer, I say “Bring it on”.