Interesting Factoids
We’ve all seen the prices at the pump? I think a lot of people have asked “WHY?” and besides things like “Biden”, “Ukraine”, “Whatever”, you don’t actually see the real reason.
This report is interesting in that it whispers it, but it tries to hide it as best it can.
It says “Biden” and “Ukraine” and “Russia” but hidden right smack dab in the middle is this nifty sentence:
“Oil prices plunged when pandemic-related stay-at-home orders around the world crushed demand in the spring of 2020, and crude briefly traded at negative prices. In response, OPEC and its allies, including Russia, agreed to slash production as a way to support prices. And even when demand returned sooner than expected, they kept production targets low.
US oil companies don’t adhere to those types of nationally mandated production targets. But they have been reluctant or unable to resume producing oil at pre-pandemic levels amid concerns that tougher environmental rules could cut future demand. Many of those stricter rules have been scaled back or failed to become law.”
Russian oil doesn’t go to the USA. Matter of fact, the US produces just as much or more than Russia. So…where is our own oil going? Let’s look at that sentence again. Producers RAISED prices in ANTICIPATION of rules that have FAILED to become law. So…why haven’t they brought the price back down? Oh, because they haven’t scaled with demand that it USED to be at (pre-pandemic that everyone pretty much knew was going to go back up-and they did their damnest to keep it at good profit margins), AND because they can sell it to other countries and get MORE money for it, thereby raising the prices here as well. That’s a win-win-win for the oil companies, and pretty much lose-lose-lose for us, plus they get to blame Biden.
‘Merica….