RE:RE:What a messYes I agree , what a mess !!!! Who thought killing the Golden Goose for dinner was a good idea ? This leaves very few options in either logic or the business case . The government wants more production but then big democrat money sandbags the price which I expect will slow any and all drilling . The SPR dumped almost 9M barrels into the market last week but could only net a 3M barrel build which is the headline (not the fact the market was under supplied by 6M barrels last week alone) . Some seem to figure this will keep Biden in power and maybe it will if they can keep up this deception and the Saudi's don't lose patience . I would love to know whats being said in Riyadh after being blown off by the paper market today .
People are so gulible , you can plainly see what has happened in Europe and yet NA is gliding down the same path . A cheaper price at the pump will only make the problem more accute as the SPR runs out and winter makes its first appearance . In a full employment environment some demand destruction through higher prices makes more sense than putting it on sale .
Instead of encouraging companies to grow inventory , the can gets kicked down the road for instant gratification . The SPR is a strategic reserve for emergency use , not for political popularity . This reserve wiill need to be refilled by law and neither Biden or Trudeau can cancel winter (even if it is the patriotic thing to do) . Even in a recession , homes and buildings need to be heated in winter and people are more apt to drive than walk . In the short term , the market is pricing in a global shutdown , the economy grinding to a halt ........ but Tech is still a buy , lol .
I don't see any new pipelines , I don't see a plethera of new drilling permits on new leases , in fact the only construction I see is LNG export facilities so more demand but no new supply . Boston imports LNG to meet demand because they can't get a pipeline from Pennsylvania built . Nobody (not even the greens) want a wind turbine in their backyard so where does energy security come from ? This divergence between the paper market and the actual market will lead to more problems down the road but the charade only has to last until Nov 6 , after that , you're on your own .
You never get solid government policy when legislation is drafted for popularity rather than purpose . Time will tell how this all plays out but the fuse has been lite and the clock is ticking , I don't think duck , roll and cover will help anyone this time .