153
Trump wants US oil producers to ‘drill, baby, drill. They’re not interested: Report
(www.independent.co.uk)
this post was submitted on 05 Feb 2025
153 points (98.1% liked)
News
24403 readers
6863 users here now
Welcome to the News community!
Rules:
1. Be civil
Attack the argument, not the person. No racism/sexism/bigotry. Good faith argumentation only. This includes accusing another user of being a bot or paid actor. Trolling is uncivil and is grounds for removal and/or a community ban. Do not respond to rule-breaking content; report it and move on.
2. All posts should contain a source (url) that is as reliable and unbiased as possible and must only contain one link.
Obvious right or left wing sources will be removed at the mods discretion. Supporting links can be added in comments or posted seperately but not to the post body.
3. No bots, spam or self-promotion.
Only approved bots, which follow the guidelines for bots set by the instance, are allowed.
4. Post titles should be the same as the article used as source.
Posts which titles don’t match the source won’t be removed, but the autoMod will notify you, and if your title misrepresents the original article, the post will be deleted. If the site changed their headline, the bot might still contact you, just ignore it, we won’t delete your post.
5. Only recent news is allowed.
Posts must be news from the most recent 30 days.
6. All posts must be news articles.
No opinion pieces, Listicles, editorials or celebrity gossip is allowed. All posts will be judged on a case-by-case basis.
7. No duplicate posts.
If a source you used was already posted by someone else, the autoMod will leave a message. Please remove your post if the autoMod is correct. If the post that matches your post is very old, we refer you to rule 5.
8. Misinformation is prohibited.
Misinformation / propaganda is strictly prohibited. Any comment or post containing or linking to misinformation will be removed. If you feel that your post has been removed in error, credible sources must be provided.
9. No link shorteners.
The auto mod will contact you if a link shortener is detected, please delete your post if they are right.
10. Don't copy entire article in your post body
For copyright reasons, you are not allowed to copy an entire article into your post body. This is an instance wide rule, that is strictly enforced in this community.
founded 2 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
A lot of Americans voted for Trump because they were hoping he would be able to bring prices down. Cheaper oil could help with that. Who doesn't want to pay less at the pump? But, also, because petroleum based fuels and other products are ubiquitous along essentially every supply chain, it could help bring down other prices, as well. I don't think it would help that much, though. It might bring down costs for producers a little (or maybe a lot, depending on the industry), but there's no guarantee those cost savings are going to be passed on to the consumer in the form of lower prices. Most producers would just pocket the savings. And why shouldn't they? Businesses exist to make the highest possible profit for their owners.
To even get cheaper oil, though, oil producers would need to over produce. They'd need to drive down the price of their own product. Why would they do that? Why would oil producers choose to reduce their own profits? That doesn't make any sense. Plus, as more and more oil is pumped out of the ground, what remains is harder and more costly to extract. So, it costs more to extract a barrel of oil than it used to, and that means that oil producers have to sell each barrel of oil for a higher price to cover the higher costs of extraction. Drop the price of a barrel of oil too much, and it no longer becomes cost effective for oil producers to extract oil from the ground. The price of oil has to stay over a certain threshold for continued oil extraction to even be financially viable.
For prices to come down, demand would have to come down, and that would likely lead to a recession. For prices to come down significantly, it would probably require a significant recession. That's it, that's how you bring prices down. So, pick your poison: higher prices or recession.
Yeah, there's already thousands of wells literally sitting idle because prices are too low. They drill them when they can get a good deal with the drilling company, and let 'em sit idle until the economics make sense, or until the infrastructure has been developed better in the area.
Exactly, and I'm betting that glut is a result of one of two factors (or a combination of the two): either oil producers thought there would be a higher demand than there actually is and/or they were incentivized to over produce, probably through government subsidies, of one kind or another.