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That is not true. You confuse new leasing with drilling
Posted on: March 8, 2022 at 10:24:56 CT
KC rules MU
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Biden has definitely NOT stopped drilling in Alaska. He has delayed leasing in a new area of the NPRA. Those projects have at least a 6 year lead time from exploration to production (and some much longer). There is no way that could impact the current price of oil. At this moment, both exploration and development drilling continue in Alaska both on state and federal lands.
The keystone pipeline exists and is operational (finished in 2016). Only the Keystone XL pipeline was shut down which is irrelevant to the current price of oil as it would not be complete and operational yet. I did not agree with that decision by the Biden administration but it has no impact on the current price of oil.
The price of oil is high presently because the industry quit drilling wells during the pandemic. It was uneconomical at the price oil during that time to do so. What we are seeing is a lag between growing demand and available production. It has happened over and over again during the oil era.
Edited by KC rules at 10:25:58 on 03/08/22
The keystone pipeline exists and is operational (finished in 2016). Only the Keystone XL pipeline was shut down which is irrelevant to the current price of oil as it would not be complete and operational yet. I did not agree with that decision by the Biden administration but it has no impact on the current price of oil.
The price of oil is high presently because the industry quit drilling wells during the pandemic. It was uneconomical at the price oil during that time to do so. What we are seeing is a lag between growing demand and available production. It has happened over and over again during the oil era.
Edited by KC rules at 10:25:58 on 03/08/22
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That is not true. You confuse new leasing with drilling - KC rules MU - 3/8 10:24:56
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