Think about it. It's exactly the opposite as you state

Posted on: March 21, 2022 at 11:33:37 CT

If you think oil prices are going to remain high, THEN you are more willing to invest. High oil prices drive investment. If you think the price is going to quickly drop, then why would you invest. Biden administration policies haven't really impacted any oil and gas production as most production in the US is on private land. Prudhoe Bay in Alaska is on state land. Federal leases offshore have not had any production curtailment. But if Biden policies actually did limit supply, there would be far more investment because it would make wells that much more profitable.

What does curtail supply, however, is a huge downturn in the oil industry followed by an increase in demand. Rigs were shut down and crews were laid off during the oil price bust. It's not like the entire industry can be switched back on overnight.

US production is now largely from unconventional reservoirs. Unconventional wells deplete quickly so there must be continuous drilling to keep production up. The wells are complicated wells with complicated multi-stage frac completions. A very time consuming process when things are up and running with experienced crews available and it's a lot more time consuming coming out of a downturn. The whole scenario is what should have been expected.

Edited by KC rules at 11:46:19 on 03/21/22