- The number one cause of the current price of oil is covid lockdowns. In April 2020, the price of oil went to negative $40, because there was a fraction of the normal economic activity. People were paying others to take the oil off their hands. Oil field workers were laid off and companies shut down their equipment. These are things that can’t be turned back on with the flip of a switch. Several of the larger companies have said they won’t increase drilling no matter how high the price of oil goes. See an article about that here.
I think oil companies are out of favor with environmentalists. This makes it tougher for them to get credit and deal with government. I’ve heard that there are even environmentalists on the boards of some of these big companies. But now, even environmentalists are calling for more drilling. Apparently even environmentalists are dreading the fuel bill for their private jet trip to the next European environmental conference.
- Due to Covid, Trump and Biden, Republicans and Democrats have cranked up the printing press. About 40% of all U.S. dollars have been created since 2020. Inflation is around 8% even according to government propaganda. The report a couple days ago of 7.9% inflation didn’t take into account the recent jump in the price of oil. U.S. dollars are worth less than a couple years ago due to government manipulation of the currency carried out by both parties. Your U.S. currency just buys less than it did in 2019.
- On 2/23, the day before the Russian invasion of Ukraine, WTI oil closed at $92. The price is currently at $108, and has been as high as $130. That price is probably an overreaction. Just as much Russian oil and gas is still flowing through the pipelines. It’s just that it stopped flowing to the U.S. a few days ago when Biden stopped its importation.
The lesson to take away is that both parties are to blame for policies that have been in place for 100 years, and were put into overdrive due to covid. Will we ever get an apology for the moronic lockdown policies? These evil policies were implemented by orders of governors of both parties, and carried out by local people who will betray their fellow citizens and apparently do whatever evil thing they’re told for a paycheck. They should be ashamed to show their face. The first generation of Americans would have tarred and feathered them. Rather than pointing fingers at the other party, reject any attempt by government to control us or force us to do anthing. Those individuals, who may be our friends and family and neighbors are to blame for high oil prices.
