Trump has never been more transparently fraudulent than he was today notifying the world that the US would fill up its petroleum reserves. First, if he were trying to capture low oil prices for the benefit of the US, then he would start buying without telling anyone. He front ran himself. Second, he took advantage of a time of world wide crisis and attention to give a gift to the US fossil fuel industry, Saudi Arabia and Russia. Both countries are struggling with a world wide glut of crude oil. There was absolutely no need to make this announcement at the press conference where he declared a national emergency. There are few words to describe this man and none are fit for the NY Times.
14
Your photo captures the two addictions - Fossil Fuels and Big Beef - that'll accelerate the demise of homo sapiens and make that demise increasingly painful for us and our precious progeny.
After we sucked all the "easy" oil out of the ground, we began using the much more damaging process of fracking to try to squeeze out a few more drops - ignoring the fact that fracking is substantially more damaging to our environment.
Keep on drivin', peeps. Keep on taking your cheap-ticket-ego-travel vacations to (resort du jour). Don't worry about making your houses more energy efficient. Eat, drink and be merry - for tomorrow we die out…
8
This almost makes me laugh, thinking about Mayor Bloomberg. He presided over a huge expansion of gas pipelines in NYC when fracking was in the boom phase, to get apartment buildings away from burning oil to burning gas. Even then, we knew it would be boom or bust, but activists were most concerned about new fossil fuel infrastructure and slowing growth of sustainable practices. Now we've got the pipelines (some are still being built under streets and sidewalks) but the clock is ticking as the glaciers melt. And Bloomberg has the audacity to elevate himself as one of the donors and power-brokers of the Democratic Party.
4
Most of the oil geologists I have known eventually escaped the industry and later have done well in life, while their lives in the industry were pretty miserable compared to people with the same level of training in other industries. During busts they had no money to do anything, while during boon times they worked long hours often having little family and other free time for years on end.
Losing one's home and major possessions every few years, just isn't a recipe for success.
6
1% of global warming is due to flaring! IF they had banned flaring 50 year ago we would have 50% less global warming? Central planning doesn't work for all, but how about for one, if fixed gas price at $4 million BTU and then converted it to LNG or nice clean #2 diesel, they would still have a profit on something they consider waste and our planet would thank us. Instead they push use of plastic that is not really recyclable. #GreedOligarchsProfit vote them out.
4
Trump said in his press conference today that the US would be buying as much cheap Saudi oil as possible. He didn't say anything about Texas oil. Perhaps Ted Cruz can explain why that is a good choice.
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@Jennifer Hayward
Simple...in a time of distressed oil prices the US is a nimble buyer of the commodity , storing same in the SPR
for future sale at a handsome profit.
This has been a practice for some decades now and , to me , represents the "S" in strategic.
5
Oil price today in dollars per barrel at about $31 - is lower than the price of $37 when I had just begun my long oil patch career - in late 1970's - in Long Beach, California.
Indeed, in my 43 years - I must have seen at least 4 to 5 booms and busts.
It's the oil patch - it would not exist without this cycle.
I know many folks like those mentioned here - but they will rarely ask for government assistance.
The oil prices for the industry are best when they are just a couple of dollars over cost of production.
Too high - and my industry goes haywire - throwing good money after bad. Big boys bought Mongomery Ward, an electrical motor company that advertised as almost a perpetual machine.
And too low - what this story tells us.
I prefer to say that these booms and busts bring out ingenuity in my industry that serves America good.
Shale is but one example. From 1 good well out of 50 - our technology has brought that ratio to 1 in 12.
And it is this ingenuity that Saudis and Russians are fighting.
And as these good Texas folks show they can't be beaten down for ever.
From a "peak oil" theory where America was not to have any oil left towards end of last century.
To the dominance of oil and gas production where these two countries think they need to shut us down - for them to survive.
These oil prices will bring out more technical advances which will drop cost of production even lower.
Saudis and Russians will never win in the long run.
27
Funny how all this ingenuity is directed to the wrong cause. Shouldn't we focus it more on renewable sources of energy that have less of environmental impact?
23
The oil capitalists are not worrying because they know that the Trump Socialist Party will give them money to help them through this and any other hard time that might arise.
7
Got to love this. Kind of like saying "we've always been stupid and not planned for the future and yet we have survived." Well, hope is not a plan and it looks like your time is really running out this time.
11
It sounds like there will be a glut of used pickups in the near future.
14
I live on Lake Michigan were we are dealing with high water.I talk to people about it and everybody ends with the same statement "It will go down " I ask them them how do you know? They don't . This article has the same feel.
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@robert conger
How is your revetment coming? My sister's will be quite a project.
1
Fossil fuels are potent and portable energy sources. I love ‘em.
But propping up industries with government subsidies like the ones that underpin the entire energy sector has a name: socialism. If it’s okay for oil barons and real estate developers, it should be okay for simple Americans hoping to live a life with a tiny shred of dignity.
42
The bust this time may be, and should be, for good. Sorry, all you roustabouts and would-be Beverly Hillbillies, but oil and gas are definitely on the way out, or else we all will be soon. Our choice to make.
25
For decades it has been feast or famine in the oil patch. This is a cyclical thing. My neighbor is a driller and six months ago he predicted that it was going to be all over rather shortly.
More recently, the media has been announcing that Texas (thanks to fracking) now produces more oil than Saudi Arabia. Imagine that?
Just "bidness as usual" in the oil patch.
10
If two additional wells have to be drilled to sustain the production of an existing well , I'd call that a pyramid scheme which works until the capital inflow cease.
That's what I see in the shale oil sector.
8
Don't worry about any of these folk, especially the top dogs. There are plenty of subsidies and protections to keep them in business forever!
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@mrfreeze6
The only reason these folks produce petroleum is consumers everywhere want to buy the products.
11
Please post a link to a list of subsidies received by the oil and gas industries.
7
@randomxyz
How about the $100,000,000.00 that the USA put up to fund the research into fracking.
The people should be getting a royalty aside from any tax revenue. Otherwise,
https://www.eesi.org/papers/view/fact-sheet-fossil-fuel-subsidies-a-closer-look-at-tax-breaks-and-societal-costs
8
Texas has been producing more wind power than any other state, but the GOP-led Texas Legislature doesn't like to brag about that. They'd rather the focus be on federal tax breaks and cleanup funds for the industry that poisons the state's air and water, and wrecks its roads.
50
Boom and bust should never be tolerated under any circumstances. That is not business, that's shenanigans. And it shows up clearly every few years. It's beyond me that any one can take it as a serious business.
On another matter, USA should move to protect the oil industry against the obvious dumping and coordinated action by you-know-how aimed at destroying a large part of a strategic industry in USA. It is irrelevant whether there is an intent to achieve that (destruction of US shale) by unleashing crude in these circumstances - the current dump of oil will apparently, seriously harm the industry here for non-economic and certainly not market-driven reasons and the government must step up and protect the national interest. To an extent, of course; a lot of shalers do not deserve better than pain but the entire industry should not be wiped out.
2
@ss Given the vast fortunes that have been made in good times it is very much a real business and one you should be glad exists unless you think you can heat your home and drive your cars using gas from unicorns.
7
Meh, it’s profitable at $50, if SA and Russia blink at the fire-sale they’re having the US can ramp up shale pretty quick. Not like it’s going anywhere. Hopefully we’ll see some other power options keep on being developed though... propping up an unproductive investment venture seems kind of silly. If oil was at $60 it’s not like they would pay extra taxes on the huge profits as a thank you to our government.
2
@T Smith Trump is buying cheap Saudi oil. He bragged about it being good for America.
4
Shouldn't we save these people so they can continue to fuel our endless growth economy and help to destroy the planet? Jobs, jobs, jobs, people. It's all about the jobs. "It's the economy, stupid". What are you a bunch of commies. We need to give tax payer money to these people immediately. America will be sorry if it abandons it's cruel overlords.
8
This coal and fossil fuel must be shut down. Pope Francis said recently to coal and oil men you harm the environment you harm humanity. In Pennsylvania a news report i read from the Scranton Times said Coal powered plants and fossil fuel use in Pa. caused 3,100 premature air pollution deaths alone in 2018. Then in the neighboring states the air pollution pre mature deaths were 2,500 the same year. Maryland ,New Jersey and New York State suffered the most casualties. Mr Biden will close these polluting toxic places down. Shame on Texas people who support this toxic and deadly product. Your days of polluting our country are ending.
14
Says a guy probably driving a gasoline car, having a house heated by natural gas, propane or coal electricity, and eating food driven into the area in tractor trailers.
We need to be more efficient with the use of all energy. It all has an fossil fuel basis to it.
27
@George Bravo! These guys think energy to run their electric cars comes from wind power. Most of it is carbon based.
9
@George Not to mention all of the energy used to make just about everything in their house. The reality that people like this fail to admit is that the general public won’t pay an extra cent for much of anything unless they are forced to. Forcing them to forgo fossil fuels today (which will cost extra and force dramatic lifestyle changes regardless of any wishful thinking) will come at the expense of something else. I too am concerned about climate change, but until there is a willingness to address it as a collective nation, nothing will change despite all of the Texas hate from the Northeast.
12
They'll all lose their jobs, go bankrupt, and scatter across the country. And in 15 years, they'll be back at it again. Oil attracts a certain riverboat gambler type that never truly believes they are out of the game.
30
@Steve Acho The people interviewed in this article struck me as admirably philosophical about it all.
14
@Steve Acho
You nailed it Steve......a certain mentality, a certain demeanor, and willing to go for broke.
6