Chat room (let's chat!) 💬 (Part 2)

To be fair, the reason oil/gas prices were so low when everyone was stuck at home is because everyone was stuck at home. Likewise, Biden has nothing to do with gas prices. That’s due to a process that’s been happening for decades. In the 70s, the US had a gas crisis and stagflation because the oil was all controlled by the Middle East. Then we recovered from the gas crisis in the 80s, and by the 90s we’d decided that it would be easier to wage 30 years of perpetual war against the Middle East to get it more firmly under our control. In the meantime, we also discovered fracking, and the Permian Shale basin was born. The US oil/LNG industry exploded and continued expanding until mid-2010s, at which point there was pretty persistent overproduction. That caused oil producers to stop funding CapEx activity. In 2020, the combination of years of overproduction and the demand shock from COVID lockdowns combined to not only slow CapEx but force stateside oil/LNG producers in the Permian Basin to shut down some of their operations. It’s not easy to turn off and turn back on oil wells, so now that the demand is back we’re left with a slightly decimated industry that can’t keep up with it and hasn’t been funding CapEx activity to be able to meet demand in the future. The guy sitting in the Oval Office has basically no control over any of this, and whether he blusters and blames others (Trump) or just sits and quietly hopes everyone gets over it (Biden) will make no difference to the prices. Supply and demand are what they are, and tend to move in very long, only slightly predictable patterns. If they were more predictable, we’d all be rich. :stuck_out_tongue:

As far as gas prices being higher in CA than US, yeah, dunno about that. Probably due to the US controlling most of the global trade network due to the US dollar being the dominant currency, which in turn goes back to WW2…

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