Energy independent and low gas price is Oxymoron

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If you watch conservative media, all they are talking about;

“Biden policy making oil price high”.
“If Biden only let American company drill more oil, then oil price would go down.”


If you listen to that news 24/7 and don’t do your own research, you will come to same conclusion too. Many threads in this forum started with similar idea; Attacking Biden for his energy policy.

US can’t be energy independent and keep gas price low. It’s oxymoron.

It cost more in US to drill Oil then in Middle-East or other countries. It’s simple as that. Whenever the gas price goes down Oil company go out of business.,

2016
U.S. oil bankruptcies spike 379% (cnn.com)

The dramatic increase in bankruptcy filings corresponds with the plunge in oil prices from over $100 a barrel in mid-2014 to below $27 today. It also reflects the drop in natural gas prices, which are near 14-year lows.

Oil Bankruptcy Tracker - WSJ.com

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2019
Energy stocks are the biggest losers of 2019 -- and the decade | CNN Business

The shale revolution of the 2010s catapulted the United States to the top of the global energy food chain. Yet the view from the top has been awfully lonely for investors.

Although America is now the world’s largest producer of both crude oil and natural gas, energy stocks have been losers. Big ones.

The S&P 500’s energy sector has generated a total return, including dividends, of just 6% in 2019. It’s easily the weakest sector in the stock market.

“Shale oil companies were a victim of their own success,” said Bob McNally

2021

US oil companies are in no rush to solve Biden's gas price problem - CNN

US oil companies used to ramp up production at even the slightest hint of higher prices.

That drill-baby-drill strategy worked well for American drivers last decade, keeping prices at the pump relatively low. And it made the United States the king of the oil world, surpassing both Saudi Arabia and Russia in production.

But the strategy was terrible for the oil industry’s bottom line. Drillers repeatedly oversupplied the market, careening debt-riddled companies from one price crash to another. The oil-and-gas sector was easily the stock market’s biggest loser in the 2010s.

Today, the world is completely different. Gasoline prices have surged to seven-year highs and Wall Street banks are warning that $100 or even $120 oil is on its way. Yet US oil companies are in no rush to come to the rescue, leaving the White House facing pressure from its own party to intervene in energy markets.

What’s changed is that, under immense pressure from Wall Street shareholders, oil companies are finally trying to live within their means. Even though crude has surged above $85 a barrel amid roaring demand, drillers are only gradually adding supply.

“They have PTSD. They are scarred,” Robert McNally, president of consulting firm Rapidan Energy Group, said referring to US oil companies.
 
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