June 03, 2026
Where is the Oil?
[f#^_^sfleeb#f.stats]
Timothy Birdnow
Why American oil companies aren't increasing drilling in the wake of an obvious oil shortage resulting from the closure of the Strait of Hormuz.
While current wells are producing more than ever, the actual number of wells has dropped. Why?
What is holding up major new investments is a combination of uncertainty about oil prices, a history of costly overproduction in a chronically boom-and-bust industry, and lingering fears that a changing of the guard in Washington could resurrect the Biden administration’s anti-fossil-fuel policies.
They don't want to have to cap wells if and when the Strait reopenes and prices drop, but I think the biggest reason is they fear Congress will be in the hands of the Democrats after the next election and that the Presidency could be in Democrat hands come '28. They don't want to sink a lot of money into oil production which will be shut down.
We could get the price of oil down if they would just ramp up drilling but can you blame them? They can ill-afford to piss of the Left until they know the current policies will remain in place for a while.
This is the kind of stagnation that results in a command economy in a culture that is more about regulation and control than about production and growth. It's a sure sign of a civilization in decline - the Roman Empire was no different at the end. Nobody dared do anything because it was either forbidden or it's antithesis was compulsory.
The social fabric of America is ripe for a fall. I fear Mr. Trump may be waging an ultimately losing battle as too many Americans are more concerned with playing Doodle Jump on their I-Phones rather than in producing wealth or stabilizing our nation.
Posted by: Timothy Birdnow at
08:32 AM
| Comments (1)
| Add Comment
Post contains 301 words, total size 2 kb.
1
Highlights to one big flaw in our form of government - lack of stability. It changes, or potentially changes, every four years. You cannot do business in such an unstable environment, and governments cannot do business with such a fickle and unstable nation.
Posted by: Bill H at June 03, 2026 09:32 AM (FRG6e)
