American Economics Thread
- Thread starter Bernard
- Start date
PiSigma
"the engineer"
I'm not sure you know how to read a table. 2019 most of the year US is a net importer. Seems according to your own table it is actually 2022. But two years don't make a trend. Especially with all the money pit that the Permian is right now. I see US becoming a net importer again in 5-10 years.
In October 2019, the imports minus exports value became negative. In 2020, the net imports were -635 thousand barrels per day. In 2021, the net imports were -62 thousand barrels per day. In 2022, the net imports were -1,191 barrels per day. In 2023, the net imports were -1,636 barrels per day. And the Permian is a “money pit” but it’s a money pit of endless profit () where money flows (quite literally) like water with mass affluence abounding.
Massive U.S. innovation from geological prospecting, oilfield technologies, fracking, and the like have caused the amount of oil able to be extracted *and* the cost of extracting said oil to plummet; while at the same time, substantial innovation in electricity transmission, motor vehicles, and petrochemical refining have made each barrel of oil stretch longer and further, reducing aggregate U.S. oil consumption. Net effect? The U.S. is now an oil exporter and a bigger oil producer than Saudi Arabia
I hope you know you are debating someone from the oil and gas industry
Racking is only profitable above 60$ alot of companies went under in 2014,i still remember the great oil crash.
Yes, and?
manqiangrexue
Brigadier
And he knows how to read tables, unlike you.
PiSigma
"the engineer"
What massive innovation in oilfield technology can you list in the last several years? When was the last time you looked at a fracking company financials? The cost of fracking oil is going up and will continue to go up for every barrel of oil. The best pay wells are already depleted. Cost per barrel production is averaging over $60. There is a reason why all the majors are spending their capital everywhere but shale these days.
My previous employer is using the low cost barrels from offshore and in-situ assets to make up for the high cost barrels from Permian. Literally billions a year in subsidies to the Permian.
There is no way to stretch a barrel of oil further. There are so many molecules in a barrel of oil, and because it's all light oil in Permian, you cant crack it. If people can magically increase a volume of oil, why we still extracting? Apparently you don't understand mass/volume relationship. Petrochemicals don't typically use oil, it uses NGL.
Last edited:
Is it really so hard to wait another month before you try and spin something into support for your "rah rah American Economy uber alles" narrative?
This is a prediction. That means it hasn't happened yet. Wait. And See. And then open your mouth.