Quote:
Originally Posted by Bill14564
Still, no spigots were shut off. Potential future production was prevented, and that likely had an effect on price, but there was no spigot shut off that could immediately be turned back on.
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Not correct. Fracking leases were cancelled in Jan 2021. New leases were blocked. That immediately reduced the supply of natural gas. Those sites were scuttled, and cannot simply be "turned back on" without a lot of work and investment. Since the previous investment in those sites was trashed, and threats to further restrict fracking leases were made, the energy companies would not invest in that area again.
So with less natural gas, oil was needed to fill the previous demand. But oil drilling leases were also not renewed. New leases were blocked. Same story as fracking - less production.
Now the US is no longer a net exporter of oil and gas. We need to buy it on the global market. That means any one of many countries can raise prices and the US pays it. No choice there.
Russia raises prices for energy and the world has to pay it. That's how the current administration's energy policy has given Russia and the Arabs control over part of our economy.