Quote:
Originally Posted by Maker
Totally incorrect.
Worldwide economics ties seemingly unrelated events together. Here's the timeline of cause and effects that triggered this inflation.
Energy companies lost a huge amount of money when Biden terminated land leases for oil and natural gas wells on federal land. The billions they invested in constructing those wells was instantly lost. Plus they lost the income from the raw product those wells would have produced.
Then Biden said no more leases.
The energy companies decided to hold on to (stop spending) their well investment dollars rather than risking it being lost on the whim of the president. They did not invest budgeted money into building new wells because they were worried about the the performance of new wells on existing unused leases that had a poor potential for being productive (that's why they were unused - junk geography after analysis), and fearing a repeat of Biden's previous financial hit.
That is where the record profits came from. Holding money instead of investing it. The future energy production is also now crippled.
So Biden said, ok, we will lease some land. It was the lousy areas. And there was no promise that leases wouldn't get pulled away again. A non-solution, but it sounded good in the press. Solved nothing.
That all had a cascading effect. Now there is not enough energy for the needs of the country. So the USA suddenly became an net importer of energy. No longer energy independent as more is being imported into the country than being exported. Foreign countries (Venezuela, Arabs, etc.. think OPEC) were happy to sell us energy, but at much higher prices than previously. The USA had no choice except to buy at those inflated prices. There is the reason for higher gasoline prices. (inflation)
With no new wells coming online, the future production will drop as wells dry up. Lower supply will drive prices up even more as time passes. (inflation)
And related, Biden restricted use of coal. A plentiful, low cost, energy resource within the USA. We all need electricity - even when it's cloudy or at night, or when the wind is not blowing. What do power plants use for generating power now? Oil and natural gas. That caused demand for oil and natural to go up substantially. That drove the USA into importing even more oil and natural gas. The spiral grows bigger. (inflation)
We see gasoline has gone from $1.90 to $2.92 (or more)
What you may not notice is diesel has more than doubled. Diesel moves trucks and trains. As a result, shipping costs have gone way up. That drives up the cost of everything we buy. (inflation)
Manufacturers also have to pay more to get the raw materials. That drives prices up again, this time at the source. (inflation)
Farmers costs for fuel for their tractors, buying seeds or feed, are all up too. Their costs for providing our food are way up, so that hits everybody. (inflation)
Having every step of the process to get goods into our homes suddenly become more expensive is a direct result of Biden's energy policy. That triggered the start of record inflation. What will stop inflation? Reversing the cause would be a great start.
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It appears that your original statement that Biden cancelled existing gas and oil leases isn't true.
Access Denied
If so, your conclusion that the oil companies lost billions on existing assets is wrong.
Can you tell me when he cancelled existing leases?