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maybe don't know
spasmcreeksrun
Member Posts: 1,755 ✭✭✭
has biden's shutting down the pipeline from Canada to the gulf coast had any effect on the current prices on the gas pumps
Comments
YES! and YES!
Since petroleum products are a global market, any restrictions in the future supply drives prices up. When the prices for the future supply goes up the retailers must raise their prices now to cover the cost of buying later at the higher price.
Lets say you are an ammo salesman and sell 1000 boxes of 22 ammo/week. You buy them wholesale for $2 and sell them for $4. Sounds like you made $2000 but out of that you had to pay your ammo salesman, taxes, utilities, rent, etc.... You get word that next week your cost is going to go up to $4. If you sell the ones you have on hand at your old price you won't have any money on hand to buy next weeks supply so you better raise your price now to cover next weeks cost.
This is what is going on with gas and oil. Biden's restrictions signals increased costs in the near future and that's driving the price up today. So as mike55 put it so eloquently - Yes!. Bob
😁 never been eloquent before! Thanks! 😁
Is it the shale oil that's intended for that pipeline?
They want the price of oil to go up. It hurts Americans. That is the point.
And fiery auto crashes
Some will die in hot pursuit
While sifting through my ashes
Some will fall in love with life
And drink it from a fountain
That is pouring like an avalanche
Coming down the mountain
...it would be bringing in almost a million gallons of oil a day by now straight to the refineries...
From what I understand they say they are giving out leases but the permits take a year for approval. They also raised the royalties from 12% to 18%. They restricted drilling in Alaska Anwar and the gulf, and they even had leases come up for auction then cancelled at the last moment. This is causing oil drillers to stop exploring as they feel more restrictions are not worth the trouble. The Strategic Petroleum Reserve is being drawn down 60% at 1 million barrels a day for 6 months and then sent to Europe or China, just to lower prices. What if a true emergency happens and we need that oil. Since less oil is being drilled we have less product and now shortages of diesel is appearing, causing prices to rise. I am afraid this system will only cause gas prices to rise with nothing to stop it.
And it's ALL by design!
The leases they offer, most of them have a very LOW probably of paying off. The ones that are KNOWN to produce good oil/gas are the ones Biden refuses to let em have.
I am offering an oil lease in my BACK YARD and the oil companies simply will NOT buy it. See, that proves the oil companies are causing this! That is basically what this administration is doing and saying!
I wonder how much foreign oil companies paid biden to shut down the XL? Maybe that deets are in the "lap top".