- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Drill baby drill
Posted on 4/24/25 at 10:54 am
Posted on 4/24/25 at 10:54 am
Serious question, I'm someone can explain...
If the US is already operating at near capacity refining oil, how will drilling more help us?
Selling it internationally?
If the US is already operating at near capacity refining oil, how will drilling more help us?
Selling it internationally?
Loading Twitter/X Embed...
If tweet fails to load, click here. quote:
As of January 1, 2024, there are 132 active oil refineries in the United States. Their combined operable crude oil distillation capacity is approximately 18.4 million barrels per calendar day.
Refineries are currently operating at high utilization rates, with national averages around 93–95% of capacity, and some regions like the Gulf Coast and East Coast reaching 95–98%. Specific capacities vary by refinery, with the largest, Marathon Petroleum’s Galveston Bay Refinery in Texas, capable of processing 631,000 barrels per day.
9
Posted on 4/24/25 at 10:59 am to lake chuck fan
quote:
If the US is already operating at near capacity refining oil, how will drilling more help us?
Free enterprise.
Drillers will make decisions based on economics.
No one is forcing drillers to drill. The Trump admin is just making it easier.
Under the Trump admin more market forces and less regulatory forces will drive drilling activity.
Posted on 4/24/25 at 11:01 am to lake chuck fan
I heard an interview with Doug Burgum yesterday.
He clarified that it's not just drill baby drill but it's also mine baby mine.
And speaking of mining, bad news for China. Those rare earth minerals aren't that rare. We have a lot of them right here that could be gotten if we relax regulations.
He clarified that it's not just drill baby drill but it's also mine baby mine.
And speaking of mining, bad news for China. Those rare earth minerals aren't that rare. We have a lot of them right here that could be gotten if we relax regulations.
Loading Twitter/X Embed...
If tweet fails to load, click here.This post was edited on 4/24/25 at 11:06 am
Posted on 4/24/25 at 11:02 am to GumboPot
quote:
Free enterprise.
Drillers will make decisions based on economics.
No one is forcing drillers to drill. The Trump admin is just making it easier.
Under the Trump admin more market forces and less regulatory forces will drive drilling activity
The extra oil gained is sold outside of the US since we are at near refining capacity now?
Don't we buy oil from overseas because our oil is a lower "grade"?
Posted on 4/24/25 at 11:05 am to lake chuck fan
O&G economic basics.
When there is a oil glut:
Upstream: price per bbl is low and drilling activity is low. No truck nuts for wild-catters.
Midstream just keeps rolling along. Just polishing old truck nuts.
Downstream: profits are high. New truck nuts.
When oil becomes more scarce:
Upstream: drilling activity is high. New truck nuts in the oil patch.
Midstream just keeps rolling along. Just polishing old truck nuts.
Downstream: margins are tight. Old truck nuts don't get replaced.
When there is a oil glut:
Upstream: price per bbl is low and drilling activity is low. No truck nuts for wild-catters.
Midstream just keeps rolling along. Just polishing old truck nuts.
Downstream: profits are high. New truck nuts.
When oil becomes more scarce:
Upstream: drilling activity is high. New truck nuts in the oil patch.
Midstream just keeps rolling along. Just polishing old truck nuts.
Downstream: margins are tight. Old truck nuts don't get replaced.
Posted on 4/24/25 at 11:09 am to GumboPot
quote:
When there is a oil glut:
Upstream: price per bbl is low and drilling activity is low. No truck nuts for wild-catters.
Midstream just keeps rolling along. Just polishing old truck nuts.
Downstream: profits are high. New truck nuts.
When oil becomes more scarce:
Upstream: drilling activity is high. New truck nuts in the oil patch.
Midstream just keeps rolling along. Just polishing old truck nuts.
Downstream: margins are tight. Old truck nuts don't get replaced.
Lol... My truck doesn't have truck nuts, but I need some new mud tires!
Posted on 4/24/25 at 11:09 am to lake chuck fan
quote:
The extra oil gained is sold outside of the US since we are at near refining capacity now?
Depends on the situation of every individual well drilled.
Some wells are drilled just for the oil and whatever gas come out is flared off.
Some wells are drilled mostly for gas. The gas it sent through gathering lines to a gas plant which sends the methane to homes, ethane to chemical plants and NGLs to other users. Some oil does come out and is stored on site until enough accumulates to be sold to the nearest refinery at a negotiated rate.
Posted on 4/24/25 at 11:12 am to lake chuck fan
How are our reserves?
Posted on 4/24/25 at 11:15 am to lake chuck fan
quote:
The department cited a September 2023 study from the University of Texas that found that over the next 30 years, up to 61% more oil can be produced than currently
Shale rigs are already stacking up as companies adjust capital budgets with lower crude prices. This will likely has some benefit in the future for offshore production, but those projects take years to develop. I doubt we see any meaningful difference short term. Expect total US oil to stay flat or drop depending on oil prices. Shale wells deplete quickly so it doesn’t take long for production to follow rig count.
Posted on 4/24/25 at 11:16 am to Athis
quote:
How are our reserves?
As a nation or the strategic oil reserves?
Posted on 4/24/25 at 11:16 am to lake chuck fan
The majors (Exxon, Chevron, BP, etc.) set up their business to hedge themselves.
When upstream is doing well (drilling) that usually means margins are tight downstream (refineries). And when upstream is doing poorly (like we are headed now) they make more money downstream (refining and C stores).
Convenient stores are important to the majors because that is their conduit to the market.
The majors hate midstream. Low margins, high regulations and high maintenance. Sometimes they are forced to get into midstream to get their product to market but they try to divest themselves of those assets as quickly as possible. With that said midstream is physically necessary to get the O&G to market.
When upstream is doing well (drilling) that usually means margins are tight downstream (refineries). And when upstream is doing poorly (like we are headed now) they make more money downstream (refining and C stores).
Convenient stores are important to the majors because that is their conduit to the market.
The majors hate midstream. Low margins, high regulations and high maintenance. Sometimes they are forced to get into midstream to get their product to market but they try to divest themselves of those assets as quickly as possible. With that said midstream is physically necessary to get the O&G to market.
This post was edited on 4/24/25 at 11:18 am
Posted on 4/24/25 at 11:21 am to lake chuck fan
quote:
how will drilling more help us
Exactly-- it will only hurt us, thanks to environmental degradation. Do we really need more earthquakes in Oklahoma, firestorms in California, tornadoes in Mississippi, hurricanes in Florida and devastating floods and mudslides in the Appalachians?
Posted on 4/24/25 at 11:31 am to lake chuck fan
best thing they could do is allow new refineries to be built. Sure there have been some little ones done but the last significant refinery built was in 1977, the one in garyville. not building a new refinery in almost 50 years is fricking asinine
Posted on 4/24/25 at 11:43 am to lake chuck fan
strategic oil reserves
Posted on 4/24/25 at 11:49 am to tarzana
quote:
Exactly-- it will only hurt us, thanks to environmental degradation. Do we really need more earthquakes in Oklahoma, firestorms in California, tornadoes in Mississippi, hurricanes in Florida and devastating floods and mudslides in the Appalachians?
Damn! I forgot to add to the thread title, "No Tarzana!".
Posted on 4/24/25 at 11:52 am to tarzana
quote:
tornadoes in Mississippi,
Gonna have to explain how drilling for oil will cause a tornado.
Can't wait to read what you say.
Posted on 4/24/25 at 11:52 am to Athis
quote:
strategic oil reserves
From Grok:
quote:
Key Points on the Current Status:
Recent Replenishment Efforts: Since 2022, the Department of Energy (DOE) has purchased or secured nearly 200 million barrels to refill the SPR, including 59 million barrels bought at an average price of under $76 per barrel (compared to the $95 average sale price in 2022) and 140 million barrels retained by canceling congressionally mandated sales. A recent purchase of 2.4 million barrels was announced for delivery in April-May 2025.
2022 Drawdown: The Biden administration released 180 million barrels in 2022, the largest-ever SPR sale, to stabilize global oil markets and curb gasoline prices after Russia’s invasion of Ukraine. This reduced the SPR by about 45% from January 2021 levels.
Days of Supply: At current levels, the SPR equates to about 19 days of U.S. oil consumption (based on 2023 daily consumption of 20.275 million barrels) or 47 days of net imports (based on 2024 daily import levels of 8.42 million barrels). The International Energy Agency requires 90 days of import protection, which the U.S. meets through a combination of SPR and private industry stocks.
Operational Readiness: The DOE emphasizes that the SPR remains the world’s largest emergency oil stockpile and is operationally ready, with ongoing maintenance to ensure reliability. Oil can reach the U.S. market within 13 days of a presidential decision.
Challenges and Criticism: Rising oil prices have slowed replenishment, with purchases canceled in April 2024 when prices exceeded the DOE’s target of $79 per barrel. Some critics, particularly Republicans, argue the 2022 drawdown compromised energy security, though the administration counters that the SPR remains sufficient for domestic needs, especially given increased U.S. oil production. The U.S. is now a net oil exporter, reducing reliance on imports.
Posted on 4/24/25 at 12:08 pm to lake chuck fan
I think so, in Trump's first term the US was 2nd in the world in oil exports
This post was edited on 4/24/25 at 2:04 pm
Posted on 4/24/25 at 12:11 pm to lake chuck fan
If supply goes beyond the demand then prices will drop and make it less profitable to drill
Posted on 4/24/25 at 12:19 pm to lsu777
quote:
best thing they could do is allow new refineries to be built. Sure there have been some little ones done but the last significant refinery built was in 1977, the one in garyville. not building a new refinery in almost 50 years is fricking asinine
BINGO. Getting the oil out of the ground isn't the issue. We have plenty, and we continue to set records (even through Biden's administration). It is similar to logging and lumber. It isn't that we can't put trees on the ground, it is that we don't have the mill capacity to process them.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News