Why Gas Got So Expensive (It’s Not the War)
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- Опубликовано: 9 фев 2025
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Writing by Sam Denby and Tristan Purdy
Editing by Alexander Williard
Animation led by Josh Sherrington
Sound by Graham Haerther
Thumbnail by Simon Buckmaster
References
[1] www.eia.gov/ou...
[2] www.politifact...
[3] www.iea.org/da...
[4] www.statista.c...
[5] www.statista.c...
[6] www.statista.c...
[7] www.statista.c...
[8] www.rystadener...
[9] www.theatlanti...
[10] novelinvestor....
[11] www.statista.c...
[12] finance.yahoo....
[13] The Quest: Energy, Security, and the Remaking of the Modern World - Daniel Yergin
Select footage courtesy Getty and AP; Select imagery courtesy Geolayers; Select music courtesy Epidemic sound
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Sad Story. I hear when the price of oil went negative, Chevron had to lay off a couple of their congressmen
ooh, gottem
Hoser?? Wtf hi
Sick burn! Also, sadly too true.
Joke all you want now we got you by the balls. Those who are educated and saw this coming are laughing all the way to the bank baby 🚀🚀🚀
To the bank? You work for politicians?
As a young pilot training for a career in the airlines, I find this a bit scary. There are no good alternatives to kerosene for large aircraft. Hydrogen may become a possibility, but it’s at least 10 years out. Higher fuel prices probably means less demand for flights and fewer jobs for pilots. Not necessarily a bad thing for the environment, just potentially a bad thing for me.
it seems like the aviation industry is developing too slowly, to think aircraft like concord were previously viable and now aren't anymore it wouldn't be a big surprise to see more planes being taken out of service as it becomes harder and harder to turn a profit, basically all 4 engined aircraft are on the way out now as well and have been for many years
Nah, fuel costs don't make up nearly as much as one thinks on flights. For example a 747, which is one of the most fuel hungry planes today, can burn a gallon a second but you're also moving over 400 passengers. So 3,600 gallons per hour, divided by 400 passengers is 9 gallons per passenger per hour. So for a six hour transatlantic flight you're talking about $50 extra per passenger for every dollar of fuel increase. Notable, but certainly not a dealbreaker for a trip to Paris.
For a standard 737, the numbers are even better. 750 gallons per hour and 150 or so passengers. So 5 gallons per hour per passenger, or $15 per dollar increase of fuel costs for a three hour flight.
I think it was Wendover who did a video on electric planes that you might want to check out, was interesting.
formic acid with high efficiency cells and also some wonder-motors would prolly work
Most hydrogen is derived from petroleum.
@@thomashazell1003 Natural gas is base stock, not so much liquid petroleum
While waiting in line for gas in 1973 I told everyone the age of cheap fuel is over . The market made a fool of me so many times.
So we had many times where oil got back to $1.50 to $2.50/barrel, this was a thing. It was in 1970 that the era ended, as US production peaked, and with it the era of $50/barrel, gasoline consistently above $1.50/gallon.
I remember it well,. Even my Dad - a die-hard American car fan - bought a Subaru!
you weren't wrong.
@@donreid6399 I bought a 40mpg Lincoln mkz. You can get the Ford variant which is cheaper with the same mpg
@@ZRodTW Zach, you me all life is carbon . When a leaf settles to the bottom of the ocean the carbon is lost . That is why nature evolved a monkey that can drill for oil and bring the carbon back up .this planet has been much hotter Been much colder and life goes on.
Here in North Dakota the news has been full of stories of how the drillers are ready to go, drill more wells and increase production, but they can't get the employees. When the boom crashed, the workers moved on and aren't willing to come back without significant incentives, mainly involving job security which the drilling companies are unwilling to offer given the boom and bust nature of the industry.
Why don't red-blooded Americans want to work without job security? Come on, wimps! It's really fun to never know if your next paycheck will be your last! Don't they realize that owners and executives have to secure their future first, and they don't have to care about the worker's future? Don't ask for better treatment. Don't demand more! Take the scraps they give you and say thank you!
I know a lot of it has to do with an industry that is largely subsidized. If they raise the price and reduce the supply, they think they can squeeze the government to subsidize the cost.
USA is no longer a democracy, it is an oligarchy owned by the corporations.
That makes sense
What I heard from some workers who went to work in North Dakota, the promise of making a lot more money, got blindsided by the towns they worked in who jacked up their rental prices, food & entertainment etc that it ate away at any profit for them. I was told it turned out with the grueling work and work hours, they ended up making less and were not treated good by their employers who were the ones raking in the profits. Many of these workers left their families back home. This is the REAL reason they didn’t want to return
Same as is happening to restaurants at the moment.
One thing to note: there's always been "fracking" (short for "fracturing") in the oil industry, long before shale oil was possible. It's just back then they used explosives (often nitroglycerin) instead of water. It would be more correct to use "hydrofracking" when talking about shale oil.
I know it's a minor point, but saying that fracking was what made shale oil extraction possible is a bit misleading. Fracking makes all oil extraction possible, it's just hydrofracking that works on shale.
I would like to add to this, 15mins in it shows a drilling rig, but then talks about how cheap it is to build a "fracking rig". There is no such thing as a fracking rig in the same sense on what a drilling rig is. Rather the entire frack setup consists to few-dozens of large disiel/natural gas engines driving large pumps, connected to a tractor/trailer, aswell as other units such as blenders and chem units to mix the water, chemical, sand mixtures together, before being pumped down pre existing piping down hole placed by drilling and service rigs.
My haters throw rocks at me and IT hurts. I hope they don't throw The Rock at me because I like him as an actor. GAGAGAGAGA!!! I am funny!!! I am the funniest RUclipsr EVAH! Please agree, dear qdam
@@AxxLAfriku haha
I guess to be snobby Well Perforation vs Hydraulic Fracturing?
Also if anyone is interested SERIOUSLY read up on the Wikipedia pages/categories, and “Petrowiki” which as of now has way more information.
Even though the people running the industry’s top are horrible, the tech behind it and all the people operating it are really interesting.
5.5 billion is not exactly "stratospheric" for a project of that magnitude. The Alaska Oil Pipeline System cost over 8 billion to build. And requires constant monitoring and maintenance.
NS2 over 11 bilion.
It's relative, that's the point of the video. Nobody's investing 5,5 billion right now, let alone 8 billion, because while it might not have been "stratospheric" before, it is now. The name of the game is to make do with what infrastructure you have, and milk it for all it's worth.
Bro Elon payed 44 billion for twitter....twitter... 5 billion and 8 billion for oil pipeline is nothing
Canada bought the TMX pipeline (1150 km) and the cost to install a new pipe along the existing right-of-way has ballooned from an estimated $7.4B up to $21 Billion CAD (more then $16B USD).
@Camping Comrade You did not watch the video you're commenting on I presume? Politics has almost no influence on oil prices.
19:00 you summarise the situation perfectly. Turning profits now via scarcity and encouraging the switching to cheap (by comparison) renewables is the strategy. The funny part is, many of the Oil & Gas companies are now investigating in renewables as well. They are playing both sides.
Which is honestly exactly what needed to happen to change the tides in energy land.
They make non-renewables expensive and unattractive to companies and consumers. They make incredible amounts of money now so they can invest it all into the renewable sector in order to avoid missing out.
That influx of money and innovation is exactly what the renewable sector needs to grow quickly enough.
It sucks for the consumer right now, but we're literally the generation that's paying for a more environmental friendly future as we speak.
I still massively dislike the massive oil and energy companies, but they've unwillingly become one of the most powerful tools to save this planet. Who'd have thought that ten years ago.
@@paulelderson934 true never though of this this way. But that’s really a interesting point to consider. Thanks🅿️
Investing in renewables also makes sure oil industry doesn't die.
Solar can't provide electricity at night.
Wind doesn't flow 24/7
there's always scarcity of renewables.
There's no good enough storage technology for large quantity of energy.
And even if we lay down solar panels in evey inch of the planet, it's not enough to replace oil.
Oil industry definitely supports renewables because renewables are stupid.
Nuclear on the other hand is actively being opposed by them. Figure out why...
I'm gonna summarize the situation in an obtuse metaphor because I feel like it
They're going to milk the cows until the last drop of profitable milk comes out. They know the milk can't flow forever, but they already bought the fancy milking equipment, and shoot, they even have un-tapped leases for more cows.
To guarantee they'll keep getting profitable milk for as long as possible, they'll use any trick in the book; playing into inevitable scarcity, political lobbying, mass-media campaigning. For the far-right milk lovers, they'll claim the government is trying to stop them from milking the cow, even though the government doesn't really care either way.
All the while, they're also quietly investing in the almond orchard, lol.
@@paulelderson934 they found their win win scenario . Dam they're unbeatable lol
Inflation is far more harmful to individuals than a collapsing stock or property market because it directly affects people's cost of living, which they immediately feel. It is not surprising that the current market sentiment is extremely pessimistic. In today's economy, assistance is critical if we are to survive.
Inflation isn’t rising cost that’s the effect of inflation but they won’t tell u what causes the rising cost exactly because it exposes the system that they designed like this on purpose inflation is an expansion in money supply
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Not just Azerbaijan, another big Caspian natural gas country is Turkmenistan. Turkmenistan is so rich in natural gas, that for a long period of time, gas, electricity, and water were all free of charge. They also used that wealth from all the natural gas to build tons of marble structures in the capital city Ashgabat (they actually have a Guinness World Record for it). Under late leader Saparmurat Niyazov aka Turkmenbashi, he built a marble monument honoring the country's neutrality with a spinning golden statue of him at the top. It spun so that it would always be facing the Sun, symbolizing that his era was the golden era. Like Azerbaijan, Turkmenistan has pipelines connecting its natural gas to neighboring countries like the Trans-Afghan pipeline connecting Turkmenistan through Afghanistan and Pakistan to India and the Central Asia-China pipeline connecting Turkmenistan to Xinjiang (they also have pipelines to Iran). As part of the pipeline from Baku through Turkey at 6:00, a subsea pipeline has been proposed to connect Azerbaijan to Turkmenistan. Because of the natural gas, Western leaders aren't so keen on criticizing the Turkmen and Azerbaijani leaders when compared to criticizing me. Why? Because we're not rich in the specific resources (oil) they want
Back in the 70s when the country was still a Soviet republic, the Soviets were drilling in the northern portion of the country looking for an oil field. When they found a natural gas pocket, the drill suddenly collapsed into a crater. Because of the concern of poisonous gases being released, they decided to set it on fire....that fire is still burning to this day. And the problem of poisonous gases being released is still an issue, thus in addition to saving the environment it's been decided to seal the crater. As cool as the crater nicknamed the Door to Hell is, it's not so cool when you have health issues because of it like the locals
Thanks, Kim Jong-Un.
Very cool, supreme leader.
LOVE YOU, best Leader ever.
As expected of a global leader, you are very well informed.
And here, most politicians make themselves into weather vanes. Pointing wherever the wind blows. ♥
Refining is really an important part of the price. Here in Brazil we pay too much for gas even though the country is a big oil producer, because we don't have a big refining capacity.
The US and other countries have intentionally kept this kind of tech out of many countries. So that they can’t become totally self sufficient.
Doesnt brazil have a market of E100 cars that run on ethanol? Isnt that way cheaper?
@@theguy9208 mate ethanol could be the most expensive of commodities depending on which bottle it is packed in.
that kind of price always tends to rub of on even stuff that's used as fuel
Same with the Southeast in the US gas here in Florida is still $4 becuase of all the reginies around the Gulf of Mexico.
@@theguy9208 price per liter is a bit lower but since it's less energy dense it becomes a bit more expensive to run in most of the country. Besides, with the massive fleet of flex fuel cars in the planet, capable of burning both gasoline and ethanol, the price of either will float alongside.
"Three decades ago"
"End of august, 1991"
Ah... right. 3 decades ago doesn't mean the 70s anymore
Oh fuckin tell me about it. Lol
Oof glad I'm not the only one still calculating decades from 2000.
I see you too were born in the 80s.
Will never get used to this
Damn.. thats really bothering me
This makes a lot more sense statistically isntead of just saying " oh its the wars fault"
Very informative 👏 👍
Biden says otherwise "The gas price increase is caused by the Ukraine war" but as we know, it has nothing to do with it. lmao
@@BillAnt yeah...
Its easier to blame the war than the corporate monopolies in petroleum that pay hefty donations to them to keep things as they want through lobbying.
😕
Feels like the war is just excuse to keep the oil price high
Or people who say oh yeah US president. For as powerful as whatever President may be, there's many things a president can't control and this is one of them
@@isaacmillen8789 Sure it is.
It's not like they killed all US oil production and turned off the pipelines.
*oh wait*
I don't understand claims of "The End of Oil" when there's so many products besides fuels that are wholly or partially made from petroleum.
@BeamerMT1979 Right but We dover specifically said "the end of oil", they didn't specify "big"
Thing is Oil as a whole is on the way out. Synthetic oils are becoming more popular, plastics are evolving, (like biodegradable plastic techs) and entire industries are changing.
Will it happen overnight? No. But when 80% of what oil does vanishes, producers will look for alternatives that are cheaper. Eventually extraction's gonna become more expensive than whatever remaining legs oil has.
It is a very slow death, oil is being replaced not just because of pollution, good in itself, but also geopolitics. If the US/West wants to contribute to lower oil prices to win elections, we should fill our reserves from our own state owned oil production company which should pay for itself, like a tiny OPEC.
@@gardianx5293 This is the key. We can substitute, enhance and recover a bunch of those petrochemicals. As the tech improves the downward trend happens even there.
Oil is a refined product off petroleum. Plastics are also a refined product of petroleum; therefore, "End of Oil" is not the same as "End of Petroleum."
I was really looking forward to the insane logistics of bricks
The meme is dead, let it rest in peace.
No, don't let the flame die out!
The incredible logistics of getting myself out of bed in the morning
As mundane as that sounds, the material process of making bricks would be a pretty fascinating video if it’s very in depth
Sir, this is Wendover Productions. To be on brand, it has to be a video on the insane logistics of air shipping bricks.
When oil crashed to $0 and held at $20, plenty of analysts said, this will be the reason why oil will hit $100. Since nobody will be exploring for more oil, and many people will be shutting their taps for good, when the demand returns, the market won't be ready, hence the price hike today
@@criticalevent maybe you should look at the dates of certain events and not look for a politician to blame.
@@criticalevent oh my bad. figured you were one of "those people" who blame politicians for gas prices.
Ok, you are a faithful Hillary supporter. I respect you for that.
Exactly that happend analysts were right. Some riggs in the US closed for good.
In the oil market the solution for low prices are low prices and the solution to high prices are high prices. Investment typically lags price though which is what you're seeing now.
This is one of the most important videos you've made I think. So much disinformation about oil prices going around, and lots of it getting picked up by mainstream media.
🤣 you say mainstream media like there's ANY alternative 🤣
@@garymartinez2812 Wendover isn't mainstream media lmao, you're literally watching it.
Dumb video. Oil is up along with everything else because central banks around the world monetized tens of trillions in in deficit spending to purchase their own govt debt. Where do you think the $7 trillion came from for the Fed to buy that amount in new Treasury issuance?
@@firepower01 Please in what way is this channel not mainstream. What do they do or say that's so different from other channels. What is so thought provoking. This looks to be very safe in many ways. If this is your idea of non- mainstream 🙄wow ok 🤣
@@garymartinez2812 wendover is nowhere near mainstream like fox news or cnn. Use your brain
Every time you say cheap or expensive, I have to mentally check myself and be reminded we're talking in Oil company terms here.
These guys could buy and sell my whole island nation on a weekend whim.
Remind yourself, you ain't working for 5 cents an hour...either.
Sri Lanka?
IT'S a proper time to americans get the old bicycle running again. burn off the ugly fat and to help save the environment. inflation is a life saving experience. god bless biden for this.
food is expensive? hey you were smart enough to save enough energy when food was cheap. all you have to do is shut the mouth and let your love handles feed your body for a year. you will be able to save even more money than previous the inflation. you will be more active cause will have more time left by not being chewing something all the time or going to bathroom. the river won't receive as much human waste. think positively inflation is great.
"they" are providing a VERY material amount of energy used in the pursuit of frankly insane levels of standard of living. clearly the comparative to the contribution of your Island nation is silly.
Oil is used for a lot more than fuel. We have heard about peak oil for 40 years now. There are no other sources for basic petrochemicals that go into every consumer product and agricultural product.
Both things are true, but not really related to each other. "Peak oil" keeps getting bandied about by the panic-mongers.. sometimes based on valid concerns but usually not.
Back in the 1970s we didn't really have the tech to even know what oil was out there. We knew the stuff we could get with the tech of the time, and we knew there was _some_ stuff we could get later but at great cost. "Peak oil" essentially amounted to the transition period between "easy to get" and "hard to get" oil, among the reserves we knew about.
But.. tech keeps improving. Some of that "hard to get" oil became easier to get, but that wasn't the biggest reversal of peak oil. The biggest reversal was finding new ways to identify oil fields. Suddenly we were finding oil all over the goddamn place. The shale in the US, the tar sands in Alberta, countless offshore basins under practically every decent sized body of water we can find.
At our projected rate of consumption - before the modern climate concerns and the push to reduce fossil fuel use - the estimate was something like 200+ years worth of known, accessible reserves. It wasn't all as cheap as the WTI and Saudi production we've gotten addicted to, but it also isn't anywhere close to the "hard to get" worries of the 1970s - and there is still "hard to get" stuff out there as well on top of the 200+ years worth of cheap oil.
There's a reason we rarely hear about "peak oil" anymore, and haven't for a long time. Its just not a concern at this point. And getting less and less of a concern by the year as we look toward transitioning away from oil (.. not that we've really done that yet, but its not a concern either way - we either stop using it voluntarily, or we stop using it by having massive global catastrophe and the human population shrinks to probably 10-20% of its current size due to famines and plagues generated by climate change, and the near-certain wars generated when people attempt to flee the worst-hit areas and anti-immigration sentiment ramps up to levels we can't even imagine even after seeing Trump's rhetoric and policies).
All the more reason not to burn up oil just to drive from one place to another. Rather use it in products than one time burn and use.
@@altrag Trump is anti illegal inmigration, not inmigration...
@@altrag you can ramble on all you want about peak oil "panic", but it is self evident the supply of oil is not infinite, regardless of your attempt to pretend otherwise.
This video is about peak oil investment. They will stay under demand to keep prices high, so while nobody's stopping pumping it up, it will simply add to inflation as we are seeing now.
"Wait, the gas crisis wasn't because of the war?"
"Never was."
As a wise American politican once said... *NANOMACHINE JACK*
So did Corn Pop raise the price?
I'm pretty sure the war is only a factor of it. I don't live in America where the gas were already high it's just that the rising prices here coincided with the war
Politicians are experts at “deflect and blame”.
@@sanangelo7926 it would make sense he did say Corn Pop was a bad dude.
I always wanted to know how gas prices worked in detail (I even worked in a gas station the summer before starting my master's but I had a pretty limited understanding of how the prices worked lol). This video helped me a lot.
Love your videos, they are super informative and interesting. Keep it up, guys!!
One interesting thing i have head is that some of the big oil companies in Houston have been buying up leases and old depleted wells off the Houston coast, like 20-30 miles offshore. Most likely not to drill again, but to use the already in place pipelines and pump CO2 back in to the ground from the refiners and power plants in that area, Im sure in the coming years there will be a higher CO2 tax that will be in place and incentives companies to do this.
Oh gosh. Pumping co2 into the ground is such a stupid idea. All it takes is one earthquake or someone digging into said area some time in the future and boop, all that co2 goes back into the atmosphere. 🤣🤣
@@Qce-i6d the gulf is rather stable geologically and there isnt much reason to dig there in the future
Reducing CO2 is now a pipe dream as oil supply is declining and other alternatives require high capital which is declining bc of an aging population
So we took it out
And we're gonna put it back
To probably later take it out again
@@Qce-i6d It's a huge concern that a toxic gas pocket could rupture and suffocate half a continent.
I think there may be a misrepresentation of the wells with fracking. The companies may have permits for the wells but with the advances in fracking technology you can use one wellhead and bore out in multiple directions both horizontally and vertically making multiple wellheads redundant.
You are describing the microeconomic reason of why there are less wells and somewhat lesser investment in fracking recently. I would say that having this technology to drill horizontally also has costs that not all producers would want to shoulder, or are not geologically able to support. (Case-by-case basis)
This video is addressing the macroeconomic reasons of lesser investments. Not really a misrepresentation when you consider the above.
Also making the reason they need more access in national parks null and void. You don't need to be above it to drill it
Companies always do what makes them more money, weather redundant or not...
And if it saves money to use older technology, they'll do it
Thanks Joe Biden
@@gordonjay2461 You are actually not smart if you think this is a Joe Biden thing.
I’m an oilfield worker here in West Texas and I’m not gonna lie, it makes my day hearing Wendover mention WTI and the Permian lol
Midland?
so every word ure speaking is a lie unless u say 'not gonna lie'? means u always lie? fucking retarded statement
Everyone forgets about west TX until they need gas.
its so crazy to me that such a large portion of gas production comes from west texas yet it's so hard to find gas stations there. like they'll be 70+ miles away from each other
Imagine being a former employee at the small Valero Wilmington Refinery that he mentioned...
Good video but you missed a few key points. As you mentioned during the shale boom in the early 2010's companies were drilling for market share. The strategy was production growth. They would spend as much money as possible to acquire land leases and drill wells. The problem with that was shale wells have an extremely high decline rates. They may start off at say 1,200 bbls/day but after a few months are only producing at a couple of 100 bbls/day and after a year they produce at 50-100 bbls/day. When the price dropped due to the oversupply of the market caused by this flood of shale oil the companies could not pay back their loans. They did not simply decide to stop drilling, many went bankrupt or were purchased by larger companies. The reason the remaining companies are not picking up rigs and drilling more shale wells now when prices are high are 1) to grow production by drilling high decline rate wells you need to continuously drill more wells each year than the year before, this is a huge capital expense which will not produce an ROI, will flood the market, and cause the price to drop which will exasperate the problem. 2) Banks are not interested in lending money to producers who would do this again, as I said a lot of oil companies went bankrupt and a lot of banks lost a lot of money during the shale boom 3) Banks have a lot of social pressure to not invest in Oil companies so the money is simply not there to invest. Which leads me to the most important point which was missing from your video. You did not speak of conventional oil plays that do not have high decline rates, rather they produce tens of thousands of bbls of oil per day for 10-20 years. These are the plays that will increase supply and decrease oil/gas prices for the world. Since 2015 there has been a huge shortfall in investment in these projects which take 5-10 years to discover, develop and produce along with billions of dollars of investment. Banks were burned in the shale boom and along with the social/political pressure to shun oil & gas money was not allocated to this type of investment. Now that prices are high maybe we will see some more investment. Though at best this would take 5 years to see results as these large conventional plays are found in deep water environments that require many years of planning and engineering work. At worst this investment will not take place due to the fact that politicians across the world are saying they want to abolish fossil fuels. And who would invest billions of dollars knowing they could have their pipelines, leases or permits pulled at any time?
The politicians and bankers can be the first to starve.
A very good and accurate depiction of the oil situation.
look what happened to keystone.
This was a pretty good analysis and history of oil volatility, but I'd be cautious about the final conclusion and more than cautious about prediction drawn from that conclusion. Two factors not mentioned in this video or anywhere I've seen in the comment section are:
1. The oil industry, like everyone else, has been affected by general supply chain issues and inflation, which has driven up the price of tapping new wells. Effectively this makes supply expansion at the moment more costly than it otherwise would be.
2. Oil companies also took on a ton of debt in the last two years, so increasing profits to both pay that down and pay shareholders is a higher priority for them at the moment, rather than expansion.
Neither of those factors are small, and they both point to the current situation being a temporary recovery from the pandemic. I'm not saying this video is wrong and we will definitely go back to the old way, but trying to predict the future of the oil market is risky business. Nobody knows what's going to happen, and the incentives guiding today's market can change in unexpected ways tomorrow.
I would also like to chime in and say that the author's conclusion is entirely misplaced. The world watched as demand evaporated in an instant not because of renewables or anything tangible, but because of governments launching mass lockdowns for no legitimate reason, and destroyed hundreds of billions of dollars of value, demand, and production in a matter of a couple weeks. It's not something anyone in the industry can reasonably prepare for, and this being a possibility that was entirely unprecedented has made everyone even more risk averse than they already were.
I keep seeing reports that oil companies having having record profits. They get no sympathy from me.
@@tommymaddox6785 Government launched lock down for no legitimate reason? Just about all nations did a lock down, it was a pandemic. People died. I lost my mom, uncle, and 2 friends. I whole heartily wish it was you instead of them.
CaseNumber is based af, the world literally lost millions over this pandemic and it could've been worse if not by the first "drastic" actions. A couple billions are nothing compared to the money the world has to fix our issues.
@@CaseNumber00 Well while I appreciate your sentiment, rest assured I'm healthier than ever. I would like to ask you to think about what you just said, and get those neurons firing a bit.
Governments destroyed the lives and livelihoods of millions, wrecked economies and futures, set back generations of education and development, and the 4 people you listed still passed away. It will take some time, but the handling of the last few years will go down in history as one of the biggest fuckups in human history, next to the development and use of atomic weapons.
At the end of the day regardless of whether renewables reach 100% market share, we still need oil and gas.
Why? Science. Plastic. Electronics etc. Oil will transition from a source of power to a resource like iron, steel, etc.
The new helium. Also something that is better used in science than for baloons.
That's why you don't' want it used for transport.
Rainbows and unicorn farts don't make plastic, rubber, fertilizer, or asphalt.
@@afg45 Gasoline is a byproduct of crude oil refinement. You arent magically transforming gasoline usage into plastics and asphalt. You are going to get gasoline no matter what.
@@nuddin99 and still a better idea to not use it if we can avoid it. I'm sure we will find some less polluting use for it while we slowly get rid of oil entirely, we humans seem to be pretty good at that if we just let ourselves be
One alternate interpretation of the same data: over the last 3-5 years, there have been massive increases in commitments on climate change such as the gasoline car sale bans by 2030. This could change how willing they are to invest based upon 20 year outlays....
However, there will still be billions of ICE cars on the road, so its not like the BEV will complete replace the demand, immediately. Also diesel, aviation and marine fuel cannot transtion to EV. So its a matter of "big oil" needing to keep its pocket lined for the foreseeable future.
@@NoodlesExtraMSG Yes, but it will be oversupply glut again, and the same market forces which pussed oil to 100+ will crater it to 20-30.
This is very much a big thing. Companies are worried about stranded assets. Also, this isnt just a government thing. Electric cars are basically at the level of ICE cars, but diesel demand will be strong for quite some time.
I work in oil and gas and the political nonsense people blame for the price is so silly.
@@letsburn00 did you know that 90% of electricity for electric vehicles comes from power plants burning coal. So all the emissions still exist but just before you turn on the engine, not very green to me
@@grantwetzel1660 Id recommend you look into your sources a little more. It depends on where you are located since different states and countries have different access to renewable energy sources. Now, all 1st world countries that have EV's do not have 90% of their electricity coming from coal plants. Coal only accounts for ~22% of the US electrical supply (Eia.gov).
As I write, it is mid August 2022, and I'm in Austin, TX for what it is worth. The price of gas is all over the place. On north Lamar, the Valero is selling at $3.23/gallon for regular 87 grade gas, while 1.5 miles away, the 7-11 gas station is selling the same gas for $4.45. Most places are about $3.60, but there is huge variance. And it isn't because of a sudden change in supply or demand, these huge variances have existed for many weeks. Something screwy is going on.
$3.23/gallon, really? That’s like the record for the lowest price in Hungary where I live. Gas here costs $7.60/gallon with the salaries here about fifth of what people in the us get.
@@justaguy9224 probably because of living costs and we rely on cars a ton vs. Europe
This is why I refuse to get gas at shell. Shell station by my house is $3.59 while the exxon across the street is $3.07
Lol my family deliberately stops at different stations on their way into the major cities in Kentucky because certain ones are selling for cheaper
My commute to work is just under 65 miles one way, I pay $26/month for hydro for my car. I’m 2 years of driving I have almost completely made up the difference in cost vs my old vehicle. But I’m lucky enough to be able to plug in at home, I don’t need a large charger (I use a regular 20 amp plug in the garage)
Best decision I made was dumping a large SUV for a car and going electric.
"ignoring the countless externalities" seems like a good summary of most of this
he circles back at the end. but full discussion of the very obvious externalities of the oil industry would change the topic of the video too much.
I dig!
@@alexpalaciossantos4940 but hey, the food for thought part is what brings me here. The "Persuation" artist part is so obvious I'm not even mad.
Wanna know why gas prices are so high?
1: Inflation, so the government printed too much money
2: Sanctions
3: They won't drill for more oil because of the government imposing more and more environmental policies, by the way the 9000 leases is complete bs, in short, there may be 9000 but only a couple may be profitable, and when you stop the pipelines coming from places where it's already profitable to drill, it tells a lot more than "9000 leases".
By the way, these environmental policies start to sound like they are not actually looking for alternatives, considering that nuclear is not really in the picture, and for "green" energy you will need metals and materials that have to be dug up from the earth... Which would simply mean that our 30/40 % reliance on Russian gas would become 90% reliance on China... That is if green energy was even an efficient way of producing energy, which let's not even get into that... It does seem to me that environmentalism is more about crashing the energy industry, so they can blame the greedy corporations for high gas prices "like they are already doing by the way, because obviously it's not the government's fault right?", and convince the people that they are the enemy, so they can nationalize it without issues.
But what do i know.
So basically the problem is the government interfering with the market as per usual.
@@alexis1156 its funny that you say the problem is govt interference as if the entire neoliberal model doesnt depend on extensive government interference in the interests of the wealthy. Could you please just do the bare minimum to understand the lies used to sell the "free market" concept, while in reality power was given the already wealthy and connected
also your discussion of energy is completely lacking the impending climate crisis. We cannot continue using oil. Did you not watch the video in its entirety?
This video is so informative
Nobody asked
not really. just a pile of globalist lies that tell us oil is over and we all need to buy a $40,000 tesla.
Unlike this comment
This video is propaganda
*misinformative
I don't think we'll ever reach zero oil production because of how useful it is for plastics, but I have no idea what the industry will be like with plastics as the main driver of production
Oil is used for far more than just plastics, nearly ever product has some sort of oil in it's roots. It would be a century before they find affordable ways to phase oil out of every day life.
Problem for companies is even a 10% drop in demand makes them compete at whole new levels as you can't run supply of many plants are partial amounts and have it continue to be profitable.
I don't think they can phase out oil. Even if the planet runs out of crude oil, they start liquefying coal as a substitute and create synthetic oil.
Plastics largely derive from gas, not oil.
Also, Syngas is pretty much viable now and can be produced from any carbonaceous waste, as long as you have a power and steam source.
@@letsburn00 I see you don’t know where gas comes from 😂
@@DennisWHJr I'm fully aware that gas comes from the ground., Often alongside oil. But as a power source, oil and gas are bifurcating pretty rapidly. Once upon a time there was almost only oil drilling and gas was a byproduct. It's now shifting a lot the other way, since gas demand will almost certainly remain high for longer than oil.
As a petrochemical feedstock, gas is fairly replaceable. It just needs a financial incentive.
It's hard to predict the future until we see this month’s inflation results. However, historical data consistently show that stocks tend to outperform bonds in the long term. Therefore, I'm staying in the market and focusing on selecting high-quality stocks. The challenge lies in identifying these stocks.
Bot spam
Smart !!! Same here.
Great video. The problem right now with people saying it's the end of oil as we know it, is the time it will take to transition. Right now only a little over 20% of US energy production comes from the combination of nuclear and renewable resources. That leaves the remaining 80% to coal, petroleum and natural gas. While it's great that people will want to switch over to electric vehicles, the electricity that is going into them is still being produced within the same systems that are hiking gas prices. We've seen similar trends to the gas hike already with increases in energy prices. So it's still going to affect you even if you have an EV. It isn't just a transition away from gas powered vehicles. We need a transition toward Nuclear and Renewable energy production in our grids as well. Otherwise we are going to continue getting hit by their "party at the end of the world" as Sam put it so well
Also, similarly to cigarette companies buying up vape companies, I wouldn't be surprised if in the next decade we start seeing the reinvestment money being funneled toward green energy start ups. These massive corporations aren't just going to throw in the towel and live it up as the video implies, they are going to continue existing, but pivoting to the new trend when the old ways are no longer an option.
@@Learn_Something_New hence why they are extracting as much profit as possible right now to strongly position themselves for the expensive capital demands transitioning the energy supply will require, makes you feel less upset about paying more for fuel although it is somewhat inconvenient
The only transition you will get is a transition to living like a caveman while the rich are enjoying their incoming-apocalypse parties. After that, probably WW3, plague and hunger to eliminate the "unnecessary" parts of population. After that we (mostly the richer survivors) can return back to our senses and using fossil fuels - all while introducing new fascist measures to keep the population under control or declining long-term.
Coal and petroleum products make up at most 60%. You've forgotten about renewables, which make up about 20%.
Whilst i certainly agree with you in regards to needing significant investment in energy supply becoming more nuclear and renewable. I also disagree that the hikes in prices are anywhere near as impactful. Even with an energy supply reliant on fossil fuels, EV's still make sense. extracting the electricity from a barrel of oil in a power plant for example, is orders of magnitude more efficient than burning it in a car.
a gallon of fuel for example may get you 30mpg when burned in your car. When burned in a power plant, you're capable of extracting almost the full 33kwh worth of energy in that gallon of fuel. Which when that electricity is used in an EV, on average you'd get 130mpg equivalent that's 4.5x more efficient using the exact same fuel.
This is possible thanks to power plants not being restricted by size and weight like a car is. a car has a point of diminished returns at which the efficiency improvements are counteracted by the weight increase of the vehicle. a power plant doesn't care however, so they are able to construct boilers and large turbines which are far more efficient at extracting energy from the fuel than your piston driven car engine.
if every car was EV, even if we still used fossil fuels to power them, we would reduce our emissions and oil usage on travel 4.5x
If the oil companies are posting record profits wouldn’t it entice smaller producers to create new fracking rigs to cash in on it thus eventually balancing out prices?
They were losing money only a couple of years ago
Yes. And it is happening. But that takes time.
Probably but like this guy said it takes time. Everything in every sector has lag times we either can't comprehend or just don't think about.
Smaller producers still need bigger investors to get off the ground. It's still risky, and the last bet recently had a huge blowback, and future talks indicate people are trying to reduce demand anyways.
Anthony hadsell: The key word is "eventually". Small producers will have a small impact on global supply. For major projects, it takes quite a few years from conception/planning to the end products being produces in huge volumes.
But yes, the cure for high prices is high prices -- eventually, as the high economic rewards / probabilities spure higher investment / risk.
Largely very good and accurate, the main thing that wasn’t covered was the real logistical constants preventing large scale ramp up, while oil companies especially in the US weren’t preparing, those that are trying to increase production now (I know by in person discussion I’ve had with their executives for my work) is being limited by rampant inflation (steel pipes necessary for new well lining has increased by 16-20% in March alone, and to get the materials to drill a new well currently has around a 2 year waiting period just from a supply chain failure perspective. This means that those that are ramping up reinvestment are having those increases (20-40% increases sometimes more, only result in single digit production growth). Another factor that’s incredibly important is the DUC (drilled but uncompleted wells) since oil went negative many producers (the majors were the largest offenders in this) used the DUC inventory to avoid reinvestment and increase/maintain production, now the DUC inventory is at the lowest in around a decade meaning the lack of reinvestment has caught up to the industry. The companies that took the profits and distributed value to shareholders instead of increased reinvestment were rewarded by the market with increasing share prices and positive market signals while the inverse also occurred. Overall this isn’t some broad scheme to go down kicking (at least on the US shale side) it’s a web of complex issues with many causes and effects.
Saying the war isn’t the reason also isn’t purely true as it has had a outsized impact on the global oil market constraining global supply, disrupting trade and taking key barrels off the market thus overall adding pressure to an already strained market.
Oil likely would have reached over $100 without it but if it wasn’t for the war it wouldn’t be over $100 right now due to the tampered demand from renewed Chinese lockdowns.
I.e. Big problems means expensive toys so old toys do the trick, but now no old toys and still big problems. So war?
good job at that propaganda
Fracking has already shown the ability for the US to be energy independent. Well done calling out the failure in the conspiracy to maintain high prices by a monolithic oil industry. Domestic policy is the primary cause of our high gas prices. Biden’s Gas Tax is to blame
@@tinymints3134 you have the reading comprehension of a fish
Who are you??
Great video. I've been in and around the industry for just over a decade and I can almost pinpoint the day prices turned up or down. For example, on Thanksgiving Day 2014 (in the US) OPEC held their semiannual meeting where they decided not to cut production which started a long, steady slide in prices.
Being from the Permian Basin maybe I can expand on a few things? One of the biggest pushes in oil companies in the US is to reduce the cost and environmental impact of Fracking, as it would drastically increase their ability to compete with foreign producers. Another is largely out of their control, as drilling wells often leads to the production of a lot of natural gas that they would of course like to sell, but because much of this gas is a very heavy mix of hydrocarbons it's an expensive process to try and sell it without separating it into things like propane and methane. The technology exists to do so on site, but because of the natural gas market there's no real way for them to do it and make anything even close to a profit so most companies flare it instead. That said we have our booms and busts every couple of years, but we're still chugging along without too much issue, and I don't expect oil to go away any time soon.
But is fun hearing my home mentioned in a Wendover video! As well as hearing about how we're basically racing and competing with some people on the other side of the planet haha, something I don't hear many people talk about.
Do you think south texas such as kenedy/karnes will see production and workers come in the area for the next 2 - 5 years?
Crazy to think that most Americans think that the president directly changes the price of gas like he has a magic button oe something
It's right next to the Universal Healthcare button.
That's as bad as foreign people thinking money grows on trees in U.S.
Biden cancelled the Keystone pipe line the first day in office, makes you wonder.
He doesn't but it's a known fact that liberal energy policies will destroy any nation.
Appreciate the nuanced long explanation, not an over simplified answer like most people are giving right now for gas prices.
I work in oil and gas and this is one of the first times people haven't said nonsense about politics and actually talked about the drive to cut Capex which is destroying their production rates. What's hilarious is that this is the most accurate video on the topic I've seen, but the comments are full of "Bias bias, what about XYZ"
Capex limits have been driving people who work on the ground nuts. It's clear the industry is insanely profitable, but there is an amazingly low drive to Increase production, which you normally do see.
i can explain in one word: GREED
Remember when oil was $200 a barrel and gas still wasn't $5 a gallon . Now we get $5 gas when oil is $100 a barrel. Some serious price gouging.
That's idiotic. His isn't price gouge it's because trump ruined the economy
It’s not price gouging it’s supply and demand. Look at what has happened to refining capacity since 2020 and you’ll begin to understand. People have complained of profiteering in every inflation crisis. It’s a reductive position. Historically, the opposing position has been that labor unions are to blame for inflation. Of course, these days we don’t really have much to support that narrative. Both are wrong.
And nobody ever believed that the gas prices are Putin's fault. Voters just aren't that dumb !!
@@baxoutthebox5682 Refinement issies and govt discouragement of petroleum investments carry the blame here.
@@feedyourmind6713 Gas companies are making plenty of $
It's so f'ed up and annoying. Everything is getting from bad to worse at an incredibly fast pace and the government pretends like they don't see it maybe because they have a lot of money. I for one has been hit very hard and at this point, I am more interested in a solution because I don't think an end is near. What is the way forward for the less fortunate ones like me? How do we survive this phase? I am slowly losing my mind.
Practical approach: First, always vote wisely, Spend only on necessities, Invest in your health. Always invest what you can, but you must ensure you spread your investments (locally and internationally) but of course be well informed about where you want to put your money. Made my first million this way earlier this year (got help though). Can comfortably wait out this "phase"
Easy on yourself Panic will cause more harm than good
@@august9050 Amazing approach though its quite not that easy... What do you mean by you got help? I could definitely use help right now. I look forward to your reply
@@thepotter867 Funny enough, I can honestly relate. I don't know if I am permitted to go into details here, but her name is "Leah Marie Sandock". Was in the news a lot in 2018. You can check her out online for more.
@@august9050 She's got a pretty decent bio and seems American. Does she work with foreigners?
It’s amazing how much research and work he puts in his videos. Always something to learn
and amazing how some of it is based on opinions but is put out as facts. Helicopter Ambulances is a big one where he missed large parts of information to push an agenda.
@@sanangelo7926 Ah, so you don't have an agenda at all right? Making all these comments?
Not saying who is right, but you are clearly hating on the US here, that seems to be your agenda. Everyone has their own agenda, don't pretend you don't.
@@sanangelo7926 And what agenda is he pushing?...let me guess?
Russian disinformation?
@@sanangelo7926 His videos are certainly his interpretation of data, but you can view all the data he bases his speculation on and come to your own conclusions as well. It's all in the description :)
@@xtosu9643 "Not saying who is right, but you are clearly hating on the US here" fucking peak tool behaviour lmao
And no, having your own beliefs does not == agenda and ensuring said beliefs play zero part in making object judgements that will then be shared with a major viewerbase as being "well researched and objective" is paramount.
I'd seriously suggest taking a step back and understanding understand what an "agenda" is in this context because you clearly need it.
Great content, as always - it's small, but if more people donated, it could be a lot. Keep up the great productions!
What's up with the money sign?
@@JatPhenshllem he donated 2$ to the creator. It’s a new way to earn money on youtube. People can donate via a comment and that comment will be close to the top of the comments
@@NarutoUzumaki-hj2hb pretty dope
you could have donated it to cancer research instead to someone that copy pastes from wikipedia
@@NarutoUzumaki-hj2hb So it has the same effect as if you bought likes? Except now it can be seen by everyone else?
Tbh I don’t think prices are that high, as long as you have a job, then you can easily afford it
Great breakdown and Ive been telling people about this for a couple of months now. Basically, The high peak we saw after the first few weeks this all kicked off was the point they realised they had taken as far as they could, so the slight adjustment back to levels we have see sustained over the last few weeks will very much be the new norm. Because, we all just accept it now with little fuss. I ran the numbers on my 55mpg Ford Galaxy, where we do two tanks a month V's the cost of running an electric vehicle (even at the new high KWH) and its nearly 1/4 the cost per month. Basically, the saving would pay the majority on monthly lease on a brand new EV (lower band). So yeh, they have just accelerated their own demise but have done it on their own terms for maximum short-medium term profit.
Same. My car gets 35mpg but an electric car will save me over $1500 a year in fuel. Looking really tempting to switch to one.
What EV were you looking at?
I would believe you if you could spell
This is nonsense, the difference is just because EV use is subsidized while gas vehicle use is taxed. Once people switch to EVs the government will kill the subsidies and start taxing them and it will be even more expensive than gas vehicles.
The remote work movement is probably adding to their desire to keep prices high. I'm adjusting so they can see their way out.
I nearly went to work for Halliburton in Wyoming in 2008. My partner and I decided that it wasn’t best for our life styles with our newborn. After seeing how everything shifted to North Dakota a couple years later, I’m glad I turned it down and ended up working in a local coal mine instead.
The oil and gas industry as a grunt on the ground is very transient and isolated from where you live to where you work. It’s a life that is tough on an individual and tough on anyone that has a family at home.
i moved here (North Dakota) with my dad during the boom but thankfully his industry is aggregate operations which won’t tank like the oil industry did/does. You don’t see Schlumberger or Halliburton trucks anymore like you used to.
My dad got laid off from Halliburton just last year. You were very wise to skip the "opportunity."
@@jaycee3177 Sell your soul and get laid off anyway. Hell no.
rip yer lungs
A few of my buddies landed in rehab bc of the lifestyle of oil workers.
There is zero work-life balance and almost nowhere to live bc the work is constantly moving.
My take away from this video is that Oil's price is uniquely affected when supply is lower than demand, the oil cartels have far too much influence, and building American cities in such a way that necessitates everyone drive everywhere for everything makes the average American's quality of life, dependent on the price of gasoline. But I still just fundamentally disagree with the idea that renewables are ready to take over, maybe 20 years from now, but I think it's just a fantasy to think that EVs will displace traditional cars any time soon.
Yeah even Elon Musk himself has admitted he doesn't have any where near enough cobalt and lithium to meet demand. Waitlists for some EVs are insane and they need semiconductors to. Not to mention we just lost a large chunk of supply from Ukraine and Russia. A lot of these minerals sourcing are murky at best. Coming from unstable countries like DR Congo where mining is done in a very primitive non industrial manner.
There are other problems with EVs. Like the iphone like properties - god help you if you're broken down in the middle of nowhere, there's no patching up a few hoses or walking to the gas station it is very unlikely they can help you. You gotta call Tesla, or another manufacturer - that is if you can get signal where you are. Now, there's less that can go wrong presumably. I'd also argue that EVs are simply doing a 'not in my back yard' solution to environmental issues. Just like many of the environmental problems we have, we're simply outsourcing the pollution to another country.
You're only thinking of the price at the gas pump. The real problem is that transporting all the goods requires massive amounts of fuel and the price of everything increases.
EVs arent the only option...
Imagine if we invented an ev that was larger and could hold multiple people. We could even attach multiple together so it could hold more. Then, instead of self driving we could put it on a track. I think I might patent this idea. I'll call it "train"
Thanks!
“remember when the oil ma market…” oh yeah of course i know all about that thing
Canada too. We dream of current US prices.
I think everyone and their grandmas remember the time when during pandemic oil prices were negative
@@gpaull2 canada more like clanada ahahahahahahaha
Ah, the oil ma market. Back when the oil mothers roamed the planet.
Lots of information but I may not be convinced by the conclusion.
In short the author concluded the current high gas price is because green energy will replace everything very soon, which is hard to believe given the current status quo.
I agree. Green energy is dependent on production made possible using fossil hydrocarbons. Almost every product made is a molecule built off the hydrocarbon. Green energy cant exist without hydrocarbons. And it certainly cant compete with them as far as energy density goes. The market was built on a hydrocarbon economy. A suitable replacement would require a technology that extracts energy from a molecule more efficiently than combustion and also preforms as a feed stock for materials and products. Otherwise we would have to reinvent everything that has been developed in the last 150 years. Don't see that happening in 2050.
@@johnking9942 except that nothing oil energy related has been improved in the last 100 years, only regulated and deregulated. Alot of oil and gas tech is still based on equipment and techniques that are decades old.
”Sustainable energy”, is bottlenecked and dependent on energy storage, (that is unless you count nuclear energy and sustainable). So it all depends on future energy storage solutions. With current tech (Li-Ion) it’s not gonna happen, too expensive and involves too many rare materials.
I always find it funny when American's speak only with the idea of America in mind, like Europe isn't already lightyears ahead of us in green energy, public transit, affordable housing, and many other places.
Most EU countries plan to phase out gas for vehicles in the next 10-20 years, and run off of greener energy, and it will be possible.
The tech is there.
They're also used to higher gas prices and have been preparing for a very long time.
The US is still decades behind because people are concerned with the preservation of non-existent coal mining jobs, or climate denial, or whatever else.
We will probably be gas dependent well into 2050, and with the way our government keeps trying to go back to the 1930's, possibly longer, so we're going to feel the impacts of this while other more advanced countries will be perfectly fine.
With current tech we just CAN’T replace fossil fuels. The alternative is unreliable, hard to store and prone to nature made shortages. Another factor for the high gas price was the 2021 wind drought in Europe which greatly reduced the generated power by wind farms and increased reliance on Russian gas, enter the ongoing war…
I was just trying to explain this to someone! People don’t realize how these prices are really climbing. It’s sad that so many are so misinformed.
Everyone’s go to reason for gas prices “it’s Brandon’s fault!!!!”
@@Hunterdietzman it’s sad how narrow minded many folks are.
2 years ago, trump wanted to help American oil by buying 240 million barrels at $25 a barrel for the U.S. strategic oil reserve,
this would have set the floor for American oil prices, it costs $20 a barrel to get it out of the ground.
but congress said "No bail outs for deplorable American oil drillers". as the price of oil went lower that it cost to pull it out of the ground.
global oil production stopped.
now oil is at $100 a barrel and Biden wants to ship 1 million barrels a day from U.S. strategic oil reserve to Europe.
@@Hunterdietzman let’s go Brandon!
@@Hunterdietzman To be completely fair he did claim that he could fix it all so in that sense it is his fault.
We pay more than 6$US per gallon, in Canada, since April 2022.
Tar Sands are the 800lb. gorilla you forgot to mention....
I live where many of the frack gas/tar sand railcars are stored during slowdowns, and can judge the market/prices that way. Every one of them went west early last winter, long before the Russian war drums started beating.
Correction: oil is ceding the market to electrification, not to renewables.
The grid is in disarray around the developed world and we need to sort it out or else we will just be driving electric cars powered by dirty electricity.
They shout zero emissions for electric transportation when 90% of the electricity to run them is created by fossil fuels.
Control is the goal. EV’s Limited range and simpler denial of “ refueling “ via the electrical grid which can be shutoff at any time. One cannot hoard or store electricity at least not without extraordinary expense.
@@michaeltaylors2456 Exactly, few understand this. Few also do not understand the real goal is to take cars away as a viable transport option for the majority of the population. Its impossible both in metal extraction and the power grid to replace all current ICE with electric.
This is about control, nothing more.
The grid? Have you been to Europe? The grid and wind farm is doing fine.
Typical comment from petrolheads
@@michaeltaylors2456
And yet, oil is a limit source of energy. Eventually it will run out.
Solar and wind doesn’t “run out”, it’s UNLIMITED.
As long as we have the sun, wind, and water, we have unlimited source of energy right there.
17:16 I would argue that one legitimate reason that industrial investment is so low, is that "regulatory headwinds" in most developed nations lead financial minds to believe severe restriction of the market, if not an outright ban, is likely in the medium term. After all, if you were a bar owner who had reason to believe Prohibition was 5 years out...would you renovate the place; put in a second bar upstairs, and buy the bar down the street? Probably not!
So, the argument that "global warming hawks" are behind the increase in prices is not (entirely) without merit.
Fuck if I had my way they'd lose control of their companies entirely, with any liquid assets sold and all profit put towards renewable construction and generation. Fossil fuel oligarchs deserve to be put through hell and have all their wealth taken from them
It would make sense if the US only produced to supply local demand, but because oil is traded globally the way it is, demand from developed nations doesn't matter to that extent. Even if demand drops due to regulations in developed countries, they'll just keep supply below it to prop up prices, that's the point. Independent operators haven't stopped investing in fracking rigs because they worry American demand for petrol will drop, but because the rules of the game have changed. In your analogy they're not the bar owner, but the liquor distillery that serves a global market, and has figured out that selling only "limited runs" of spirits at increased prices is a better business model.
if i was bar owner and prohibition was 5 years out, i'd buy the place, the place upstairs, and the bar down the street. no country drinks like a country told they're not allowed to drink. look at australia slamming their piss beers all day. also look in to why prohibition happened, and not the government's narrative.
@@rongeurtsvankessel1908
Only you are talking about the USA exclusively. Reread my comment, this time for comprehension, and show me where I limited my argument to the US exclusively?
@@JesusGonzalez-kg2fe word that in english please?
Can you do an equivilent video to this on the reasons for the increase in electricity prices too please?
Probably because many power plants use fuels like natural gas, so when the fuel is more expensive the prices for electricity increase too.
@@Jesus_Christ_loves_you_alot doesnt hold up entierly, even in sweden where we dont use any fuel for power, the price has increased a lot. i guess its because the global marketprice has gone up, and greedy companies can justify their raised prices by pointing at other countries
@kitsunekaze93 This artificial scarcity strategy is happening everywhere. Any business that is able to get by with the smaller staff the pandemic created for them is tightening hiring to milk the maximum profits from the huge difference in demand vs. supply that's happening now. That's naturally causing prices to balloon in every sector. I'd be willing to bet artificial scarcity is the primary driver of inflation right now.
Well done. Entertaining to watch.
I loved legos as a kid and was secretly jealous giving my niece legos for her birthday a couple months ago. Played legos with her while babysitting and enjoyed it so much.
Every time he says that country I hear Joe Biden
Not well done Has nothing to do with high gas prices. All B.S.
Entertaining? This couldn't be more boring! This video only explains part of the problem, throw some correlations, some nice graphs and stories, and claim it's the only cause of high prices while we see other causes and policies causing negative effects.
Yeah, not buying the 'oil man bad' narrative this time.
@@tanner882 don't you mean go Brandon
0:14 Ah yes. I remember that day, I filled up my car and the guy at the gas station gave me 60$.
The problem with the final minutes is that the same factors that are causing issues in the oil industry are also going to cause issues with renewables. Trade disruptions, financial uncertainty, regional instability, etc, all will make it more difficult to maintain the supply chains necessary to build solar and wind systems.
That’s true to an extent, but the renewables only need to be built once and then then generate for a long time. The oil however needs to be consistently transported every single day.
@@SaveMoneySavethePlanet nope. The renewables don't generate electricity all the time and still need maintenance
@@SaveMoneySavethePlanet Renewables don't 'only need to be built once.' They are a lot more disposable than you think. Wind turbines last a maximum of 20 years after which their massive fibre glass wings start to fill up gargantuan graveyards unless expenses are paid to recycle them. It's the same with solar panels which last a few years more or less depending on the purpose and manufacturing quality, but most end up in landfill around the world and that's not even talking about the batteries.
@@EmperorSigismund um, replacing some parts every twenty years is not remotely the same as having to replace fuel every day. Also, oil burning equipment has to replaced at least if not more often than renewable equipment, so that part of the equation is a wash. End result? Your argument falls apart.
@@EmperorSigismund That's actually not true. Solar typically comes with a 20 year warrantee. And the 20 year lifetime on turbine blades is actually a kind of safety certification. If there's little wear, 20 year old blades can be inspected and certified for another 20 years without any maintenance.
I had a double take when California gas prices were mentioned as "eye poping" at 3,5$ per gallon, when in my country in Europe the price is at 6$ per gallon and that is only so low due to state intervention.
Gas prices in most European countries are around $7-8 per gallon. In the US, its around $3.99 now. However, Europe has good public transport
Depends on the state and location. I can tell you that here in Slovenia, the busses would have died out if not for student transfer and It's similar for trains. Too cumbersome and inconvinient to be practical.
Gas is $5.50 to $6.50 in California right now. Came down a bit too, was over $7 in some places
Now tell me how much oil produced by your country.
@@TheSiprianus did you know it can actually cost less to produce and then import oil from the Middle East than to produce it in america.
One of the best explainers I’ve seen on the current oil markets! Keep up the great work!
14:41 Where tf are you getting a 1-bedroom apartment in NYC for $2000/mo, the sewer? 😂
Bronx, Harlem, Inwood Hill - wherever you could get stabbed trying to open door
So. One thing. The cost of production has nothing to do with the market price of any good or service, in any market. That's one of the most basic principles of economics. Supply and demand dictate price. The cost of production only determines whether a supplier decides to engage in that market.
I see what you’re saying, but it kind of does by proxy if you consider that the cost of production directly relates to the availability of supply.
@@andybunn5780 Yes and no. In a world with no credit, debt, or extension of trust, you'd be absolutely correct. But, especially in our modern world, businesses can and do run at a loss for a variety of reasons, and do just fine in the process. Profitable transactions aren't exactly necessary to make a profit.
@@dontmisunderstand6041 Although you're not wrong, I want to point out that maybe there is too much credit extension. The sentence "Profitable transactions aren't exactly necessary to make a profit" literally does not make logical sense despite how accurate it is in a real-world context. In an attempt to not wade too far into the weeds here, I just want to point out that those profits were extracted from somewhere even if it wasn't from the production functions of the actual business. Is this what we want to continue to promote, even conceptually? IPO scams come to mind personally.
A persuasive essay as well "The Walking Communities of 2040" essay. Look at a future without cars.
Much fewer them, trucks, airplanes, big boats, fewer them.
We all need someone to lean on.
When you need a hand.
11% taxes on fuel is high?
Cries in Netherlands where tax is almost 60% of the price.. the price of Petrol could never be less than €1,10 per liter, because that is the base of the carbon and sales tax on it.
The price of oil only accounts for like 30% of the fuel price.
(The extra tax has been lowerd by about €0,20 temporairly because of the high prices atm)
Same shit in Sweden, diesel (35-40% biodiesel) is 2,5 euro/liter and e10 is 2 euro/liter
Well, I think that's a big reason why gas is so much more expensive in Europe vs US lol... I call it "for no reason", although you could argue govs might do some useful stuff with that tax revenue (I just have little faith in gov work lol). Also, similarly to what he said in the video about the CA gas, which is specially made for that state with added special taxes. I drove from Phoenix to LA last month and you could tell everyone was filling up right before crossing the state border, since gas jumps ~$1 as soon as you cross into CA.
@@dorian13 About 55-60% of gas prices is taxes, thats way to much. Goverment only know how to raise taxes on everything. Taxes for salary is about 33%.
Yes, same in NZ - petrol is around NZD2.80/litre (and there is about 55% tax in that price). We do use higher octane fuels though - the lowest octane petrol in NZ is 91 Octane (which is 'standard') and the range goes through 95, 98 and up to 100 Octane for high performance cars. NZ fuel also doesn't have ethanol in it as an octane booster the way US fuel does.
NZD2.80/l equates to USD6.80/US Gal. So from our point of view US fuel prices haven't gotten expensive, they were just previously extremely low. Even now California fuel prices are only around USD4.90/gal, looking online.
I wonder if when renewables become a substitute they will lessen the demand inelasticity of gasoline and drive prices down again.
My guess is as soon as they have competition they can and will lower prices to stay competitive. That is if it ever happen. Capitalism dosen,t work too well these days.
They probably will, but to cripple their competitors. That's probably why they would want to get big in the renewable sector as quickly as possible.
If you don't and someone else did, they can just up the production of oil and cripple your income. Effectively eliminating you as a competitor in the renewable sector, since you can't afford to keep investing as much money into it anymore.
@@paulelderson934 but your then competing with someone with essentially no variable costs while you have variable costs with governments that obviously faver them
Probably not. The refinement process will become more expensive. Also solar/wind will probably become cheaper than oil/gas ever was
There is no substitute for oil (only nuclear comes even close, and the radicals and their political allies oppose that too.)
So they realized the ship was sinking, and are limiting the amount of lifeboats to keep prices high and milk as much money as they can from their hostage passengers...got it.
Yeah Wendover is really showing his bias here. That's just obviously not true. There is a lot of money to be had but US Government policy hostility towards domestic energy is what is scaring investors
@@Jkp1321 Not hostile towards domestic energy, in fact quite the opposite. Many people are BEGGING for major investment in renewable energy.
**But** shale oil/gas, and tar sands lobbyists are trying to trick the government and people like you that investing in a dying technology is the smart way towards “domestic energy”
Fossil Fuels are Finite, Renewables are functionally infinite, which is more secure as an investment and national security asset?
Also if i want to be inflammatory, **CHINA** is **BEATING US** in the renewable sector; they produce most of the world’s photovoltaic panels, and are doing huge Grid Scale Renewable Energy Projects. What are we doing besides arguing over if science is real?
@@Jkp1321 Yeah, not a single mention of Keystone and the effect that had.
@@Motoko_Urashima It didn't have much effect
@@Motoko_Urashima what you're talking about is the Keystone XL pipeline which would have been an extension of the currently existing and in use Keystone pipeline. It would have transported Canadian tar sand oil, not crude, to refineries in Louisiana, to be shipped put as Canadian products to other countries, not the US.
"Gas prices at an all time high" 0:28 shows prices that Norwegians have never paid before in their lives because of how cheap that still is.
Nice lies Russian bot
@@2loaves388 excuse me?😂😂😂
@@_MC529what, did you fart? Because a Russian would NEVER say that unles they farted… maybe
19:22 - "The end of oil is near." Those are some big words. And I have serious doubts. It would be good in a lot of ways, but I just don't buy it. I hope you will elaborate on that sentiment in the future, and give reasons why you think that's the case. (Also, keep in mind the entire 3rd world.)
Video is good, SD is key issue. But leaves other key parts. The 9000 wells is a misnomer. 2,200 of those leases are held up in litigation and cannot proceed in any form until litigation is complete (could be years). Second, lease does not equal enough oil for viable project. Companies often obtain leases for land which is believed to have reserves, lease utilization rate will be never be 100% or close to it. Third, you can hold a lease but if infrastructure is lacking such as a pipeline or roads, those gotta be built, those require additional investment and permits. On the topic of permits, you much have an environmental assessment approved as well as a drilling permit. A large number of those 9,000 leases have requested associated drilling and EA permits. Though the time to process has more than doubled under Biden vs Trump/ Obama
ditto that. now you know that most people on you Tube cant handle that turth
Hard to believe i had go through that many comments till i heard bidens name . As the uncertainty in the oil industry is , what will biden do to screw the oil and gas producers next
@@joelstanhope7231 a lot
Oil is slowly transitioning from a product primarily for transportation to a product primarily for manufacturing. I can see that by 2100 well over 50% of the oil consumption will be used to manufacture goods and only a fraction would be for fuel. Oil companies will continue being big and important companies but they won't be as big and they won't be energy companies anymore.
2100 wont come, the time of nuclear holocaust is here
planes, trucks, boats and trains are what consumes most of the oil - not manufacturing. Cars are the easiest ones to transition off oil and the only one that has actually started to transition.
@@jonaboy3 Yes, and since most countries have control of their own electricity, having electric transport make sense in regards to be self-sufficient and not bowing to the price of the oil cartels. It's a better argument for going electric than the environmental one.
@@jonaboy3 no? Trains started that transition probably before the first electric car even. Either way, I’d guess at least half of Western Europe and Eastern Asia rail is electrified. My country hasn’t commissioned a Diesel in decades. Trucks are also super easy because truckers are required to take breaks anyways. Just need to make charging quick enough to fit schedule.
That is not how refining oil works. You can't just refine all of the oil into plastics. Oil is like a mixture, not a raw material.
Just discovered you. FANTASTIC. Subscribed. Keep it up.
This world is rapidly passing away and I hope that you repent and take time to change before all out disaster occurs! Belief in messiah alone is not enough to grant you salvation - Matthew 7:21-23, John 3:3, John 3:36 (ESV is the best translation for John 3:36) if you believed in Messiah you would be following His commands as best as you could. If you are not a follower of Messiah I would highly recommend becoming one. Call on the name of Jesus and pray for Him to intervene in your life - Revelation 3:20.
Contemplate how the Roman Empire fulfilled the role of the beast from the sea in Revelation 13. Revelation 17 confirms that it is in fact Rome. From this we can conclude that A) Jesus is the Son of God and can predict the future or make it happen, B) The world leaders/nations/governments etc have been conspiring together for the last 3000+ years going back to Babylon and before, C) History as we know it is fake. You don't really need to speculate once you start a relationship with God.
Can't get a response from God? Fasting can help increase your perception and prayer can help initiate events. God will ignore you if your prayer does not align with His purpose (James 4:3) or if you are approaching Him when "unclean" (Isaiah 1:15, Isaiah 59:2, Micah 3:4). Stop eating food sacrificed to idols (McDonald's, Wendy's etc) stop glorifying yourself on social media or making other images of yourself (Second Commandment), stop gossiping about other people, stop watching obscene content etc. Have a blessed day!
@@rkkzjj32 WTF, gal?
I think it's premature to say that everything is going to switch to renewables and that oil is out. There are just so many things that cannot be easily switched to electric. Heavy construction equipment, 5000 airline flights every day, the entire plastics industry, and many power plants all rely on oil. The amount of lithium required to convert all that over to electric would be astronomical. I'm not saying renewables aren't becoming a major market force. I just don't think that it will be as simple as people think to convert to a fossil fuel free society.
In ten years from (current date), (vaporware) will have made those concerns go away.
(Though there are actually very exciting advances in PV, nuclear, and battery tech that are real and entering the market that address some of the main concerns you’ve listed).
Even with all of those, a large part of oil consumption (well over 50%) goes to transport and electricity production, which can be electrified and transitioned to renewables respectively.
Seeing minuscule fluctuations in supply vs demand and how they affect prices, a 50% drop in demand is absolutely massive and industry-ending.
That’s why oil companies are trying to squeeze out as much profit as possible between now and then, before the oil industry as a whole turns in to a secondary, less important industry (kind of where coal has been going for the last decades)
Spot on. The hope is that renewables will be so dominant, that it is cheaper to produce carbon-based fuels with (for example) solar power. That would bring them to be (nearly) carbon neutral.
@@alanclark8342 electricity production can be electrified?
@@Rawdiswar transport can be electrified, electricity production can be shifted to nearly 100% renewables. I’ll edit lol
Even with electric vehicles, oil is still the major energy source for the world by 5x.
Whole world logistics are dependent on oil.
Right idk how Wendover comes to the conclusion we are almost done with oil. Certainly not a foregone conclusion and not one convincingly explained in this video
We haven’t even begun the electric vehicle revolution. It’s like less than 1% of vehicles on the road.
Oil runs most of the alternative energy market
electric vehicles run on oil lol. or coal.
11% of the price comes from taxes? In Finland it's a whopping 56% and the fuel costs about double compared to the US.
Math adds up
You're being stolen from
@@TheGuruStud They're getting it back in public services.
11% - public education system so bad it's been mocked for decades and is only getting worse.
56% - education system consistently rated best in the world.
I say the Fins win.
You decide what the education of your people is worth to you.
@@MurasakiMonogatari we pay more then they do, here it’s cultural , in some places we spend 15k per student and it’s still terrible if the kid doesn’t give a shit
@@timayjust better than it being terrible even if the kid *does* give a shit.
Why not expound on the whole losing money thing? They were expecting pipelines that would bring transportation costs way down. And look at what happened. The Whitehouse ended that -- giving more power to Russia and OPEC
Cool, if they keep prices intentionally raised that makes taxes on production easier to sell politically. And if they fail, it's still basically a tax on oil production, just the revenue goes to industry/shareholders to reinvest and not the government.
There are a few other key details, the 9,000 leases is a bit of a misnomer. 2,200 of those leases are held up in litigation, and cannot proceed developing until litigation clears. Also in most cases when you have a lease initially, it’s not long enough for life cycle of the project, this is normal. Projects are a cost early on, first number of years you work to pay off loans taken against project, construction costs, etc, and later into it you turn a profit. But the Biden admin has stopped all lease sales for on shore projects, so many of these existing leases if developed may expire before reasonable profitability is achieved (have to leave some extra room, can’t just go for break even based upon today’s prices with such unknowns for prices). There are a handrail of other mitigating factors as well, lack of infrastructure to projects (roads/ pipelines), stalled EA permits, other related permit processes which have been held up. Time to obtain a drilling permit has more than double between what it was under Obama/ Trump vs Biden
@@Silentfire77 Not sure what your point quite is, that there is a lack of supply? The issue is there isn't.
As for needing time to reach profitablility, shale oil has never become a profitable enterprise. It only exists because other regions activitely limit production, which means as an industry, particularly of small price takers, it has no ability to reach a price that returns a profit. Leases that aren't in current use don't have an impact on current production, honestly Bidens restriction of new sites (which is quite limited) is more likely to help the industry by limiting supply.
As for infrastructure, that represents real costs that have to be included int he life cycle cost of the product. The lack of such infrastructure represents the cost of having to drill a new well every 5 years.
Finally, shale oil is different then other oil products. Its mainly lighter hydrocarbons, with heavy amounts for dilutants and condensates, as well as natural gas.
Shale oil has never been a profitable industry, before accounting for externalities and future values of the resources. I am quite pro oil, from traditional reservoirs to bitumen, but Light Tight oil shouldn't be exploited and the industry does not need to be supported.
Half of politicians and the citizens of this country would never agree to tax oil companies.
@@neolithictransitrevolution427 I’m not saying the ability to produce more in theory in the US isn’t present. Fracking leaves decent runway still. Sorry if that wasn’t clear.
What my point is, is the Biden admin has set up clear barriers, I wouldn’t call doubling time to obtain drilling permit as small. Also he initially banned fracking his first day in office. Oil companies do not have a clear outlook. And as you admit, infrastructure is a real cost build in, if they don’t know if they can get a lease after the initial one. How can they be certain if building the pipeline or roads in the first case are worth it?
@@Silentfire77 He only banned fracking on federal land. I'm not saying its a clear outlook, I'm only saying Fracking has yet to be a profitable industry. I am okay with a regulatory environment that doesn't support it.
I do research on energy commodity markets at a university. That time when futures prices went negative was an interesting time, because the model used to determine futures and options prices assumed strictly positive asset prices. When it went negative there was a short time when pricing literally broke lol. We got a paper out of it aha.
Great video in general. Though the part at the end is a bit of a stretch (that oil is on its deathbed)... you literally said most oil goes into things that society needs every day other than fuel, I don't see that changing anytime soon. Certainly the golden age may be over, but I don't see it going away EVER.
Besides, with world population growing it doesn't mean demand will fall necessarily in line with market share of EVs and renewable alternatives vs the oil based product's market share. Demand for oil may still increase under such conditions. It seems more likely to me that the non-oil based products will only fill specific niches of market demand in markets they are part of, at least for the time being, and are not capable of taking over the market as a whole the way technology stands now.
I think there are many areas where gas and oil are on the way out, and a any areas where they are here to stay for a long while. So generally, I agree. But I have faith that lots of areas will reduce oil and gas dependence
EV cannot and will not exist without oil, period.
@@veteran687 yeah, a lot of oil based products goes into making EVs still even if it isn't directly burning it. on top of that, their batteries are still very toxic to the environment if they are ever opened up in a crash or burn in a fire
Oil is necessary for humans to be not dead for quite some time. Like someone said above, EVs cannot exist without oil. Let alone the 2nd and 3rd world countries that will be relying on oil for many many decades.
The biggest fallacy in his video is that the market won't just correct itself. If there's money on the table, it will eventually attract investment to capture it. The price of oil will fall, profits will shrink. Fear and uncertainty might keep them away for a little while, but when the existing players start showing quarter after quarter of big profit, capital will start going into new development again. It doesn't help that it was difficult to hire people when the government was paying people to not work. Now that the government has mostly stopped destroying the economy, things will start straightening out.
I love how he says "5 BILLION DOLLARS!" like that's a lot. The Pipeline from Alberta to BC was $37 billion when all said and done.
Pretty good summary, but you missed a huge story on the reinvestment side. Institutional investing is now effectively dominated by Blackrock/Vanguard. They are putting the squeeze on reinvestment in domestic energy projects via so-called ESG rules, which are arbitrarily set policies having a veneer of social responsibility to hide behind. The dark side of this equation is you have a small group of people who can effectively put their finger on the scale of the entire US and even global economy with no oversight or market driven safety valve, and even the ability to run things into the ground if it gives them an opportunity to consolidate power further. The grassroots nature of the shale market was a huge source of consternation to the global power brokers. Enter COVID, and suddenly they are relevant again. How convenient. From the price of energy, everything cascades.
Who's the top shareholder of blackrock/vanguard? Hmm it's weird you follow the money in any world crisis or war I mean "investments" you find the truth and this video is just paid propaganda and a waste of time
This guy gets it
Exxon was infected with a few board members, Gregory Goff, Kaisa Hietala and Alexander Karsner, who were supported by Blackrock. A video about Vanguard, State Street and Blackrock would be interesting.
Vanguard shareholders are regular people like me.
Conspiracies
Yea it’s terrible what no gov oversight does to markets
You can't blame them, if you're being told you're old world over and over again each year and you're bad for the world you'd probably say "FINE, I am..now try moving onto this clean future right now then good luck!" instead of just roll over and do what society wants you to do in the short term to ultimately replace you in the long term. That's like saying you're going to break up with your old significant other as soon as your hot new replacement is ready, oh but be there for me unconditionally, till then yes?
You do you always applies...boo.
I’m gonna choose to blame them. They could change with the times and at least slowly change their industry focus.
It sounds like moralizing and I get why it leaves a bad taste in peoples mouths but we’re talking about adapting industry to natural factors and perhaps control global warming and they’re basically throwing, an entire industry mind you, a hissy fit.
I love that you always give your videos a proper ending conclusion, rather than trying to transision seamlessly into the sponsorship message. Thanks for another good video!
I warned everyone I knew that this day was coming. Well, now they're all stuck with big gas guzzling SUV's, trucks and luxury vehicles that require premium fuel. I on the other hand still have my trusty 6 year old Accord that gets 34 mpg all day long on regular. ENJOY!!!!
Without oil, everything stops, and I mean everything from food to travel, oil is used in the production of many needed useful materials, including farming, ( food) to heating a home, etc etc
That would save the environment.
@@Zelp789 Tell us how?
@@Zelp789 why dont u give it a go .live without anything oil helps create
Every weird kid you knew in high school:
"My uncle knew this guy who made a car that ran on water."
All Humans presently alive:
"Call that fuckin' guy!"
It runs on water, man
But what if he didn’t mean water for fuel and meant like a jesus car.
Wasn’t there that nano something tryhard edgy name water powered car that costed a fortune (like 2 million dollars, i forgot the name)
Am I the only one? This video was all over the place.
This video is very laudable; An excellent dish of informative gravy.
$2000 per month to rent a one bedroom apartment is far below what rents were in SF and NYC in the early 2010s.
Open one bedroom in SF is a $5000 a month in an area where you won’t get mugged. Source: I have 1 friend.
Here in Germany gas currently costs around 2€ per liter.
That equals to 8$ per Gallon..
About the same here in Canada. Over $2 per liter.
Sam, your videos are consistently amazing. I'd just like to request that you simplify your script for listeners by reducing the number of clauses.
7:58 "In a year when West Texas Intermediate crude prices plummeted below $40, a mark so low that OPEC broke convention by welcoming Russia into OPEC+, and vowing to make explicit production cuts, producing a barrel in OPEC's 3 largest producers, Saudi Arabia, Iran and Iraq, cost at most, in the case of Iraq, a paltry $10.57."
The sentence makes perfect grammatical sense of course, but for a listener it's tough to follow because I keep having to divert my attention to the clause and then come back to what you were saying before. Please consider splitting it into separate sentences.
There may be bigger issues. Eg, Believing "The domestic production trend" (which had recovered in 2020 and plummeted day-1 of the "no, we'll... get rid of it -- we'll just figure it out." administration came into Office? Who "gave 9/11k permits back so, "those 9k must have PROFITABLE costs of extraction?" That's not an assumption someone makes when they have an AIDS like deficit of _white blood cells for bullshit?_ Did I not anticipate he'd refer to those 9k as "proof" without mentioning the impact it had leading up to it? Which fully falsifies his claim? Knowing full well Same would rest axiomatically on a supposition, without showing domestic production had COMPLETELY RECOVERED before Jan 2021?
It's presupposed to have nothing to do with "an administration that'd RESCIND 11k permits SCARING companies?" Who have to invest billions to have chances at making money, being indicative of a hostile investment epoch?
And why NOT talk about the impact during the rescinding of 11k? Or why not only 9 of 11k were rescinded? Explain yourselves. No? Not the era of debate, ey?
But, it is an era in which (yesterday) CNN said, "right wing groups are threatening violence" against a "religious group protesting in support of choice." Seriously? Please tell this atheist which RELIGIOUS group has that tenant..? (kinda selling crazy, no?)
Sam believes the WH.
Sam clearly supports Biden.
Thinks "the adults are back in the room."
The school, not parents, should tell which children are LGBTQRSTUV?
And what "good looks like," for instance, INFLATION is "good."
And _I agree_ (to an extent) Biden doesn't always appear to have dementia.
Just worryingly often in a way he didn't before.
You're a guy smart enough to see that complex sentence requires a higher "EYE CUE" (this is the age of censorship) to remember (via your short term, working memory) what the initial clause was. I AGREE. Is _Mary Poopins ministry of truth_ something that comports with the 1A? Or, are constitutional rights only things like abortion (via the "right to privacy" ... in which its primacy is guarantor of not just privacy, but whatever decision is privately made; which, what DOESN'T that include?)
It’s to cover their ass from internet nitpicking.
How is Western policy and politics not mentioned in a 22 minute video of factors effecting oil price? It is by far the greatest factor.
In Serbia, Tax makes about 60% of price for petrol, and 65% for LPG. Fuel so clean that it should not sell for more than 50c per L, not sells for $1.17 (3.5.2022).
State does this by limiting tax for few years, makes money for taxes for 'conversion inspection fee' which makes fuel start to pay out in less than 5.000km. With current prices, conversion will pay out at 50.000km. After 10 years, I took out LPG system from my car because every 5 years is inspection.
*laughs in Swedish*
Petrol peaked at 2,64$ per litre here, currently at 2.13$
@@JorgenKreedz Petrol here is at 214 dinar (about $2.14) per L. Goes up every few days.
Btw, I was in Sweden 4 years ago with my old car. LPG was scarse, so I had to drive on petrol, real petrol, as at most pumps they sell E85, and my car was 18 years old, and I did not want to ruin it
According to the Los Angeles Times, SoFi Stadium cost more than $5 billion to build.
So we're going to sunlight and wind to produce asphalt, plastics and synthetic rubber then? Even if we remove fossil fuels from the entire transport sector, that's only about 70% of fossil fuel usage. These oil companies will still be around pumping oil long after we figure out how made battery powered jumbo jets precisely because of the chart on 9:16, we use crude oil to make a lot of other materials. Great video nonetheless.
Plastic can be made from corn and some other plants.
There are many alternatives to using oil, it's not the be all end all of plastic production, there are already better and more environmentally friendly options, they just need crude oil based plastics to step off the throne.
@@charlethemagne5466 Worse and fewer products created by the green energy psychos. I suspect the pain caused by this forced transition will cause much more death than expected.
@@WinVisten Some plastics can, and they are far from universally applicable
A battery powered jumbo jet. Scary thought.
Nebula is pretty awesome. Only reason I'm not signing up is that I wouldn't really use it right now, but as soon as I have some extra money to throw around, this is probably the subscription service I'm most interested in.
Great explanation. I've been trying to explain a handful of these points over the last several weeks, but this video lays it all out very clearly. Thank you!
person making the video isn't 100% correct, though, despite what the title of the video states. The war in Ukraine / Russia does have an impact on the current crude oil prices. Once the Russia sanctions and oil embargo were implemented, countries that agreed to participate had to source contracts with other countries for their oil needs. This is essentially supply and demand. The demand drastically increased but the other supply is now in higher demand, driving up the oil contract prices. This is why crude oil went from $90 USD to $120 USD/barrel in a short time frame.
@@CorgiAndKeebs oddly, I don't think that premise is really correct. Sure, an unstable supply from Russia may have caused SOME fluctuation, but if you look at the US specifically (I just happen to be American), the US is set to have a net export of crude again this year. If supply was such a crucial component, we wouldn't be exporting nearly as much as we're importing. But overall domestic production is slightly down even despite record land leases - mostly because the oil companies are simply not exploring those leases. The oil companies are making record profits because the money they'd normally invest in expanding operations and exploring leases (capital reinvestment) is being kept aside as profit instead and paid out to shareholders and the like.
If all of the other issues (oil company reinvestments, commodity and futures trading, etc) hadn't changed and we JUST had the Russian war against Ukraine, we'l likely have seen no more than 10-15c increase at the pump.
@@xepherys I work in the oil and gas industry and people forget this is a global market. Many countries in Europe and Asia rely on Russian oil. Some countries are not participating in the embargo since their countries aren't equipped to handle "different "types of oil. There are plenty of other videos you can watch in regards to the oil futures contracts, along with the struggles many countries will have of the Ukraine-Russia conflict continues through this winter.
Why try to fix problems when you can just blame people?
But how will I score political points this way?
@@jerryborjon And have people reelect me
@@jerryborjon you just have to look like you care, for political points, since it’s the “other side” stopping you.
As a non-American, the title confused me momentarily, my gas bill is skyrocketing and by gas I mean natural gas to heat my home, I have had to cut off my gas supply as even the standing charges are killing me.
It seems to me that the most impactful fact that leads to a surge in prices is the speculation. It seems that under the Monetary System speculation can make prices rise exponentially. There are just too many artificialities.
What until they manage to turn air into a commodity. Now it is clear to me that we are in desperate need of a completely different socio-economic system that must be superior to the preset one and all those of the past.
Trying to make the current system sustainable is not going to work in the long term, that is not a real solution to human problems. It's like applying a band-aid to the problems instead of tackling the root causes.
They kinda already did turn air into a commodity
@@gasoline3597 Really?? The perks of a Price System lol It's about time we implement another socio-economic system that benefits everyone and the planet we depend on.
@@heliocardoso6726 Yeah, people are capturing quality air and selling it to areas where pollution is really bad. The issue with any system is that people will find ways to exploit it. I don't think the current system is bad as anyone can have the opportunity to make something of it, but the US more specifically favors businesses/business owners over regular people.
How about a resource-based economy like the Venus Project? Or better yet, a gift economy? 🎁
socialism