Quote:
Originally Posted by BoatHouse
“Based on the price of oil, I’ve also instructed the Secretary of Energy to purchase at a very good price large quantities of crude oil for storage in the U.S. strategic reserve,” US President said.
“We’re going to fill it right up to the top, saving the American taxpayer billions and billions of dollars, helping our oil industry [and furthering] that wonderful goal — which we’ve achieved, which nobody thought was possible — of energy independence,” he added.
|
We achieved energy independence largely through the extreme capital investment that allowed for supply growth to be higher than demand growth.
Demand growth was then initiated with the ban on Venezuelan petroleum products, and increases in the amount of export to historic levels.
With US demand higher, and European demand absorbing more, the prices are going to be higher until the global demand drops.
Companies involved in exploration and extraction are not going to hire and train new crews, or expend massive capital on inflated equipment prices and fractured supply lines... as investors we expect a ROI, and that means really good dividends for the coming years - not more investment into heady over-the-top expansion.