Newest Distraction

Well the newest distraction by the left is the profits of big oil. The president is being the hero and writing the leaders of these organizations a letter to threaten them in order to make them produce more. First, the price of oil is extremely high, so oil companies are doing everything they can to produce all the oil they can, so they can increase profits which is obviously happening. When prices of oil moves up to a point it is profitable to produce, oil companies produce more. When oil moves down where it is not profitable, they produce less. It is pretty simple really. The price of oil, all commodities, goes up or down because traders are buying or selling. When traders look at present inventories, projected future inventories, and present and future projected demands and they see that inventory cannot keep up with demand, they bid the price up higher and that is how the price is set. There is not some consortium of oil companies setting the price of oil. Beyond the production of oil, there has to be refiners. In 2021, refining capacity dropped. The reason for this is most of these refineries are old and at some point, a tremendous amount of capital has to be expended in order to keep these plants safely running. Infrastructure, such as pipelines, have to be built in order to move more oil to these refiners. Refiners cannot afford to pump billions of dollars into maintaining old refineries with an administration in office promising to kill their business. It is nearly impossible for pipeline companies to get the necessary permits to build pipelines to transport oil, and, once they do, they are afraid to move forward spending billions of dollars building it because this administration, just like the Obama administration, has no problem shutting a legally permitted project down after the company has spent billions of dollars and is 90% complete on the project. Energy prices are heading in the direction this administration, and the left, wants them to go. So, when the president says he is going to take action against energy companies, he already has, and his plan is working just like he wanted it to.