[QUOTE=Canada;2681599]There are thousands of drilling rigs stacked in Canada and USA. Drilling can ramp up quickly in both countries to easily increase production by 2,000,000 barrels a day within a year. Canada would have increased their production by 1 million barrels a day last year of the pipeline had not been cancelled. There is not a lot of excess production available because Biden has killed almost ever pipeline proposed in last 2 years. There is not a lot of exploration being done because Biden is trying to kill the oil and gas industry. Biden is the reason oil companies are not drilling. Biden is the reason that the USA has to use their emergency oil reserves to try to hold pricing from increasing again. This is not a good thing. Biden is begging other countries to drill more wells but blocking domestic drilling and pipelines. Canada and the USA are the leaders in technology in drilling and extracting oil and gas. Other countries are antiquated and don't care about the environment at all. Biden begging other countries to drill rather than have USA produce oil is totally contradicting his climate concerns. Biden is a joke. Expect gas to go higher. Expect oil companies to drill in other countries and employ thousands of workers in other countries to meet the USA demand. Let Biden be a puppet to OPEC and Saudi oil. Let Biden boost the economies of our enemies that hate us so we can buy their oil and use the money against us. We are going to be dependent on crude oil for decades. A Republican president will have to fix Biden messes. Yes Biden will be millions into poverty and many will not be able to afford $7-$10 a gallon gas. They will not be able to afford good. Stupid people keep defending him. Biden is counting on a lot of stupidity for votes in 22. Looks like he has yours.[/QUOTE]Firstly the Canadian oil sands are mined not drilled which clearly shows your ignorance. Prior to the pandemic the oil sands industry was in crisis as the breakeven for this supply is over $50 per barrel and this oil being bituminous has lower yields and is more costly to refine so sells at a steep discount. To increase production requires major investment in mining equipment and processing plants to separate the oil from the sand and convert it to a form that can be transported (all of which is expensive and energy intensive). The fact that even at current pricing this oil isn't very profitable and that the Canadian government have legislated commitments to reduce greenhouse gases of which oil sands mining is a huge emitter means there is great reluctance to expand capacity. I know economics and managements are your weak points but sorry political rhetoric does not drive investment decisions. I am glad though that you have finally admitted that there is not currently the production capacity in Canada to require the Keystone XL pipeline.
I'm glad you also recognise the rigs that are currently laying idle after the great Trump inspired oil price meltdown of 2020. Amazing isn't it that they are not drilling. Why are they not drilling? Well according to the industry, investors are wanting dividends and share buybacks and do not want companied overcommitting to expanding production which had previously led to the 600 bankruptcies and hundreds of billions of losses during Trumps presidency. There is also a shortage of workers. After the big bankruptcy surge under Trump many people in the industry went and found other jobs. The cost of incentivizing a return of people to man the rigs makes drilling more expensive and the oil companies looking to increase dividends and buy backs don't want to pay for it. So basically the oil industry is happy with the current pricing and production and have little to no incentive to do anything about it. As we also know that current production is sitting around 1 mbpd less than under Trump and several pipelines have since been completed it is clear that there is more than sufficient pipeline capacity to handle a significantly greater output. Now a talented stock market investor would know this as it is common knowledge from guidance provided by oil companies on their earnings and production guidance.
So as the oil industry has shown itself incapable of acting in the public interest, Biden has now invoked the Defence Act to encourage the supply of materials for EVs which will accelerate the production of EVs and reduce the impact of oil price disruptions to the economy. Well done Biden on this insightful move to improve the environment while marginalising the oil industry to hold the economy to ransom.
