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California truckers

Doc

2022 32 Doug Wright
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Think of it like selling some shares of IBM. Your broker puts them up on an exchange and anyone can buy them. And the broker has no idea who buys them. Doesn’t care.

“Releasing” oil from the SOR means the US is selling on the open market. Filling the SOR means the US is buying on the open market.

They don’t have a sales desk with salesman and a shipping dock where “China” comes and picks up their oil.

The thinking by both Presidents is that having more supply on the market will short term fill in some shortages in supply. Economically it is net zero as when the US bought that oil to put it in the SOR on the open market it was extra demand raising the price at that time.

Delivery gets even more interesting for if the US buys oil for the SOR before the delivery dates of what they sold, then they just swap contracts and oil does not have to go out and then come in.
Thanks for explaining that.

I will be honest though, when the administration continues to blame Russia for our Gas prices is selling 5 million barrels to the open market really going to help fuel costs? What do we need now 20-25 million per day roughly (correct me if I am wrong) and was it really a coincidence that a company that Hunter was involved in China purchased the oil on the open market?

Lastly, again you stated that the president doesn't control fuel cost which I agree and I have been saying that he can influence them and this is an example of it. Just like when Trump influenced it the other direction with some of his decisions. Make no mistake it's obvious that the oil companies love it when the Dems are in office just look at fuel costs during Obama then Trump and now Biden.
 

spectra3279

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The California emissions crap is fundamentally a "states rights" issue, an issue many in here support. 🤔

The AB5 issue is another states rights over individual rights issue. I never understood why people would demand states rights over individual rights for some things, and not understand that such an argument would eventually come home to roost. Although I think it is crazy, I guess since the right to own and start your own business, like an independent trucker, is not "specifically guaranteed in the Constitution" many in here beleive it is a decisions best left to the states governments as opposed to the individual. Like other topics of recent discussion.

Doesn't seem very conservative to me? 🤷‍♂️🤷‍♂️


Does this law not interfere with interstate commerce? Which is federal not state.
 

SNiC Jet

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@530RL

Curious, did Trump have one policy you liked?

1657285407234.gif



😂
 
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Wedgy

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The California emissions crap is fundamentally a "states rights" issue, an issue many in here support. 🤔

The AB5 issue is another states rights over individual rights issue. I never understood why people would demand states rights over individual rights for some things, and not understand that such an argument would eventually come home to roost. Although I think it is crazy, I guess since the right to own and start your own business, like an independent trucker, is not "specifically guaranteed in the Constitution" many in here beleive it is a decisions best left to the states governments as opposed to the individual. Like other topics of recent discussion.

Doesn't seem very conservative to me? 🤷‍♂️🤷‍♂️
I try to discern where you're coming from. I think if you boil the issue down to individual freedoms, we all want the same thing? To be left alone to our individual pursuit of work/life/happiness.

AB5 usurps that freedom. Unnecessary law. Period. Unintended consequences.

Ignorant Bitch wrote this bill. It is stupid.
 

Wedgy

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Or, they offer up the underhand "Scrotus" Decision. They do nothing, ignore jurisprudence, sit around getting paid to scratch and sniff...
 

AzMandella

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That reads like he used it for its intended purpose.
Not only that but Trump put it back in later from domestic drilling . Biden has no plans to replace it as we cannot produce enough due to his policies .
 

Christopher Lucero

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here's some interesting history about oil glut/oil shortage geopolitics.

in 2019 Trump did his thing with the SOR

in March 2020, when the ('scamdemic' or 'pandemic' or 'China virus' or whatever you want to call it) became worldwide, and things were shutting down, OPEC+ could not get Russia to agree to cut production, and thus the price of crude went negative (-$35/BBL, as a recorded trade). The negative price was the cost for someone (trader, sovereign wealth fund holding options, etc.) to get rid of the crude underlying the contract. this was because crude oil storage was topped out (an event called a 'tank top').

Russia strategically, or perhaps unwittingly, caused someone to receive unknown amounts of crude oil plus two Jacksons and three Lincolns for every barrel that was jeopardized/encumbered. For a while after that 'tank top', tankers were seen offshore of receiving terminals until demand slowly recovered (about 2 months).

Keep in mind that during this time USA was the world's largest producer (and still is, to this day). of crude oil, though OPEC+ CARTEL is the larger overall supplier.

In April 2020, Trump made his move, and signed a deal with OPEC+, which at the time was lauded for solving an international energy crisis. Note that this article mentions the 'tank top' avoidance as the main reason for the deal.

That deal expired....


WAIT FOR IT!!!!!


in April this year, 2022. Note that the expiration aligns with the increases in fuel prices, as seen in charted gasoine prices on ycharts.

IN the mean time, we watched Angela Merkel foster a German dependence on Russian methane (natural gas) during her entire tenure, only for the new guy (Olaf Scholz) to deny the transit of gas to Germany through Nord Stream2 on February 22, 2022, infuriating Putin because ...well... Russia was probably counting on that cash flow. Because of that, dozens of oil majors wrote off many hundreds of billions of dollars of assets as stranded or lost because of the chancellor's move. The fate fo those assets (Nord Stream2 transit fees, Russian Gasfield Contracts, etc.) is apparently left to whomever picked them up for pennies on the dollar...likely...


WAIT FOR IT!!!!!


Russia. China. (TA DA!!!) Imagine the folly of oil majors forking out hundreds of billions over the development of NordStream2 and then walking away from it. Or maybe that was the plan all along. Who knows?

Early 2022: We watched as Russia built up troops at or near Ukraine, and mounted a propaganda campaign to make the patriotism of Russian repatriation of Ukraine a noble action. When Olaf Scholz finally made his move, Putin wasted no time and moved troops in 2 days (really 32 hours) later, on February 24. But the war there is not about patriotism or about nazis...it is about energy. Note that more than 60% of gas transited from Russia to Western Europe is routed through Ukraine.

Also note that the deal (in the link) from 2014 included Chinese interests.

NOW, today USA is still the worlds largest producer. USA still does not belong to the cartel, though, so we ride the coattails of their whim.

However, note that as Trump demonstrated, big political deals regarding energy are the reason warfare is undertaken or avoided.

FWIW, Trump DID honor his sentiment that we should try to get USA out from under the 'endless wars'. His calculation with the 2020 deal was evidence of that.

So, in some ways, failing to deal with the OPEC+ cartel, to make a deal with the devil I suppose, is the strongly correlated reason we have high fuel prices, even with USA being the world's largest producer.

HOWEVER, consider this, USA is raking in from the high price, even as us consumers suffer.

The whole geopolitics of energy and money gets REAL interesting if you start talking about inflation and the strength of the dollar relative to every other world currency (except Russia, Mexico, and Peru right now), and who is holding long term US bonds (q.v, China, Japan) but that would make this post even more unreasonably long.
 
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