Did you know that there is such a thing as having too much oil?

[msc545]

Trump wants the oil from Venezuela, but actually, that may not be such a good idea. For oil companies, oversupply is sometimes as bad as an undersupply, since oversupply drives down the price.

[Chazmatazz269]

We may not actually take custody of the oil at all. Since 2022, i think, the US has been a net exporter of petroleum. We import about a third of what we use, but we export more than that.
The US sometimes seeks to destabilize foreign oil producing regions in order to make petroleum products more expensive for political, economic and military adversaries. Sometimes they take control of it so that they can benefit financially from the demands of political, economic and military adversaries.
It’s not always about taking the oil itself for our own use. This is one of the reasons why capturing foreign oil almost never results in lower prices on petroleum products domestically.
Keep in mind that the US economy is vulnerable. Even if we didn’t benefit from these actions, even if we didn’t want to be involved, if any two major economies pushes the US to act, we have to act. Otherwise they stop backing US currency and our entire economy collapses. That’s why we get involved in most military conflicts from which there is no clear benefit to the US. We will always have to be global enforcers until our domestic economy returns to self sustaining.
Love it or hate it, that’s the world you live in.

[NathanDavis]

they don't care as much for the actual price of the barrel... as they do care for the price of their stock... and their stock already rocketed, that's for companies

as for the governments, they don't really care that much either about the price of a barrel... as they do care for having fuel for their endless guzzling machinery

Europe is still depending on oil... which they buy indirectly from Russia, and so now... (AND YES, European oil companies will be there to share Venezuelan oil) they can just "buy" the oil in Venezuela

also... we have to remember that there actually TWO main and key sectors in oil business... one is the extraction and production of crude oil, and the other is the REFINERY business, and that one is much more widely spread in places like Texas, and all over Europe (Germany, UK, Spain, Italy, Netherlands) as well... and they are about benefit greatly from these stolen oil

and more importantly perhaps... China, Russia and the Saudi WERE in control of Venezuelan oil... and now, that is going to switch to Western companies... mostly USA and UK companies so for them... it is an absolute win in this regard as well

[jshm2]

lol, its not about oil. Its about theft and intimidation.

The simple fact is the USA can't afford Venezuelan oil, but China can. Also, only China can afford the cost to upgrade and scale that oil processing capability.

Trump, being the little jealous bitch that he is, is trying to deny China that oil and further opportunities to develop its oil production technology. He knows Venezuela like Libya ain't going to do shit with that oil. But by making Venezuela another US failed state, he hopes to sell more weapons.

[msc545]

Venezuela has refineries. I wonder if they weren't planning to refine the oil, what exactly they were going to do with those facilities. What do you think?

[Sevenpointfive]

it's going to take a long time to get that oil. so in 10 years, when we secure the area to start the oil infrastructure, we'll have that oil and we'll need it. they can jack up the price just the same. the oil isn't ready. but don't tell them that. i think that's what they realized after the kidnapping honestly.

[msc545]

Why would it take a long time?

[goaded]

It's also better to have oil (in the ground) than burn it and warm the planet.

[msc545]

Apparently it is, since that way the oil companies can charge higher prices for it.

[goaded]

I'm OK with that. Let it be used where electricity isn't an option. Then make electricity an option for as much as possible.

[msc545]

The problem with using oil is that it is so toxic and causes so many health problems that electricity turns out to be a lot safer, depending on how it is generated, of course.

[goaded]

It's also the fact that in a century we've burned a million years of trees (ymmv).

[msc545]

Yes, there is that, and that is a tragedy. We are slowly depleting our oxygen as a result of this kind of thing. Nuclear is the only reasonable alternative to oil or wood burning. But the problem with nuclear, at least in the U. S., is that the contractors are so corrupt that the ones that build nuclear power plants skimp on materials and labor to the extent that those plants become extremely dangerous. A properly built nuclear power plant is not dangerous.

[goaded]

Not that long ago I'd have said the Japanese were the ones to come up with a foolproof nuclear reactor.

[msc545]

I don't think it's so much the design of the nuclear reactor as it is the construction and maintenance of it that's problematic.

[goaded]

And the fact you have to plan for longer than the human race has existed.

[DryGermanGuy]

Yes. And especially since the United States became energy independent with domestic oil production during the Biden administration.

[exitseven]

There is new technology available so the oil companies can still make a decent profit at oil prices less than 50 dollars a barrel.

[msc545]

Oh really? What new technology is there? How about you link to it instead of just gossiping about it?

[exitseven]

There are many new methods to boost profitability. This os only one of them.
lowcarbon.exxonmobil.com/.../real-world-progress

[msc545]

You actually expect anybody to believe anything ExxonMobil says?

[exitseven]

If they said it on CNN it would be the gospel truth/ ?

[msc545]

No, I would figure it was just more oil company propaganda no matter who ran it. There is no such thing. I'm aware of the chemistry involved, and there are no shortcuts to refining oil.

[exitseven]

@msc545 New processes are developed every day. When people can make money they find solutions.

[msc545]

No, people lie every day.

[exitseven]

@msc545 not me.

[msc545]

Now I don't think you intentionally lie, but I think other people do, and you believe them without question. Why is that?

[exitseven]

I trust but verify.

[msc545]

And how did you verify the supposed new technology with oil?

[exitseven]

ExxonMobil employs many experts as one of thr leading oil companies. They know what they are doing

[msc545]

Your faith in these people is absurd.

[TwoToTooTutu2]

The oil isn't being taken directly. What's happening is Venezuelan oil us being forced onto the market. The value of the US dollar is directly tied to the price of oil. Low oil prices = high value of USD lowering rates of stagflation.

[DrPepper12]

He didn't learn his lesson from Diddy..

[Anonymous]

why is driving down the price a bad thing?

if anything we need cheaper prices of everything

[Sal_Monella]

More intelligent people know how to manage the market. We won't flood it.