Comments by "Neolithic Transit Revolution" (@neolithictransitrevolution427) on "Why Gas Got So Expensive (It’s Not the War)" video.

  1. Cool, if they keep prices intentionally raised that makes taxes on production easier to sell politically. And if they fail, it's still basically a tax on oil production, just the revenue goes to industry/shareholders to reinvest and not the government.
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  2.  @Silentfire77  Not sure what your point quite is, that there is a lack of supply? The issue is there isn't. As for needing time to reach profitablility, shale oil has never become a profitable enterprise. It only exists because other regions activitely limit production, which means as an industry, particularly of small price takers, it has no ability to reach a price that returns a profit. Leases that aren't in current use don't have an impact on current production, honestly Bidens restriction of new sites (which is quite limited) is more likely to help the industry by limiting supply. As for infrastructure, that represents real costs that have to be included int he life cycle cost of the product. The lack of such infrastructure represents the cost of having to drill a new well every 5 years. Finally, shale oil is different then other oil products. Its mainly lighter hydrocarbons, with heavy amounts for dilutants and condensates, as well as natural gas. Shale oil has never been a profitable industry, before accounting for externalities and future values of the resources. I am quite pro oil, from traditional reservoirs to bitumen, but Light Tight oil shouldn't be exploited and the industry does not need to be supported.
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  3.  @Silentfire77  He only banned fracking on federal land. I'm not saying its a clear outlook, I'm only saying Fracking has yet to be a profitable industry. I am okay with a regulatory environment that doesn't support it.
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  4.  @Silentfire77  I would consider environmental assessments and regulations as part of the genuine cost. I'm sure you could output oil less expensive if you ignored water contamination, earthquake, and methane leakage risks. But that wouldn't really save cost it just pushes them around.
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