Why America Can't USE The Oil it Produces

[@TwoBitDaVinci]

Check out ERANGE EV for your next EV Tires! twobit.link/ERANGE

[@kungfujoe2136]

am i right to think big influences are the high dollar and government interference (subsidised)

[@hola_y_buenDia]

it will be replaced for better tech and new technology but the repartitions of the power benefit have always been a problem from people that have greed for power. The gradual change of the infrastructure does not have to be more expensive; most of the owners are not industrial engineering, nor do they know economics well. tesla byd said have in general same if no similar mission, change the demand of oil economy and move a possible less contamination one.

[@kungfujoe2136]

is the (us)dollar still the most exported american product?

[@promansplainor5245]

How would all this figure if Climate Change is a hoax and Global depopulation is in fact an active and graphed out process ? Cui bono?

[@Brantoc]

Shale oil can be processed so easily, we can use it. Thing is, we get more money for selling it, and buying cheap crap oil. Venezuela for example, most of the world can't use their oil. We mix what they have with what we have and get light sweet.

[@Nanan00]

I work in the O&G industry and the large issue is that it is basically impossible to build a new refinery and it is almost as hard to get the permits to change a refinery to be able to run that shale oil.

[@w8stral]

You are blatantly wrong and I guarantee you do NOT work in O&G unless you are a truck driver: You might notice that NG(Natural gas) is being used more and more as quickly as we can build infrastructure --> AKA NEW REFINERIES, BRAND NEW refineries which NEVER existed, to refine and UP crack(length of polymer chains) to create engine oil etc today? Why? Total Profit margin as NG is nearly free in Texas. Said NG refineries are BRAND spanking NEW. Just loser states like New York and morons on the LEFT coast are not allowing the building of new refineries. Plenty of new refineries in Texas, Louisiana. Might be a new refinery being built in either Ohio/West Virginia and North Dakota or Montana. Pull head out of your nether regions please ALso you are wrong and so is 2 bit as both of you are ignorant of how the refineries work. Yes, USA can easily use the light sweet crude, just that the cracking process(very expensive oil refinery complex) will not be fully used and therefore a lot of infrastructure will have sunk ~$Trillion dollar sunk costs which will be left rusting NOT being used. It is THEREFORE cheaper(more profitable) to import CHEAPER heavier crude and refine it using said infrastructure with sunk costs which would otherwise NOT be used, and sell for a higher profit margin while selling the light sweet also at a HIGHER profit margin.

[@schubajo]

If we want to even attempt to hit our CO2 emission goals, we should not be increasing anything with fossil fuels.

[@cliffterrell4876]

Thanks to the leftist liberal environmentalists running the EPA, we will never get a new refinery with the advanced technology to refine shale oil due to the illegal, unconstitutional regulations they make to prevent it from happening.

[@joehutmacher3323]

@@schubajoOnce we get the cow fart problem resolved everything will be fine.

[@ElsaLay]

Trump will fix that....😂

[@david.e.h.]

Great information and well delivered! As a Texan, i have to explain this to people all the time. Ans they still don't understand it. I'll send them the link to this video next time! Thank you for all you and your team do!

[@darrelpetrie8793]

Drill baby drill is the extent of their knowledge.

[@fannyalbi9040]

@@darrelpetrie8793 capitalists not allow

[@BBBrasil]

@@darrelpetrie8793 And this should be enough. People don't have to be expert on international markets and technology. America produces something with great value for America. In exchange, it gets several things of great value.

[@Raven5431]

​@darrelpetrie8793 yah, but at the end of the day, you still need to sell products to buy products. cant trade nothing.

[@jamesburge1983]

Like trying to explain what 'Tar Sand' is to a Texan.

[@username65585]

Exported oil still enters the market and affects the supply and thus the price world wide. Same reason Russian exports affect price in America even if we don’t buy Russian oil.

[@TwoBitDaVinci]

that's a really good point! thanks for bringing that up, totally makes sense as you think about it.

[@catherinebutler1146]

That being said we are at record production. Drill baby drill is just a political slogan. When the price of oil drops low enough, we will actually then produce less.

[@jtjones4081]

World crude oil consumption is 100 million barrels per day. The US doesn’t produce enough crude to meet our own demand, and how much difference in the global price does exporting 4 million barrels per day, 4% of global demand make? Mathematically, it should only reduce the global price by 4% right? All while depriving Americans of oil we could refine here. Adding back that same 4 million barrels per day to our 16.5 million barrels of crude demand would lower domestic prices by 25%, right. Big difference!

[@markpashia7067]

@@jtjones4081 Except we cannot refine it. Did you not listen? Our refineries are not set up to use that type of oil. And no one will spend the money to modernize a refinery unless they are sure they can recover the costs plus a profit. We would have decades of $10 gasoline to. pay for the refinery switch to use our own oil. We have to export ours and import the right type to make our refineries run. If we stop exporting and/or importing we end up with shortages of everything which makes pricing go up not down. Oil executives keep telling Trump that drill baby drill is wrong but he won't listen.

[@yt.damian]

@@jtjones4081 that is far from reality. all pricing of commodities happens at the edges. if you produce 100barrels and only need 99 then prices are stable. as soon as you hits 100.1% requirement then you have to outbid other buyers or miss out. Its not like you miss out on a new pair of jeans - you miss out on the energy that makes most of the economy work. the price gets bid up until less well off economies cant compete and they stay less well off. do you see the price of gas fluctuate by 4% or by 30%? same thing happens with shares on the stockmarket. if there are more buyers for a share (nVidia) then buyers compete with each other. if there are less buyers and you have a motivated seller then prices can plummet. Less than 0.1% of shares are traded on NYSE each day - if that number jumps to 0.2% you typically have a stock market crash. at the margins things move very quickly.

[@ub59]

Well argued, especially on refining costs and the evolving plateau in oil demand overseas sometime in the early 2030s. One issue with fracked oil and gas is that it depletes very quickly. Canadian geoscientist David Hughes studied the production data from US and northern British Columbia shale formations -- his report a few years back was ironically titled 'Drill Baby Drill' -- and was startled to see average depletion rates between 50% and 90% after the first year. He explained it as the physical challenges of obtaining oil and gas from hard rock. The production rates overall remained steady but the number of wells multiplied in number just to maintain stable production, which invites questions of how quickly a shale play will collapse. He concluded that the sweet spots in the US shale formations have been tapped, and that the production from two of the five formations he looked at had peaked. He also looked at the debt levels of US companies in shale drilling and hit the yellow light.

[@sejembalm]

After the 1973 OPEC oil crisis, recommendations were made to decrease the USA from foreign oil dependence, such as improving fuel economy in future vehicles (the CAFE standard), investing in renewable energy production (solar, hydro, geothermal, wind, etc.), converting municipal vehicles to natural gas & efficient electric hybrids, only import oil from Canada & Mexico, not to export US oil, and so on. But the US petroleum corporations killed those ideas by bribing Congress with campaign donations and other gifts. It can still be done and with an investment to switch domestic refineries to handle shale oil, the US, Canada & Mexico can free themselves from OPEC, and perhaps the US can free herself from fighting oil wars in the future.

[@xXAbdulBaqiXx]

"US petroleum corporations killed those ideas by bribing Congress with campaign donations and other gifts" explains it all!

[@bobjones3579]

@sejembalm why switch refineries build new one for the shale oil. We haven't built a refinery since 1977. This way we can process and finish all oil types.

[@jtjones4081]

@bob, the private sector builds refineries, not the government. They don’t need to build new refineries to process light sweet. That lie is dead. They can easily retrofit existing refineries to handle more light sweet and have already done so. You’re being lied to.

[@baolichang6019]

@@bobjones3579 my understanding from other sources is that lots of regulations prevented the building of new refineries. Same for why there’s no new nuclear power plants for a very long time. Hope DOGE will help us out to get rid of those onerous regulations.

[@bobjones3579]

@baolichang6019 Yeah, I know regulatory insanity is what caused it. Doge can go after federal regulations but not state. Maybe addressing federal regulations will give some states a backbone to address state issues. So, hopefully, doge has some success.

[@texasguysanantonio8295]

And we knew 60 years ago we couldn't refine the sweet crude, and the oil companies NEVER upgraded their facilities. My late Mom was in catalytic research for a major oil company (Union Oil/Unocal) and was working on shale oil projects and how to refine it more effieciently even back then. They were bought out by Chevron several years ago, who shut down Unocal's newly upgraded state of the art research center in 2005.

[@ridged8]

Your mother was way ahead of her time

[@ARepublicIfYouCanKeepIt]

Ricky, as much as you like to get up close to the stories you bring to us, might I suggest that you visit a refinery? Through my work while with DuPont for almost a decade, I've been to about half of the refineries in the US, as well as many outside of the US. I guarantee you that it'd be a massive eye-opener!

[@KurtQuad]

I deal with a major refinery in Canada and I can tell you it would be neigh impossible to convert from the vantage point of cost, downtime to add/remove components and forget about building a new refinery. It would take a decade to even get past regulators and even then it may not get approved. All you're going to get is minor expansions to existing facilities but that's about it.

[@cityguyusa]

If there was a false flag they'd have an operation up and running within a couple weeks. Damn be those rthat try to stop them.

[@w8stral]

Uh, no. If you switch to light sweet crude all it means is sections of the refinery would stop being used as there is no longer a REASON to use them(but why do so? Heavy sour is cheap and infrastructure is already built). As for permits... yea, though the USA did build new refineries.... operating on natural gas. Your engine oil in your car more than likely is made from natural gas today for instance.

[@hillbillyintheasia6122]

no new refinery in the usa due crying liberals .and the epa . blame democrats for this.

[@agaragar21]

Lets Just SWITCH to Solar Panels....instead of banning an ENTIRE form of renewable technology , like they did in Alberta................you can't BAN the FUTURE ! ( You know that special kind of stupid we call, Conservative Stupid )

[@OuterSpaceDogs]

@@KurtQuad meaning , we need to innovate that technology.

[@johndriscoll7803]

A big issue with shale that I don’t think you touched on is that you can’t make much diesel fuel from it. This is important, because diesel fuel is what really drives not only the economy, but also are modern way of life, since diesel fuel is used for trucks, trains, boats, and heavy machinery. We can reduce our reliance on gas by investing in public transport, but diesel is functionally irreplaceable.

[@waltermh111]

But this isn't relevant considering we're still able to sell all of the oil we get from Shale as fast as we Pump It Up.

[@damianm-nordhorn116]

Diesel isn't replaceable YET. HOWEVER, heat pumps are replacing oil heating and more and more buses and trucks run on batteries. We Germans have been sleeping regarding electric cars (Hi there, BYD), but the truck/bus manufacturers are ALL IN on batteries and making huge progress.

[@Dcalvert92]

People who believe we should give up our pursuit of fossil fuels are naive in their understanding of energy. As a career diesel mechanic for Caterpillar, I can tell you first hand that we are no where near meeting the energy demands of mining & construction equipment by using green sources. This equipment builds and maintains our world, without it society would crumble. The engine in a 797 CAT dump truck is 3,500 horsepower; to achieve that level of power and to have it run for more than 5 minutes using a stand alone battery / motor is simply not possible. Not to mention aircraft, cargo ships & emergency power generation requirements. We need to transition to a cleaner form of energy, there’s no doubt about that. Right now, we need fossil fuels. Our lives literally depend on it.

[@leontb69]

Molten salt and sodium reactors will in the future produce high heat for synthetic fuel production and complex chemistry.

[@oneone3983]

As someone who lives and works in texas, u explain this very well. Thanks. i wish u would have touched on how the tariffs in 2018 had hurt texas . Even people in texas dont understand this

[@KiwiZD]

NZ here, we don't buy our oil/petroleum products from the US as we have always had tariffs imposed, so we shop in Europe, goes for most products. Most of our products are sourced from countries with whom we have free-trade agreements. Win-win.

[@ckbrd]

@@oneone3983 taxes what else …

[@nick-leffler]

@@oneone3983 yup. I just posted this to social media for all of my orange followers.

[@trentp151]

How did tariffs "hurt us" in 2018? Last I checked, literally everything was cheaper from 2016 to 2020.

[@oneone3983]

@@trentp151 why prices are high cause of his tariffs he imposed the export of raw materials in texas slowed down cause if him clown. .

[@joecanales9631]

Hi Ricky, thanks for your videos. I’ve had a career in oil & gas exploration, now retired. It was always cycling between boom and bust and the first cuts were to the explorationist, either redundant or critically needed. Started during the fuel crisis of the mid 70’s. I had Norwegian friends in the industry who told me their electricity was so cheap because of all the hydroelectric plants. Lots of water and elevation changes. They always left their lights on. But oil and gas exports were a large success for their economy. I’m a big fan of EV, solar and wind energy. Hydrocarbons have propelled us into the top economic position but they are also a huge danger to our survival going forward. We need to make a change to more sustainable energy. Thanks

[@TwoBitDaVinci]

could NOT have said it better. We should be wildly greatful for oil and gas, it is the driving force for the greatest transformation on Earth, and propelled billion into the middle class. But we have to always look ahead and keep innovating!

[@AtomicReverend]

Norway has a smaller population in the state of Missouri and they get about three times the amount of rain so hydroelectric is realistic for Norway. Also it should be mentioned Norway still produces about 2% of the world's oil production and It is still a huge part of their economy and if they really cared about the environment like their politicians try to claim they would quit selling oil but they need that oil for all the socialist type programs they have. The United States by comparison is a relatively dry nation pretty much every single creek and river that could be dammed up to produce hydroelectric has been and was done so over a century ago. Roughly 1/3 of the United States population lives in a relatively arid region called the Southwest, natural gas production which is a byproduct of oil production is roughly 40% of United States energy. As for boom and bust If we get politics out of the way the United States is coal rich at current levels we have at least a 500-year supply of coal, Coal can be used not only for electricity production but it can also be turned into fuel It just has a high CO2 production. Oil isn't going anywhere for the foreseeable future everything we use as oil in it either as part of the process of making it or in the actual product or a combination of both. Even the food you eat was fertilized using petrochemicals. I always find it odd that we use pretty much every single ounce of oil we pull out of the ground in a relatively efficient manner but yet people want to remove part of that process by making vehicles not run on gasoline or trucks not to run on diesel but yet we still rely on all the other things that come out of a barrel of oil and it's not like those things don't get produced in the process.

[@jtjones4081]

The US Can refine the light sweet we produce!!! Why is the lie that we can’t told over and over, including in this video??! The US is Exporting 900,000 gallons of refined gasoline every single day due to refinery overcapacity to refine light sweet!! Source; EIA. Existing refineries were easily retrofitted to refine as much light sweet as they want. It’s just more profitable to export the expensive light sweet and import cheaper heavy crude and then charge us for the higher refining costs of that sour crude.

[@ZERO-th6dd]

The only problem with that is we have 120 year's of every day living built on oil everything is made from it

[@jtjones4081]

I meant 900,000 barrels of refined gasoline per day, not gallons.

[@PatriceBoivin]

The media has been saying 60% of the oil the US uses comes from Canada. I don't see how that fits w your stats. Also, nuclear plants can produce much more electricity than solar and wind combined.

[@tyeeslayer]

Perhaps 60% of oil imports are from Canada.

[@rifleman4005]

Canada sells about 4 million barrels a day so that's 25%.

[@jamesfriesen191]

@PatriceBoivin I think it's 60% of oil imports come from Canada, not 60% of the oil used in the USA comes from Canada.

[@rifleman4005]

@@jamesfriesen191 makes sense.

[@rjl5759]

Canada can't even refine all of their own oil, it has to be pipeline to US refineries.

[@Formulabruce]

Shale oil goes from the Dakotas Through Canada by Rail, back through New Hampshire USA, then to Maine USA, then to St John, New Brunswick Canada. The Irving refinery ( Wikki) > processes more than 320,000 barrels of crude oil per day. Over 80 per cent of the production is exported to the United States, accounting for 19 per cent of the country's gasoline imports and 75 per cent of Canada's gasoline exports to the US.

[@FredColberg-jk5yp]

Reason why we can't use what we pump out of our ground is because it's the wrong kind and we're not setup to refine what type we have period. And its cheaper to buy abroad

[@jarbuthn]

Yes, especially from Canada where America gets a huge discount on Canadian production.

[@jray1429]

I do, respectfully disagree…I will say, yes “drill baby drill” can in fact reduce oil costs. Of course, this partly is dependent on oil companies…If We put out more oil in the market, it will lower the price of oil worldwide. It doesn’t matter if we are the ones consuming the oil we pull out of our ground. Part of what determines oil prices is how much is available on the market at the time. Yes, we will benefit. Just the same, producing more oil can make plastics, etc cheaper as well. The decrease in the price of oil will also help with inflation. A comment on electric, electric cars will not be the main method for a very long time. Until that technology becomes dramatically better, it will still be a very small percentage. If the need comes one day, yes companies will invest in different methods of refining. It goes where the money (and regulation) goes. Change regulations and end wars and related sanctions will go pretty far.

[@hammerdown3876]

i agree. I was thinking the same thing. He said its a global market. If we flood the global market with excess oil then the rules of supply and demand dictate prices will drop. The bigger issue is oil companies only want the price to drop so much so they will curtail the production to ensure that a barrel of crude stays in the price range they like to see for profitability.

[@hardtennis]

And then we start wars to keep a powerful economy. Brilliant.

[@vincentsmith8594]

@@jray1429 I agree somewhat, the other factor is the capacity of refining crude, which is primarily in the US. That is a potential bottle neck?

[@3dPrintingMillennial]

​@@hammerdown3876 you realize that's causus belli for major war, right?

[@strawdemindset]

You’re missing a big point, drill baby drill cuts the price per barrel. These are for profit publicly traded companies .. shale oil costs more to produce than in the Middle East so pushing the price down is not in their best interest. As we produce more, opec can also just reduce production to balance out the price. New Light sweet oil refineries would be the answer for the us BUT it costs soo much and takes well over 2 decades to break even resulting in low shareholder drive to go that path.

[@crimfan]

The problem is refineries. We don’t have refineries that work in the oil we produce.

[@wewk584]

i wish i saw this comment 19 mins ago... just kidding.... ;) but yeah.. im all about the deep dives so thank you excellent video, ricky!

[@Fabian3331234333]

Wow that's... Stupid

[@onomatopoeia162003]

@@crimfan light crude wet don't. (Shale oil)

[@atomicdmt8763]

but we COULD............since we can print up as much money as needed...........for Ukraine, etc/ see? E A S Y

[@crimfan]

@@atomicdmt8763 Refineries aren't something to just conjure up. They take a long time to build, like years. Most of what's going to Ukraine involve things that are already built and would end up getting turned over anyway.

[@FLPatriot911]

Time to build new refineries to handle the light/sweet oil. We will use oil for energy for a long time and we will always need plastics.

[@johnburns4017]

He explained why these new refineries are not being built.

[@mucholangs]

Democrats will derail all efforts to build refineries. They hate anything related to fossil fuel. Even if a republican grants the license, dems would later come in and stop it. Then there are liberal states like California that will block any attempts at building a refinery in their state.

[@waynek805]

@@johnburns4017 Doesn't mean they can't be. The will is simply not there because they can go with the status quo.

[@solomongrundy1467]

We don't need plastic to survive. Plastics are poisoning us and polluting the earth. Plastics made from plants is biodegradable and safe for our health. Earth will run out of oil in 50 years and we'll be forced to use energy sources that are safe and renewable.

[@johnburns4017]

@@waynek805 I wrote this in another post: _There will be a huge impact of solar & wind farms, grid storage batteries and pumped hydro storage to produce electricity, not to mention the introduction of hydrogen for trains, ships and industry (the only eco fuel that can replace fossil fuels for industry) by nitrogen cooled nuclear reactors. These innovations will mean many oil refineries will close. Only the best crude that is cheaper to extract and cheaper to refine will survive for: lubricants, medical and plastic and other products._

[@fredeb67]

Anyone remember the oil companies lobbying to get the speed limit increased because we weren't using as much oil at 55 mph with small efficient cars, big cars with small engines, and big cars with big detuned engines.

[@dlewis9760]

No, I don't. Got a link?

[@fredeb67]

@dlewis9760 Well Dave, look it up.

[@dukefishing]

Shale exploitation puts at risk the underground water source. Also, shale drillers don't clean up their sites. That has long term consequences. Less regulations, more pollution.

[@beauthestdane]

Not to mention minor things like the earthquakes it has caused.

[@ResourceRentals]

Recently lithium and other rare earth minerals has been found in the North America shale! It would mined with fracking, not strip mining.

[@jamesharkins6799]

@@dukefishing I saw that a startup is using fracking to install a geothermal power plant at any location.

[@unchosenid]

@@beauthestdane "Not to mention minor things like the earthquakes it has caused." It'd be better to wait for a bigger earthquake? Ever think of that? I'd rather have a bunch of do-nothing earthquakes than a huge one....

[@schubajo]

​@@unchosenidThe fracking is the sole reason for the earthquakes. For instance there are no active plates or hot spots and before fracking, there were no reported earthquakes.

[@alexander0076969]

The heavy crude is used for production of Disel, machine oils and hundreds of products that cannot be produced from Sweet Light crude. Also, a processing plant works with a specific type of crude. Result. Venezuelan Heavy Crude, for example, is used for machine oil production and USA has 4 plants that works with Venesuelan crude.

[@erkinalp]

Kerosene can, though.

[@brian_atc]

We should do both, build a new mega light/sweet crude processing plant and find better green energy methods.

[@meanstreetsfab]

Current regulations keeps that from happening

[@a4000t]

There are no such thing as "green" energy,its ALL made using oil in some way or another.

[@amosbatto3051]

It is pointless to invest in petroleum infrastructure when demand is going to drop for gasoline and diesel, so there is going to be excess refining capacity. EVs are now 55% of the new auto market in China, and the rest of the world is going to follow China's example. 49% of the global 2 and 3 wheeler market is now electric.

[@Freeh-l6u]

Most rich people stay rich by spending like the poor and investing without stopping then most poor people stay poor by spending like the rich yet not investing like the rich but impressing them. People prefer to spend money on liabilities, Rather than investing in assets and be very profitable

[@YogeshSharma-um4zx]

You work for 40yrs to have $1M in your retirement, meanwhile some people are putting just $10K into trading from just few months ago and now they are multimillionaires

[@runnerrestaurant4024]

You are so correct! Save, invest and spend for necessities and a few small luxuries relatives to one's total assets ratio.

[@jawharmandal377]

*I really appreciate your clear and simple breakdown on financial pitfalls! I lost so much money on stook market but now making around $18k to $21k every week trading different stocks and cryptos*

[@blazebeecher]

Hello how do you make such monthly?? I'm a born Christian and sometimes I feel so down 🤦‍♀️of myself because of low finance but I still believe in God

[@jawharmandal377]

The process of trading can be complicated when you have limited knowledge. However, with the right strategy and setups, you can be successful.

[@onomatopoeia162003]

Economics explained. Just did this not too long ago. They talked about the light crude and we don't have a refinery to do that here. Why it's exported.

[@samuxan]

that's right, I had a feeling I'd seen this same story this week already

[@user-jg6bd7se8u]

So building a refinery is a bad idea then? Seems fairly self evident. "Can't be done..." really? Won't and can't are worlds apart.

[@onomatopoeia162003]

@@user-jg6bd7se8u been since 1977

[@pin65371]

@@user-jg6bd7se8u companies arent going to spend all that money building refineries.

[@Kriss_L]

@@user-jg6bd7se8u Government regulations. Search when the newest refinery was built in the US.

[@John-mq9fx]

Great explanation of Global oil. Thank you.

[@kokopelli314]

Canada here. Good luck with those tariffs...😅

[@Bilbo_Schwaggins]

Yeah, we're effed. Not buying anything for the next 4 years!

[@Mikk-t2o]

Northern alberta oil will b back on track when we elect a new government

[@jray1429]

Those beautiful tariffs work most of the time. With Trump, Generally they are a tool to bring people to the table to negotiate. Europe has used tariffs against US products for a long time to their advantage. It has worked quite well for them - I don’t blame them

[@Thousandpointsoflight]

Go move to Canada then aye​@@Bilbo_Schwaggins

[@delanofernandes6471]

@@Bilbo_Schwaggins yeah well, trump also threatening india and china on tarrifs, only recently china starting to ban rare earths made for alot of things electric. US imports 80% of rare earths from china

[@terartsmi]

The energy independence provided by the shale oil fields is from the natural gas. This is making electricity production cheap and plentiful for the reindustrialization of the US and power needed for AI compute needs. This will also make it possible to meet the huge demand for EV charging.

[@luddity]

Funny how EV's also run on petroleum, just in a more roundabout way.

[@Ytinasniiable]

Nuclear is more energy dense and less environmentally harmful than natural gas But that doesn't make a trillion dollar oil industry happy, so you've /probably/ been indoctrinated into thinking it's scary and dangerous

[@paintballercali]

People don't like it but pipelines are safer than trains fighting pipelines puts the environment in more danger.

[@lanagordon5669]

Amen. The anti-pipeline protesters are extremely silly.

[@aoscott]

@@lanagordon5669 They are completely clueless.

[@dennislyons3095]

Unless you live in an area permanently affected by a pipeline failure. As pipelines age, they are sold to weaker companies that do not perform the proper maintenance until there is a failure then the try to do the absolute minimum to clean up their mess. We are still feeling the effects of the oil spill off Santa Barbara in the late 1960's. A recent pipeline failure just north of Santa Barbara cleaned the surface but the marine habitat is in ruin there & likely will be heavily stressed for close to 100 years if there are no other failures. Pipelines hav the potential to destroy more habitat quicker than either rail or trucking, even though the pipeline is a more efficient mover. It is much easier to regulate & control the flow of the oil via truck & rail than pipeline. Many, many pipeline companies have been caught violating the regulations concerning pipelines, mostly because they are not a visible. No thanks, as an over 70's person who lived through too many oil spills, move it on a train or truck!

[@markpashia7067]

@@dennislyons3095 Also the thing people do not understand is that most of the pipelines that are being blocked are for Canadian oil sands oil. It is not oil like you think of. It is so heavy that it sinks instead of floats, so cleanup is nearly impossible. Think of road tar. Dump that in a creek or river and how do you get it out? Lots of that stuff spilled around Bakersfield from back in the fifties and it is still there flowing around on the sand. There is a small river in Arkansas that is choking on it from a broken pipeline. Yes it is safer to move that way statistically but also disastrous for the place it does spill by the time they can shut the pipeline down. Cleaning up a truck load is nothing hard, but a pipeline spill is bad.

[@cityguyusa]

Shutoff the pipelines for a week and see how adverse everyone really is.

[@DJ-bh1ju]

But "drill, baby, drill" also means drill for natural gas. THAT we can use or sell as needed.

[@schubajo]

Methane is more expensive than solar and wind. It emits about as much greenhouse gasses that coal does due to how leaky it is.

[@phiksit]

Every time The Dear Leader says Drill baby drill... and people start cheering like they just got free healthcare or something ...it's nuts. I believe we're already at the highest extraction levels ever... and is it making energy cheaper or making us more energy independent? Or is it making more money for oil companies and the politicians they pay off?

[@FreedomTalkMedia]

@schubajo I'm an analyst in the power industry and I can say that both of those are false.

[@mikehynes6791]

@@schubajo Methane makes up about .0002% of the atmosphere…we’re literally being choked and sunburned to death at the same time…🤭🥴

[@schubajo]

@@FreedomTalkMedia Then you must not be a very good one. The LCOE for solar and on shore wind are both cheaper than methane. The effects from methane leaking for energy production are on par with the effects of coal for global warming. It's still cleaner because coal has a host of other pollutants but it still is very bad if we want to hit our greenhouse gas emissions targets.

[@toofnlazzy801]

1 in 5 are not electric good sir. And I believe the idea is to Increase supply in order to lower cost per barrel there by reducing transportation costs and stuff stops costing more. Idk. Never heard about the refining problem till now. I'm just upset we'll never get a fast food combo meal for 8 dollars ever again.

[@simonreeves2017]

Hi Riki, greetings from the U.K. Thanks for yet another excellent and well researched video. I’m 60YO, I have seen the impact of crude oil accidents. Perhaps the most notable was the Exon Valdis tanker. Oil has propelled us from the age of coal, but we desperately need to move to better ways to power our civilisation. Just this year the U.K. shut down its last coal fired power station, I hope I live long enough to see the vast majority of the oil industry decommissioned.

[@adon2424]

That is a bunch of BS from the refineries! They have benefits raking in profits for over 100 years, yet they can't afford to upgrade refineries? BS.

[@GL-GildedLining]

Great primer, thank you! Take my thumbs-up, and a comment for the algorithm!

[@tomowcaest.5999]

yes a GOOD primer

[@johnnemeth6913]

EV penetration isn't even close to 1-in-5 in the US. However, it takes at least a decade to bring a new refinery online, which is where the problem is. Basically, by the time a new refinery is brought online, it is expected that demand would fallan dramatically.

[@ARepublicIfYouCanKeepIt]

Fun fact: A 50% conversion of the global light-duty vehicle fleet will result in a 34% decrease in demand for oil.

[@davidrenfro5756]

I love your videos and find a bit of humor in an oil video sponsored by ev tires!! 😂 I guess those tires are made from that oil ....but lol

[@l0gic23]

More for them as cars switch. Double win.

[@bluesky9093]

What’s humorous about it, nearly 50% of components in an ICE or EV car is plastic of some type. Nobody in the EV business said petroleum products was going to go extinct. The difference is only in the method of propulsion. The ideological debates are a waste of time.

[@ThisDique]

​@@bluesky9093 life saving medical products also use plastic it won't go away because there's nothing that can do the job like it. Plastic is here to stay. Nothing else is as moldable, rigid, and as durable as plastic. Unfortunately we have to convince the utility companies to invest in the infrastructure. Which means we're going to have to live like serfs with $1000 electric bills while the public gets extorted to pay for it.

[@PeterWetherill]

I have studied the US oil industry for 30 years because I had an aunt who's father was on oil company executive long ago. When my great grandmother passed around 1060 her only child, my grandmother inherited her estate and needed advise where to invest. Sho consulted with her daughter in law and son and she invested in oil leases. When my grandmother passed my father inherited them. In 98 my father had a serious stroke and no longer could manage his finances. I stepped in and had to learn about these leases and the oil industry. The leases eventually expired but I gained a lot of knowledge about the whole industry. When Trump spouted "Drill baby drill" I knew he had no understanding of the industry or did and knew most people do not and used the Lie to help win the election! Thanks for the simple explanation. I will share it!

[@justinjoy6115]

This is a lie. I had a conversation with my best friend who is operational Manger at a large refinery. Shale oil is easier to refine and more expensive to purchase. But they refine all oil. Cheap oil. Expensive oil. Clean oil. Crappie oil. Does not matter.

[@RealJeep]

Meanwhile, we're refining the crappy sludge Venezuela calls crude because we have the only refinery that can do so. Retool and build American plants to refine American oil.

[@sounddoc]

In 1973 I wrote a piece that said that oil was too important a resource to burn. It was never published because it was considers to be too radical. I still hold to that view. I bought my last ICE vehicle, a VW EOS, in 2015 and announced that it would be my last ICE vehicle at the time. I presently am driving my second EV, a NISSAN LEAF, that I consider to be my interim EV until I can take delivery of the ATERA SEV for which have had a reservation since February 2020. I have solar on my roof and hope to add more that I use to charge my LEAF. I plan on being battery-backed with enough solar to effectively take me off the grid except for selling my excess generation back to the energy company. This year, Iwase able to generate enough with my current arrangement to have a credit that I am still working through.

[@lelandcarlson1668]

We will still need petroleum products for plastics, pharmaceuticals, lubricants, etc. far into the future. Alternative energy and electric cars are fine as far as they go, but the technology has a long way to go with regards to the energy sector. Renewables like solar and wind are not constant energy sources and you still need base loaded power generation to provide power during periods when winds are calm and during night time when solar is offline. Energy storage helps, but it also has a long way to go to make it economically feasible. To sum up, we will continue to need petroleum for a very long time.

[@jacquelineperet6599]

Well said

[@stephenlabarre7890]

It's unfortunate, but the answer is not 'green' energy or more refineries. It's CONSERVATION! The use of disposable consumer plastic, product additives and transportation fuel can all be reduced if we really want to. Fewer driven miles equals less fuel consumption, less pollution, less traffic and less wear and tear on our infrastructure and personal vehicles. That translates to more money in our pockets. We'll never go back to the days of the 55 mph speed limits, but more mass transit, more commerce by rail, and combining trips to the store and personal events can all make a dent in the bottom line. In the energy envelope that includes other fuels, many improvements can be made to buildings and homes to reduce heating and conditioning costs. Poorly built structures will haunt us for their multi-generational lifespans. Battery technology has taken off lately, not because of some new discoveries, but because of the uptick in green energy production and the need to better store the energy. The science of energy usage/conservation does not mean we all have to be inconvenienced or uncomfortable to make reductions in petroleum usage. We just need a shift our priorities a bit. Create a new 'norm'.

[@Stealth_Gamer92]

What in the world is that "55mph" comments about? Not trying to sound like I want to argue, genuinely confused here.

[@stephenlabarre7890]

@@Stealth_Gamer92 A generational thing I guess. Starting back in the 70s, a NATIONAL speed limit of 55 mph was imposed to reduce the consumption of gasoline, since lower highway speeds were proven to be more efficient energy-wise. It saved money, reduced America's need for fuel imports and reduced serious auto accidents. It also tested the patience of many a driver in need of speed. Of course that would never fly in today's world. This was back in the days of leaded gas and ethyl 'gasohol'.

[@Stealth_Gamer92]

​@stephenlabarre7890 I see. Was born in early 90's plus I aint much of a speed freak despite owning a sports car and planing on swaping the V6 and auto transmission to a V8 and manual, so explains why I've never learned of that.

[@yoface938]

Long story short the answer is oil type and refineries. The oils we have is too expensive to refine here so we sell to countries that have the facilities for it. Think of it why everything is made in Asia.

[@bearcubdaycare]

Actually, as the video explains, the oil we have is easier to refine. As a result, it fetches more money when sold. The harder to refine heavy oil that our refineries are built to handle, costs less per barrel. So, we sell (and export) the light oil from shale, and import and refine cheaper heavy oil, since we have the ability to refine it.

[@raphysoucy83]

Your subjects are so interesting!!! I have a hard time choosing which one to watch next. Thanks!!

[@geofflepper3207]

The United States hasn't built a major oil refinery in almost half a century. One was recently built in Alberta but only with significant government assistance and some forecasts indicate that it will always operate at a loss. It's hard to believe that any corporation is going to spend vast amounts of money and spend years building a new major oil refinery that will operate for decades in response to Trump's policies announced on social media when nobody is ever quite sure what Trump will actually do or knows whether he will change his mind about tariffs and when Trump will be out of office in four years and when oil prices seem to be heading down and when it's very difficult for anyone to know what demand for oil will be decades from now when any new refinery will still be around. There has also been a claim that it will be more expensive to build any oil infrastructure because of Trump's tariffs on imported components or materials.

[@Boomerlake]

A big 5.5 Billion refinery is supposed to be built in Cushing, OK, but the company is having a difficult time making a deal on finding a square mile of land to build it on.

[@leroyjones769]

By far, one of the most informative videos I’ve seen in a long, long time.

[@skipjagger]

Dude, we have NEVER used less oil/ coal/ natural gas from one year to the next.look it up by total amount, not %. Green energy is taking a bigger slice of the pie each year (still not a HUGE portion of total energy) but the overall energy consumption growth trumps that small % increase of green energy and each year we still use more and more oil/ coal/ and natural gas. There might be some hand offs between the 3 but average between all 3 shows the unfortunate reality

[@auspiciouslywild]

Who are “we”? For the world, consumption is still growing for all three. It will for a decade or so as population keeps growing and the people in the global south gets wealthier. For the US you’re missing a key fact: it’s ONLY gas that’s growing. Oil consumption has peaked and staying somewhat stable for now. Coal consumption is falling like a rock. The silver lining for the growth in gas consumption is that it’s the perfect fuel to be using during the transition to renewables. They pair well since gas power plants can more easily ramp their power production up and down. The growth of renewables is exponential. So it’s only a matter of time until they start cutting into the growth of gas as well, and it won’t take long until gas consumption starts to fall like a rock. We’re already seeing gas peaked plants getting outcompeted with the help of battery storage.

[@hakubohsii]

I love you talk about EV tires while talking about crude oil.... Great

[@850cathedral]

California has lots of oil, but due to local state politics, is not able to drill for it. Refining capacity in California is also highly over regulated; so much so, that three refineries will be closing within the next two years. Given that no refineries have been bimuikt in California since the 1970s - due to over regulation making it too expensive to do so, and due yo the fact that Californiahas its own fuel blend requirements - - these three refineries closing are likely to cause fuel prices in California to skyrocket. Amd, as of that wasn't bad enough, Governor Newsom's air resources board, has recently raised the state tax on a gallon of gas to nearly $2/gallon. The thinking is that this will drive people towards purchasing electric vehicles. But electric vehicles are more expensive than gas vehicles, less reliable, more inconvenient and more toxic to produce and dispose of. If an EV is involved in even a minor accident, they're often "totalled" by the insurance company, due to concerns that the battery integrity may be compromised - which could cause a fire in the future. And yes, EV's can catch fire, and when they do, watch out because they're going to consume the entire vehicle and anything nearby. This increases the insurance rates for EV's. And lastly, no one at the California state level, seems to have any idea how to "power" all of these EV's. Ive worked in the solar industry in California the past ten years, and speaking from experience, I can tell you that all of this needed electricity "isn't " going to come from "solar." Most of the "additional " electricity being generated to run these EVs is coming from natural gas power plants - which do their own polluting. So your "non-poluting" EV, is often running on electricity generated by fossil fuels. But even if you own your own home in California- hard to do with the average home price in the San Francisco Bay area and Los Angeles area being well over a million dollars - you're looking at a large investment to install a solar system. Take for example the most popular selling vehicle in the United States - the Ford F150. The electric version comes with a 100 kwhr battery, but gets less than two miles/kwhr. So, if you drive 30 miles to work, snd 30 miles back each day, you need to charge that truck a minimum of 30 kwhrs per day. Again, thans to Governor Newsom's gutting of the "net metering" program in California when going solar, you now gave to purchase a battery system along with your solar panels, in order to charge that truck. A solar system capable of producing and storing 30 kwhrs of electricity each day would run you $50,000 - $60,000; and that's "just" to charge up one third of the battery's capacity. And let's not forget that this solar system wouldn't have any electricity left to run your house. And California has a law on the books where all vehicles sold in California beginning in 2035 "nust" be non polluting - essentially meaning, all electric or hydrogen powered. And of course, we haven't even addressed the cost to upgrade California's electrical grid, in order to move all of this electricity around. That's likely to cost trillions... Indeed, because of all of these new "green" demands by state politicians in California, the cost of electricity has quadrupled over the past ten years. Bottom line: Its a nice ambition to go all electric, however, its extremely expensive to do so, and only really benefits wealthy home owners, that can already afford to purchase and own an extremely expensive home, not to mention an expensive EV and expensive solar system. FYI, Governor Newsom just purchased a 9.1 million dollar home in Marin County, and he's so rich, that he didn't even sell his expensive home in the Sacramento area - near the state Capitol. So Governor Newsom had "two" multimillion dollar homes, whereas the average Californian can't even afford one. Add to this that California has the highest state tax in the nation - 13% - which hits the "working class" hard, but barely dents the income of the rich like Governor Newsom - who make most of their income from investments. The hypocrisy of Governor Newsom is stupifyng, and his policies are driving business and people out of California in record numbers. He's got to be the worst Governor the state of California has ever had...

[@IronmanV5]

Something else you didn't mention is the amount of time it would take to swap over the refineries. We're looking at a couple years. A couple years where fuel production is reduced causing shortages and local price spikes. In addition, there are other products those refineries make from heavy crude that get piped over to adjacent or nearby refineries that make the other products you mentioned. We'd have less of those products causing shortages. etc., etc.

[@TomSanders-mf4ox]

This is the best explanation of the situation I have seen. Very helpful. Thank you.

[@mintakan003]

Natural gas is the more interesting story in the shale revolution. It's reputation is mixed. It's almost a waste byproduct from oil fracking. It is incredibly cheap in the US. Enables more energy independence for the US. Low energy costs (relative to other places). Also, enables more diversification for other places. E.g. LNG exports to Europe. NG is much easier to refine. And they are in the US. From climate perspective, half the CO2 emissions. But methane leaks are a concern. Also, much better than coal in particulate and other emissions. In some ways, it enabled the renewable energy revolution, since it provides the backup that would allow the whole thing to work. The proportion maybe diminishing with the advent of grid batteries, displacing many gas peaker plants (which have larger capex costs). Surprisingly enough, the fracking revolution has not taken off in other places, e.g. Europe, India, China. Geology? In India and China, they have coal as backup.

[@markpashia7067]

Other places are smarter than to pollute their drinking water by fracking. If they are fracking it is for geothermal rather than oil.

[@timothymachen687]

Excellent presentation! I am now subscribing to your channel! Great journalism and teaching.

[@OweEyeSea]

Very nice overview. It's interesting that I, as a lay person, have been aware of this for years. But our professional politicians don't seem to understand this. Broad tariffs on Canada and Mexico would cause a big problem here. I wish an Executive course on macroeconomics was required for every federal elected official.

[@markpashia7067]

Totally agree, but even with that they would have a hard time turning down lobbyists money. Maybe require a few ethics courses as well. Along with a justice system that punished ethical violations.

[@truthalonetriumphs6572]

It's not that they don't understand, they lie to get elected

[@coreygrua3271]

What an amazing program, one that is always worth my time.

[@blue_beephang-glider5417]

Burning one barrel of crude oil (42 gallons) can produce approximately 0.43 metric tons of CO2. The world gets 104 million barrels per DAY! 16,322,800,000 or sixteen point three two Billion tons of CO2 a year. This is the same weight as 98,926 average loaded cargo ships... Gee! Wonder why we have problems with our 100km thick atmosphere 🤔???

[@charleskroeger5735]

It has taken scores and scores of years to put in place this reliable source of energy we all require. Science saw the iceberg dead ahead and warned us back in 1989 (I think they said , there's the iceberg dead ahead, something like that) but you know, the band played on. Macbeth saw the big picture when he said "Tomorrow and tomorrow, (etc) creeps in this petty pace from day to day (etc etc) and all our yesterdays have lighted fools the way to (etc etc) a tale by an idiot full of sound and fury (etc) and shit has hit the fan.

[@urbanstrencan]

Very interesting topic, for us in countries that don't have oil industry. Keep it up with videos like this ❤❤

[@alhampton1211]

Ricky…..please remind the viewers that a “barrel” of crude oil is only 40 gallons, not like the regular 55 gallon drums we see in photos, diagrams, etc, etc. It’s a bit sobering to think that we paid the Saudi’s a lot over time for 40, not 55 gallons for every “barrel” purchased!!

[@being.green.actually]

42 U.S. gallons is the agreed upon measure .. that is all --- no one is getting "shorted" besides they don't ship most crude in 55 gallon drums anyway its all bulk in tankers etc.

[@alhampton1211]

@@being.green.actually sorry for using 40 instead of 42. However, you missed the point.

[@johnhaller5851]

You could have mentioned the Jones Act, which prevents US oil from being shipped by boat on foreign ships. Since the US shipbuilding industry is nearly dead, we are not building tanksrs other than for military use.

[@gregorymalchuk272]

No, it prevents US goods from being shipped from one US port to another US port using anything except US owned ships. It would prevent oil from neing shipped from Louisiana to Florida by foreign oil tankers.

[@BobFirth]

Thanks Ricky, one thing you didn’t touch on is someone wants to put 20% tariffs on the oil we get from Canada and Mexico. Since we get 20% of our oil from Canada and Mexico that would mean our oil prices would go up 4% over all. But since the east and west coast imports a higher percentage of oil that means the prices would go up the most there. So these tariffs would hit the blue states the hardest.

[@johnburns4017]

The East and West coast states are the wealthier states who would be greatly implicated. They will not like that, and they are also mainly Democrats by tradition. I see turmoil.

[@engelag]

If investors feel confident that the tariffs will be maintained, then they may invest in converting some of our refineries to handle light, sweet oil. If oil prices become escessive in the east and west coat states, then new oil pipelines can be built. Leaks? Double the pipes, one for oil inside the outer pipe for leaks. BTW: VAST Power Systems has the technology to burn oil leaked on water. They want/need much more water than oil in the burn. Retired engineer. Living in Collin County, TX.

[@johnburns4017]

@@engelag wrote; _then they may invest in converting some of our refineries to handle light, sweet oil._ The usage for oil is going to drop substantially over the next 5-10 years. Demand will drop off.

[@engelag]

@@johnburns4017 Please explain and justify your claim. Even if we import less stuff, due to tariffs, we might want to make it here, which requires trucking or trains. If the price is too much, there will be an increase in DIY, which still needs supplies.

[@johnburns4017]

@@engelag The world is moving to solar, wind and grid storage batteries. Hydrogen produced by wind/solar or high temp nitrogen reactors, will be used for industry - and trains and ships. Most oil is used for burning. That will end.

[@amotzbarakben-israel2691]

having been a resident of "The Last Frontier" (AK), for 27 years (1977 - 2004), the debate of Why TF can't we use the oil we are pulling out, i appreciate you pointing out the reality most AK residents knew all along

[@dwmcever]

American Refineries can refine sour crude as well as sweet crude. Sour crude is cheaper.

[@nate2838]

Extremely well done and presented. The one major component that you brushed upon rather than getting into is the environment, however, given how that would really be enough for its own video and really drag politics in deeply, I can't really complain. Thank you for the time and effort you put into this presentation so we can have a better understanding of things.

[@peacepoet1947]

Other countries will purchase the oil. If push comes to shove, people will arise to meet the challenges!

[@danielchin8073]

Yes! Drill, baby, drill is about increasing supply to lower prices of everything that comes from or uses oil including lowering transportation costs, not about the direct integration of that supply into a singular nation's consumption.

[@peacepoet1947]

@danielchin8073 we can always burn it to keep us warm and cool when the temperature is not nice to humans!

[@markpashia7067]

@@danielchin8073 except the market is not there for more light sweet than we produce now. Oil execs have been screaming all year that it is a wrong solution to the problems.

[@sebmorrell]

If there isn’t a market in the US because of tariffs, you can guarantee other countries wont allow a flood of cheap oil into their economies without putting retaliatory tariffs.

[@LunasEmpireSL]

You can push and shove all you want; a president only lasts for 4 years. Big business will just wait him out. On top of that, building a new refinery can take 20+ years, and with oil on its way out, no business will build one.

[@jameso1447]

Proved reserves are only the quantities which are readily available, with infrastructure in place, that could be pumped out next week. The total quantity of oil that has been found is private information held by various oil companies and may exceed proved reserves ten-fold.

[@BillyBulletPewPew]

I'm a fuel hauler. This is interesting.

[@blarmosanchez2593]

@@BillyBulletPewPew I’m a fuel burner, thank you sir

[@Jimmy_Jim_Jim_1234]

I'm a fuel refiner... glad to help.

[@chillxxx241]

US environmental regulations have made it disadvantageous to own refineries. The clean-up costs are immense. Many US refineries are being purchased by foreign entities that have no other option, but to refine oil. They do not want to “retool” for US shale oil. They are willing to “over pay”to acquire US refineries to keep their oil relevant and flowing to US consumers.

[@steven4315]

Fun fact: World ICE auto production (including hybrids), peaked in 2017.

[@Kriss_L]

And battery powered cars are only selling becuse the government is mandating them.

[@tibomoltini2851]

ICE vehicules are on their way back. 1/3 won't buy another EV after their 1rst trial. the 2/3 cant get rid of them because they loose value so fast, you have to keep them till the end. EVs dont sell anymore.

[@Werkelijk]

@@tibomoltini2851 1/3 of US consumers? If so this number is irrelevant.

[@tibomoltini2851]

@Werkelijk 1/3 who tries a 100% electric EV wont buy another one. in Europe sorry. Companies buy only ICE cars for the range. Not interested in electric cars. It's not even a matter of Price

[@ThisDique]

​@@Werkelijkclearly disingenuous dialog from someone wishing to mock someone else without refuting the claim.

[@keithromero879]

This is one of the most eye opening videos I have ever seen. Thank you

[@HalfAssedRanching]

My first ever job, prior to leaving for medschool, was at Exxon in Beaumont. That plant can run anything, just takes some optimizing. It's not terribly expensive in the sense of money lost; it's expensive in the money you won't make while not operating - the opportunity cost. It's also risky to switch since every 4-8 years the political climate can swing widely -- no one in Big Oil is worried about EV's or Green Tech. It's a non-issue for them. It's still important to drill, baby, drill because oil is a global commodity. Adding more oil to the global portfolio takes power away from OPEC nations who previously colluded to control prices and keep them artificially high to siphon money from the west to their own nations. If we were willing to invade them and force open markets, as we did with Japan in the 1800's, that would be one thing. In the current system, we can only flood the market to force them to compete for market cap, which decreases prices overall. Lastly, you forgot one major class of people who benefit from pumping -- the people who own the mineral rights. That is life changing money for a lot of people.

[@carbonduke01]

@@HalfAssedRanching the problem with US oil production is fracking. US drillers need about $70 to break even. If opec floods the market and say oil drops to 40 bucks, then you can say good bye to US drillers. Banks have hundreds of billions in loans with them,so you can be almost certain that oil ptices wont go much lower than $70. Now imagine the money made at this prices for Saudi for example where the drilling cost is a fraction compared to frackers.

[@kevinmontgomery1054]

Used to love your work but now I always have questions you don't discuss. Obviously, drilling more only produces more crude oil; refinement is still needed. Q1: Does US refining have unused capacity or does "Drill, baby drill" imply increasing refining capacity also? Q2: If Canada is the #1 source of US imported oil wouldn't the proposed expansion of the Keystone pipeline have had a significant impact on increasing supply (and hence lowering prices) in the US? The Russia/Ukraine war and subsequent Russian oil sanctions decreased world supply which drove up world prices. OPEC refused to increase supply to offset the supply drop. Hence, we still have high prices. Increased US exports would increase world supply and lower prices. Q3: Why do you say the basic economic law of supply and demand no longer works? Q4: If we can't use the oil ourselves, wouldn't the US be better off drilling and selling more oil while there's still a market for it? Q5: Isn't the US better off with a balance of trade rather than as a net energy importer? Q6: As a Californian, why don't you contrast California's policies of closing refineries and denying drilling permits and their current $8 / gallon with Texas' opposite policies and price per gallon of less than half the cost? Q7: Isn't it true that the reason the US doesn't build refineries to process it's own oil has nothing to do with peak oil but is because of the time and money it would take getting through the regulations, permits, approvals, environmental studies and lawsuits? I just feel like I only get half a story from you - and it comes from a leftist agenda. This piece feels like a Donald Trump (and supporters) criticism.

[@jorgevieiro5774]

Very educational, I learned a lot. It is clear what makes more sense is what Norway is doing, sell it while it has any value because for the most part we can not use it without a gigantic investment.

[@samjohnson517]

You forgot the most important thing, we are Americans, we can and will do the impossible. If we want to go to the Moon, we go to the Moon, if we want to go to Mars we go to Mars and if we want to become energy independent we become energy independent.

[@jacquelineperet6599]

You a real copy of arrogant irrevelent trump

[@SamboNagga]

if we want to take back control of our country from Israel, forget it. Will NEVER happen

[@israelgarcia7801]

Yup yup. Let’s get some beaches into power plants and perhaps even one have storm chasers to harvest energy. I have some ideas in mind but it is basically an expensive kite.

[@another-person128]

In the wet dreams

[@paulcosgrove4219]

With a 25% Tariff on all imports promised by Trump, sounds like price at the pump is only going UP. Go figure…

[@elgordoloney5743]

As always, Great insights and valuable information. Your teams efforts are impressive and useful. Please try to find the motivation to get the facts out. Thanks Ricky !

[@thewatersavior]

This was a great one.. wish it came out a few months ago.. thank you!

[@BorderTerrier-yk2hw]

I found your site in the middle of the night UK time. Thank you, very interesting.

[@bdjm8595]

It is disingenuous to say that more dilling in the US is a bad thing. More oil on the market pushes prices down world wide. Making oil products cheaper!

[@danielhady3021]

@@bdjm8595 yeah but when the price of oil drops below a certain price, producers will just curtail production to keep prices stable.

[@markpashia7067]

Not that simple. The markets need balance of the correct types of oil and light sweet is pretty much at the maximum for demand. More is just a glut that cannot be used anywhere. It might drive the barrel of light sweet down but won't help for end products. We would get less for our exports but still pay the same or more for our imports. Net loss for Americans.

[@ericwolff6059]

All drilling for oil is a bad thing. The current numbers are staggering. The facts of global warming are being totally ignored by the vast majority of people who can help slow it down or even reverse it.

[@cityguyusa]

By quality of the crude1 So not going to reduce our costs with what we produce but it will offset the cost of what we need.

[@nathanmielke1977]

@@ericwolff6059 If you want to start fixing global warming you could start by self-deleting. You go first.

[@judo-rob5197]

That was a very interesting video. Thanks for explaining this in such a good way.

[@dannydivine7699]

16:40 Of course Saudi Arabia has lot of solar farms, they have loads of ground that isn't suitable for anything else. Desert sands aren't terribly productive or useful once the oil extraction infrastructure is in place and the underground resources are flowing!! So how much more capacity for petroleum EXPORT do we have, the one key element I didn't hear you touch on, is the fact that in our current debt situation we need to EXPORT everything we can to bring huge amounts of the worlds dollars back into the US and increase our Gross Domestic Product numbers to lower our debt load. IMHO

[@WillN2Go1]

The core of economics is not that you drill this out of the ground and sell it to someone else. The actual core of economics is How big a chain of interactions and benefits can be created? Trade imbalances and debt are largely meaningless unless you are doing something harmful with them. Bismarck figured out only a couple of years into Germany getting overseas colonies that colonies are money losers, a net loss. Will always be a net loss. The British never seemed to have figured this out. What made Britain wealthy was all the economic activity caused by conquering, managing, exploiting, (abusing, repression, exploiting) colonies. WWII in the US is another example of this, but we understood what was going on. We knew that all the stuff we paid to have made would be used up in the war returning no net gain. We were okay with that. WWII was the actual way the Great Depression was ended. There were contracts with all the manufacturers that none of the war materials would ever come back to flood the U.S. market. After the war Liberty ships in the South Pacific were just dumping crates of Indian motorcycles and Jeeps over the side. So sure you have an oil well, you can make a lot of money... (Just sell it before it taps out and you have to pay to clean up the mess and cap the well.) But the rest of it is just keeping busy. I've seen videos trying to argue that EVs really aren't efficient and so are just a boon doggle... that solar is actually no good and wind farms last only a few years and without subsidies lose money. Complete nonsense of course but also just silly. (The oil industry gets huge subsidies.) Doing any of this, and converting to an electric economy is all good economic activity. Home building is another hugely beneficial activity. But not nearly as much of that is going on as is needed. This is why housing prices are so high. In the UK and Ireland the big land owners figured out that they could make more money with less hassle by grazing flocks of sheep. With a zero sum mindset they just kicked out the tenant framers. Their families had been on the land for centuries, but... no one cared. Every doctor and lawyer in the world has a constant trade deficit with maids, gardeners, mechanics, their children, etc..... None care because it doesn't matter. Buying more stuff from Asia then they buy from us means almost nothing. We still generate more wealth. Trade surpluses are a nice idea but the U.S. has been in a trade deficit for decades, yet our economy has grown more rapidly than any other western economy. Germany has trade surpluses, is very proud of them. They're currently in financial straits. National debt isn't too bad unless as has been done since Reagan, Republican administrations have run up the debt to pay for tax breaks for the top class most going to a fraction of the top 1% and corporations. How can so many Americans believe the United States is in an economic decline when we have steadily gotten wealthier and wealthier? This is because of the transfer of wealth to the top 1% and corporations. This is not economic activity, this is concentration of wealth which results in private equity companies running up the cost of single family homes that they they rent out to people who no longer have access to home ownership. What happens with the incomes of the working and middle classes increase by 25%? They spend almost all of it creating a huge positive impact on the economy. What's happened in the month since many of those people voted against their interests? I know what happened for me. My net worth has shot up by a third. What am I spending that money on? I bought a pair of trail runners. I'm not even in the 1% and I'm just letting it grow. I'm not complaining about my situation. I also know what's going on. It never ceases to puzzle me how little effort people will put into actually understanding their world. They just pick the story they hear most often, the one that fits their preexisting prejudices. Who talks about the glorious Clinton years of the 1990s? We had a boom economy, huge creation of jobs. Clinton eliminated most of the Reagan tax breaks to the super wealthy and corporations, delivered balanced budgets, and started rapidly paying down the national debt. By the end we had tax surpluses. What you'll get is moralistic remarks about his intern (from people who have no problem voting for a rapist). They also still deeply believe in the Laffer Curve even though it was completely disproved during the 1980s. Bizarre.

[@anglicanmarians6845]

Thanks so much. This is the best I’ve ever heard this situation explained.

[@TomTom-cm2oq]

On a coolness scale I think you’re one of the top 10 coolest guys I can think of. You’re so eloquent, informed and intelligent. Thanks for this awesome video and for all the knowledge you pass on to everyone.

[@RogerBlanchard-xn6qc]

There is an old saying: “Everything shines by dimming”. That can be applied to U.S. oil production. Yes, U.S. oil production (crude oil + condensate) set an annual production record in 2023 at 12.927 million barrels/day (mb/d). But there is more to the story. Almost all of the increase in U.S. oil production since 2008 has been tight (fracked) oil production from 5 shale plays: Permian Basin (TX/NM), Eagle Ford (TX), Bakken (ND), Niobrara (CO/WY) and Anadarko (OK). Those 5 plays now produce about 70% of U.S. oil production with the Permian Basin alone producing ~45%. The rest of the U.S. oil production increase since 2008 came from the deep water Gulf of Mexico (GOM). The deep water GOM represents about 15% of U.S. oil production and it is now a mature producing region. U.S. oil production rose rapidly through 2023 but many areas have been declining in 2024. As an example, GOM oil production has been running about 200,000 b/d below the highest monthly value in 2023 (Sept). The latest monthly value (August 2024) was off about 190,000 b/d. North Dakota Bakken oil production was off approximately 100,000 b/d in August 2024 relative to the highest value in 2023 (Sept). Oklahoma’s oil production, mainly Anadarko, was down 60,000 b/d in August 2024 relative to May 2023, the highest producing month in 2023. Colorado/Wyoming oil production (mostly Niobrara) was down 26,000 b/d in August 2024 relative to December 2023, the highest producing month for 2023. The ultimate oil recovery for the 5 shale plays listed above will be approximately 50 billion barrels. For the period 2008-2023, total oil production for the 5 plays was approximately 25 billion barrels. Here is a statement by prominent petroleum geologist Art Berman from a recent report he wrote concerning the Bakken shale play: The implications of this Bakken study and recent evaluations of the Permian and Eagle Ford plays are clear-this is the beginning of the end for the tight oil plays. Here is a statement from an oil industry insider, stated several years ago, concerning the future of U.S. tight oil production: "Shale [tight oil production] will likely tip over in five years, and US production will be down 20 to 30% quickly. When it does-this feels like watching the steam roller scene in Austin Powers. Oil prices in the late 2020s will be something to behold.” An industry executive responding to a poll by the Dallas Fed; What you won’t hear from the media in the U.S. is that most of the production from new tight oil wells occurs in the first two years of production. To maintain or increase production, wells have to be added at a rapid pace or production declines. At some point, the “sweet spots” within a play get saturated with wells and production declines. That has occurred in Bakken, Eagle Ford, Anadarko and Niobrara. It will occur in the Permian Basin as well. Almost all the increase in U.S. oil production this year is from Texas and New Mexico with minor increases in Utah and Ohio. Almost all of the increase in Texas and New Mexico has come from the Permian Basin. I'm expecting the Permian Basin to start declining in the next year or two. What oil companies have been doing is sacrificing future U.S. oil production to maximum present oil production. That can only go on so long. It would not be surprising if U.S. oil production declines 5.0 mb/d or more by 2033, relative to 2023, about 5.5%/year. To put that in perspective, United Kingdom (U.K.) oil production has dropped 75.5% since 1999, at a rate of 5.4%/year. In the 1990s, the U.K. was one of the world’s major oil producers but they ran out of fields in the North Sea and production has thus declined. Conventional U.S. oil production reached a maximum in 1970 at 9.637 mb/d while Alaskan production peaked in 1988 at 2.017 mb/d. Production from conventional U.S. oil is now about 1.6 mb/d and that from Alaska is about 0.4 mb/d. The shale plays and deep water GOM were the last highly fruitful places to go in the U.S. for oil so I expect future U.S. oil production to parallel the decline of the U.K. I expect that some people will say we are going electric so it doesn’t matter what happens to U.S. oil production. In the last 10 years the number of EVs on the roads of America. increased by around 2.5 million vehicles. In spite of that, U.S. total liquid hydrocarbons consumption (oil + other organic stuff) increased by almost 900,000 b/d. There are around 283 million registered vehicles in the U.S. and a high percentage of the vehicle owners are never going electric. That is the harsh reality.

[@bobbytables6629]

I'm actually sick of people complaints on Oil, they just think of Gas, and nothing else. If all cars became EV, and you some how built a EV infrastructure to charge it all, we would still need oil for plastics, roads, tires and other major chemicals that the world needs. To me the investment to refine what we do got is always a smart one. There will always be a need until it's all gone. I still think we are decades away from even having the power infrastructure to have 100% EVs. You have no choice but go Nuclear / SMRs, and build out some type of car wireless charging in every home and city parking spot. Its silly to think of investing in Oil and Gas is dead, it's alive it going to take a long while before that change can even happen in your life time.

[@LunasEmpireSL]

Building a new refinery can take 20+ years. By then, electric will have taken over the market. No one would be willing to spend the money to build a new refinery. You guys act like they can build one in a day, lol!

[@schubajo]

They think of gas because that is a significant amount of the market. There is certainly a need for lubricants but that is pretty small and even smaller with EVs. There is a market for plastics but the only reason they are used for absolutely everything is because it is essentially a byproduct of oil demand. Plastic is fine for some things but the number of single use plastic products is a result of the oil industry looking to unload their waste. You are correct that switching to EVs is decades away. The government and the market is in agreement with yoy and nobody is expecting a 100% EV transmission right now or even in the next decade. The hope is for 50% of new consumer vehicles to be EV or PHEV vehicles by 2035. Notice a few things about that: that number is not 100%, it is for new vehicles, and it includes plug in hybrids. The electrical production can easily be all renewable with storage. Renewable production is the cheapest production we have. Renewable with battery storage is significantly cheaper than nuclear. Methane is about on par for cost but the greenhouse gas emissions for methane use are up there with coal due to how leaky methane is. The charging infrastructure for EVs does need work. Apartment dwellers should not be stuck paying $0.50/kWh for fast charging. The majority of people are fine using a level 1 charger (standard outlet) overnight though. That gets them 30-40 miles of charge which is enough for the majority of people.

[@ninkenny]

@@LunasEmpireSL How does electricity make plastics, roads, tires and other major chemicals? Please answer i didn't know that someone made the Star Trek replicator. Again my statement was targeting people like you who can't think.

[@LunasEmpireSL]

@@ninkenny Plastic roads and tires without oil can be made using: Bioplastics: Derived from plants like corn, sugarcane, or algae. Recycled Plastics: Repurposing waste through advanced recycling methods. CO₂-Based Polymers: Synthesizing materials from captured carbon dioxide. Natural Rubber: Expanding rubber tree cultivation or using alternatives like guayule. Bio-Asphalt and Additives: Using lignin, molasses, or silica to replace petroleum binders. Microbial and Waste Conversion: Producing materials through engineered microbes or syngas. These innovations ensure sustainability while reducing oil dependence.

[@ninkenny]

@@LunasEmpireSL Only focusing on Plastics. First corn plastic is the only Bioplastic in any type of production, the cost are insane, also requires special handling as it humidity sensitive and much more tougher to work with during manufacturing. Lets not forget how much more land you will need to produce it from corn. It's only good for 1 time use plastic as a replacement because it biodegrades much faster. Sugarcane just not practical for much of the same reasons. Algae show promise but can't actually use the oceans for this process as it will effect the ecosystem. So this just uses too much water to produce. Yes we need to recycle. So let's take Gasoline out and Plastics for the fun of it. We still use 50% of that barrel, that can't be replaced. We will need oil until its gone, reducing how much we use of this resource is great thing to do because we need it. However you can't stop pumping it, and you can't stop refining it. The world runs on it, and there not enough land or resources to create what we use if you could create alternatives methods for it. So hence refining the stuff is here to stay, and still a good investment.

[@jamesmisener3006]

You are an excellent presenter, Sir. Cheers 🇨🇦

[@jonathanlee3160]

Really good explanation, living in Canada I've often wondered why we export so much oil to the U.S. when they have so much of their own. Makes a lot of sense to me now. I always enjoy your videos, you are very well spoken and intelligent!

[@erwin643]

Whoah, whoah Mr. Two-Bit, but how about making the distinction that CONVENTIONAL CRUDE is what peaked in DEC 1970. This is historical fact, and even represented in your chart. It's the SHALE CRUDE that has boosted total liquids production (what your chart actually represents). When all this shale oil gets played-out, look out below for our industrial civilization. Have a nice day.

[@rickrandazzo]

When you talk about shale oil your talking about fracking. We have known for years the problems created by this and it hasn't gone away.

[@dougtheslug6435]

Good vid, some really good info there. I think there's another factor that probably fits into that puzzle is shipping needs to be efficient also, sending those large tankers around empty is not feasible. If there's ships coming to the US to load up with US oil for export it makes sense for them to come full, so like you said buying that crude oil from other countries is keeping the costs of shipping down and serving a purpose.

[@kissthesky40]

Now do oil isn’t decomposed vegetation and dinosaurs.

[@y0uCantHandle]

Still calling it Dino juice

[@Unsolicitedbias]

I put in on an average week about 70 to 110 miles on my bicycle. The Chevy sits in front of the condo and unless there is surf (rarely worth surfing most days) or I go visit my son's in Tampa, I don't even move the Chevy. Now when it does go, maybe I take about a 400 miles round trip to Tampa and stuff there and back and that may happen two or so times a year. The point is that I am now able to shift my transportation to bicycle in Florida and it's better for me, physically, and financially, as I now have dropped my Liability Coverage since I am driving far, far less. With less fuel, cheaper insurance, and reduced maintenance, the Chevy is costing me a lot less to own, especially since the Trailblazer is a 2003 and still runs pretty good, but stuff is starting to age out. But this is a transition. Eventually, as I mentioned below, we might just shift our transportation methods to in town Tram or Light Rail and forego the need to own a personal automobile entirely. We might still want a transport drone EV vehicle, that is cargo carrying only. It will be far cheaper to move from suburbia back to better designed and structured cities with higher density of living with better mass transit and no need to own cars at all. Then we can put more money into investments and education and less on depreciating transportation with high initial cost and high ongoing costs of ownership.

[@teoengchin]

Actually the US ability to "drill baby drill" can still help indirectly influence the global oil price. Problem is US doesn't have state owned oil companies like other exporters. So the only lever the federal gov has to directly influence prices is making announcements and the strategic oil reserve

[@jimmyaber5920]

@teoengchin The issue would be oil companies do not want to drill when payback is too long. When price is low they cut sales to the point of meeting contracted amounts and keeping necessary cash flow. The drilling will not happen even with a million permits issued if world consumption is low and keeps the price low.

[@teoengchin]

@jimmyaber5920 That's why I said the problem was US didn't have a state owned oil company. Then the gov can make decisions and priorities long term benefits Vs short term profits

[@NA_49erFan]

Subbed. Nice content

[@Toastmaster_5000]

I get why California can't realistically use [edit] *refined* Texan oil but if we're shipping Texan oil to other countries by boat and places like part of the northeast are importing by boat, why not just have those northeast sections import Texan oil by boat?

[@paintballercali]

This is explained at about 10 minutes.

[@anthonyc1883]

Doesn't he explain in the video that the Texas oil reserve and production is primarily shale oil which U.S. refineries are not set up to process. That's why it goes elsewhere and why the U.S. continues to bring in more standard crude from elsewhere.

[@Toastmaster_5000]

@@paintballercali No actually, it isn't. He explains the CRUDE oil, not the refined stuff.

[@being.green.actually]

@@Toastmaster_5000 Shipping is bound by the Jones act sending oil by ship from US port to US port requires US FLAG VESSELS with US Crew making it cost prohibitive

[@kkarllwt]

Oil shipped between 2 american ports must be on a us built ship, Owned by a us company, and crewed by americans. There aren't any

[@dennisenright9347]

The price of wti(west Texas intermediate) grade oil is about 72$ a barrel. WCS(western Canada select) is about 58$ a barrel. Those prices are from October, but the difference is always somewhere around 15 dollars a barrel. For a huge refinery, using the less expensive feedstock could be worth many billions a year in extra profits, even if using it gives you a lower percentage of more valuable products like gasoline, diesel, or aviation fuel. Plus, you avoid the downtime and the literally billions of dollars in expenses, of reconfiguring you facilities

[@rdlegault]

What about the trillions of gallons of water used and the 200 toxic chemicals in this water that makes fracking happen?

[@aoscott]

And moving 500,000 pounds of earth just to produce one EV battery is better?

[@pellestorck3776]

​@@aoscottyes. Btw for every gram of gold you have to move 3000 kg of rock.

[@pellestorck3776]

​@@aoscottRMR for lithium is much lower than for gold, plus it's only calculated for ore production, 30% comes from brine.

[@panyaboonc5621]

So, you are talking about pollution?? And why do they still increase tariffs on Chinese EV to 100%? Isn't EV good for the environment and doesn't cause pollution? Pure hypocrite.

[@fixeroftheinternet]

Excellent video. You have managed to.explain very simply the complexity of this issue that how drill baby drill is counterintutively not true. Very well done!

[@thedaythatendsinY]

"Drill baby drill is not true....." So long you you assume the situation stays static in the realm of refining but there is no reason to assume that with the emergence of shale oil and an increased amount of sales of shale oil at a premium that companies wouldn't use those gains to invest in retrofitting or new construction of shale oil compatible refineries. The statement seems heavily biased.

[@atomicdmt8763]

and- how about opening up KEYSTONE PIPELINE again?

[@jimm2600]

@@atomicdmt8763 The Keystone Pipeline is still running. The one that has many triggered is the Keystone XL and it was never built. Biden stopped the construction. The Keystone XL was only 8 percent complete when construction was halted.

[@exosproudmamabear558]

He explained why it wont happen. Blackrock do not like that since they urge you to go into renewable energy or they will lower your credit first,second there is less demand for oil so they dont want to invest in a limited resource with lower prices.

[@MikesTropicalTech]

Thanks for telling us you didn't actually watch the whole video.

[@markevans8206]

Oil companies maximize for profits. They intentionally limit production and processing. They have plenty of undeveloped leases already.

[@Griftless-j4g]

It basically comes down to the influence of the corporate board of directors and the contracts they create to make the most money. You can drill 10 x the oil but they may sell it elsewhere. It may not improve costs here. Laws would have to be made to restrict contracting and you know that would never happen under Republicans, they're for total deregulation. Not all board directors interests are for the US.

[@iamcomcy]

You are missing a very important point, and I have to wonder why: 'Drill baby drill' and the increase in production is the same as buying power to bring in more crude we can refine. Refine it, or sell it, it's a positive for our energy balance sheet. And that's the same thing without needing to make a 20-min video to disclose the nuance.

[@TwoBitDaVinci]

what is "our energy balance sheet" do you or I benefit from some company selling oil for their own profit? I don't see oil and something the U.S. Shares, because the big oil companies sure as heck aren't sharing.

[@michaellee09]

Increased supply at the same level of demand will reduce price. The only way it wouldn’t, would be if the supply outstrips the capacity to refine.

[@onlyyou7017]

@@TwoBitDaVinci so, you have gone from providing information to becoming a political activist. I have unsubscribed from your channel.

[@martin2289]

@@onlyyou7017 Nobody but you cares.

[@onlyyou7017]

@@martin2289 apparently you do.