We can pretend that the markets and individual stocks, like GSPE, are not affected by policy, regulations, inflation, interest rates, financial disclosures, or anything else beyond the momentum of movement.
But in fact, all of those are influencers of a great magnitude and, as we have witnessed, can even result in the fostering of perceptions about the virtues of not investing in oil and gas drilling.
Persons unaware of the stress caused by the current situation in the domestic oil and gas industry must not be disturbed by it, or could even be in favor of it, and may not wish to have those arguments face the scrutiny of analysis.
But this is a forum for ideas and the exchange of opinions. With this in mind, I welcome discussion of any topics by interested persons.
Therefore consider that the drawdown of the SPR will be discontinued after November. Then the prices for crude will start the inevitable build back higher. Likely much higher. Higher prices are not always beneficial for drilling programs if it is thought that higher prices will hurt demand.
Then following closely after, with the continued depletion of current crude oil production and reserves, the availability of crude stock will become more and more stressed. This will put even more upward pressure on prices, as supplies of gasoline and other petroleum products become more scarce. Affordability will be a big issue.
Gulfslope stated in the most recent 10-Q that it believes that these shortages will force a re-evaluation of the industry pause in exploration activity and will result in significant motivation to resume drilling.
Might these price increases for crude oil and gasoline be by design to promote an agenda to convince consumers to move more quickly towards renewable energy and EVs, while moving away from natural gas and ICEs? Perhaps.
EVs and renewables are intended to replace oil and gas and thus are direct competitors. So what consequences should we be considering before we make the switch?
It is already established that EVs are not the panacea that they are represented to be, and will most likely fail in the marketplace outside of niche areas.
Additionally, I suspect that EVs will be a financial disaster for purchasers. After paying a premium to purchase one, what will you do with a seven year old EV facing a $25k battery replacement?
And what will be the resale value of a seven year old EV if you want to sell it or trade it in? Especially considering the challenges of using one for primary transportation. How much would you pay for a used EV? Really, me neither. But if we no longer have internal combustion vehicles or access to gasoline, what will be our other choice?
It is pretty well documented that renewable energy causes significantly increased costs for electricity plus many homes will need expensive modifications to go all electric.
And if that will not dampen enthusiasm for it, then the rolling blackouts and threats to health and welfare will do it in, to say nothing of not having access to your appliances, AC, or EV chargers during times of peak usage.
Renewable energy will be a predictable nuisance and inconvenience that we get to pay top dollar for. Wind and solar will not be perceived by consumers as being a good value.
So yes, I definitely agree that there needs to be changes made. And they must go far beyond GSPE and Tau 2, although that is an excellent starting point.
What can we do about these future impacts to our standard of living? There are limited options. But if we have a chance to save our domestic energy industry, prevent our financial and stock markets from further decline, and protect our jobs and lifestyle, I am all in.
I will meet you there at the scheduled time. And we can begin making the changes we need.
Mrs. Smith
