So when does this start pushing gas prices over $4.00/ gal. Seems to me the past has shown public opinion starts shifting around $3.50, $4/gal is critical mass point. And as you've mentioned, we are not even to driving season in US.
Looking at historical rig counts, 2011 to 2014 was about 3500 before the Saudis dumped oil on the marked to attempt stop fracking in USA. Rig count was hovering about 2000 until Covid hit in early 2000, then dropping to 1000 rising to about 1500 in recent months.
IMHO the under investment in the oil patch for years is now driving oil price higher.
So when does this start pushing gas prices over $4.00/ gal.
ReplyDeleteSeems to me the past has shown public opinion starts shifting around $3.50, $4/gal is critical mass point.
And as you've mentioned, we are not even to driving season in US.
Sorry for delay in replying but I slept in to avoid the Texas freeze and then was so far behind in blogging.
DeleteI have nothing to add.
Looking at historical rig counts, 2011 to 2014 was about 3500 before the Saudis dumped oil on the marked to attempt stop fracking in USA. Rig count was hovering about 2000 until Covid hit in early 2000, then dropping to 1000 rising to about 1500 in recent months.
ReplyDeleteIMHO the under investment in the oil patch for years is now driving oil price higher.
Sorry for my delay in replying. I have nothing to add. I cannot explain the curious / sudden jump in price of WTI today.
Delete