Joe Biden: Bad for America, Good for Transocean Inc.
Jan 25, 2021 16:30:26 GMT -5
Blitz, birdnest, and 2 more like this
Post by bjspokanimal on Jan 25, 2021 16:30:26 GMT -5
We all saw Biden's order cancelling the Keystone Pipeline, but I doubt many saw
that in October of last year, America, for the first month in over 50 years, didn't
import a Single Drop of oil from Saudi Arabia.
As usual, it boils down to what the mainstream media wants you to know about,
and what it doesn't. They also are rarely talking about the tens of thousands of
pipeline related jobs Biden destroyed in the U.S. and Canada by trashing Keystone.
But there's much, much more. There's Biden's banning of drilling permits on federal
land. There's Kamala bugging Biden every day about how much she wants him to
ban hydraulic fracking (the very essence of the shale oil boom that helped America
achieve energy independence over the past 4 years). Less known, is the degree to
which the Harris/Biden administration is working on starving the oil industry of funds
via threatened regulations on the banking and other financial industries.
Of course, the upshot, will be higher prices for everything made of oil... gasoline, diesel,
propane, and thousands of other products based on hydrocarbon derived ingredients.
This "tax", borne out of shortage, on Americans, is a "regressive" tax, in that poor people
spend a higher percentage of their incomes on hydrocarbon-based products than wealthy
people do.
Biden/Harris are also getting back into the Paris Climate Agreement, where the U.S. as
a "developed" nation will face further, severe constraints by foreigners on how we manage
our energy affairs. China is a Paris Climate member too, but since they're still classified
as a "developing country", despite being the 2nd largest country in the world, they can
do whatever the hell they want to for at least another decade, and they are... building
pipelines and refineries willy-nilly, like the Keystone pipeline Biden cancelled, to fuel their growth
with oil. That'll have China passing up the U.S. economy very soon and very fast.
China pretty much has the Paris Climate Agreement in their hip pocket (while they pollute the
hell out of the Troposphere) just like they had the World Health Organization (WHO) in their
hip pocket spewing Chinese propaganda that Trump called them out on when he ditched the WHO
as a (correctly) mouthpiece for China's covid drivel.
But what about Transocean? Why will they flourish under Biden's Heavy Left Hand?
Answer; most oil exploration outside of the U.S. and OPEC+ countries is being found and
developed in Deep Water, and Transocean is the world's #1 Deepwater contract driller.
So, to the extent that Biden strangles U.S. oil supply, which is mostly land-based, and
makes America increasingly dependent on foreign oil suppliers, Transocean will be helping
other countries all over the world discover oil in deep water to SELL to the U.S., which will
worsen America's Balance of Trade that Mr. Trump worked so hard to improve.
The reality is, outside of the U.S., OPEC+ and just a handful of other countries, most of the
land-based oil has been discovered. So, for the vast majority of countries eager to develop
their oil resources, offshore, in deep water, is where the big oilfields are at.
In fact, Transocean was one of the "defensive" positions that I accumulated in 2020
to help hedge against a detrimental election of Kamala/Biden. It's politically defensive attribute
was a minor attribute that made Transocean appealing, but still one of many attributes that
I considered. Otherwise, the severe impact that Covid-19 had on Oil Exploration, following many
years of a relative glut of oil, has significantly depleted oil reserves world-wide outside of OPEC+
while hammering oil drilling contractors like Transocean, making Transocean a very appealing
"contrarian" investment play, IMHO.
That means that any surge in global oil consumption toward and beyond 100 million barrels of demand
per day in a post-Covid world, is going to thrust the world into supply constraints and rapidly
escalate the demand, and day-rates, for drilling rigs. After 6 years of grief in the industry,
there are barely Half as many rigs still in existence now as there was at the end of the last oil
boom in 2014. The other half, are mostly scrapped, and many more that are "cold-stacked",
and expensive to re-activate by Transocean's bankrupt or near-bankrupt competitors.
Importantly, it was the U.S. shale drilling boom that Elongated the glut that began in early 2015,
by adding millions of barrels of production to world supply, holding down prices for Americans,
and contributing to Trump's booming economy. In fact, the U.S. became the biggest producer
of oil and gas during Trump's tenure... and Biden's "green" handlers hated that, even though U.S.
motorists loved it and low oil and gasoline prices contributed to Trump's miracle economy.
But if Harris/Biden get their way with fracking and drilling bans, there'll be no such shale-production
surge in the next few years, and resulting oil shortages will be filled by a lot of new, deep-water
wells.
Finally, remember that once exploratory drilling begins again, it can take YEARS for new discoveries
to be developed and infrastructure built to produce and transport the oil. That means that even if
oil prices head north of $60 to $70 per barrel and drilling starts booming again, it'll take years for
that new drilling to make a dent in the declining production we're seeing now. Shale wells are
pretty much the ONLY ones that can be ramped up in months, instead of years...
... and if Biden restricts them and cuts off their bank funding... that ain't gonna happen, Virginia, and
drilling contractors will be flush while American's pay a fortune for gasoline for years to come under
the Heavy Left Hand of Harris/Biden and their oil-hating handlers.
that in October of last year, America, for the first month in over 50 years, didn't
import a Single Drop of oil from Saudi Arabia.
As usual, it boils down to what the mainstream media wants you to know about,
and what it doesn't. They also are rarely talking about the tens of thousands of
pipeline related jobs Biden destroyed in the U.S. and Canada by trashing Keystone.
But there's much, much more. There's Biden's banning of drilling permits on federal
land. There's Kamala bugging Biden every day about how much she wants him to
ban hydraulic fracking (the very essence of the shale oil boom that helped America
achieve energy independence over the past 4 years). Less known, is the degree to
which the Harris/Biden administration is working on starving the oil industry of funds
via threatened regulations on the banking and other financial industries.
Of course, the upshot, will be higher prices for everything made of oil... gasoline, diesel,
propane, and thousands of other products based on hydrocarbon derived ingredients.
This "tax", borne out of shortage, on Americans, is a "regressive" tax, in that poor people
spend a higher percentage of their incomes on hydrocarbon-based products than wealthy
people do.
Biden/Harris are also getting back into the Paris Climate Agreement, where the U.S. as
a "developed" nation will face further, severe constraints by foreigners on how we manage
our energy affairs. China is a Paris Climate member too, but since they're still classified
as a "developing country", despite being the 2nd largest country in the world, they can
do whatever the hell they want to for at least another decade, and they are... building
pipelines and refineries willy-nilly, like the Keystone pipeline Biden cancelled, to fuel their growth
with oil. That'll have China passing up the U.S. economy very soon and very fast.
China pretty much has the Paris Climate Agreement in their hip pocket (while they pollute the
hell out of the Troposphere) just like they had the World Health Organization (WHO) in their
hip pocket spewing Chinese propaganda that Trump called them out on when he ditched the WHO
as a (correctly) mouthpiece for China's covid drivel.
But what about Transocean? Why will they flourish under Biden's Heavy Left Hand?
Answer; most oil exploration outside of the U.S. and OPEC+ countries is being found and
developed in Deep Water, and Transocean is the world's #1 Deepwater contract driller.
So, to the extent that Biden strangles U.S. oil supply, which is mostly land-based, and
makes America increasingly dependent on foreign oil suppliers, Transocean will be helping
other countries all over the world discover oil in deep water to SELL to the U.S., which will
worsen America's Balance of Trade that Mr. Trump worked so hard to improve.
The reality is, outside of the U.S., OPEC+ and just a handful of other countries, most of the
land-based oil has been discovered. So, for the vast majority of countries eager to develop
their oil resources, offshore, in deep water, is where the big oilfields are at.
In fact, Transocean was one of the "defensive" positions that I accumulated in 2020
to help hedge against a detrimental election of Kamala/Biden. It's politically defensive attribute
was a minor attribute that made Transocean appealing, but still one of many attributes that
I considered. Otherwise, the severe impact that Covid-19 had on Oil Exploration, following many
years of a relative glut of oil, has significantly depleted oil reserves world-wide outside of OPEC+
while hammering oil drilling contractors like Transocean, making Transocean a very appealing
"contrarian" investment play, IMHO.
That means that any surge in global oil consumption toward and beyond 100 million barrels of demand
per day in a post-Covid world, is going to thrust the world into supply constraints and rapidly
escalate the demand, and day-rates, for drilling rigs. After 6 years of grief in the industry,
there are barely Half as many rigs still in existence now as there was at the end of the last oil
boom in 2014. The other half, are mostly scrapped, and many more that are "cold-stacked",
and expensive to re-activate by Transocean's bankrupt or near-bankrupt competitors.
Importantly, it was the U.S. shale drilling boom that Elongated the glut that began in early 2015,
by adding millions of barrels of production to world supply, holding down prices for Americans,
and contributing to Trump's booming economy. In fact, the U.S. became the biggest producer
of oil and gas during Trump's tenure... and Biden's "green" handlers hated that, even though U.S.
motorists loved it and low oil and gasoline prices contributed to Trump's miracle economy.
But if Harris/Biden get their way with fracking and drilling bans, there'll be no such shale-production
surge in the next few years, and resulting oil shortages will be filled by a lot of new, deep-water
wells.
Finally, remember that once exploratory drilling begins again, it can take YEARS for new discoveries
to be developed and infrastructure built to produce and transport the oil. That means that even if
oil prices head north of $60 to $70 per barrel and drilling starts booming again, it'll take years for
that new drilling to make a dent in the declining production we're seeing now. Shale wells are
pretty much the ONLY ones that can be ramped up in months, instead of years...
... and if Biden restricts them and cuts off their bank funding... that ain't gonna happen, Virginia, and
drilling contractors will be flush while American's pay a fortune for gasoline for years to come under
the Heavy Left Hand of Harris/Biden and their oil-hating handlers.
