SteveB/Colorado

Why Is Oil Trading at $53 When Supply and Demand Is So Bearish?

Basehitz wrote: "unwillingness to drill for our oil (in the US)." So true. Some stats from last June (source rep.org). "of the federally managed outer continental shelf, 44 million acres of coastal waters have been leased. Only 10.5 million acres are in production. On public lands, mostly in the West, 47.5 million acres have been leased. Only 13 million acres are in production. When congressmen clamor to open more lands and waters for leasing, their constituents should ask them why so many existing leases are not in production."

This was the situation when oil & natural gas prices were at record highs. Yes, we weren't drilling for our own resources. It's hard to drill when companies are stockpiling leases for the corporate bottom line.