GnauzBookOfRhymes
Superstar
I'm not assuming they do, my question was more along the lines of do you believe we have enough potential domestic sources available to alleviate the supply shortage and effect the price over time if enough smaller operations who just see an elevated price point and an opportunity to make a buck get back into production?
The industry has consolidated. In the US the shale/fracking companies are no different than OPEC. They control the market. Fracking is very expensive so it's not like you have thousands of small/independent producers. And even if you had new companies entering the space, it will be a couple years before any production comes online. If they wanted then absolutely they have enough production capability to lower prices - but again b/c it's a world market, if OPEC wants prices to remain higher than they can dial back production, or at least signal to the market they're heading that direction. But again, this entire discussion is almost moot bc the producers have outright said they are NOT going to adjust production upwards bc of Ukraine etc. A lot of them are dealing with the same supply chain issues everyone else is (especially w/ sand and certain chemicals used in process, labor and trucking/transportation) so for them it's much easier to just sit back and collect the cash.