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These countries are getting killed by cheap oil prices - October 2014

Stashed in: Economics!, Awesome, The World, Russia and Friends, Middle East, Energy!, Charts!, Energy

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FINALLY the war that's worth waging: economic war against oil.

Well, our weapons are fracking and green crude.  It seems the US hates both at this point. Seems a quote about winning the battle and losing the war is appropriate at this point.

I'm guessing solar is contributing, too:

This is a war on oil from every direction.

The sooner the world has independence from oil, the sooner the world can find peace. 

My sources tell me that this is primarily driven by slow economic growth and the desire by the Saudis to force high-cost producers out of the market.  Once Russia and Iran have to abandon their projects, the Saudis will close the taps and let the price rise again.

Wow, that's dirty! I guess all is fair in economic warfare but in the meantime oil independence should be one of America's top priorities.

We should control our own destiny. 

In July of 1941, after Japan occupied French Indochina, the Roosevelt administration froze Japan’s assets in the United States.

Denied hard cash, Japan could not buy the U.S. oil upon which the empire depended for survival. Seeing the Dutch East Indies as her only other source, Japan prepared to invade.

But first she had to eliminate the sole strategic threat to her occupation of the East Indies — the U.S. battle fleet at Pearl Harbor.

FDR’s cutoff of oil to Japan was thus a primary cause of WWII in the Pacific, which led to hundreds of thousands of U.S. war dead, the destruction of Japan, Mao’s triumph in China and a U.S. war in Korea.

And this:

With the price of oil having fallen from over $100 a barrel to below $80 this week, all three nations are suffering plunges in revenue. The United States and Europe are also punishing Russia and Iran with sanctions on their energy sectors.

A contrarian’s question: Would we not be better off if these countries not only restored oil production, but also expanded production and put more oil on the market than they do today?

Demand creates supply, and a world oil market where there is more supply than demand would seem to be to America’s benefit. For we remain the world’s largest consumer of petroleum products.

And surely it is to our benefit to enlarge both the reserves and production of oil and gas in North America.

Price pays a huge role in creating, and shrinking, supply. And price, Adam Smith notwithstanding, is something we can control and manipulate, even as China manipulates its currency.

In “America’s New Oil Weapon” in National Review, Arthur Herman of the Hudson Institute urges the United States to take bold steps to increase our supplies of oil and gas.

What more bold steps can we take?

In any case, I'm enjoying the lower gas prices.

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