The biggest "oil compaqny" in the world is Saudi Arabia. By threatening the development of our own petroleum industry they are, in essence, threatening our national security. Japan attacked Pearl Harbor over much less provocation...much of it having to do with their energy supply being threatened by US policy.
And if Saudi Arabia is successful in shutting down the shale oil fields here and around the world what do you think is going to happen to the price?
I again ask you the question: Do you like the US being dependent on oil from the Middle East so that we have to be involved in their 3rd world religious wars and where we end up choosing one group of terrorist-supporting dictators over another?
A tariff is in our national interest. I am willing to pay a few cents a gallon more for gas if it means my kids or your kids don't have to go over to some hell hole in the Middle East to be mercenaries for the House of Saud.
Beware the man who would rule you for your own good. He will never cease. He will regulate every aspect of your life, destroy your liberty and enslave you, and sleep well convinced that he has made the world a better place.
I'm not sure that makes such a strong argument. History hasn't been too kind to Japan or its rationale for attacking Pearl Harbor.
So do you agree with my guess that lowering prices for a year or two could impact domestic production for a much longer period of time? I guess that's obvious otherwise OPEC would have no incentive to keep prices low.And if Saudi Arabia is successful in shutting down the shale oil fields here and around the world what do you think is going to happen to the price?
I guess it's sort of like Walmart coming in and artificially lowering prices to drive all local competition out of business and then once the competition is gone raising prices. (I'm not saying Walmart does the last part but they probably could.)
Don't protect the oil companies. They can endure this much better than they could the Saudi glut created in 1986. Many opec members are already wanting to cut production to drive prices back up. Venezuela, Libya, Iran et al are already screaming.
It may get tight here for a while in the oil business and some will lose their jobs in few months...maybe sooner. Hell I might be without work and have to spend more time on this board...frightening!!!
But in the long run its best not to protect the oil companies and allow them to direct their resources to the most insulated reserves with the lowest extraction costs...For now anyway until the market saturation has been reduced. This has already been done on ng for the last few years and that is just a regional product...oil will come back much quicker than ng.
Inventories on ng should keep dropping. US should be able to export ng and oil.
I'm not advocating going to war. I was just trying to point out how other countries view a threat to their energy supply. We have the option of simply putting a tariff on imported oil and gas in order to insure continued production(i.e. less dependence on the middle East/Russia/Venezuela) of our own resources.
I think eventually Russia will start some saber rattling in order to spook the Saudis into dropping production. I read a thesis today about how The Saudi ramp up in production in 1985 was as responsible for the collapse of the Soviet Union economy(and hence their union) as anyhting the US did militarily or economically. That's the risk of having a non-diversified economy.So do you agree with my guess that lowering prices for a year or two could impact domestic production for a much longer period of time? I guess that's obvious otherwise OPEC would have no incentive to keep prices low.
I guess it's sort of like Walmart coming in and artificially lowering prices to drive all local competition out of business and then once the competition is gone raising prices. (I'm not saying Walmart does the last part but they probably could.)
Beware the man who would rule you for your own good. He will never cease. He will regulate every aspect of your life, destroy your liberty and enslave you, and sleep well convinced that he has made the world a better place.
i'm still not sure why the rest of the country/world should be punished with higher oil prices just so that some oil billionaires can continue fleecing us
Yeah, let's just flood the nation with cheap **** from the rest of the world....cheap oil from the ME, cheap textiles from Malaysia, cheap manufactured goods from China, cheap labor from Latin America.
I am am sure that is a sure fire way to make our country an economic powerhouse. Who needs a manufacturing and energy sector? I am sure burger flipping jobs will pay enough to raise the standard of living in this country.
Please fill us in on all these evil oil billionaires who are fleecing us. Kind of stupid of them to increase production so much that the price of oil has dropped almost 40% this year. The only ones getting hurt by that are the ragheads in the ME and the fascists in Russia. Are you really that big of a fan of those 2 groups?
Beware the man who would rule you for your own good. He will never cease. He will regulate every aspect of your life, destroy your liberty and enslave you, and sleep well convinced that he has made the world a better place.
everything is more expensive when gas is expensive. who other than the oil companies are complaining now?
and this is hammering Russia right now. i was hearing talk earlier today that the oil crash may have been what really brought down the USSR
The ironic thing that yermom doesn't grasp is that gasoline prices were at their highest until US producers came on line and drove the prices down. Now Saudi Arabia wants to whack the US producers so once again they can take the prices higher. I don't see how anybody can view waht the Suadis are doing as a good thing for this country other than it might produce ultra temporary lower prices than what we have now.
Everybody bitches about stagnant wages but then they turn around and shop at whichever multinational corporate box store(or on line company) that can give them the lowest prices. Idiocy.
Last edited by FaninAma; 12/5/2014 at 02:32 PM.
Beware the man who would rule you for your own good. He will never cease. He will regulate every aspect of your life, destroy your liberty and enslave you, and sleep well convinced that he has made the world a better place.
You cannot put a price on being free from dependence on Russian and ME oil.
Beware the man who would rule you for your own good. He will never cease. He will regulate every aspect of your life, destroy your liberty and enslave you, and sleep well convinced that he has made the world a better place.