Posted on 01/21/2015 7:17:17 PM PST by Kartographer
The oil business has always been boom or bust. Nothing has changed.
For now, perhaps. How many of these have we seen in just our lifetimes? Unlike buggy whip making and elevator operation, these jobs will be back.
True, this is just a bad time for it to go bust. Many were counting on it to keep us out of a deeper recession.
Of course raising the minimum wage of ‘burger flipping’ jobs might do it as well. ;-)
Maybe ... but then again, if a portion of the economy goes south, and the GOP can push it on Obama, then it will help in November 2016.
When this last happened at the height of the cold war in 1985, it followed a visit by then Vice President George H. W. Bush to Saudi Arabia. Bush convinced the Saudi royal family it was in their best interest to reduce the price of crude oil to regain market share. As a beneficial side effect, Russia lost a major source of foreign exchange. This followed a major investment by Russia in radar capability, which was largely negated by the publicity of the US then recently developed stealth technology. With reduced foreign exchange, Russia was unable to replicate the stealth technology and the Soviet Union failed. Unfortunately, the economies of the oil producing states, Texas among the most extreme example, were crippled.
This time around, Obama visited Saudi Arabia twice during 2014, Bidden called the Saudi royal family once and the UAE twice. This time it appears the primary objective is to cripple the oil producing states economies, principally Texas, which have been a thorn in Obamas side. The beneficial side effects of reducing Russias foreign exchange, increasing Saudi market share, and reducing the foreign exchange of Iran, along with the positive effect on the economies of states more aligned with Obama, are perhaps just that, side effects.
By the way, crude prices dropped from a intra day high of about $32 in 1985 to a intra day low of $8 in 1986. That is a 75% drop. Prices did not return to $32 on a sustained basis until 2003. Based on that history, we may see oil prices as low as $25 and they may last for several years.
The good news, Texas recovered last time, and will this time as well.
Most GOP are wuzzies are scared of Obama shadow. Hell if Obama was to sign an executive order making ‘Moosehell’ the next president they would even have the balls to form and investigative committee.
Speaker John Boehner, Senate Majority Leader Mitch McConnell have only one ball between them and have to share it like the Grey Sisters sharing their one eye.
It is also destroying Venezuela and Iran, so I do not think Obama wanted this. He wanted high gas prices. His renewable energy sector will be annihilated. Think the theory posted by another Freeper is a better fit. The Saud’s are in a big bind. Iran, the Russians and the Shiites are closing the noose. Look at what just happened in Yemen. The Saud’s knew that was coming. World War III began at Benghazi and is picking up steam.
No, not exactly nonsense, but close.
Just watching local news about layoffs.
And Texas has diversified, luring in all kinds of businesses with low tax and business friendly environment.
Gonna party like it’s 1986.
Number sounds low to me. Real low.
It’s still going to hit the oil patch really hard, starting with the service industry. Probably a year to 18 months before it shows up at the banks.
It is already hitting the service industry. My brother drives truck for a heat treating plant. He told me a week ago that the incoming items to be treated have dropped way off.
So you think low gas prices were an Obama success ? That is nonsense.
This is going to effect Red States and those States like Colorado we are trying to move Red.
Not a good thing.
There, fixed it fer yuh!
Regards,
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