Yes, great article.
So, OPEC is busted, and for this we have US ingenuity and private property laws to thank. Can’t forget Canada.
The Saudis and the rest are powerless to control the drop in crude prices, and are now resorting to accepting and “managing” the decline.
$85 per barrel crude will infuse the economy in a big way. Perhaps an even larger boost will come from cheap natural gas prices we’ve been experiencing for some time.
private property laws
BTTT
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The Saudis and the rest are powerless to control the drop in crude prices, and are now resorting to accepting and “managing” the decline.
I would not say powerless, but rather unwilling to take sufficient cash flow cuts to greatly bring the prices back to $100. But it isn’t in their long-term interest to have spikes up or down.
I agree with the article that low oil prices will hurt US shale. If the price goes to $80, shale will be cut back (barring drilling efficiencies). This is most likely the reason Saudi is supporting lower oil prices.
But there is other benefit for the Kingdom:
Low oil prices hurt Iran that needs USD to support bloated national budget and operations abroad. Saudis are not happy with Iran's influence in Iraq
Low oil prices are hurting Russia. Saudis generally do not like Russia and there support of Shia/Shiite Muslim governments fuels this dislike. Russia needs oil high to support the ruble, government handouts, wars and investment needed in Crimea.
I’d like to see zoning returned to private property laws. Owning land has become a rich man’s game precisely because of all the government interference. Landlording in most municipalities is akin to being a criminal.