That’s the point. Who do we damage? Spreaders of radical Islam like Saudi Arabia and Iran; teetering socialist regimes like Venezuela, etc.
Sounds like a good thing.
[“But it’s going to have to be done in a measured way, or else we kill the market.”]
Lower oil prices will help MAGA. Apparently they don’t want to miss out on gouging vacationing AMERICANS at the gas pump.
The only thing it’s going to destroy is OPEC.
The upside is we finally become energy independent. We tell Saudi to go eff themselves!
But make it better for the rest of us. I believe Hamm set the record for a divorce settlement.
Supply and demand fluctuate. Prices fluctuate. Profits fluctuate.
So nu?
I’ve lived through at least 8 oil boom/bust cycles. For some reason, journalists and the industry seem compelled to act as if either part of the cycle has never happened before and couldn’t have been expected to happen this time.
I really dislike these scare pieces.
The only way to destroy a market is to replace the technology of the market. In this case, it would require the replacement of the entire oil / petro chemical market - not going to happen.
What DOES happen is that the PLAYERS in a market can get destroyed by having an inverted cost to profit ratio. Generally speaking, the most inefficient players, those with the worst cost to profit ratios, will die first due to the drain on the capital and reserves. When those players get stripped out of the market, there is lower demand and the prices point will stabilize, at least temporarily.
Oil price just dipped back under $50.
Bottom Line: “the head of the International Energy Agency (IEA), Fatih Birol, told Bloomberg:
“We are witnessing the start of a second wave of U.S. supply growth.””
Bad news for the Saudi budget, and the future funding prospects for global jihad. Good news for the USA.
For my family and I, if the cost of regular unleaded stayed forever between $1.74.9 & $2.24.9/gallon, we’d be happy.
BTT
A flat oil market will also collapse the Russian economy. That would be very bad. Slow squeeze is a lot more effective.
Best to bring up the heat slowly on a bucket of frogs.
The US is becoming the global swing producer, supplanting Saudi Arabia, because of the shale revolution (relatively quick ‘on/off’ through rapid depletion of an individual well) and it will be enhanced even more thanks to Trump’s encouraging approach. Ruining OPEC’s economies in the process that are 100% oil based is a great thing. Another benefit is reduced energy prices for us consumers and industrial users.
I wonder if Harold understands how the free market works. No one is going to put money into something that they don’t think is going to generate a return. I suspect he knows this. So what he really means is that all this spending is going to destroy the TRADITIONAL oil market. Too bad. That market has needed to be shaken up for a long time. Creative destruction is the life blood of progress.