Trump is recycling the Reagan formula for breaking Russia. And yes, he will also break the domestic upstream oil and gas business. Oil and gas investment for domestic production growth is going to fall off a cliff. “Drill baby drill” and low oil prices cannot co-exist.
Reagan did this in the 80’s to bring down the iron curtain. Trump appears to be doing it to bring Russia to the table on Ukraine, among other reasons.
But if he thinks domestic producers are going to drill money losing wells, he’s dreaming. And he is too smart for that. He is banking on the oil and gas industry asking itself “To whom shall we go?” Certainly not the enviro-kook demon-crats.
In the meantime lower gasoline prices buys votes from the gas buying classes. Guys like me who make our living drilling wells will take it in the shorts. We’ll see how this one plays out.
Yep. What oil price you need to feel secure in your job?