“Several other major issues NOT being discussed this morning are the extension of the Iran nuclear negotiations, the progress of the war on ISIS, “
You bring up a point, I tend to describe this as the Democrat party’s continuing effort at Commie style propaganda disinformation.
The Saudis are doing a number of things beneficial to the U.S.
1. By maintaining the current rate of Oil production, and thus reducing the price of Oil, the Saudis are maintaining and even increasing the effects of the Business embargo the world has with Iran.
2. With the lower cost of Oil, the US economy will benefit and more importantly, the cost of US Tax subsidies to Wind, Solar, battery power and other non economic forms of energy should create pressure to eliminate these subsidies in the next Congress. Corn based Ethanol is bad for your car’s engine as well as increasing the cost of feed for livestock. If the next congress reduces or eliminates these wasteful subsidies once again we get a positive input to the U.S. economy as well as lover cost of foodstuffs to the rest of the world.
3. Venezuela, Cuba and Russia will suffer, as will many of the South American dictatorships who rely on Oil exports. This may be an opportunity for Regime change in these countries.
4. The Oil Majors will have an opportunity to re-examine their business plans. It is possible we may see a mid 1980’s type recession in the Oil Patch. Bad news for Texas, maybe good news for Natural Gas.
The purposeful destruction of crude oil by the Saudis is huge news. Already into the 60's no telling how low crude will go. Larry Kudlow indicated that some frackers are in at $45 per barrel cost wise. That may be a Que as to where crude will wind up, hard to say.
Reasons are as you pointed out in addition to knocking off the US and the rest of the world from endless fracking which would destroy the Saudi monopoly on crude.
It will also affect Mexico, which could, along with Obama's amnesty, spark more illegals into the US as the economy suffers in Mexico.
I doubt there will be regime change in Venezuela, Cuba and Russia.
The Oil Majors will have an opportunity to re-examine their business plans. It is possible we may see a mid 1980’s type recession in the Oil Patch. Bad news for Texas, maybe good news for Natural Gas.
If this is a long term development, it will certainly hurt oil production in the US and slow down the fracking revolution. And it will cause a reduction in jobs and revenue from taxes in the US.
The Saudis, the world's largest exporter of oil with the greatest proven reserves, are trying to combat the fracking revolution. They are hurting the industry by keeping oil prices cheap and fracking uneconomical. I doubt it will work in the long term since consumption will increase due to cheap prices and increased demand due to demographics.
1.True
2.True
Except >>Corn based Ethanol is bad for your car’s engine as well as increasing the cost of feed for livestock.<<
Ethanol doesn’t hurt anything but it attracts water and is expensive. The farmers and ranchers feed the expended mash to critters, it makes a better feed.
3.True
4.True
Plus, watch pricing as liquid transportation fuels production from natural gas becomes prevalent in the US.