Posted on 03/08/2020 8:12:46 PM PDT by david1292
So a tariff on oil imports is on order, agree?
“....we produce and export plenty of oil as well.”
And we could produce even more. But the headache there is that the possibility of our running short the demand will not keep the economy rolling or justify the spending of money for overseas oil to keep them from having a cash shortage so they have to go next door looking for food. That’s what this is about. Oil is not a commodity, it is a tool of contentment. And it is just enough to keep most of the people that produce it anesthetized at the moment.
As for the drop in the market, if the price of cabbage would go down, it wouldn’t mean a thing. And if enough people can’t buy it, it will have to go down or rot on the shelves. Everyone, including the store owners, have to eat, too. Then that supply will outrun the demand and the market will start going up again while the consumer is content. It goes both ways. the average cost of a loaf of bread in 1990 was 75 cents a loaf. In 2010, it was $3. That’s a 400% increase. At the same time, the federal minimum wage went up from $3.80 to $7.25. That’s just short of doubling. But the market could take it as the demand was still there, so costs went up inconsistently. And someone couldn’t afford their meds. But they had bread.
rwood
Give up the Pepsi and switch to Coke ... I did go all cash in January - boy did I get laughed at in the office ...
Gold is at 6-7 year high......
Seems like a repeat of the Bush crash in 2008, which elected Obama. They’re up to something.
No! No! No! Don't inhale!!!
This is the flu. It got into a very vulnerable population. One of the first people to die was a guy who was in a chemo regimen. He was compromised.
If you can't hold your water, put on a friggin' diaper.
$1.50 gas coming to a town near you. 0 % interest rates - this effectively will allow for an economic boom.
Trading halted.
Amazing the level of panic the media has fomented.
Oil prices below $40/bbl will destroy domestic production. 70% of our wells need that to break even.
I am good with a 20% tariff on crude oil imports to protect US oil jobs.
Why is gold up, and not silver?
But a lot of that crude gets turned into other petroleum products and re-exported. Thats why we're a net exporter of crude and petroleum products.
An import tariff on crude will kill our export market for refined products.
Besides, why is it good for America to be paying $50 for oil while the rest of the world is paying $30?
“Supposedly there is now no difference in the B vs. A shares of RDS.”
i believe that’s correct, starting a couple of months ago ... i think that it used to be that the Dutch collected taxes off the dividends of the Class A shares ...
“At this price it is almost 9%”
keep in mind that’s based on recent payout, and it’s doubtful RDS can keep the same level of dividend payout up in this downturn; nonetheless, RDS is heading into bargain territory, but PROBABLY has further to go down with the market as a whole before the market stabilizes ...
still, it’s one of the babies being thrown out with the bathwater if one has a longer-term outlook ...
Because it would raises huge revenues and protect thousands of US jobs. WIN - WIN.
No, it would be sold domestically or those products would use domestic oil to making make more oil producing jobs. Another WIN.
It's a win for the oil producers.
Not so much for the American consumers who are being taxed for that huge revenue or all the citizens who lose their jobs related to petroleum product exports.
XOM looks the better bet but I was reminded of something this morning, low to negative interest rates. This could allow a cut in dividend that would still look good compared to the interest rate alternative. COP did this the last downturn. What do the do with free cash? Buy competitors, consolidate. I figure we are entering that phase of the industry. Oxy is ripe for picking for one. There are many others. Chesapeake’s cat has to be about out of their nine lives but in my book it is a “who wants it?”.
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