What’s our counter move ....?
Do the producers in the conus oil fields build new refineries and stop exports and turn fuel down to a dollar a gallon here ?
Stop all exports except to proven allied nations ?
Cap the conus oil wells till prices go back up ?
Cap the OPEC leadership with a few JDAM’s ?
I don’t know so I ask......stay safe !
Global oil production is now 1.5 million barrels per day higher than global oil demand...so the supply glut worsens daily by an enormous amount.
Pretty soon the glut will be larger than global oil storage capacity.
Venezuela, Iran, Nigeria, and Russia will be hit hardest. U.S. frackers next, then Iraq, Kuwait, UAE, Canada, and lastly Saudi Arabia.
This will hammer Tesla, the Volt, Nissan’s Leaf, and BMW’s new electric cars. Gonna be some great auction values on the used market coming up in a year or so.
Japan and China benefit, as they import the most oil now, so lower oil prices reduce their cost to compete.
Waaaaaaaaaaaaaaay back in the day, Jimmy Peanuthead Carter shelved an environmental plan to prop up U.S. oil prices by imposing an oil-import-tax. The idea of protecting the U.S. domestic oil industry so galled him that he didn’t want higher gasoline prices that would have reduced air pollution (pre-smog days for most vehicles on the road back then).
Lots of marginal U.S. frackers are about to be tossed out onto the cold, non-global-warming streets as sub $60 oil will torpedo their business models en masse.
Well, for one, don't let Jason Garrett devise the strategy! :)
Seriously, I'm not sure I'm any more competent than he when it comes to dealing with current crisis which has been orchestrated by OPEC, hussein and Soros. I'll take a stab though and the oil experts who frequent FR can point out the flaws in my approach -- and I'm sure there are many. During this period, I would build up the strategic reserves and prepare for a war footing. Energy drives the military and the surplus should be allocated to defend our Republic from enemies both foreign and domestic.
That said, the pain I'm soon to feel in my portfolio since a potion of it is in our local XOM does have me worried. And I feel for those in the oil industry suffering due to these machinations orchestrated by those who seek to impose marxism on America. Of course, underlying this is the priority of removing hussein and his henchmen from power since they're the ones behind this. Jim Robinson has spoken of hussein's final months in office as being a time of crisis and what's happening now with this anti-energy campaign waged by the corrupt administration is the clear evidence of that.
Well, that did go on a bit, didn't it. And, in a more pithy form, your idea of capping the OPEC leadership with some implements of destruction (JDAM or otherwise) does have a certain appeal.