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.
To followup on my missive just posted to Squantos, some creative thinking might be able to turn this crisis against hussein and the marxist. To wit, brazenly refuse to follow the EPA regulations and build bigger, gas-hungry cars to increase the demand for petroleum products. The American public (or at least the smart ones) have a love affair with big, powerful cars. Allow that market segment to expand...and voila! Problem solved.
Concur and remember.....Stay Safe !!