When this last happened at the height of the cold war in 1985, it followed a visit by then Vice President George H. W. Bush to Saudi Arabia. Bush convinced the Saudi royal family it was in their best interest to reduce the price of crude oil to regain market share. As a beneficial side effect, Russia would lose a major source of foreign exchange. This followed a major investment by Russia in radar capability, which was largely negated by the publicity of the US then recently developed stealth technology. With reduced foreign exchange, Russia was unable to replicate the stealth technology and the Soviet Union failed. Unfortunately, the economies of the oil producing states, Texas among the most extreme example, were crippled.
This time around, Obama has visited Saudi Arabia twice this year, Bidden has called the Saudi royal family once and the UAE twice. This time it appears the primary objective is to cripple the oil producing states economies, principally Texas, which has been a thorn in Obama’s side. The beneficial side effects of reducing Russia’s foreign exchange, increasing Saudi market share, and reducing the foreign exchange of Iran, along with the positive effect on the economies of states more aligned with Obama, are perhaps just that, side effects.
By the way, crude prices dropped from about $32 in 1985 to a low of $8 in 1986. That is a 75% drop. Prices did not return to $32 until 2003.
I know. I lived in Houston from 1975 till 1995.
to a low of $8 in 1986
- - - -
Are you sure about single digits back then?
Daily crude oil price back to 1983
http://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=RCLC1&f=D
We had a massive economic boom through that time.
Could this be an more anti-American move, let me count the ways...
* A number of articles have been written about how many of the Fracking Firms are hiring a ton of our Veterans, could he do anything that is more wrong with hurting their chances of a good job.
* He doesn't just nix Texas, he nixes all the States also Fracking, PA, ND, OH, ( and more ) and the up and comers that can swing in the DNC Camp such as NC and keeps NY in the DNC camp as with a lower price they will never Frack in NY.
My only hope is their are productivity gains via Fracking up their technological sleeve ( such as waterless Fracking etc ) that will increase yield, and or reduce cost or environmental concerns and keep it competitive with the Saudi's.
I would bet on the entrepreneur's in this arena that would love to checkmate Lear Deeder and see him fail if he is truly trying to nix their efforts and industry regardless of the International Chess being played...