Posted on 01/17/2016 10:20:35 AM PST by Lorianne
The US government could end up having to bail out the oil industry.
In a note to clients on Thursday Greg Valliere, chief global strategist at Horizon Investments, wonders if the oil industry won't get lifeline similar to what Washington gave the banking industry during the financial crisis.
(Excerpt) Read more at businessinsider.com ...
No more bailouts! None for oil. None for Puerto Rico. These just artificially prop up the markets making the eventual collapse even bigger.
What is the source of the money? Certainly not America. We are broke.
I think it’s reasonable to discuss it and possibly act. I don’t want our oil industry crashing. That seems like a national security threat.
If there is an industry that should be bailed out it’s the oil industry.
Energy independence is the highest matter of National Security.
This is not about energy.
It is about risky investments based on high leverage.
We’d be bailing out high-flying gamblers, not the energy industry.
“If there is an industry that should be bailed out it’s the oil industry.”
If an industry is important, it should not be bailed out by government. Rather government should get out of the way, reduce regulation, taxation, and other things that impede the industry.
“Energy independence is the highest matter of National Security.”
It is, which is exactly why government should not bail out it’s favored cronies, favored political contributors, and those offering back room and under-the-table deals to Congressmen, regulators and other government officials.
So, if it’s important to National Security - let it happen, and don’t get in the way.
But what is really happening is the government is bailing out the banks - AGAIN!
Not saying in every case, but I wouldn’t dismiss a bailout of the energy sector out of hand.
For every other industry, I would absolutely never consider bailing them out.
Talk about having your cake and eating it, too. The fact is it'll come down to more tax on gasoline and diesel to bail them out, just what the economy needs; energy staying more expensive than the market price dictates.
So what about the coal industry? No calls for helping them! The coal miners are the highest paid of any of the workers in an energy sector right? Just saying.
Get the government out of business except to keep them from ripping people off.
He who takes the profits also takes the risks.
When my business was paying $3.70 a gallon for the fuel we needed, and every waitress in North Dakota was driving a new F-350, no one offered me a bailout, nor did I ask for one.
People rarely ask for bailouts when times are good.
That would be INdecent.
Why? The “oil industry “ has been through this numerous times since the 80’s so it isn’t something new.
“When my business was paying $3.70 a gallon for the fuel we needed, and every waitress in North Dakota was driving a new F-350, no one offered me a bailout, nor did I ask for one.”
Good point. With the great rewards come the big risks. They need to deal with it.
Ultimately, US oil will effectively cap world oil prices, I’m guessing at around $60-70 in today’s terms. With modern fuel efficient cars, we can live just fine with that indefinitely.
We have bankruptcy procedures; let them go through bankruptcy. The dirty secret is that we wouldn’t be bailing out the companies that can’t pay their debt; we would be bailing out those who lent them the money; largely big banks, pension funds, etc.
Let the oil companies eat cake.
There is a hell of a lot more than “energy” when it comes to “oil” (petroleum). Besides the fuel it can be refined into, petroleum is used for damn near everything we use in one form or another. The “oil” industry collapsing has reaching consequences most cannot begin to fathom and will touch everything in our everyday lives.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.