Wednesday, January 14, 2015

Why gas prices will be below $1.80 soon, and why the long term consequences suck…

HERE is a great article that explains why we have low oil prices, how low they will go, and how long these prices will last.

Short answer:  Oil will go below $30 a barrel and gasoline below $1.50 a gallon.  Saudi Arabia has promised to maintain current production levels to purposely lower prices.  Why?  So Saudi Arabia can maintain its market share by killing competition, especially in the United States.

So those of us hoping for US energy independence to cease funding Islamists who yearn to extend their Islamic caliphate to the US or chop off our heads, it doesn’t look like energy independence will happen any time soon.  The only way I see a potential for the US persevering is for our oil production to be subsidized by our government until we can reduce the cost of production through technological advances.  And that might require 10 years – probably longer.

Conspiracy theory alert:  This has nothing to do with Obama being good buds with the Saudi’s, and partnering to kill the evil fracking business, right?  A twofer for him.

So, break out your burkas ladies.  And men, sharpen your scimitars.  Encourage your kids to learn Arabic.

And we were concerned with having to press “1” for English?  Hurumph!

No comments: