Thursday, January 21, 2016

Falling Oil Prices

The price of oil has been dropping over the past year to historic near record lows. This has been a boon to many industries and consumers. The credit should go directly to the discovery of fracking in America and other countries following our lead. In America many workers have been making high wages and together with their employers have stimulated our economy. It has brought America closer to energy independence from the OPEC cartel. Decreasing the exorbitant funds to these mostly Muslim countries could slow down their drive for total dominion over the world. Saudi Arabia is determined to put the fracking companies out of business and regain their control. Their strategy is working. It is reported that many American companies are filling for bankruptcies. Once this runs its course then OPEC will resume their dominance. Restarting fracking might take years to accomplish. The Sheiks in a country like Saudi Arabia can make any policy they desire while Democracies such as ours looks to the free market to decide winners or losers. Understanding what is happening our government should find the way to support our companies similar to what was done for General Motors to help them through this crisis period and prevent the Saudis’ from destroying our American production capabilities. Should that be done then they would be forced to reduce their production as the low cost is cutting drastically into their reserves and the world price would stabilize at a higher price. It appears to me that somewhere in the $50/barrel would allow our fracking industry to restart with sufficient cushion to cover their costs and make a profit. In this way we could regain our drive towards energy independence. Shouldn’t both political parties agree on this? This is such a simple idea which could avert this (in my mind) tragedy why haven’t we heard about in in the news media or from any politician? Are the two parties so locked in their hatred of each other that they are incapable of enacting sensible legislation? The answer is yes they are which is why there is so much anger by Americans with our present government which is incapable of doing what is needed to solve the problems of today. Jack B. Walters January 21, 2016

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