Tuesday, January 6, 2015

Cheap Oil - Good For All Americans & The World

Thanks to technology advancements implemented by various oil companies in the United States that allows for fracking to produce more oil, the price of a barrel of oil and therefore gas at the pump has dropped dramatically.   In fact, an additional 4 million barrels of oil a day is being produced in the United States, which enters world markets one way or another, to bring down prices.   This is addition to Saudi Arabian reluctance to curtail production is what is bringing down the price of oil. 

This is very good for the Poor and Middle Class around the world since the price of oil impacts the cost of all goods and services.  This means that people have more buying power to fuel additional consumer spending, since people don't need to spend more money on gasoline, or heating fuel.  However, there are also Geo political implications.  Russia that depends on oil and natural gas for badly needed income is in big trouble.  The price of oil in addition to the sanctions imposed on Russia for invading Ukraine is destroying their economy.  This will also impact Iran that needs higher oil prices to continue supporting not only their economy; but also their nuclear program.  Cheap oil is also making Venezuela a basket case.  Since these countries are enemies of the United States, anything that weakens them is probably a good thing. 

In no way can Obamanistas take any credit for bringing down the price of oil.  All of the new production of oil in the United States is happening on private land, not on public lands because Obama will not approve new leases and or off shore drilling.  And, it is probable that Obama will Veto Congressional action to make the Keystone Pipeline a reality killing thousands of jobs.  Thank You Big Oil for bringing down the price of oil.  Clearly, this will help the American economy and create jobs better than anything Emperor Pinocchio Obama and his Socialist pals in Congress have done during Obama's six years in office. 

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