Pajamas Media » How Oil Prices Could Collapse
If we are switching from oil over the next fifty years, we may as well use what we have now. At $60 bbl the world has plenty of oil (for the next few decades, at least). So $60 bbl is where the price should head.
Right now the most important members of OPEC are the Democrats in Congress. OPEC keeps the price of oil up by limiting supply. Some OPEC politicians do this through deliberate policy. Others through sheer incompetent management of state oil companies. But the Democrats keep more oil off the market than any other national group of politicians. Without the Democrats in Congress, OPEC would be in the pickle business.
Whether this is deliberate policy on the Democrats part or rank incompetence is hard to tell. They have all heard of the "Law of Supply and Demand" and most want to repeal it. Because, you see, suppliers should not make demands, and if they do they should be locked up! Unless, of course, they work for the government.
While they complain about BIG OIL, their mucking about in the markets (and muckraking up voter resentment) actually favors big oil -- foreign government big oil. Look at the price of oil when the "seven sisters" where private, and mainly US operated, firms. Now that the ladies are a government owned OPEC harem, look at the price.
When politicians start blaming speculators, you can be sure the politicians have screwed up. When you see George Soros blaming speculators, you can be sure he is morphing into a politician while doubling down on the other side of the bet.
Do you think $140 a barrel is insane? Last week the president of OPEC Chakib Khelil predicted $170 a barrel by summer’s end. More sobering, this week the U.S. Energy Information Administration forecast world energy use to grow fifty percent by 2030.So writes Youssef M. Ibrahim.
If that pans out, it would mean the world will need to burn more than 120 million barrels of oil that day. We have it, but can we afford it? Nope, and that is why the oil domain is crumbling.
If we are switching from oil over the next fifty years, we may as well use what we have now. At $60 bbl the world has plenty of oil (for the next few decades, at least). So $60 bbl is where the price should head.
Right now the most important members of OPEC are the Democrats in Congress. OPEC keeps the price of oil up by limiting supply. Some OPEC politicians do this through deliberate policy. Others through sheer incompetent management of state oil companies. But the Democrats keep more oil off the market than any other national group of politicians. Without the Democrats in Congress, OPEC would be in the pickle business.
Whether this is deliberate policy on the Democrats part or rank incompetence is hard to tell. They have all heard of the "Law of Supply and Demand" and most want to repeal it. Because, you see, suppliers should not make demands, and if they do they should be locked up! Unless, of course, they work for the government.
While they complain about BIG OIL, their mucking about in the markets (and muckraking up voter resentment) actually favors big oil -- foreign government big oil. Look at the price of oil when the "seven sisters" where private, and mainly US operated, firms. Now that the ladies are a government owned OPEC harem, look at the price.
When politicians start blaming speculators, you can be sure the politicians have screwed up. When you see George Soros blaming speculators, you can be sure he is morphing into a politician while doubling down on the other side of the bet.
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