OPEC Reduction
 

Will this cause Inflation or Recession? Are the Saudis playing with fire? Will the United States finally support the Venezuelan Government and import oil? Will Powell follow other Countries and Stop raising interest rates?

This is going to get political real fast.

Tell us, what do you think? Yes or no answers only for brevity.

If you rely on other countries for a commodity that has no substitutes you are subject to their whims.

The solution? For commodities that are crucial and have no substitutes, figure out how to mine/drill/process them domestically. That puts you in the driver's seat, and potentially drives the price down. It also reduces the money they have available to fund bad things, like terrorism and war.

Inflation and Yes, Yes, and Yes

A novel thought?
Energy independence!!
Such an easy solution and readily available.

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:censored:

OIL is interesting. It is not just crude but the quality and the cost. There are places in the middle east where crude simply flows out of the ground. Far easer to know where it is and to extract it compared to stuff like fracking drilling under water etc.

The article I read was that the Saudis surprised us with a production cut. This makes me wonder. First we should know, expect what might etc.

Reading about oil. I took some time to read and my result was HUH? Prices go up immediately as if there is no product on hand on tankers etc. At a higher price the companies can use more expensive sources.

Venezuela oil? Venezuela went from being a prosperous nation to a financial basket case due to their government. Business decision? I think Venezuela has nationalized their oil industry. Imagine a company investing millions, billions and a country says it is ours we are taking it. Also the crude from Venezuela is low quality.

In terms of trying to understand oil. Price per barrel? How many gallons are in a barrel? If, I recall it is 42 gallons to a barrel left over from when oil was shipped in beer barrels. Product from a refined barrel is actually more than the gallons in the barrel-HUH THAT IS IMPOSSIBLE. In the US much oil comes from land owned by the government-we the people. We do not have any say in what we will charge for what we the people own. HUH? Our nation gets like one barrel out of every ???/ 14 or is it 16 extracted. HUH why do we pay to fill the national reserve?

My view of this. When things are deliberately made this complex you need to ask WHERE WE THE PEOPLE are being cheated.

I like many of us am retired. I used to drive a lot to earn my money. Does not effect me much. But, imagine driving over 1,000 miles a week at todays gas prices. Rising costs. You can bet prices will go up. Interest rate adjustment will not reduce the cost of gasoline or diesel. The US has more energy in coal than the entire middle east has in oil. We fortunately have many options.

It's a shame we don't have any oil here in our country.....Oh Wait !!!!

Jed Clampett used a rifle to strike oil.:laugh::laugh::laugh:

Sounds good, but will US oil companies undercut the world price?
They historically have never shown any other inclination than raking in the profits high prices bring.

I think you will find that Belarus is Russia's ally.
Ukraine Is the country that Russia invaded.

I cringe with astonishment and anger how idiotic this all is. We have complete ability to continue to be energy independent and sell to other, allied, countries. Oil, gasoline and natural gas. ALL under our feet in this great country. But, BUT!!!!!

Yeh ANOTHER decision that is killing our beloved country.

I’m cringing with anger yet again. grrrrrrrrrr

Prices were quite low from 2017 to 2020, so I would say yes. We had OPEC in a stranglehold. Every time they tried to raise prices, our producers would undercut them.

Great position to be in. Master of your own fate. Here's a WSJ article from 2020 with more details. You can view for free with your library card and the Sumter County Library website log-in. And no, I don't mean this to be political. Just an illustration of how it can be done.

Russia Takes Aim at U.S. Shale Oil Producers - WSJ

I suspect you are looking at data with a preconceived notion of the truth. See the chart below showing crude oil prices since 2014
//www.macrotrends.net/2516/wti-crude-oil-prices-10-year-daily-chart
There was absolutely nothing special about 2017 to 2020 other than a price crash when the world demand collapsed from Covid. There was also a crash in world oil prices in the last quarter of 2017 and it had nothing to do with our producers strangling OPEC. The cost then shot up in the first quarter of 2018 wiping out the drop that happened. Again our production did not change at all from its previous trend.

It is all world economic demand and speculators. The US gov't unlike OPEC nations does not regulate how much oil we produce nor how much we ship overseas. We would be oil independent if you want to nationalize the oil industry and legislate that all oil pumped from US land remain here.

US oil companies have made huge profits as oil prices rose after the Covid shutdown ended and the Putin war against Ukraine disrupted Russian oil availability to Europe, and yes even to the USA. The price of US produced oil went up and US produced oil was sold on the worldwide market at the new increasing prices. So Chevron and Exxon etc all made windfall profits, not because of US government policies but because they wanted to boost their profits and buy back their own stock which benefits the stockholders and the CEOs pay. They didn't use those profits to invest in their workers or their infrastructure. Exxon alone is using the money it gained from gouging us to the tune of a 50 billion dollar buyback. $50,000,000,000.00

The crude price per barrel was 53.06 on Jan 20 2017
It was 76.41 on Oct 3 2018 which was a 44% increase in just 21 months. Did that large increase happen because our producers strangled OPEC? Obviously not
then the market crashed
It was 44.81 on Dec 27 2018 but then it jumped again
It was 63.27 on Jan 6 2020 then Covid hit

This is not oil market stability this is simply typical of the variations in a highly volatile world commodity which moves in part on real world events and partly on speculators. Remember Eddie Murphy in Trading Places
https://www.youtube.com/watch?v=uI4fVgVVpiw

[QUOTE=billethkid;2204337]A novel thought?
Energy independence!!
Such an easy solution and readily available.

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That's brilliant, it really is. Do you have some equally possible, logical, and financially achievable ideas on how we could establish something like, say, sovereign borders ? If so, maybe we should send you to D.C., would you consider leaving the "V's" ???