US oil industry angry with Trump after he praised Saudis for lowering oil prices
7 replies, posted
https://www.rawstory.com/2018/11/us-oil-producers-left-seething-trumps-becomes-cheerleader-saudis/
President Donald Trump boasted about lowering gas prices but could be derailing the United States oil industry, reported the Wall Street Journal.
Trump originally tweeted about the low cost of gas to highlight why having a relationship with Saudi Arabia is beneficial to America, even after the death of Washington Post journalist
Jamal Khashoggi.
“Oil prices getting lower. Great! Like a big Tax Cut for America and the World. Enjoy! $54, was just $82. Thank you to Saudi Arabia, but let’s go lower!” Trump tweeted on Wednesday.
However, Kirk Edwards, president of MacLondon Energy, said that the decline in oil prices could hurt his industry as well as Trump’s goal of “energy dominance.”
“The American oil and gas producer has shown that our economy doesn’t have to rely as much on foreign sources of oil anymore, but the country needs to realize that higher prices are
a part of that equation,” he said. “We need a $60 or $70 crude price in order for the business to stay healthy.”
The WSJ reports that U.S. shale producers and executives shared that they were “unhappy” and ” frustrated” with Trump’s tweet. As companies plan for 2019, they hope that Trump
can change his stance.
“I would encourage the president to cheer on domestic producers to increase their production and not foreign countries.” Ben Brigham, a millionaire in the oil industry, said.
Get ready for a precipitous u-turn on this that nobody who voted for him will notice because they watch only Fox News.
Amazing how even the crony capitalists can't reliably count on Trump, because Trump is motivated solely by self interest and is simultaneously so dumb that he doesn't think any of this shit through. His personal deals, like the ones he has with the Saudis, come before any shrewd, long term agenda that would almost certainly pay off much bigger dividends down the road.
Very ironic, considering how often Trump praises Americans for things they didn't actually do, that he credits a theocratic monarchy for something Americans are actually mostly responsible for.
Seriously, this is like the one time his "we're the best, the greatest, nobody is better or more greater than us, it's true" rambling would actually have been right. Instead, he's crediting the Saudis for basically a trade war against us. Gulf oil fields are really easy and thus cheap to exploit, so they can be profitable at lower prices than the more difficult American fields. They're trying (once again) to force our fields to shut down by overproducing, crashing the prices to levels only SA, Kuwait, Russia, and technically Venezuela* can be profitable at.
If Trump actually wanted to push American energy independence, he'd start slapping tariffs on carbon imports, with regular scheduled increases, reinstate the rising fuel economy requirements, and start pivoting coal communities towards green energy (coal is inherently much more expensive to produce and would still become unprofitable even with no environmental laws; improved green/nuclear energy production cuts the amount we need to produce to be self-sufficient; and it's even in his own self-interest since this is the group that literally won him the election, if he does literally nothing for them there's little chance of pulling off a win in 2020).
* Venezuela could be profitable at pretty low prices, but the country as a whole relies on their oil revenue to an extent that they need a higher profit margin. And their chronic mismanagement doesn't help.
see the key here is he touched the orb with them, and so they share the bestest bond ever
Saudi Arabia have actually massively increased oil production recently. I think it's been suggested that this was in order to dominate their rivals, but I can't remember for sure. Oil prices would not decrease so much if only America was doing it - it has decreased because of other countries making oil cheaper for America to purchase, devaluing all oil and in particular American oil.
I think they were anticipating the Iranian oil supply to be more completely removed from the market but Trump granted a lot of wavers, but then China, India, and Europe were never really going to abide by them anyways.
I'll give Trump this, he might have a following of Nazis and Good ol Boys, but he doesn't mind putting cocks of different colors in his mouth. We got pasty Russian cock
and Brown town Saudi cock.
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