that the Venezuela thing was going to break OPEC?
"DUBAI, United Arab Emirates (AP) — The United Arab Emirates said Tuesday it will leave OPEC effective May 1, stripping the oil cartel of one of its largest producers and further weakening its leverage over global oil supplies and prices."
There's a lot more going on in Trump's foreign policy strategy than we know about,
TM
As soon as he nuetered iran, started exporting, and reopening the offshore wells in California, etc... it was just a matter of time before that happened.
My question is, why aren't we the one's determining the price per barrel ??
After living in the Houston area, still having a brother and other friends there in the oil industry, it's been known for a while now that they're tapping out. While we've been sitting on our reserves. Both tapped and untapped.
And the natural gas deposits leeching back into the areas we mined for coal, around here, are huge. The entire Cumberland plateau region, in the past two decades has been explored, drilled, amd capped off for future use. Small clearings with capped valves are all over the local ohv areas, all the way up into Kentucky.
His long term strategy unfolding quite well in our favor.
USA motherfuckers, USA !!!
I'm a little confused, are you advocating for a nationalized government agency that has the power to set oil prices?
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That's why he's committed himself to practice 15,000 times a day posting.
He's very appreciative if you let him know if you see any improvement.
TM
Reese is the MEME KING, yet he went to a No Kings protest up here in the NW. 😂
A little something called, the free market.
There's a balance between the price being high enough to make exploration and drilling profitable, but not so high as it creates pain at the pump, curtailing demand.
The oil companies want us buying their product.
And wouldn't you liks seeing OPEC cease being the one's throwing us back into repeated recessions with their prices hikes ??
They've been a pain in our economic ass for over half a century now.
I remember you claiming that Trump fucked up the ability for Russia to fund their war with Ukraine…..
Now all the sanctions on Russian oil are lifted and they’re selling at inflated prices.
Israel is also purchasing grain from Russia who’s taking the grain from occupied land in Ukraine. I read that Egypt refused a shipment when they found out where it came from.
I posted Adam Kinzinger’s response to the Israel-Russia trade a few days ago. I think that it was a little bit too long of a read for most forum members.
I'd argue what you're seeing now is exactly that, a free market. With disruptions in oil shipments from the middle east we've seen a large chunk of supply taken off of the table, and with a relatively inelastic demand we're seeing prices reflect that. So realistically unless you'd like the federal government to start exercising control over the prices domestic oil companies can charge for their products I'm not understanding how this ends well for anyone. We can't just up our oil production overnight, and even if we could companies will sell at whatever price they're able to, which for now and into the foreseeable future is significantly higher than OPEC was selling for.
OPEC is more or less a cartel and not a type of organization I could ever support (much like government price controls), but to claim they're responsible for recessions in the US and not our own Federal Reserve's manipulation of the dollar and interest rates is a little bit of a stretch.
OPEC has routinely over the years, raised prices, sending us into economic stress.
" So realistically unless you'd like the federal government to start exercising control over the prices domestic oil companies can charge for their products"
Nope, not for that but, and a big BUT, if it's a critical item to the population and economy, they do it in other areas. IE the public utilities commission
That aside, I very much believe this is a temporary situation, that said, the government could implement price gouging rules the same as a store charging $10 for a bottle of water after a tornado. As a short term thing, I could see it happening. Not sure how I feel about that but I find the logic consistent with price gouging. Curious on others thoughts on this.
TM
UAE pulls outta OPEC. Hmmmmm.
Now they can produce and sell MORE...thereby INCREASING GLOBAL SUPPLY...
So, uh...are some of us arguing that THIS IS NOT A GOOD THING? 🤣
Who argued that the UAE exiting OPEC was bad?
Technically, didn't they cut or limit supply and let the free market set the price?
As residents of CA you and I both know that there is no such thing as a temporary measure when it comes to government, either at the state or national level. We’ve been sold a bill of goods over and over again throughout history, pretty much every tax we pay was a “temporary” measure.
The reality of the situation is our government created this mess and now once again they’re going to try to sell us a bunch of BS to “solve” the problem they created. If we really wanted cheap oil prices we would have stayed out of this whole mess while at the same time unleashing US oil production and increasing transport efficiency to lower overall costs. Instead they created massive instability by starting a conflict (are we allowed to call it a war yet?) with no clear end goal or strategy and are scrambling to try to ease the pain of the supply shock they created, at which they will fail miserably just like government always does in my opinion.
Do you think any of this would be going on if our government hadn't let China and Russia get so powerful? While I'm all for ridding Iran (one of the worst nations) of nukes and the potential of nukes. The fallout of this is way beyond the borders of Iran. 10 years from now this will be a blip on the radar. Iran has pissed off all their sympathetic neighbors. They have nobody (with the exception of extreme liberals) that will defend them. The irony is, those voices defending Iran were also condemning Iran while we had Dems in power. It's a faux outrage only because Trump will get the win.
"(are we allowed to call it a war yet?)" While it's not traditional in any sense. In medieval times, they often would just surround the castle till the food and supplies ran out and the heavily fortified inhabitants of the castle would eventually become so weak, even if they wanted to fight they couldn't and would have to surrender. And, if Trump has any consistency with things he said in the past, he'll take enough oil to pay the costs of this. We'll see about that one though.
TM
Pit Row
I’m not gonna convince you that Iran wasn’t building a nuclear weapon so that’s a non-starter, just like you’re probably not gonna convince me they are. The debate regarding ho to deal with Russia and China is an interesting one though.
I would argue that a world exists where we could have had great relationships with Russia following the collapse of the Soviet Union and China as they rose to power. With Russia in particular we had a great chance to forge economic partnerships (the best way to prevent conflict) and move forward diplomatically in the 90s, but instead the military industrial complex and war machine had to justify their own existence (ie budgets) and we embarked on a policy of antagonizing and kicking a country that was already down and posed us no threat. Joe Biden and Bill Clinton’s terrible judgement have a lot to blame for that.
China is an interesting example because I don’t really subscribe to the idea that a hot war with them is inevitable. We’re too dependent on them economically and they’re too dependent on us, which gives support to the idea that economic cooperation is the best way to avoid war. I’ve been there, I’ve met the people, it’s not the dystopian communist hellscape that western media is hellbent on making us believe it is because that’s the most effective way they can sell us a future conflict. After seeing firsthand the lies they’ve fed me my whole life about these people I’ve become very skeptical of any narrative they push on us with corporation from both supposedly different sides of the isle.
Interesting, I was in both Russia and China but not in the last 25-30 years. I remember being driven to various Vodka plants in Russia seeing cars that still had to be crank started. Thinking to myself, who ever thought this country was a threat? They don't even have modern cars. But great Vodka they have. Shanghai, there were so many colors of smoke coming from the factories, me thinking, how will these people be alive in 20 years lol
Has OPEC done that, or was it the Speculators like you previously told us?
Or are they the same thing?
Can you help me understand as I don't really know and you seem to be an expert on this stuff.
Many people, myself included, view OPEC as a cartel who influences oil prices by cutting or ramping up production. How much impact they have on global markets, I honestly don’t know.
In my observation, Around ‘07 or 08’, they didn’t increase production when gas prices were at all time high which prompted oil companies to begin more costly extraction in US. Once this market took off, then OPEC ramped up production.
One must also consider the influence that Lloyd’s of London and more broadly, the City of London banking cartel has had on international oil prices through their involvement with Iran and the passage of ships through the strait. IMO, there’s more at play here than just Iran.
Bingo! It is the insurance companies that have the strait shut down.
The thing about the war in Iran is that it is a wasted opportunity. Making big moves like this are only going to have a fraction of the affect they could have had.
Theres a scenario where a unified front is established against the oppressive regimes of Russia, Iran, Venezuela, and Cuba who are all kind of defacto allies. NATO is strengthened by convincing Europe that the US is on their side but we will be working on these other fronts and it's Europes job to strengthen their defenses and support Ukraine in their war. The Venezuelan operation happens as it did. The US attacks Iran in the same manner with the explicit goal of eliminating Iran's ability to support Russia in their war effort and support for Iranians looking to get out from the oppressive regime. It becomes a global struggle for freedom.
There's 4 main problems with that plan.
One, the tariffs announced to the world that we are not looking to be the leader of the 21st century, America will be an unreliable partner, the Greenland bullshit just adds to that.
Two, the trump administration support for Russia over Ukraine tells Europe that we are an unreliable ally.
Three, the US's support of Israel in the destruction of Gaza and the Palestinians there tells the Arab Muslim world that we are an unreliable ally, Israel is also likely the reason we attacked Iran in the first place.
Four, Iran holding the strait of hormuz hostage is the most logical move on their part there's no scenario where they don't attempt that. The last time the straight of hormuz was closed (or severely restricted) was during the Iraq-Iran war in the eighties when Reagan and Bush convinced Saddam to attack Iran, that did not turn out well. A successful war with Iran would require cooperation of all the other Gulf and Arab states in a unified front. Thats a long shot, however I think if we had been successful in unifying Europe against Russia we could have been successful in unifying and leading the Gulf states against Iran.
But none of this can happen now because noone trusts or likes the United States and we don't have the capacity or will to do this all alone. Being successful in defeating Russia in Ukraine, Maduro in Venezuela and the Islamic regime in Iran would have shown the world that we are the team to hitch your wagon to. We wouldn't have to worry about China or anyone else because everyone would want to be on our side, not with threats of tariffs but because the United States stands for freedom and peace.
The downvotes here blow my mind.
Who likes opec, and why? Make your points.
Rebuttal point one: The tariffs said to the world, the world has changed. You're not a bunch of little nations that need to rebuild after the war. You're now collectively a powerhouse entity and no longer need to feed of the tit of America, pay your own way.
Rebuttal point 2: See what happens when you shut down all your own energy and make Russia wealthy off your purchases? And then you're afraid to stop Russia when you could have and want us to fix it for you? Well, instead of him hawing around and talking about something that will never happen. Let's just all agree that Russia now has a stronghold in Ukraine and try to create an end to where we are rather than where we were. And if Ukraine giving up land is what it takes to stop the war, let's figure it out.
Rebuttal 3: Had Palestinians not spent all their aid money on tunnels and military supplies and spent it on actual building Gaza, and maybe not randomly kill a bunch of people in a neighboring country, they would not have gotten wiped out.
Rebuttal 4: We don't want a boots on the ground war. Blockading their sea cargo is a brilliant move. While it's still difficult for their population to rise up as they have no weapons, they have the numbers to do it. They need to rise up and create a leadership that will work with the world. We've taken out enough bad people that being the new leader that does not want to comply is not the most desired promotion right now. It's not hurting us nearly as much as it's wiping out their ability to govern. While what I read last week about their oil storage was incorrect, the current consensus is 7-20 days. That's very significant. But the government is getting so starved for funds it's all but over with the exception of waiting a bit longer. Will our energy be expensive? Sure, but this is a short blip in history for the stability that will come to the ME.
TM
From what I read several weeks ago, Trump broke that monopoly by saying we would insure the ships. You're right, up unil now they had a monopoly on who could pass through the straight by providing or denying insurance.
Think about whom you’re rebutting.
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