Do not be fooled by the propaganda that the USA would not be much affected when oil prices shoot up to US$200 a barrel. The consequences are mutual and no country can escape. The USA may have plenty of oil itself but is still importing oil from others to supplement its usage.
Moreover, the USA still has to depend largely on imported goods, as most things that their citizens need are all imported and will cost more with the oil price increase. It is all going to be in the same boat however much Trump tries to spin about his massive oil control.
Another exercise in futility is the release of oil stockpiles to ease the demand. How long can such stockpiles last if the war goes on, for let us say, another month. How many countries were really prepared for such drawdown of their oil stockpile, knowing that this is a National Security issue.
Anonymous
2 comments:
Yes US, viz the orange bankrupt, has claimed they have more oil than Saudi.
Statistically, it's true but most of that yankee oil is shale oil.
Shale oil is oil trapped in the microscopic pores of shale rock. It cannot flow. The only way to recover it is to frack the rock pump steam into the fracks, and pump the hot water/oil mixture to the surface. It's very expensive and the breakeven oil price to operate such a well is at least USD60/barrel years ago. With inflation, this could be higher now.
Of course in the current crises, it's economical to produce this oil but they'll have to operate tens of thousands of them as the flow rate of these wells is very low, maximum of a few hundred barrels a day for a good well. The bad wells will produce only tens of barrels a day. Compare this to the prolific middle eastern wells that produce up to tens of thousands barrels a day per well.
Now you know why Trump is the orange bankrupt.
When oil hit 200. can it be said it a rainy day..so sinkies G should then be able to use it reserve to help the peasants right? otherwise can someone enlighten us, when it considered a rainy day?
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