OPEC declared war on Texas ...

chrysostom

chrysostom

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fzappa13 said:
... But, somehow, your TV didn't tell you.

http://www.telegraph.co.uk/finance/...-20-oil-as-glut-overwhelms-storage-sites.html

Problem is, the shale reserves will still be there when they inevitably have to stop over producing and prices will eventually recover and the entrepreneurs they sought to quash will re-appear when they do. This is the weakness and the strength of a "free market" economy.

Truth is, though, it is not "free market" as it concerns oil in that you have a consortium of countries acting in unison to prevent the emergence of what would otherwise be one of the worlds largest oil production regions while our so called national government stands by and does nothing. No, wait, they did something some time ago. It was called NAFTA and GATT whereby our nation cannot legally tax imported oil any more to prevent such high jinx.
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don't want to derail your thread

I agree with you
but
I am not worried about texas

texas will make it
 
Krsto

Krsto

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F

fzappa13

Well-known member
chrysostom said:
don't want to derail your thread

I agree with you
but
I am not worried about texas

texas will make it
Click to expand...


Don't worry about thread creep … it happens to all of them. As it concerns the O.P. I think you're right. Texas will be okay. Although it's income is more weighted toward oil and gas production than the rest of the U.S. it is still a minority factor and like the Saudi's, (and unlike our federal government) Texas has set aside money for just such an occasion. Indeed, a few of the locals who were laid off in the first round of blood letting are beginning to be called back which could well be the harbinger of a little good news this spring.

Alaska is a different matter. They are about to get a state income tax:

http://www.usnews.com/national-issu.../the-7-states-hit-hardest-by-low-oil-prices/2

Venezuela is getting creamed (1000% inflation) and Nigeria and Brazil are not far behind. Russia is in pretty good shape. Though there are a few voices out there that would argue otherwise, I think their musings have more basis in politics than economic fact.
 
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fzappa13

Well-known member
Krsto

Krsto

Well-known member
fzappa13 said:
So, in the middle of a play to reestablish their control of the world oil market the Saudis are going to help fund and effort to replace oil?


Yeah, that makes sense.


They are doing the former and paying lip service (and nothing more as of yet) to the later.
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I'm sure the Saudis don't have any interest in alternative energy.
 
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fzappa13

Well-known member
I saw the term "oilmaggedon" and couldn't resist the urge to google it. One of the things I found was this interesting article circa Jan. 2015 concerning Canada's take on what they were heading into. Half way through the article is a really neat table where you can pick your price for oil and gas and determine the effect on the economy. The article turned out to be remarkably accurate.

http://www.theglobeandmail.com/repo...-it-this-oilmageddon-is-epic/article22672736/
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OCTOBER23

OCTOBER23

New member
Israel will become very Wealthy with their OIL and GAS discoveries

after the OIL of the World goes Dry in 2024.
 
F

fzappa13

Well-known member
Oil and gas formations tend not to recognize national boundaries and so it is with the Eagle Ford shale formation in south Texas that runs south into Mexico. Mexico nationalized its oil and gas industry (PEMEX) to protect it from predatory foreign investors in the 30's. As happens with all such bureaucracies it had become bloated and ineffective as a natural result of decades of nepotism. Having seen the opportunity to benefit from the Eagle Ford shale formation they opened their door to foreign investment right about the time the Saudis were making their play.

https://www.washingtonpost.com/busi...d171d6-ea69-11e3-93d2-edd4be1f5d9e_story.html


http://blogs.platts.com/2016/02/01/pemex-oil-reform-efforts-mexico/

Of course, with so much new found drug money lining the pockets of politicians there has been no great hue and cry from Mexico's leadership to this point concerning this situation. As long as that pipeline stays open and producing I suspect their concerns for the oil/gas situation to remain minimal.
 
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