Monday, December 22, 2014

The Massive Drop In Oil Prices

We are getting a short respite from this sort of piracy.

In my area, the cost of a gallon of gas has dropped from $3.61 to $1.93 as of yesterday, or $1.68 a gallon savings

 Marvelous. But why?

Simple when you think about it.

The  United States has recently become the second largest producer of crude in the world, supplying even more than Saudi Arabia. This is due to fracking, shale sands and the massive exploration and production  of crude by smaller companies on non-government lands, resulting in a plentiful supply of crude,

That's not what was dropped the cost.

The cost has been deliberately dropped by the huge energy conglomerates worldwide to the point where these new smaller American and Canadian suppliers will not be able to survive financially for more than six months. At that point in time, these smaller producers will collapse and the plan is to buy them up for pennies on the dollar - and then the price or crude will zoom back up.

The drop in the cost of gasoline is nothing more than a incredibly cynical and vicious move by those in positions of power: Bankers, Wall Street, corrupt politicians... the usual suspects, to keep a death grip on oil, to control its production, its delivery and its cost.

However, we can all enjoy the savings for the next six months.

Then, look out. These bastards will be back for their pound of flesh.


texlahoma said...

I have a different theory as to why the price of oil dropped.
It's because I recently got into the oil business (in a very small way) and was thinking I was going to make some decent money for a change.
I was just starting to dream and then the ugly hand of reality slapped my face and said "Wake up!"

Galt-in-Da-Box said...

Hang on to those stocks, Tex.
If Bob's right, you'll be back in coin in no time!