[Newsbot]

Title: How The Shale Revolution Has Reduced Geopolitical And Price Risk
Category: Business
Posted By: N_Fiddledog
Date: 2016-01-20 00:43:01

[N_Fiddledog]

American Thinker also believes the Saudis have screwed themselves this time.

$1:

In five years, the KSA's foreign reserves are expected to be emptied out. Already, the KSA is dropping internal subsidies on electricity and domestic gasoline. The local people are upset. Upset Muslims means violent revolution.

For over forty years, this blight of a tribe has caused recessions, caused depressions, and damaged the planet's economy. They got wealthy by re-impoverishing an emerging Third World, starting with the artificially created 1973 oil crisis. They have used their oil wealth to sponsor terrorism (as has Iran). Rather than investing wisely in industry to pick up market slack to become a modern diversified economy, they have invested instead in subsidizing mullahs, arming Salafist extremists in Syria, and exporting Islam around the world.

Now they have no options. Any increase in prices will restart American, European, and Chinese frackers. Failure to increase prices will bankrupt them. As a further blessing, we Americans will no longer have to hear the caterwauling idiocies of environmentalist Chicken Littles screaming about "peak oil."

What the USA can do is protect its fracking industry by severely taxing any oil imports under $50 a barrel. This may upset some free marketers, but the price of oil is rigged. We should rig it in our favor, and insulate ourselves from Saudi manipulations.

Good riddance to the KSA � a corrupt, vicious regime! May their next chief export be bottled camel urine. I wish America had never gotten involved with them.

http://www.americanthinker.com/articles ... z3xnLhii6k

[Thanos]

Good article. The overall meta-situation though, as it affects Canadians, is that the US shale boom won't begin to decline until after 2020. That means at least five years, and probably a lot more, of the Americans not needing our product. Said it before, said it again, anyone who thinks the havoc caused by the oil collapse will be ending anytime soon is a damn fool. This isn't just a market correction or a spot-crisis caused by Wall Street shenanigans this time. Between the glut in the US and the Saudi-created predatory pricing/economic war the Canadian side of the industry will never be the same again. Look to a major decline in the Canadian economy for the next decade that will affect all kinds of provincial and federal programs because the money the governments relied on from oil is simply not there anymore.

Good times from oil money are over for good. This entire country better begin to get used to it.