Russia, Trump, US Energy, and Common Sense

July/13/2017 7:28AM
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When I started this blog many years ago, US energy was a hot topic. Having spent 35 years in the business I was very dialed in on the subject. Crude oil prices spiked and gasoline was hitting $5 a gallon in some parts of the country. The US government solution, as always, was to hold Congressional hearings. Parade the oil executives across the TV screens and watch pompous fools accuse them of collusion. Since the original Arab embargo and the beginning of OPEC there have been numerous such hearings with zero collusion. Bill O’Reilly, who hates the oil industry since his dad worked for and oil company and was never more than a low-level employee suggested on his show that the oil companies declare a dividend to consumers to help with energy prices.

Low and behold, those very evil oil companies developed a new technology to drill through shale and capture oil and gas that couldn’t be captured before. US domestic oil and gas production took off. Mind you despite the government not with the government. Obama tried to stop fracking, the technology that allowed this to happen. And, the prohibition on US exports limited the production. Despite numerous attempts by the EPA to prove fracking caused dangers to water tables tests revealed no scientific proof. Hollywood made movies and TV shows where tap water burned as it was being poured. So, the usual suspects tried to stop the US from becoming energy independent and matching the Saudis as the largest producer of oil and gas. We succeed despite them. The low -cost of gasoline and electricity was a huge rebate to US households the pst few years. Estimates were $1,200 a year average.

Russia, with an economy 1/2 the size of France is extremely dependent on their oil and gas industry. Europe depends on Russian natural gas and the Russians threaten to cut them off when they see a political need to do so. For that economy to prosper Putin needs high prices for his oil and gas. Low prices over time will see Russia collapse just as the USSR did.

Trump campaigned on a promise to open the US up to more energy production. He opted out of the Paris effort to extort tax dollars from the US under the guise of climate change. He has opened up public lands to oil and gas exploration. The US will begin exporting LNG soon with a huge export terminal. The biggest customers will be Europe giving them an alternative to the Russian gas.

Now I ask you, did Putin want Trump for president or Clinton? Hillary would have doubled down on all the Obama efforts to thwart US domestic oil and gas production. She would have been all in in Paris with the environmental effort. Her first trip as Secretary of State was to Canada to tell them to stop their tar sand extraction that was saving our bacon when gasoline was $5 as gallon. She would have found a way to stop fracking. She would have done everything possible to drive crude prices back to the $200 a barrel level. See the Democrats work both sides of the same street. They are for the working poor but also the environmental zealots like the Hollywood freaks. Can’t work. Poor folks cant’ afford $5 gasoline and high utility bills but the Democrats make it happen than blame the oil industry when it does.

Get the picture. The media, which is an extension of the Democratic Party and Hollywood, is selling the idea that Putin wanted Trump over Hillary. Some of you are actually buying this baloney. Still buying? If this common sense doesn’t change your mind, then you define the ideal sucker PT Barnum described.

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