Tuesday, October 25, 2022

U.S. Accelerates Three-Tier Plan To Reduce Oil Prices — Simon Watkins

U.S. President Biden has three key strategies in place to lower oil prices.
  • The first and foremost strategy is the implementation of the NOPEC bill.
  • The second pillar of the plan is to release more crude from the U.S. SPR.
  • The third element of the plan to bring oil prices down is to be a concerted effort to encourage U.S. oil firms, shale or otherwise, to increase their production.
Oilprice

9 comments:

Matt Franko said...

Too late election in 2 weeks…

Ahmed Fares said...

The architect of this watershed moment in the history of the global oil sector, Saudi Arabia’s then-Minister of Oil and Mineral Reserves, Sheikh Ahmed Zaki Yamani, himself highlighted that the embargo marked a fundamental shift in the world balance of power between the developing nations that produced oil and the developed industrial nations that consumed it.

I saw that name earlier today in a Twitter tweet by Sharmine Narwani which links to a 2-minute video below. It shows what the Saudis would have done if the US had tried to seize Saudi Arabia's oil fields. (Matt "let's just take their oil" Franko might want to watch this). The last part is interesting because it's exactly what's happening now with Russia and oil prices:

(22 Nov 1973) Saudi Arabia's Minister of Oil and Mineral Resources Ahmed Zaki Yamani being interviewed in Copenhagen speaks about dependency of Europe and Japan on Saudi Arabian oil.
SYND 23 11 73 SAUDI ARABIAN OIL MINISTER SPEAKING IN COPENHAGEN ABOUT THE OIL PRODUCTION

Peter Pan said...

Joe should pull a Chavez and nationalize those American oil companies.

mike norman said...

"I don't know to what extent Europe and Japan would go along..." -Sheik Yamani

I'd say they went along pretty well.

mike norman said...

Iraq blew up their oil fields. They were put back into operation in a fairly short time.

Matt Franko said...

We let them get away with it because we have states that produce oil also and can use the same monopoly price…

Those states Senators won’t allow us to do anything about it…

Matt Franko said...
This comment has been removed by the author.
Matt Franko said...

https://www.reuters.com/business/energy/exxon-posts-record-breaking-second-quarter-profit-2022-07-29/

Ahmed Fares said...

Iraq blew up their oil fields. They were put back into operation in a fairly short time.

Kuwaiti oil fields...

During the 1991 Gulf War, retreating Iraqi troops blew up and set ablaze many of Kuwait's oil fields. Huge fires and more than 30 million barrels of spilled oil caused massive environmental and economic damage. Now some military analysts say a desperate Saddam Hussein could once again attack Kuwait's oil fields -- or wreck his own to try to slow any U.S. attack. NPR's Eric Westervelt reports.

It's one thing to fight an Iraqi invasion force in Kuwait, another to fight Iraqis in Iraq. Also, it's hard to seize an oil well, but much harder to protect the pipelines that bring the oil to ports.

e.g.,

Colombian 'Farc rebels' blow up oil pipeline in Narino

Police said the attack on the Transandean oil pipeline happened in the early hours of Sunday.

Colombia's state oil company Ecopetrol said the attack had forced it to stop pumping oil through the 300km (185-mile) pipeline leading from neighbouring Ecuador to the port city of Tumaco.

The Ministry of Defence said attacks on Colombia's oil industry had increased this year, with 67 incidents between January and June 2012, compared to 84 for all of 2011.