OPEC: Is it too late to diversify?
Oil Price Slump
Actually, Saudi Aramco has already moved into the chemical manufacturing business, which is big news for Saudi. They are focusing on petrochemicals, of course, a value added enterprise that will improve their profit margin substantially over the current model. Though software leases are a big deal for Aramco already – you dig a hole, you may get the drill bits from Hughes, but you’ll guide the rig from Aramco’s central control building in Saudi. Look it up.
It was a nice Christmas present. The middle class catches a break and the fat cat take a little gas. Unfortunately they will figure out how to dig themselves out eventually and Uncle Sam will double the fuel tax.
They did it on purpose. They did it to decrease the interest in alternative sources, like the Oil Sands of Canada — in which case, they did us a double favor, but never mind — or for that matter solar, wind, and nuclear, which we really need.
I don’t think we need to worry about OPEC. Wait a few weeks, or months, and OPEC will start to slow down the flow of oil which will start speeding up the flow of cash into the OPEC world.
We ARE indeed our own litle “OPEC”, and Canadian tar sands, along with fracking for oil and gas, has and will extend that production; the real question isn’t “using” what we got, but what happens when we USE UP what we’ve got? Even 100 years is “short term” planning, and that’s where all “use it up” folks screw our posterity, and the planet.
I still maintain that once Putin is ousted, OPEC will make it all back. In the meantime, like shellusa says, states will up the gas tax. I fear what, among other shennanigans currently going on in Massachusetts, Guv Patrick will inflict upon us before he goes!
Probably. Some of the smaller, richer states are trying to grow their tourist industry, but this is hard to do when you beat people for kissing in public.
April 12, 2017
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