The Largest Oil Cartel In History
Starring Saudi Arabia, Russia and China
Co-Starring OPEC And a Host Of Supporting Characters
Rated USPWP for... US Plan, What Plan?
27 March 2018
Saudi Crown Prince Looks To Build The Largest Oil Cartel In History
"OPEC and Russia are looking to solidify their cooperation on crude oil production for another decade or two, Saudi Crown Prince Mohammed bin Salman told Reuters in an interview while on a visit to the United States." You may read the rest of the article on Oilprice.com, here.
Reuters reported several weeks ago, here, China and the Saudi's are also teaming up with a $64 billion dollar Chinese investment and a strong push to require the KSA to trade oil in the future using the Yuan, not dollars, definitely NOT a good thing for America. In fact, a terrible thing for the US.
But while the world's two largest crude oil producers (with by far the most proven developed oil reserves of any eight other producing countries in the world), and China, the 2nd largest consumer on the planet, soon to be the largest consumer on the planet, are all working together for appears to be a unified hydrocarbon future, here is what the US has to say about its role in that future world oil order:
"The truth is that we have near-limitless supplies of energy in our country...
Our country is blessed with extraordinary energy abundance,” President Trump declared at an “Unleashing American Energy Event” last June. “We are a top producer of petroleum and the number-one producer of natural gas... With these incredible resources, my administration will seek not only American energy independence that we’ve been looking for so long, but American energy dominance. And we’re going to be an exporter... We will be dominant. We will export American energy all over the world, all around the globe.”
The US shale oil phenomena is a decade old. We're 82,000 wells and over $600 billion into it. So far we've got 8G BO and about 1 1/2 years of total US oil consumption to show for the whole shebang. And $300 billion of shale oil debt. If we stopped drilling shale well wells tomorrow by this time next year the 4.9MM BOPD of current LTO production we have would be 3.5MM BOPD and on the express elevator down.
While we're tying to "dominate" the world with expensive, unprofitable shale oil exports, and to further confuse an already very confusing US "plan," there is this: https://www.chron.com/business/energy/article/Steel-tariffs-to-squeeze-oil-service-producer-12781550.php
Who are we kidding, really, with all this "hydrocarbon isolationism" stuff? Its ridiculous. And dangerous as hell for our nations long term energy health.