Posted on 05/07/2014 10:38:03 PM PDT by 2ndDivisionVet
Oil is already purchased with dollars worldwide. There would be no “Dutch effect” causing foreigners to suddenly want dollars. They already need dollars to buy oil. Duh.
And there is certainly something to say for not having the gov’t decide whom to favor with investment. But the scale is all wrong. There is no way a country the size of the Us could take all of our oil money and invest it only in other countries.
Why would we want to do that?
Under Osama Obama, an economic golden age would be unlikely even if we found diamond caverns under every state.
Wake me up when they tart running natural gas lines out into the countryside. Propane is a killer of household budgets....
And then there’s that
If we become the Saudi Arabia of oil, our currency retains its value because we can trade fuel today for the debt rung up yesterday.
SUMMER OF RECOVERY! IT'S HERE! AT LAST...NO, REALLY...
No way that is true. We haven't completed a single LNG export terminal yet, besides the decades-old tiny one in Alaska that was shut down.
In 2013, we imported 2,883,359 Million Cubic Feet.
http://www.eia.gov/dnav/ng/ng_move_impc_s1_a.htm
We exported 1,572,351 Million Cubic Feet.
http://www.eia.gov/dnav/ng/ng_move_expc_s1_a.htm
The US is still a net importer. I quit reading at that nonsense claim. If the author is that uniformed, he should pick a different topic to write about.
Even if you ignore imports and pretend we are an exporter by only counting exports, Russia is about double our exports.
The Saudis are building one of the largest petrochemical complex in the world in Jubail; a lot of it is up and running and it is still growing. Don’t kid yourself they will only depend on exporting crude oil.
Any economic progress has been in spite of the regime, not because of it.
Sound like they’re making money from oil
Politicians will just tap into the well gushers to pay for ever-expanding Socialism and bigger and bigger government.
Even the modest braking effects of the debt and deficit would be off.
THAT would be my main concern.
No doubt that is the source of original income. But they do not plan to leave it as their only source of income. I believe the industrial city/complex is already 100 square miles.
The writer compared them to us.
If you want to say that after 50 years they are only talking about doing other things, when they have no motivation, they import all of their talent, all workers, that they compare to the US, join her.
What ever
Normally, the appearance of a dramatically cheaper natural resource would diffuse prosperity throughout the economy.
Unfortunately, all of Obama’s policies, designed to impoverish and ultimately destroy the U.S., are still in place.
I agree.
It’s hard to believe there are still people who think Obama is just an incompetent, rather than a NWO Fascist.
???
They have built 100 square miles of industrial complex. They will build at least a 100 square miles more in the same area.
While the Saudis have spent unbelievable amounts on social welfare, they have built out for depending on far more than crude oil.
Spot on and if conservatives gain a foothold or better in the Senate and get a GOP POTUS in two years the trend will be for a more dynamic economy. If the economy takes off at the same time the GOP will be remembered as the growth party and that will help us hold power for a generation or two. You can fix a lot of things in that time.
I totally agree that the USA is on the path to being an oil exporter. That there is a huge wall of money coming the way of the federal government.
Oil is currently providing and extra 100 billion or so to federal revenues. Likely that number will go up to 300 billion or so annually in five years. That’s great.
However, the money will only be enough to fund what’s already on the books: social security and medicare—or that freak show obamacare if its still on the books in five years.
That said, while we’re entering a new era for oil—I don’t think it will be a decades long event. Sometime in the next 5-15 years there going to be an energy disruptor that will kill the demand for oil. There’s lots of candidates. The obvious ones are natural gas trains trucks and buses and electric cars. So maybe it will be consortium of several different energy sources. Maybe it will be something else.
The thing to focus on here is that oil in btu terms is currently over three times the cost of coal and natural gas. That is, coal and natural gas in btu terms are at about $32@ gallon while oil is around 100. Historically, these things tend to correct.
I had a friend in New Zealand who’s country went to the brink and back and it turned to hell.
She told me that the public finally became outraged and elected adults. The new administration turned it around and they went from a deficit to actually having money in the bank. Taxes went down, the economy was booming, and everything was roses.
Then, less than a generation later, the public started to look at the rich coffers and getting greedy. The politicians started making promises and they went right back into socialist hell.
Once people figure out that they can vote to give money to themselves, it’s all over.
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