4 ms·

So fracking stops in the US. Win-win-win?

syshum 7y ago
Only if you have a 5th grade understanding of Geo-Politics, and Macro-Economics do you believe that is a Win-Win. US Production of Oil and Nat Gas provides for the opportunity to the US to be less dependent on Mid East oil, which is WONDERFUL for Global Peace. Also because the value of the Dollar is tied to Oil being traded in Dollars, reliance on Mid East oil puts the US in a HUGE economic Liability. So sure from a pure climate standpoint it has some benefits but in EVERY other way shuttering US Production of Nat gas and Oil is TERRIBLE
- wyxuan 7y ago
  The Petro dollar isn't necessarily a bad thing. It doesn't necessarily require us to continue our presence in the middle East, and it ( among other things) ensures that that the dollar system is the most important system. Global dollar system is what allows the us to print so much money: there isn't any alternative safer currency.
  - syshum 7y ago
    >>It doesn't necessarily require us to continue our presence in the middle East History Proves that to be wrong >ensures that that the dollar system is the most important system. Global dollar system is what allows the us to print so much money: there isn't any alternative safer currency. That is not really a good thing. We can print those larges amounts of dollars because they never really get circulated. At some point the music will stop on this moronic policy and the current economic disaster will look like a fun time
imtringued 7y ago
It's only a win after the switch to EVs. Before that you are going to need every drop of that oil.
- toomuchtodo 7y ago
  > Before that you are going to need every drop of that oil. No, you’re not. You want to fundamentally damage oil production economics to make oil as expensive as possible, to speed the uptake of EVs. Cheap oil slows down the electrification of transportation. We don’t want cheap oil. We want this price war to cause a spike in oil prices causing pain to oil consumers.
lainga 7y ago
Someone (Matt Levine??) on Bloomberg said that "Russia and Saudi Arabia seem to have accepted that periodically bankrupting US fracking operations is a cost of business". Periodically - because US oil extraction is done by many firms in a country with strong bankruptcy law, and after 2 or 3 years SA and RU will stop dumping, prices will rise, and they'll spring right up again (barring some drastic change in world oil consumption.) So it's more like Don'tlose-don'tlose-losetemporarily.
therealdrag0 7y ago
Will that reduce the availability of Gas causing more dependency on Coal, though?

Only if you have a 5th grade understanding of Geo-Politics, and Macro-Economics do you believe that is a Win-Win. US Production of Oil and Nat Gas provides for the opportunity to the US to be less dependent on Mid East oil, which is WONDERFUL for Global Peace. Also because the value of the Dollar is tied to Oil being traded in Dollars, reliance on Mid East oil puts the US in a HUGE economic Liability. So sure from a pure climate standpoint it has some benefits but in EVERY other way shuttering US Production of Nat gas and Oil is TERRIBLE

wyxuan 7y ago
The Petro dollar isn't necessarily a bad thing. It doesn't necessarily require us to continue our presence in the middle East, and it ( among other things) ensures that that the dollar system is the most important system. Global dollar system is what allows the us to print so much money: there isn't any alternative safer currency.
- syshum 7y ago
  >>It doesn't necessarily require us to continue our presence in the middle East History Proves that to be wrong >ensures that that the dollar system is the most important system. Global dollar system is what allows the us to print so much money: there isn't any alternative safer currency. That is not really a good thing. We can print those larges amounts of dollars because they never really get circulated. At some point the music will stop on this moronic policy and the current economic disaster will look like a fun time

imtringued 7y ago

It's only a win after the switch to EVs. Before that you are going to need every drop of that oil.

toomuchtodo 7y ago
> Before that you are going to need every drop of that oil. No, you’re not. You want to fundamentally damage oil production economics to make oil as expensive as possible, to speed the uptake of EVs. Cheap oil slows down the electrification of transportation. We don’t want cheap oil. We want this price war to cause a spike in oil prices causing pain to oil consumers.

lainga 7y ago

Someone (Matt Levine??) on Bloomberg said that "Russia and Saudi Arabia seem to have accepted that periodically bankrupting US fracking operations is a cost of business". Periodically - because US oil extraction is done by many firms in a country with strong bankruptcy law, and after 2 or 3 years SA and RU will stop dumping, prices will rise, and they'll spring right up again (barring some drastic change in world oil consumption.) So it's more like Don'tlose-don'tlose-losetemporarily.

therealdrag0 7y ago

Will that reduce the availability of Gas causing more dependency on Coal, though?