Something most people ignore. Yet it will impact your life in countless ways. It will change the destiny of your country. It will skew world events.
It is fracking. Along with new drilling techniques.
1. Fracking has felled OPEC. Evil OPEC that bedeviled us with rocketing oil prices. Evil OPEC that sucked billions from countries that had to buy their oil. Billions that financed a lot of terror.
2. Fracking has foiled the plans of many villains. Putin among them. Venezuelan whackos among them.
3. Fracking has forced the Saudis to have to borrow money. Yes. About $27 billion for now. More to come.
4. Fracking has put America in the catbird seat. It has added more power to American interests than anything has for years.
It happened this way. Frackers (and drillers using other high tech methods) have turned American oil and gas production into a gusher. This has destroyed a lot of OPEC’s control over prices. It will soon destroy all of it
The Saudis reacted stupidly to the flood of oil from frackers. They flooded the market with oil. To bring prices low enough to kill off frackers.
Ahh, but the frackers retaliated. They found – and keep finding – ways to dramatically cut their costs. So that they can make money at lower and lower prices.
They also can simply turn off their wells when prices are too low. And re-start them quickly when prices go up.
So world oil prices are around $50 a barrel. If they go to $70 frackers will turn on the spigots. This will increase supply, stabilize prices.
Meanwhile Russia and Saudi Arabia need oil to be $106 a barrel to balance this year’s budgets. Iran needs $131. Venezuela needs $160. Fracking keeps prices low. This denies the scoundrels of billions they need to fund their mischief. They may put on a good face now. But low oil prices are damaging their economies. And checking their aggression.
Fracking has put these countries in the loser column.
It has also set back the causes of Greens. When oil was over $100 solar and wind had to be subsidized. In order to compete. Oil at $50 and $60 makes them even less competitive. They will call for higher subsidies from taxpayers. They may not get them.
Fracking has created a long list of winners. This is because energy is king. Cheap energy lifts living standards. From food to travel to heating and air conditioning. Cheap energy makes larger homes possible. It makes cheaper food possible. It makes healthier living possible.
Thanks to frackers, America is in one of its strongest positions in decades. It cannot be blackmailed by OPEC any more. It can shrug off the antics of Venezuela because it does not need its oil. It can defuse Russian ambitions by flooding world markets with its oil if necessary.
It can help Europe get out from under Russia’s thumb. By exporting its oil and gas expertise. It can keep energy costs low for Americans and their many enterprises.
With new techniques the energy industry has done more to help America than any policy out of Washington. It has done so with one hand tied behind its back. This administration has gone out of its way to make things more difficult for drillers.
The next administration could do the opposite. It could get rid of a lot of harmful energy regulation. It could open up more land for exploration. It could allow our oil to be exported.
Imagine if it did so. Imagine if it also simplified our tax code. And cut corporate taxes. Why, this economy would roar. America would roar.
From Tom...as in Morgan.