Saturday, September 27

War in Mid-East: So why aren't oil prices skyrocketing?

Historically, when war breaks out in the Middle-East, oil prices skyrocket.  But as air strikes continue on ISIS in Iraq and Syria, U.S. gasoline prices have actually declined.

The reason is that the amount of oil produced in the United States has risen to its highest level since 1986--which reduces the impact of potential supply disruptions overseas. 

And the reason for that is cleverly camouflaged by the mainstream media as "unconventional shale plays."

Of course you know what they mean by that, right?

You don't?  No surprise.  They know you don't know.  It's "fracking."   Which everyone has heard of.  In a negative story.  The Left wants to ban fracking.  Which would reverse this welcome downward trend in the price of oil and gasoline.

Because of fracking, we're less dependent on imported oil.  The share of domestic petroleum consumption met by net imports dropped from 60% in 2005 to 32% in 2013.  And it's not due to reduced consumption, but to increased *production.*

Gosh, it's almost like what conservatives have been telling the Left 30 years:  Turn U.S. oil explorationists loose to drill for oil and you'll have...wait for it...oil.  Wow, who knew?

Now stand by for Democrats and the Lying media to claim that the lower price of oil and higher domestic production is due to brilliant policies by Team Obama.  Oh yeah.  The gummint did a billion dollars of R&D to show dumb oil companies how to find oil.

Yeah, dat's it.

Or maybe, they cut tax rates on oil companies so they could put more money into exploring and drilling wildcat wells.  Maybe?

Wait, I got it:  Team Obama used all those gummint super-computers to *tell* oil companies where to drill, thus ensuring that new wildcat wells always paid off.

Of course that's all bullshit:  The government didn't do shit to encourage oil exploration.  Instead, both individuals and companies bet their fortunes on new methods and new theories.  Sometimes those paid off, sometimes not.  And when they didn't, the government didn't bail 'em out.  Cuz oilmen and roughnecks aren't like auto workers or SEIU.  No unions.  No political clout.

But that truth won't stop Democrats from trying to take credit for falling gasoline prices.


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