Am I the only one who believes that the recent action in the oil industry is the OPEC response to our, the US, involvment in the Middle East. Think about it. What better way to kill the oil industry in the US then by continuously flooding the market with oil, driving down prices and profits. As the shake out continues it only strengthens the OPEC position for future higher prices. But even longer then that is the security issue that will arise when we are importing 60-75% or more of our, US, oil demand. They will have us by the pinky then folks as smaller independent companies go out of business. The same companies who have taken up some of the slack since most of the majors are now overseas. I am not a pessimist but this picture looks somewhat dangerous for us folks on the North American continent. The OPEC folks see the USA as a "cash cow" as we buy and ever increasing % of our oil from them. What is going on here is strickly a business choice, a choice to again distroy whatever oil industry we have in America and put the US at the mercy of these countries. All of this while we worry about size of Slicks willy. The question is one of who is this price action helping? We, the USA is being hurt much more then the folks who can turn a 7" valve and flow tons of oil at .05 to .25 cents per bbl lifting costs. It keeps us Americans happy dosen't it. Great economy, cheep gas, plenty of jobs. Problem is we are all going to pay through the shorts one of these days and we will end up paying for what we want with the blood of our sons and daughters. Good trading to all!
You are dreaming...Most Mid East and OPEC economies are on the brink of financial disaster. They have no room to play with cut backs to drive the Western companies out of the industry. They risk civil unrest with any production or revenue cut. They place much more value on their personal survival than on the potential demise of the West (I believe Russia proved to the world the folly of the that sort of thinking!)