I suppose we should ask what impact, if any, the proposal would have on KMI, which is primarily a natural gas hauler. Would it speed the conversion to NG?
But if the response by Rep is any guide, it will never happen, just like efforts to eliminate oil industry subsidies.
No, not at the expense of those who work. Most people who drive also work. Lower oil prices have world wide benefits but obviously that doesn't include some oil workers and oil company stockholders like us. Industries that benefit include the airlines, trucking, plastics,utilities, etc.. Plus millions of drivers.. It's also deflationary and provides an investment opportunity...oil prices won't stay low forever.
Another downside of high oil prices is it funnels billions of dollars to Middle East countries and Russia, and slows the conversion to natural gas.
Everyone knows this stuff but that was not the reason for my original post. I was simply contrasting Bush Sr in 1986 with Obama today. Bush Sr lobbied the Saudis to cut production (to raise oil prices). Obama has not done that as far as I know. I believe it was because Bush Sr had close ties to Texas oil bigwigs. And that may also explain why the Saudis have advanced US weapons whereas other Middle East countries do not...
I made a very simple point in my post. In 1986 Bush Sr tried to convince the Saudi's to lower production (raising oil prices). Today, the situation is very similar but Obama has not done this (as far as we know). Yes, thousands of high and low paying oil industry jobs are lost. However, 200+ million drivers benefit from lower gas prices, including you, me, and virtually ever other American, especially the poor.. I think it clearly illustrates the priorities of the president...he prefers to help millions of Americans rather than help thousands.
There's always an upside and downside to government policy. Obama appears to favor car drivers and the trucking industry over the US oil industry...a true fat cat if there ever was one. There are 210M US car drivers (255M registered cars) and 3.5M long haul US truck drivers (and 15.5M trucks). Both benefit from low fuel prices. So, who's side are you on...the oil industry billionaires or the general public?
I thought the Rep were the free market gurus...let supply and demand in the market place set the price of oil. No government interference. No international negotiated agreements that set the price of oil at some artificial level.
Is it possible Obama believes in free market dynamics more than the Rep?
Gas prices collapsed concurrent with the 2007/2008 economic crash. It WAS much lower in the month he took office, as you said..
I did not say Obama had anything to do with today's lower gas prices.. What I did say is Obama HAS NOT (and will not) sent VP Biden to SA asking the king to cut oil production like Reagan/Bush did in 1986. And I also expect a Rep president, if one is elected, will do it again.
I realize many love to diss Obama but we certainly can't complain about the price of gas at the pump. It was $4.50/gallon when he became president. Curious, I looked up the gas price history and found this tidbit.
Back in 1985 the Saudi's refused to cut production (like today) and oil prices plunged. So, in 1986, VP Bush traveled to SA to ask them to cut production. Why? Because the low price was hurting the oil billionaires in Texas. Makes one wonder who's side he's on...the public or the billionaires?
If a Rep wins in November we can expect another VP trip to SA.
First of all, I assume you didn't write the article. Interesting article and it says nearly 712,000 people own KMI. I wonder how many of them follow it on SA?
Can you answer this question. Assume they take a 25B impairment and a year later the stock is back to $42....do they add the goodwill back?
Thank goodness. A long overdue agreement that will help KMI because natural gas is a much cleaner fuel for generating electricity than oil and coal and may eventually replace gasoline and diesel for transportation. This is a trend that has already begun, worldwide. Moving natural gas is the biggest component of KMI's business.
Judging from the incredible smog crisis in Bejing this week, China has a serious need of more natural gas (instead of coal). Visibility is about one block!
Might Warren buy all or part of KMI? Isn't his strategy buy undervalued assets and hold them indefinitely? The "undervalued" part is certainly true today...and talk about valuable (essentially irreplacable) assets with enormous cash flow. The debt service, also, should be no big deal for him.
I don't know if this is new or old news. It's new news to me. KMI now owns 50% of a company named Natural Gas Pipeline (which operates 9200 miles of pipelines). Their partner in the deal , Brookfield Infrastructure Partners, owns the other 50% interest. Presumably KMI will operate the pipelines..
I thought it interesting that all the Paris terrorists (I think) are French citizens and have lived in or near France for years.But most had traveled to/from Syria in recent years. Presumably refuges could be terrorists in disguise, however almost anyone with a passport can "visit" our country (such as the 911 terrorists)...20,000,000 foreign visitors last year. We are trying to plug a little hole and ignoring the much larger one.
We were on an Italian train last fall, between Milan and Genoa, and sat in a compartment with three young (mid 20's) Syrian refugees...two guys and the wife of one of them. They recently left Turkey and were headed to Norway, which was granting them entry.. One spoke very good English. Syria, they said, has many wonderful people but its impossible to live (and work) there today. It will be an "adventure" they said...no job waiting there, they don't speak Norwegian, etc.....but very grateful for a fresh start.. By comparison most of us have it easy here, that's for sure.