That's what an essay in BloombergView is predicting:
The financial debacle that has befallen Russia as the price of Brent crude dropped 50 percent in the last four months has overshadowed the one that potentially awaits the U.S. shale industry in 2015. It's time to heed it, because Saudi Arabia and other major Middle Eastern oil producers are unlikely to blink and cut output, and the price is now approaching a level where U.S. production will begin shutting down.
http://www.bloombergview.com/articles/2015-01-12/americas-going-to-lose-the-oil-price-war
So now we should subsidize oil producers?
BS on that. We've been subsidizing the oil patch forever, and what did we get for it? NOTHING.
Sooner or later, the US will have no profitable businesses and everyone will be on the dole. What will serve as our tax base when that happens?
No comments:
Post a Comment