Great Depression of 2016

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hemet dennis said:
So do you want low fuel prices for the country or not ?
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I don't know if you're aware of this, but oil companies are laying off HUGE percentages of their work force to make up for billions in profit losses (my MrB was one of the unfortunates). Being close to Houston, I am witnessing the droves of people who are losing their jobs.

Low fuel prices benefit my pocket, but they may not be beneficial for the country. Your question is *entirely* irrelevant when it comes to real world economics.

The Saudis have already said they are prepared for oil to go down to $20 a barrel and stay there for four to five years.

We better start looking into the "next" alternate sources of energy and start building industry around it.

And maybe gear up for WWIII depending on how the Zionist bankers feel about it.

MrsB
 
I have been out of action lately due to some health issues, however, I think I will weigh in on this issue. About thirty US oil companies went bankrupt in 2015. I counted twenty that I knew of, but a Texas law firm published a list showing thirty.

The Saudis are out to kill off the shale industry, and they seem to be doing a bang up job of that. Now, Iran is about to start dumping the product. Will this kill off our native oil industry? Not if we impose tariffs on oil.

Buddy Cotton is an investor in the US oil and gas industry. Read his article here: http://www.mineralrightsforum.com/forum/topics/action-required-now

The Saudis and Iranis can dump all of the product they want, but this plan will keep the US industry alive and at the same time generate a lot of tax revenue.

Read the article and give us your opinions.

The Obama administration wants to impose a ten dollar a barrel tax on all oil. Taxing US oil production will be the death of the industry.
 
rufus said:
I have been out of action lately due to some health issues, however, I think I will weigh in on this issue. About thirty US oil companies went bankrupt in 2015. I counted twenty that I knew of, but a Texas law firm published a list showing thirty.

The Saudis are out to kill off the shale industry, and they seem to be doing a bang up job of that. Now, Iran is about to start dumping the product. Will this kill off our native oil industry? Not if we impose tariffs on oil.

Buddy Cotton is an investor in the US oil and gas industry. Read his article here: http://www.mineralrightsforum.com/forum/topics/action-required-now

The Saudis and Iranis can dump all of the product they want, but this plan will keep the US industry alive and at the same time generate a lot of tax revenue.

Read the article and give us your opinions.

The Obama administration wants to impose a ten dollar a barrel tax on all oil. Taxing US oil production will be the death of the industry.
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I hope you are feeling better.

Remember you did ask for opinions.

Companies go through bankruptcies all the time. In boom times they popup like weeds, in bust times they drop like flies. The U.S. oil industry has been through boom and bust cycles time and time again. None of the bankruptcies has caused one single barrel of oil not to be pumped out of the ground from the wells.

A tariff on imported oil wouldn't be good for anyone, and can't be done. Most of our imports come from Canada and Mexico. But if there was a tariff it would make WTI raise to $65 a barrel, while the rest of the world was living with lower priced oil. This would put all U.S. exports at a disadvantage, and would cost American jobs. Even the refineries would suffer and some smaller ones would have to close, costing more American jobs. That doesn't even count what would happen when the oil producing companies put tariffs on U.S. made products. The U.S. farmers would suffer from higher fuel costs and a falloff of exported grains, more lost American jobs. A tariff sounds so easy to solve a problem, until you look at what it would actually do.

The U.S. oil industry needs trimming, the out of control growth that occurred during the boom cycle needs to be trimmed. But a price of $65 a barrel wouldn't bring the industry back to where it was when the price was $100 a barrel. the industry started cutting back when the price was over $80 a barrel. The $65 a barrel would bring back some drilling, but doubtful it would be enough to stop the decrease in U.S. oil production.

The $10 tax on oil would have the same effects on the economy as the tariff, in a more limited amount. But it would have no effect on the U.S. oil production industry as you claim. The tax would be on crude oil going through the U.S. refineries, it would add about 23 cents to each gallon of refined oil produces. The Tax would take $1.12 billion a week taken from the American consumers, the tariff would be 3 times that every single week.

No, I think the best course is the free market one. There is simply to much oil on the markets. Some will claim the Saudis or Iranians are causing to much oil. The Saudis have increased production by about 1 million barrels a day, the U.S., Canada, and the Russians have added 10-11 million barrels a day. So blaming the Saudis is just silly. But then some will say the Saudis should cut back production, but why should they ? Why should they cut so others can produce ? Does Ford cut back so GM can sell more cars and trucks ? You would say Ford was crazy if they did that, but you want the Saudis to do the same thing. Should we put a tax on Fords because GM can't make a car as cheap as Ford does ? You know that would be silly.
 
Denis, thanks for your opinion, hopefully we will hear from others.
 
rufus said:
Here is another opinion on Obama's ten dollar a barrel tax. http://www.newsmax.com/Finance/Stre...il_job=1653737_02062016&s=al&dkt_nbr=rxf1nbko

This issue is complicated by the fact that most US refineries are constructed to handle the heavy, imported crude rather than the light crude produced in the US.
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You still seem confused about the tax. The tax is on any barrel of oil that goes to a U.S. refinery. It doesn't matter if the oil is domestic light crude oil or imported heavy crude oil. The refineries are constructed to run the most efficient on a mix of light and heavy crude oils. The tax doesn't effect producers of crude oil !
 
I had to laugh at this quote from your link Rufus.

"That's a lot of money to ask from an industry that can't afford to pay its own expenses, much less a $10 tax."

Does the commenter not know that the consumers of the refined oil products will be paying the tax ?

Calif. now has a carbon tax on oil, the industry doesn't pay that in the end, the consumers pay it !

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