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Death of
Fracking
The sudden drop in oil
prices has your average minivan-driving American cheering some long-awaited
relief at the pump. And
the media is eating it up.
Pundits and analysts
alike are claiming that cheap crude is lining our pockets with more spending
money... while at the same time punishing our enemies that rely on oil
revenues, namely Vladimir Putin.
The problem is, this
win-win dream scenario is just that - it's a myth.
Russia isn't on the
ropes. And Putin isn't worried.
He knows that the more
oil prices tumble, the more it hurts US shale production.
The shale revolution
that pushed our reliance on foreign oil down to just 10% is a
capital-intensive industry.
It runs on high oil
prices. And the majority of US fracking operations are uneconomical at $75
per barrel.
We're at $82 per barrel
now... and domestic production is already winding down. 19 shale rigs went
offline just last week. And producers are cutting costs and canceling
drilling.
This slide in oil prices
is endangering American energy independence and emboldening, not weakening, Russia.
You see, Russian oil
companies aren't concerned with quarterly earning reports. They move in
lockstep with the Kremlin.
And Putin doesn't live
by election cycles. He's not going anywhere.
In fact, this is the
perfect opening for Putin's state-controlled oil companies to make
acquisitions at a discount. They'll emerge from this stronger than ever!
It's another win for
Putin in what we're calling the Colder War - the epic struggle to control the
world's energy trade.
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