Today the OPEC+ oil cartel announced it will cut output by 2 million barrels a day, beginning in November. Since the world currently consumes about 100 million barrels of oil a day, this will be a cut of about 2%. OPEC is short for the Organization of Petroleum Exporting Countries. It includes 13 member states, led by Saudi Arabia, and produces 44% of the world’s oil. Eleven other countries work alongside OPEC and make up OPEC+. Those additional countries include Russia, and together with OPEC, they control more than half of the world’s oil, about 55% of it.
Enacting an excess profits tax on oil companies is long overdue. They're making a killing at everyone's expense.
“The decision of OPEC+ to cut production is not simply about prices. It is about the ongoing struggle over democracy playing out in Ukraine, as the Ukrainians fight off the Russian invaders.”
RasPutin has got to go!!!
It seems clear to me that some of these energy conflicts are just forcing us to cut ties with the devils we have been making deals with. I know we have been supporting Saudi Arabia militarily for their war in Yemen, which is horrendous, as seems to be most of what I hear about their leadership, and that goes for Russia too. https://www.gao.gov/products/gao-22-105988
There should be no more bases, military personnel, US weapons sold or military advice to the Saudis, or aid or anything. Also, no technology from the USA. Sanction them too. That is what should happen. Let OPEC countries drink their oil as far as I am concerned. Europe is going to have to figure out their own situation, but the USA should not help OPEC since Russia is benefitting and Saudi Arabia is an unreliable ally. Europe can try to get LNG from Australia, Qatar and USA who are the 3 largest distributors of LNG. https://www.statista.com/statistics/274528/major-exporting-countries-of-lng/
Qatar and Indonesia used to be a member of OPEC. There are other countries who have LNG that are not members of OPEC. No military help for any OPEC country, or technology support. At this point we need to withhold our "friendship" from countries that have been fence sitting or siding with Russia in things of great importance.
Here in the USA we are going to have to tighten our belts. My daughter informed me that she cannot study if she gets cold. It is not really cold yet, but I have told her that she is going to have to change her mindset and relish warm clothing in the home. Or else, she can stay late at school and do her work. These are the struggles that we all have to face as we adjust to a change in lifestyle. I think Americans need to stop being angry at Joe Biden and start looking at what we can do to lessen our dependence on energy. He did not create the problems, he has inherited them. Trump cannot solve the problems not in the short term or in the long run. The planet is frying and along with that comes hurricanes wiping out communities, wildfires wiping out communities, floods wiping out communities, drought wiping out crops, and communities. Our biggest problem might seem to be the cost of fuel, but the carbon fueled energy is making our planet to hot for our species and others to live. How can we live less energy filled lives? We have the most energy intensive lives on the planet and our culture is the most reluctant to change behaviors to accommodate changing realities, or awarenesses. Navigating that is hard. OPEC is doing us a favor if it gets us to cut back and do less. All of these events have to be looked at as opportunities to make changes. I use my revulsion towards Putin and the Saudi leadership to keep me going as I do the difficult things we need to, to get off of fossil fuels, something we are working towards in our home and other areas of our lives.
The US has permanent military bases in Saudi Arabia, in part to prop up the Saudi royal family which otherwise doesn’t have a leg to stand on. The US is the main supplier of hardware to the Saudi military. All this ostensibly to keep the oil flowing. Do the Saudi royals really think they’re better off throwing their lot in with Putin and maneuvering to hand control of the US Congress back to Republicans and put TFG back in the White House?
The GOP is silently cheering all this. Their only hope in November is rising prices at the pump. They know they will never prevail with open, honest debate on policy; they have no policy.
The November mid-term elections are a choice between honest and dishonest government.
BTW, I paid $2.99/gal for 87 octane yesterday here in liberal, Democratic Connecticut.
"It is no secret that Saudi leaders cultivated the Trump family, which returned their overtures, and last year, Saudi leader Crown prince Mohammed bin Salman..."
Trump, bin Salman, and Putin. No nation in the world admires any of them, but they surely admire each other.
We have to get away from our needless addiction to foreign oil and oil as a whole. We are seriously compromised by foreign oil, and that contributed to trump and Jared making their own deals with the Saudis, for example. So, trump and Jared turned a blind eye to Prince MBS's killing and dismembering a foreign journalist. Now, Jared received a $2 Billion hedge fund from his friend the prince. I imagine the $2 Billion will work its way from the hedge fund into Jared's personal account. And to think that the people of the U.S. are paying for all of this through oil and gas prices. As Nixon's aide Colson might say, "They've got us by the b---s."
Biden should call that Seventh Century Camel Fornicator and tell him he has five days to reverse the decision or we cut off his Army, Navy and Air Force from spare parts and replacements. With those damn Saudis for "allies" we don't need any enemies.
Thank you Heather.
Any upward fluctuation in the price of gas will translate into a failure of Biden. Unjust, absolutely. Yet it is a golden egg for the GOP to hold over the Democrats just in time for the midterms.
The GOP have been fairly silent as the price of gas has tumbled over 100 days straight. Rest assured they will squawk about this.
I predict we will be seeing the "I did this" Biden stickers on the gas pumps again in the not to distant future.
Ironic how the friends of Trump seem to rattle their saber at the most distinct time to hurt Democrats.
Be safe. Be well.
Why am I not surprised this happened right before our mid-terms? I was wondering why Putin didn't wait until the Republicans and Trump were back in office or why he didn't invade Ukraine while Trump was still in office. After all, Trump "believed" every word out of Putin's mouth! The Trumplican controlling branch of the Republican Party is often running on an anti war platform, even though no American troops are involved right now.
Of course, Putin timed this so it would have maximum effect on our upcoming election! When are we ever going to learn. Letting tyrants control our domestic supply of anything is crazy. I still remember the Saudi oil embargo of the 1970s. Green Energy can't come soon enough! Thank goodness for the Chips Act and the Inflation Reduction Act. Unfortunately I am afraid they might have come too late.
Some perspective in this report. A hotly debated idea that renewables can replace fossils. Theoretically it is possible. The realization of it in the US, not so clear. When one of two political parties does not give a shit about renewables, sustainability or climate change, it will remain an uphill battle. The only party that can or will lead, if pushed, on this issue is the Democratic Party. I think it deserves mention that a large number of the world’s 60 largest banks increased their involvement with fossil fuels over recent years. Is this not a tale of two views? One, a month to month, quarter to quarter transactional view of life, and another, long range view.
Thank you, HCR, for once again clarifying a complex situation. If only the network and cable news media would follow suit, Americans might learn a few things instead of jumping to conclusions and placing blame where it doesn’t belong. Deep thanks….
Saudi Arabia loves Trump. Authoritarians who despise women stick together.
Not many here are on the side of limiting global warming. Gas needs to be high to discourage its use. And it needs to be high not just because the market is giving the profits to oil producers. But rather we need a large rebated carbon fee. Then you have an incentive to use less gas and not drive a Chevy Suburban when you could be driving a Prius or even better a Chevy Bolt EV.
With a rebated carbon fee, everyone gets "taxed" but they are rebated the average amount. If you are especially efficient, you will make money. If you are average, you will break even. The incentive is to reduce consumption of non-renewables always.
Heather, Re: your power outage....I live in India in a rural community near Mumbai. We have outages all the time. I have learned to live with it. All of us have to transition to “clean energy”. This news of oil prices rising again is so disheartening....
Glad all is safe for you and yours HCR! Really hope the prices don't impact the midterms. We need every shred of help we can get to save our democracy. Thanks HCR, as always.
This is basically an economic declaration of war. OPEC+ knows their global value is reduced to zero once the transition to a zero-carbon economy is complete. This also presents an incredible opportunity to jumpstart that transition by an appeal to what really Made America Great: a measure of self-sacrifice for the good of the country and other democracies around the world.
This "greatness" was most clearly shown in the WWII economic miracle that transformed the U.S. into a superpower, except that instead of tanks and bombers, it's solar panels and windmills. The existential threat we face is many times greater than WWII, but the benefits are also on a similar scale.
It's time to cut the cord and send these countries back to their agrarian past, unless of course, they want to become a part of that miracle. Conversely, Americans who would sell their country for $3/gallon gas need a hard reality check. This opportunity must become a central part of the political conversation.