#28418
Profile photo of Ron S
Ron S
Survivalist
member6

KOS; I think that the Saudis are playing the same type of game that they played in 1973 when the producers restricted the amount of oil being exported to the U.S. It caused mass panic with long lines at gas stations. Within a few months, the U.S. Government was putting out info on how to reduce energy consumption, from tips on how to increase your gas mileage to rewarding taxpayers for coming up with alternative sources of energy, to better insulating their homes and ideas to better use of our resources.

As soon as the embargo ended, the Government phased out all the rewards and the U.S. returned to the old ways. The only thing that stayed around was smaller, more fuel-efficient vehicles, and those for not very long. I believe that the OPEC nations will continue to reduce prices until it is no longer profitable for the home-bred companies to continue drilling and shut down. after everything has been dismantled, then OPEC is again free to charge what they wish for their oil as there will be little competition.

Of course, this reduction in prices also will affect the Russians ability to raise capital from their massive oil fields so I believe that this again will reduce their competition in the market. Ron S.