Saudi’s crude price war

WHAT exactly is driving the price of oil down in today’s markets— and ultimately at the gas pump?

The primary driver is that our ally, Saudi Arabia, has declared war on the booming American shale and energy exploration industry.

Yes, America, we are in an allout energy war against the Middle East’s oil heavyweight champions.

The Saudis’ latest move tips their hand to a price war.

While oil inventories are already skyhigh, and US exploration and production is at a 25year high, why would our “friends” the Saudis announce thisweek that they will raise the price of oil for Asia and other buyers but cut the price for oil it sells here in America?

It’s simple — they are trying to break the backs of the American energy production companies.

The Saudis are losing market share to the US startups and— you guessed it — they’re not happy about it.

So they are willing to start an oil price war by flooding the market with gobs of excess crude just to wash away the entrepreneurial upstart Americans.

In the years between 2001 and 2011, the weekly US field production of crude oil measured in the first week of December steadily averaged 5.5 million barrels perweek.

As of the first week of December 2014, the US is now producing 9.1 million barrels perweek.

The International Energy Agency estimates that if the boom continues, it will make the US the world’s largest producer by 2015, five years earlier than originally forecast.

That is, if it is not derailed by Saudi aggression in the oil market.

It’s really quite simple to see what’s going on here. The Saudis would like nothing more than for a whole bunch of US shale and oil producers to fold.

That already began when Austin, Texasbased WBH Energy filed for bankruptcy on Jan. 4.

The shame of it is there are a lot of wellpaying US jobs and small businesses that will become the casualties of the Saudi aggression. It’s a war over oil all right— a price war.