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Gold/Mining/Energy : Strictly: Drilling and oil-field services
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To: diana g who wrote (39993)3/16/1999 12:50:00 AM
From: Pete Young  Read Replies (2) of 95453
 
Diana,

<<Washington and other political powers could bring pressure to bear on non-compliant producers in ways that other producers could not. And a more stable oil price at a level which would assure that domestic production was maintained at a comfortable level for national security seems a goal we could assume the USA and other powers would have. >>

Well, wouldn't be the first time. Look at the assertions of the book, Victory amazon.com
about how the Reagan administration got SA to "open the taps" hastening the demise (so it's asserted) of the USSR.

I don't doubt the level of input the U.S. has on oil prices through SA, after all, we protect the royal family in power from domestic dissident movements and foreign powers and provide them with places to park their wealth. But is the U.S. really motivated to see a higher oil price? Alot of evidence points that they are...elite opinion (ie; Economist) is openly worried about the negative effects of low oil prices on ME and LA political stablity. Would higher oil prices significantly delay or forestall global economic recovery? Can supply side mechanizations overcome significant demand problems...I'm not really sure that they can. I am convinced that we must have some global recovery in order for oil prices to increase significantly.

Oh, and finally, something to think about, how did we get here in the first place, if the U.S., #1 thinks that low oil prices are counterproductive, #2 has significant control over price?
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