Earlier in October 2019, Trump told US shale producers that the purpose of expanding the oil industry was not just to reduce and end dependence on oil supplies from "foreigners", but to establish "American energy dominance." This dominance could, however, would remain unattainable unless the demand for traditional crude oil could be reduced; hence, the Saudi (US) demand for 'reducing' oil production.
That the plan has clearly backfired, putting the Saudis against the US and forcing Trump to reach out to Putin to 'manage' the energy market. At the same time, the Saudis can still theoretically continue waging the "oil war" not just because they want to increase their own share of oil market โ this could happen in the wake of a reduced Russian share โ but because of the fact that an ongoing external crisis helps a weakened regime, yet the US cannot simply afford to do so primarily because the shale oil producers do not have the capacity to sustain themselves during this war anymore.
According to reports, there's no more than 16 US shale companies that operate in fields where the average new well costs are below $35 per barrel. Other shale producers, which budgeted for oil between $55 per barrel and $65 per barrel in 2020, had no other choice but to move to idle rigs, cut staff and generate cash for expenses. In the wake of a continued "oil war" and plummeting prices, there is no gainsaying that the very few shale oil producers which are actually able to cover production costs will be forced to do a wholesale reduction in industry spending and the unprofitable producers will have to stop drilling altogether, which will drive them out of business for a while.
This led Trump demanding the Saudis to end the "oil war". Those talks were, of course, unsuccessful as the Saudi regime itself pushed by the on-going 'rebellions' at home needs an external war to survive politically. The refusal has led to some bitterness coming from certain influential American senators, accusing Saudi Arabia of a 'conspiracy' aimed at destroying US shale oil industry.
Senator Ted Cruz reportedly stating that:
For the US president, a continuation of the "oil war" and plummeting oil prices would be devastating, ruining all hopes of US 'energy domination' but also devastating his political fortunes."The Saudis are hoping to drive out of business American producers, and in particular shale producers, largely in the Permian Basin in Texas and in North Dakota. That behaviour is wrong, and I think it is taking advantage of a country that is a friend... If they don't change their course, their relationship with the United States is going to change very fundamentally."
Already, his 'trade war' with the Chinese has led to massive farm bankruptcies in the US, particularly in those states where Trump had won in the 2016 elections. Again, a devastation of shale oil industry, coupled with the COVID-19 crisis, could have massive impact on the next US presidential elections โ a situation that any populist of 'Trumpian' kind would want to avoid. What adds to its significance is the fact a majority of the US shale oil producers are a large part of his political supporters and are based in the regions where Trump had won election in 2016. As of today, the situation for Trump is grim as the producers continue to lay off their workers.
For the US to survive this crisis, 'better management' of the energy market will also have to include and address the question of sanctions on as important Russian projects as Nord Stream 2. The US sanctions target Russia's Gazprom from expanding and consolidating its towering presence in Europe's energy market This case is just another example of a US conspiracy against Russian presence and share in the oil market and a push for reducing Russian share and increasing that of shale oil. Any question of 'better management' will thus also include ending the politics of sanctions.
Salman Rafi Sheikh, research-analyst of International Relations and Pakistan's foreign and domestic affairs, exclusively for the online magazine "New Eastern Outlook".
In that regard, DC is directly analogous to malignant tumor or some malevolent virus. It only cares about now and parasitically sucking the blood and life from its host, not aware that with its death, the cancer will die first. (Viruses too, but less so.) But that points to the other critical problem here. The supranational NWO scum (improperly, immorally, but 'legally') is allowed to see and conduct itself not as a parasite, (which is bad enough), but as a superior predator.
There's the essence of the problems facing the countries and peoples controlled by Team FUKUSraHell.
R.C.