Wednesday, April 1, 2020

My Thoughts On Necessity of How To Save Oil Industry.


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This from another liberal Trump Hater and sometime memo reader who will do anything he can to find Trump continuously guilty of everything under the sun. His source is always mass media articles and TV videos from such unbiased sources as The NYT's, WAPO, MSNBC, CNN, New York and Atlantic Magazines etc

 https://www.washingtonpost.com/opinions/2020/03/31/impeachment-didnt-distract-coronavirus-preparations-trump-did/?utm_campaign=wp_opinions&utm_medium=email&utm_source=newsletter&wpisrc=nl_opinions

And:

This from a conservative history buff who believes hysteria is driving decisions and the unwashed are following:

 https://www.americanthinker.com/articles/2020/04/how_a_police_state_is_born.html

As for myself,  I am interested in thinking how best to save high employment, critical sectors of the economy so people have work and America can recover fro this crisis.

Trump has stated he is prepared to invest in our transportation industries like the airlines and cruise business.  I have heard nothing about the energy industry other than it's strategic importance so here are my thoughts:

Oil is basically a fungible product but we could bar ships carrying oil from docking at our ports and the government could purchase at an inflated price of $40/bbl all domestic oil produced by various shale producers.  This would accomplish three things:

a) It would save small producers so we would not become dependent upon a few domestic behemoths.

b) It would cause the flood of Saudi and Russian production to tank the world price below levels so unattractive they might stop their own war of attrition.

c) It would further add to our strategic reserves, which were depleted by the Obama Administration, and keep a high level of employment going in a critical industry and eventually protect America's energy independent status.

d) As a result of the government buying oil at an artificial price all wages would be frozen at current levels.

These are some ideas and I am sure there are better ones from people more savvy than your's truly but this is an industry critical to American security.


Democrats' Energy Policies Hurt Black AmericansKen BlackwellBoth Democrat presidential candidates, Joe Biden and Sen. Bernie Sanders, have adopted extreme green energy policies that hurt black American voters. More
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Two unconnected thoughts.

If China wants to flex it's power now is one of their most propitious opportunities to do so but I doubt they will because they have their own restraining issues with which to cope.

A second thought, now that we have another month of lock down, I suspect there will be an increased  rise in negative and misleading news. The mass media will continue to report in ways that di+spirit because they have a constant need to report when there is a vacuum and essentially because they want to undercut/challenge Trump's credibility. Consequently, the markets will feed off the fact we are entering another twilight zone and we will, perhaps, witness another market leg down and hopefully the last because May must be the month in which  we shift focus and begin reigniting the economy.
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