That’s right, forty-seven cents. Gas Prices! Per gallon. I could have filled up the Environmental Destroyer for ten bucks. But I’m not driving to Michigan to do it.
Could this be a harbinger of things to come?
“Environmentalists” have been warning us that we are about to run out of oil and the price, to quote Barack Obama, will be skyrocketing. Their initial warning was just after the turn of the century. And that would be the last century. Oil is so plentiful right now that the price per barrel has dropped from about $80 two years ago to about $8 last week, for Keystone pipeline oil.
That’s a mixed blessing. It’s certainly good for consumers as gas prices take a big chunk out of middle class budgets. It’s really a blessing if you don’t live in Scottsdale, Arizona and you heat your home with oil. On the other hand, if you own or work in the oil fields you could be in trouble.
Flint Hills Resources LLC, the refining arm of billionaire brothers Charles and David Koch’s industrial empire, said it offered to pay $1.50 a barrel Friday for North Dakota Sour, a high-sulfur grade of crude, according to a corrected list of prices posted on its website Monday. It had previously posted a price of -$0.50. The crude is down from $13.50 a barrel a year ago and $47.60 in January 2014.
Democrats will be screaming because the Evil Koch brothers profit margins are going to go up, just in time to buy the 2016 election for Rand Paul. They are Libertarians, after all.
But really, there is a downside.
For instance, Wells Fargo () is sitting on more than $17 billion in loans to the oil and gas sector. The bank is setting aside $1.2 billion in reserves to cover losses because of the “continued deterioration within the energy sector.”
JPMorgan Chase() is setting aside an extra $124 million to cover potential losses in its oil and gas loans. It warned that figure could rise to $750 million if oil prices unexpectedly stay at their current $30 level for the next 18 months.
Banks and oil companies will take a big hit. Hopefully, this time, they’re prepared for it because it’s not likely Wall Street is going to see another bailout. Unless their darling gets elected. I’m referring to Hillary, of course.
It’s gonna be good times at the pump for a while, we’ll have to wait and see about the whole U.S. economy. Low oil prices could either push us over the edge into an election year recession or stave off the recession by putting more disposable income into consumers’ hands and bailing out the retail sector.
UPDATE: Shortly after I wrote this I found THIS video. It’s priceless.
Another example of Obama’s ignorance in his own words.
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