For upwards of 100 years, oil has been the world's preeminent energy source. For much of that time, until the late 1960's, America was the foremost producer and exporter. Then, thanks to a prolonged period of over-regulation and price controls, domestic demand finally exceeded supply. Subsequently, Americans watched and suffered as Saudi Arabia, Iran, Iraq, Venezuela, et al (aka OPEC) dominated the price conversation. The former USSR and Russia, too; though they were not members of OPEC.
Jimmy Carter engaged in global hand-wringing over this situation, as well as the Iranian hostage crisis, and it cost him a second term in the White House. He's a nice man and very smart, but on
Chief among the new energy innovators was George Phydias Mitchell. Mitchell was the son of an immigrant Egyptian
Impressive, don't you think? But, that's not all. Most of America's newfound oil is a product of George Mitchell's shale (hydraulic fracturing) revolution. So, say what you will about fracking - and the process gets safer, cleaner, cheaper, and more efficient every day - shale oil is the lightest, sweetest, cleanest oil on the planet. Bar none. It's easier to lift, to transport, and refine than any other oil. China and many other countries buy it to blend with heavier, dirtier oils to make those oils easier to refine. Which brings me to the punch line:
China's imports from the U.S. are only about
I think President Trump could achieve equitable trade agreements for American business - both exporters and importers - with a less bombastic style, and importantly without tariffs and the threat of tariffs. The futility of China's oil threat typifies the problems they have. Likewise Europe and almost every other American trading partner. We have the oil, they don't. Oil from shale isn't the only ace in this game, but (Please forgive the pun; it's too easy, and I'm weak.) it trumps all the others.
Until next week,
PATIENCE, DISCIPLINE, and CONFIDENCE in the FUTURE!
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