This week OPEC+ at its 33rd OPEC and non-OPEC Ministerial Meeting held in Vienna agreed to decrease crude oil production by 2,000,000 barrels a day which will have obvious implications — bad implications — for the rising price of oil, increasing inflation, and the global economy.
Taking 2,000,000 bbl/day out of the pipeline will:
1. Dramatically increase oil prices to the $125 – 150/bbl range.
2. Add another jolt to inflation worldwide, but in particular in the United States.
3. Enrich Putler’s war machine.
Who the Hell is OPEC+, Big Red Car?
The Organization of Petroleum Exporting Countries is an international cartel of oil producers who represent more than 50% of the crude production and more than 80% of the proven oil reserves in the world.
OPEC was formed in 1960 in Baghdad by the nations of Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela to exert sovereign nation control over oil production and pricing something previously controlled by the Seven Sisters — Exxon, Mobil, Chevron, Texaco, Gulf, British Petroleum, and Royal Dutch Shell.
The current members of OPEC are: Algeria, Angola, Congo, Equatorial Guinea, Gabon, Iran, Iraq, Kuwait, Libya, Nigeria, Saudi Arabia, United Arab Emirates, and Venezuela.
The “+” in OPEC+ is: Azerbaijan, Bahrain, Brunei, Kazakhstan, Malaysia, Mexico, Oman, Philippines, Russia, Sudan, and South Sudan.
OPEC+ controls the price of oil today, but when the United States had excess crude oil production that it exported, it had a thumb on pricing, but no longer.
This is the punishment for losing energy independence. It is substantial and it was all avoidable.
Why did this happen, Big Red Car?
There are simple and complex answers, dear read.
1. OPEC+ has a singular focus on their financial prosperity.
Perfectly understandable. This is raw financial greed — which is not illegal.
It is a cartel exerting their monopolistic production and thus their pricing power.
2. OPEC+ has more pricing control over crude oil since the US has returned to being a vassal state to its energy lust.
Where once the US was energy independent and a net exporter of crude oil thereby placing its thumb on the pricing scale globally, it has now again lost control ceding it to OPEC+.
3. The Trump admin had a strong relationship with Saudi Arabia — granted it was still effectively run by the Dark Prince, Mohammed bin Salman, murderer extraordinaire — that the Biden admin has squandered.
Have you seen Joe Biden sword dancing with the King or the Dark Prince? No, you haven’t.
The only US President to have ever participated in the ritual of the Sword Dance with the Saudi King and the Dark Prince. Oil was less than $40/barrel.
4. Russia is, of course, pursuing its own interests including funding its attack on Ukraine.
Putler and the Dark Prince
Vladimir Putin and Crown Prince Mohammed bin Salman have been big buddies since the 2018 G20 summit in Buenos Aires whereat they sat next to each other and made a display of their “murder bro” meeting.
Here are the two murderers enjoying each other’s company at the G20 summit.
Vlad: “So, Dark Prince, what brand bone saw do you favor?”
Here is the big “oil bro” greeting.
“Dude!”
Here is the current President meeting the Dark Prince in Saudi Arabia.
“The United States cannot tell Saudi Arabia what to do anymore, you old fart.”
President Biden is shown meeting Crown Prince Mohammed bin Salman after fifteen Saudi operatives killed and dismembered Washington Post reporter Jamal Khashoggi in Istanbul, Turkey at the Saudi consulate.
So, what are we supposed to learn from this, Big Red Car?
Great question, dear reader.
1. When the United States is energy independent, OPEC+ cannot control the price of crude oil and gasoline in our country.
2. When the United States is energy independent, we can exert some control over international oil prices.
3. Nations have short memories. It was only a few years ago the United States came to the rescue of Kuwait and Saudi Arabia and repelled the Iraqi threat to both of them.
4. A US President must deal with odious vermin — talking about you, Dark Prince and Putler — whilst protecting and furthering American interests.
You will have to sword dance with Saudi scumbags or the Russians will slip into the void and do us dirt.
5. Oil is a huge weapon both economically and militarily. A strong American economy and oil industry is a force for order and peace in the world plus stability at home.
If you kick the energy industry in the groin, there will be consequences when oil prices skyrocket.
6. Scumbags like the Dark Prince and Putin are perfectly comfortable with each other.
Bottom line it, Big Red Car
Easy one today: American energy independence is both an economic and foreign policy consideration. When Joe Biden declared war on energy, he unleashed a great number of unintended consequences that are now getting quite messy.
Releasing 10,000,000 barrels of oil from the National Strategic Reserve will do nothing to blunt the impact of a 2,000,000 barrel reduction in global supply.
But, hey, what the Hell do I really know anyway? I’m just a Big Red Car.
“Got to admit. This Big Red Car — who is not an EV, mind you — makes a lot of sense.”