10/11/20

CO2 And Fracking A Bit Of Truth

Comes now the conundrum as to whether former Vice President Joe Biden, Democrat candidate for President, is supportive of or opposed to fracking.

Allow me to kill that suspense for you — he opposes fracking, but is prepared to say whatever is necessary to obtain the most votes, which is a typical politician’s response and Mr. Biden is a politician.

Beneath the knee jerk on-again, off-again, political flip flopping is the notion that fracking is related to CO2 emissions. That turns out to be true.

“Joe, do we have any idea what the Hell is going on with fracking?” “Sorry, Kam, babe, we don’t have a clue. Just smile. Oh, today we are supportive of fracking. Can’t tell about next week. Just keep bobbing and weaving. Wow, do you smell good.”

But what is really happening out there as it relates to CO2 emissions and fracking?

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04/2/20

Moving Markets — President Trump And Global Oil

We are living in interesting times. We are facing a pandemic, an economic crisis, a stock market brouhaha, and an oil bust.

Today, we focus on the oil bust. In case you haven’t been following things, the Russians and the Saudis got into a pissing contest as to the level of oil output by the OPEC + bunch.

OPEC + is the Organization of Petroleum Exporting Countries which has been around since 1960 and is in the oil pricing manipulation business. The + means Russia is in the talks.

The result of the Saudi Arabia v Russia pissing contest — the Russians would not agree to reduce production levels — was a collapse in global oil prices with some incredibly low prices — 1950s prices — which then translated into lower gasoline prices.

These two clowns wrecked the global oil business in an amateurish “who has the bigger dick” contest.

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03/8/20

Oil War

If you slept in on Daylight Savings Time, then you may have missed that we have another war erupting in the Middle East — Saudi Arabia (through the newly public Aramco which it controls) has lowered the price of its crude, while threatening to increase crude oil production by more than 2,300,000 barrels daily to a total of 12MM barrels per day.

This is a hissy fit on the heels of an unsuccessful OPEC + meeting (the plus being the addition of Russia) attempt to reduce production by 1.5MM barrels.

As always when this group meets, there was a lot of discussion, but no consensus.

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09/17/19

Iran, Curious, Provocative Iran

The Middle East is on the verge of an explosion precipitated by a spiral of Iranian provocative behavior. Your Big Red Car would like to calmly discuss what has transpired to bring the world to this point. We need to know the history of the region and Iran.

In 1979, the Shah of Iran — an American ally of some long standing — fled and the resulting leadership void was filled by the Ayatollah Khomeini, a religious exile of some fifteen years. The son of a religious scholar, the Shiite cleric was said to have memorized the Qur’an as a youth.

The Shah — Mohammed Reza of the family of Pahlavi — had been put into power in 1941 by the Russians and the British (when they attacked and seized Iran in World War II to safeguard supply lines to Russia) and was considered to have been only the second “modern” Shah. As Shah, Reza was pro-Western. He spoke English, French, German, and Persian (Farsi), but was at his core a playboy.

Reza, as Shah, launched the White Revolution in the mid-1960s. His advancement of the Iranian culture was extraordinary as was the growth of the standard of living amongst the Iranian people and womens’ rights. It is important to note that the Shah “reigned” and, ultimately, “ruled.” The big driver was oil wealth of gargantuan proportions. In many ways, he was ahead of his time in the westernization of Iran.

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