IS ANYONE PUTTING THE PIECES OF THIS PUZZLE TOGETHER... IS KOCH MAYBE LEAVING MICHIGAN....PERHAPS THERE IS A CHANCE? If you have facts, articles, or other information to post that will shed light on what I think is the picture coming together on this puzzle, please post. FACTS: Here are the FACTS you may want to consider, (the puzzle pieces). Please feel free to correct these assertions with other facts, (not opinion). Any links to articles that either substantiate or refute these facts is MUCH appreciated. I myself will be posting these in the comments. When you add a comment involving fact, please label FACT. Oil and gas prices have dropped. The Saudis dont seem to be able to restrict output through OPEC The Ruble is strengthening against the American dollar while the Canadian dollar is weakening. The United States is not getting involved in warfare in Syria and the Ukraine. Russia has entered into contracts to build the Trans-Siberian highway to China. (I would think it would be a simple thing to lay pipe next to a road to supply oil and gas to China). Russia has entered into agreements with the Ukraine to carry gas over pipelines and has managed not to give up the warm weather port in the Crimean. There is also some sort of agreement underway with Turkey. Over 51% of the Russian economy depends on sale of oil and gas from the Caspian Sea area. Europe and China are likely markets. The US dollar is required for purchases of oil from Saudi Arabia. This means that European countries must find dollars to purchase from the OPEC block. The United States gets about 17% of its oil from Canada and that involves a substantial amount of tar sands output. (This has changed in recent times.) Mr. Charles Koch has substantial financial interests in the tar sands, the supply of OPEC oil. Mr. Charles Koch and related interests are behind a lot of the politics in Michigan, supporting changes to our laws that favor oil and gas exploration as well as legislation from ALEC. Mr. Koch (and related interests) find it advantageous to support GOP and Tea Party agendas in order to get this legislation affecting oil and gas interests passed in Michigan by the GOP working with the Tea Party. Although there are plans to frack in Michigan, the number of wells actually drilled is still small. (I need help with this fact. I dont know.) MY CONCLUSION: The Russians have finally been able to find ways to market their oil and gas to Europe and are planning to get to China. With this additional supply of fossil fuel on the open market (a truly free market), the Saudis and OPEC can no longer cut output to raise the price of oil and gas. The Russians simply supply at a market price. The contracts Russia has entered into point to this. As a result, Europe is buying from Russia and soon will China. As a result, the price of oil is dropping and the Saudis and OPEC have lost their stranglehold of the market. Russia will remain firm in this resolve with over 51% of its economy depending on sales of oil and gas. This is consistent with what is happening concerning the strength of the dollar. More importantly, with the drop in oil prices, mining the tar sands as well as fracking becomes unprofitable. In the case with fracking, this involves the drilling of additional wells. Those that are already dug are a sunk cost. If fracking in Michigan is not yet pervasive, it would make sense for oil companies to abandon plans to drill at this point in order to save costs. If those plans are abandoned, a lot of support for the GOP and Tea Party agenda leaves. SHOW ME WHAT IS WRONG WITH MY LOGIC!
Posted on: Thu, 18 Dec 2014 03:42:12 +0000
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