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No. 68452
>>68435 It's contextual irony. High gas prices were one reason Bush was laughed out of office. For double irony, the now maturing oil ventures responsible for this change, came about solely due to the high prices of the Bush era and resultant speculation. Downward pressures on gas price: 1. US production increases. The US overtook Russia as the top natural gas producer in 2010. In 2014, the US overtook Saudi Arabia for oil production, producing over 11 million barrels a day. 2. OPEC is cutting prices to save market share. They believe a market readjustment is in progress. It is better for them to save market share than prop up the price, as they believe they have more staying power than new US ventures. The US ventures believe their pockets to be deep enough to survive. This could turn into a spectacular price war. 3. Due to sanctions and falling currency, Russia is now totally dependent on oil exports (even more so than before), and is on record at willing to tolerate gas at 60 dollars a barrel, mostly because they have no choice, and have already locked thirty year contracts with their biggest partner eg. China. This statement undercuts any OPEC attempt to stabilize the price. For geopolitical reasons, reducing the price of gas can be considered economic warfare against Russia. As oil is the blood of the world economy, this has resulted in a stronger US dollar. The US is rebounding despite the end of quantitative easing. The emissions target with China is the greatest achievement of the current administration. China has mathematically committed themselves to more carbon neutral energy than the US has. Furthermore with China on board, this sweeps the rug from under other laggards, as China is rightly seen as a tough negotiator (just look at the pennies on the dollar deal they are paying for Russian oil). US business interests can't claim climate regulation will make them uncompetitive, as the biggest players in the energy market are either on board with Kyoto/Beijing, or are under economic sanctions. My only criticism of Obama is he has taken the totally wrong attitude with Turkey. Turkey's claim to NATO is geographical. It negates the Russian Black Sea Fleet. Do not expect them to be a productive member of society. It only drives them to Moscow's orbit.
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