The former head of the CIA… and the current Secretary of State, Mike Pompeo, has drawn a line in the sand.
If you buy Iranian oil, you’re getting slapped with a sanction.
Just 48 hours ago, Bloomberg reported that Pompeo said…
“It is our expectation that the purchases of Iranian crude oil will go to zero from every country, or sanctions will be imposed.”
Iranian exports… going to zero. This can mean only one thing…
Demand is going to trigger a massive rally in the right stocks.
P.S. Richard Malinson, energy and geopolitics expert, told Business Insider : “The price of oil will ‘certainly’ go above $90 and likely spike above $100 in the coming months.”
//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////At the same time, the Trump team is negotiating selling US oil to China as
a new outlet for the glut of oil produced in the USA.
/////////////////////////////////////////////////////////////////////////////////////////////////////////////
All good news directly affecting oil and gas development in the Delaware
Basin of Reeves, Culberson, and Pecos counties of Texas, and Lea and
Eddy counties of New Mexico. $100/bbl oil prices will spur rapid development of horizontal drilling of stacked shale plays, the construction
of new gas/NGL extraction, and crude oil products refineries along with
much MORE pipeline take away and transport infrastructure.
The U.S. has agreed to let eight countries to keep buying Iranian oil after it reimposes sanctions on Iran, on Nov. 5. I believe they have 180 days to taper down their buying in order to keep oil prices from spiking.
The Saudi’s have promised Trump to pump more than enough to make up for any shortfall in the global market cause by his re-imposing sanctions on Iran. They can sell their crude all day long at $20 a barrel and still make a profit.
YEP!!! their cost to produce a barrel of oil is less then $10.00 per barrel. And I believe that other OPEC countries can make a profit at less then $20.00 a barrel.
No, the Saudis CAN’T afford to sell their oil at $20/bbl. They won’t do any manual labor…no work. That’s reserved for the infidels to do and they have to pay them $50/hour to get them to work for them. So in addition to their
labor costs and equipment operator costs, they have refineries that were built by American engineers and construction contractor crews…and they
(the Saudis) will not operate those plants. They keep infidel contractors
operating the refineries and gathering equipment, mostly American contractors.
The Saudis are unhappy that we sell oil for $66/bbl…they want the price
above $100/bbl because even they cannot afford to lose money on every barrel produced and still maintain a viable economy.
We now have the oil and gas volume for daily export that we can sell to the world at prices below what the OPEC nations and Saudi Arabia are
comfortable with. We have the potential to use oil, gas, and refined products to upset OPEC’s income stream from the nations of the rest of the world.
Trump is the best trade negotiator the USA has EVER had.
As a Mineral/land owner in Reeves County, I hope your right… well maybe not over $100/bbl, that could wreck the economy. But the last time the bottom fell out of the oil market ( $32/bbl -and thus the American oil industry) was with out question caused by the Saudi’s who were worried about self sufficient production coming out of the Permian -convinced enough of the OPEC countries to open their production gates and flood the world market with their cheap sweet crude. Of course at the time Obama who couldn’t care less stood by and let them do it. President Trump is worrisome in that he seems to be in bed for some reason with MBS. I don’t buy the “military contracts going away” argument he tried to use as reasoning for not forcefully addressing the Khashoggi murder. More than likely he’s looking for some Saudi support with the decisions he’s made with respect to the Iranian nightmare … but I hope in the end that he supports energy self sufficiency for the US and the removal of all Obama created roadblocks to marketing US oil on the world market.
Have no fear.Trump is first,last,and always a businessman and he’s all about conducting business to benefit ALL Americans and himself. He’s
always saying “put America FIRST!!” then he puts his money where his
mouth is and turns worldwide trade agreements to benefit the USA FIRST!
He’s the only American businessman I have ever seen in my life who beats the
Russians, the Chinese, the Saudis, and all the other nations of the UN at
their own game…and MAKES them like it. I especially like how he flaunts the beautiful FLOTUS in front of the whole world…especially countries that make it a crime for a woman to show her face or drive a car
and strides among them with her by his side…defying them and making them believe the USA is unique among the nations. And since he really
understands how to use our oil and gas reserves to manipulate the economy of the whole world in our (US) favor…I’m even prouder to have him and the FLOTUS represent us before the whole world.
MAGA…and drill, baby, drill! USA is now number 1 in oil and gas production in the world.
Mr. Garvey…I’m curious…Why should Trump or the US State Dept
forcefully address the Khashoggi murder?? He was NOT a US Citizen…not an American. Had he been an American Citizen, then our government would be obligated under the Constitution to respond. Trump played it
right by the Constitutional guidelines. You don’t risk a war over the life
of a non US citizen, but for a US citizen…expect the US Marine Corps to
be on their doorstep immediately. Pax Americana…anyone murders our
citizens anywhere abroad…we WILL come avenge them. …oil or no oil…its the principle that American Citizens take care of American Citizens
anywhere.
Sorry…I’m an old Air Force veteran…and I couldn’t resist dragging out my soapbox.
Back to oil and gas leases and production in Reeves county!!
I don’t know if I agree with wanting $100 oil. While it makes for a nice check each month, a bunch of secondary problems will also come with it. Essentially all goods and services will increase. It already costs an arm-leg to cool and heat my home. Tickets for travel will go up exponentially. Furthermore it would appear that the Democrats are going to take one of the two houses. It goes without saying that they are not in favor of an oil/gas rich economy.
Cap and Trade and Windfall profits taxes will be on the table, causing a slow down of the industry.
This election today is one of the most important one in a long time. Democrat control of either house will be detrimental to oil and gas. Many voters are happy with the direction our country is going in and will vote RED
I along with many are hoping for a RED tsunami! Oil prices should go up, but you’re right $100 barrel would effect the economy negatively. The Saudis and OPEC really control the direction of prices. Trump has a good relationship with SA. So the election of representatives that support his agenda is so important.
The Saudis may find it in their interest to take the price of oil down to thirty dollars a barrel. Such a move would ingratiate them with the American consumer and crash a competitor to the point that the Saudis could purchase at fire sale and scrap prices.
We depend upon them to purchase much of our export armament production. They in turn have extensive voice in the halls of power of the Federal and increasingly individual States. They have money, an almost unlimited amount of money, by which to persuade, cajole, entice, enforce their desires upon actors within our government.
I had no idea whatsoever that this was a political forum! Let’s try and keep it civilized and regarding mineral and oil matters. We all have personal opinions and this is really not the place to share them
I agree with curbing the political comments. We are inundated with politicts everywhere. Let’s not get sidetracked on this forum, generality speaking. We all have the common interest of our minerals in Reeves Co. TX. If people feel a need to discuss the political implications of a particular situation, I suggest it be under a designated and well labeled “catigory”.
I agree. So much bashing going on between parties. I understand if there is a SPECIFIC bill or proposition that might be a problem, but “general” political negatives need to be shelved, or maybe just have their own “political mineral/oil category”
Trump’s agenda and his relationship with Saudi Arabia is very pertinent to the oil and gas industry. How else do you think fracking was unleashed. Certainly not the previous administration’s blessing.
