“Get Off My Lawn,” He Shouted

Last night I watched the State of the Union Address. I watched the entire speech and the rebuttal. I learned that to our ‘representatives’ and the elites in Washington, the most most important issues are Ukraine and January 6th. In the rebuttal, I learned that the four things important to Republicans are our southern borde5r, conflicts overseas, inflation, and crime–not necessarily in that order. When the State of the Union Address was over, I felt like someone had yelled at me for an hour and a half. The speech proved that President Biden does have the energy to give an hour and a half speech. It also left many Americans wondering if there were drugs involved.

In his speech, the President needed to allay doubts about his cognitive abilities. He also needed a reset from his image as a tired old man. He did a reasonable job on both counts as long as you ignored the yelling and the slurred speech near the end of the address.

There were a number of lies told during the speech. January 6th was not an insurrection–there were no guns involved and no one has been convicted of insurrection. The President did not inherit a struggling economy–he inherited low inflation, low interest rates, energy independence, and an economy on the rebound from the Covid lockdowns. A large number of the jobs he claims to have created were simply people returning to the jobs they held before the Covid lockdowns. I would also like to note that many of the jobs currently being created are part-time jobs. During the past two months, the number of full-time jobs has significantly decreased. The President also claimed that crime is down under his administration. That is simply not true, although much of the increase in crime is due to Democrat-run cities who have eliminated bail and are not keeping criminals in jail. In New York, the National Guard has been called up to patrol the New York City subways because crime has become a serious problem there.

Also, why was there a fence around the Capitol, but not a wall at our southern border? Do fences and walls work or do they not work? There was also a comment about increasing taxes on corporation and on the wealthy. Corporations do not pay taxes–they pass them on to their customers, fueling inflation. “Taxing the rich” is a proposal that simply feeds class envy. If you want to see the results, look at the Laffer Curve. I would also like to note that during the Obama administration, General Electric paid no income taxes. Why weren’t they sharing the burden?

The speech was loud, inaccurate, and divisive. The tone was not attractive. I do wonder if this speech, which seemed more like a campaign speech than a State of the Union Address, actually won over any undecided voters.

Pushing Back Against Damaging Decisions

Sara Carter is reporting today that 21 states have filed a lawsuit to sue the Biden administration over the cancellation of the Keystone XL Pipeline.

The article reports:

21 states, led by Texas Attorney General Ken Paxton and Montana Attorney General Austin Knudsen, submitted a complaint Wednesday to a Texas federal court arguing that the President does not have the authority to cancel the permit.

Revoking the permit is a “regulation of interstate and international commerce” that should be left to Congress, the complaint said.

Some of the states included in the lawsuit have Democratic governors, including Kentucky and Kansas, however, all of the states have republican attorneys general.

The proposed 1,200-mile pipeline would have carried oil from Canada to the U.S.

“This pipeline was set to go through six counties in extreme Eastern Montana… five of those counties are already designated as high-poverty counties,” Montana AG Knudsen told Fox News. “The project was set to become the largest property taxpayer in all of those counties… That’s out the window. Just shy of 4,000 jobs, that’s out the window.”

The article concludes:

Kundsen called Biden’s cancellation of the permit “an empty virtue signal to his wealthy coastal elite donors.”

“The power to regulate foreign and interstate commerce belongs to Congress – not the President. This is another example of Joe Biden overstepping his constitutional role to the detriment of Montanans,” he added.

Opponents of the pipeline argue that the U.S. should not be importing carbon-intensive tar sands oil. Native American tribes have also shown opposition for the pipeline, saying the Trump administration ignored their treaty rights when approving the pipeline.

However, pipeline supporters argue that the project would bring in revenue for the states and thousands of jobs.

A victory in this lawsuit would be a victory for the American economy and a step toward continuing America’s energy independence, which is a national security issue.

 

This Is Not Good News

The energy independence America achieved during the Trump administration had a lot of impact internationally. It allowed America to make decisions based on our own interests rather than worrying about whether a decision would affect our supply of oil. It gave us leverage with countries that were importing our oil and natural gas. It also helped some countries reduce their dependence on countries that would use their oil supply to coerce their government into bad decisions. Unfortunately with the change of administration, we are moving back to the place where we will not have the influence or security we had as an energy independent country.

Yesterday The Daily Wire reported the following:

Gazprom, a majority-state owned Russian energy company, resumed work in laying pipeline in Danish waters over the weekend after the project was halted during the Trump-era over the threat of sanctions.

“The pipelay vessel Fortuna has started pipelay works on the Nord Stream 2 pipeline in Denmark’s Exclusive Economic Zone today, following the start of works in the construction corridor there on 24 January and successful completion of sea trials,” a Nord Stream 2 spokesperson said via email.

This pipeline will have a serious impact on international affairs:

“Construction of the pipeline is mostly complete but around 120 km is left to be laid in Danish waters as well as 30 km in German waters, before it makes landfall at the northern German coastal town of Lubmin, near Greifswald,” Reuters reported. “The United States has long said the pipeline will increase Russian leverage over Europe and will bypass Ukraine, depriving Kyiv of lucrative transit fees. The United States is also keen to sell its sea-borne liquefied natural gas to European countries.”

The news generated backlash for the Biden administration after they canceled the Keystone XL Pipeline during Biden’s first week in office, which killed the jobs of many of Americans.

Meanwhile American pipeline workers are unemployed. One thing to remember here is that America has cut its carbon emissions in recent years (largely through fracking and the use of natural gas). It is folly to believe that drastic cuts that cripple our economy will actually make a difference in the earth’s climate when other countries are not cutting their emissions. The science is questionable to begin with–do we actually have the power to change the earth’s climate? I doubt it. I am in favor of clean air and clean water, but I am not in favor of crippling our economy for unproven science.

Finally A Congresswoman Who Has Read The U.S. Constitution

Yesterday Red State posted an article about Lauren Boebert, the newly elected representative from Colorado’s third district.

The article reports:

As we all know, one of the very first things that Scranton Joe Biden was told to sign on the dotted line with a BIG X next to it on Day One was to reenter the Paris “accord.” What that monstrosity actually is in layman’s terms in the United States Consitution would be called a treaty. This is why Donald Trump had the U.S removed from its clutches, being as the Senate never voted on it. You would think that someone like Joe Biden who took up space in the upper chamber would know the rules on how this works and not reenter an agreement without the Senate’s approval.

Maybe he just simply forgot.

The article quotes The Blaze:

In one of Biden’s first actions in office, he rejoined the Paris Agreement on Climate Change. Boebert’s bill would prevent the United States from spending any money on the Paris Agreement until the treaty is ratified by the Senate.

“Joe Biden took an oath to uphold the U.S. Constitution. If he wants to keep it, he must transmit the job-killing Paris Agreement to the U.S. Senate for ratification,” Boebert said in a statement. “Unilaterally entering the Paris Agreement was wrong in 2016 and it’s wrong now. Responsible energy production supports more than 230,000 Colorado jobs. The Paris Agreement puts these jobs at risk and will increase energy costs.”

Reentering the Paris agreement will end America’s energy independence. It will return us to the days when we depended on people who didn’t necessarily like us or have our best interests at heart to supply our energy. It is possible that many of the people supporting the reentry of this agreement are simply too young to remember the gas lines of the 1970’s.

Even if the Paris agreement is not called a treaty, it will have such a profound negative impact on the American economy that our elected officials need to go on record as having supported or opposed it. Elected officials have to be held accountable for the laws that are passed in this country. We have had too many bad laws and regulations passed by unelected bureaucrats that cannot be held accountable by the voters.

The Following Letter Was Written To President Trump By Howie Carr

Posted at the Howie Carr Show website:

Thank you, Mr. President, for everything you’ve done.

It shouldn’t be ending this way, but I and 74 million other Americans just want to thank you for all your efforts on our behalf over the past four years, actually since you came down the escalator at Trump Tower back in the summer of 2015.

In no particular order:

Thank you for restoring the US as the world’s leading producer of energy – after your predecessor sternly lectured us that we “couldn’t drill our way” out of our dependence on unstable Middle Eastern oil providers.

Thank you for the tax cuts for the middle class.

Thank you for destroying genocidal ISIS, which your predecessor called “the junior varsity.”

Thanks for shutting off the endless flow of illegal aliens at the southern border, and the unending supply of MS-13 gangbangers, among other criminals, as well as the welfare-dependent illiterate indigents who were so destabilizing American society before you became president.

Thank you for calling out the endless hypocrisy of the media — what you so aptly described as “Very Fake News.”

Thank you for promoting economic policies that led to the lowest unemployment rates ever for blacks, Hispanics, Asians, Native-Americans and women, among others.

Thank you for doing more to promote peace in the Middle East than all of your predecessors combined.

Thank you for calling out and exposing the feckless RINO’s of your own party like Willard Mitt Romney, Paul Ryan, Kelly Ayotte et al.

Thanks for finally standing up to Red China and its predatory trade practices.

Thanks for calling out Fox News Channel for its duplicitous descent into terminal wokeness.

Thank you for Operation Warp Speed, an amazing achievement for which you will never receive the appropriate credit.

Thanks for pardoning all the persecuted victims of the Russian collusion hoax, among them Gen. Michael Flynn and Roger Stone.

Thank you for eliminating Obamacare’s “individual mandate,” which fined individuals for not buying health insurance they didn’t want or couldn’t afford.

Thank you for taking more questions from (almost always hostile) reporters than all of the last three or four presidents combined.

Thanks for getting the US out of such foreign-policy disasters as the Iran nuclear deal, the Paris Climate Accords and the Trans-Pacific Partnership, as well as ending the fiasco for American workers that was NAFTA.

Thanks for such a booming economy that seven million people got off the food-stamp rolls.

Thanks for all those tweets that drove the Democrats and the media (but I repeat myself) crazy.

Also, a personal note on Twitter: thanks for the three tweets promoting my book, “What Really Happened: How Donald J. Trump Saved America from Hillary Clinton.”

As Donald Trump Jr. told me: “That’s two tweets more than he gave my book!”

Thank you for not turning the IRS into an instrument of persecution against your political foes, the way your predecessor did.

Thanks for not surveilling reporters a la the Obama administration.

Thanks for ending state oppression against people of faith like the Little Sisters of the Poor.

Thank you for trying to defund “sanctuary cities” where illegal aliens run amok.

Thanks for the three new justices on the Supreme Court – think how much worse Hillary’s picks would have been, and maybe someday they’ll grow the spines they so obviously lacked last month in Texas v. Pennsylvania.

Thank you for defanging North Korea and Little Rocket Man.

Thanks for opening up more of our North Atlantic waters for New England commercial fishermen and lobstermen.

Thanks for defending both the First and Second Amendments, and for railing against Section 230, which the billionaire fascists of Silicon Valley are abusing to shut down free speech.

Thank you for appointing US attorneys who actually wanted to put real criminals in prison, without fear or favor.

Thanks for using the death penalty, when necessary, against the worst of the worst serial killers.

Thank you for the travel ban, which has largely halted the flow of terrorists like the Tsarnaevs, who had been welcomed into the US and put on welfare by previous administrations, Democrat and Republican alike.

Thanks for the balance in my 401(k).

Thanks for the lowest gasoline prices in decades.

Thanks for the largest number of Americans with gainful employment since the government started keeping records.

Thank you for ordering the elimination of two of the most bloodthirsty terrorists on earth, al-Baghdadi and Gen. Soleimani.

To borrow a line from “The Last Hurrah,” “How do you thank a guy for a million laughs?”

Thanks for all the great nicknames – Crooked Hillary, Li’l Marco, Low Energy Jeb etc.

Thanks for all the amazingly entertaining rallies, if not for bringing back the Village People’s “Y.M.C.A.” song.

Mr. President, I could go on and on and on, but all of us Deplorables and bitter clingers and credulous Boomer rubes just want you to know how much we appreciate the four years you gave us to prepare and fortify ourselves for the impending disaster ahead.

We’ll be back, Mr. President, and so will you.

Sincerely,

Howard L. Carr

The Coming Whirlwind

The Epoch Times posted an article today detailing President-elect Joe Biden’s plans for his first ten days in office.

The article reports:

A preview of the executive actions President-elect Joe Biden will take shortly after assuming the presidency shows that “the racial equity crisis” and the “climate crisis” are among his top four priorities for the first 10 days in office.

“We face four overlapping and compounding crises: the COVID-19 crisis, the resulting economic crisis, the climate crisis, and a racial equity crisis,” a Jan. 16 memo by incoming White House Chief of Staff Ron Klain states. “All of these crises demand urgent action.”

Klain noted that the executive actions will be “bold” but noted that “the legal theory behind them is well-founded.”

The article notes:

Last week, Biden introduced his legislative priorities for tackling the pandemic of the CCP (Chinese Communist Party) virus, commonly known as the novel coronavirus. The proposed legislation includes an apparently unrelated mandate for a $15 federal minimum wage, which Congress has estimated will wipe out 1.3 million jobs. The president-elect plans to introduce his legislative priorities for a CCP virus recovery bill in the coming weeks.

On Inauguration Day, Biden will take roughly a dozen executive actions, including an order for extending a pause of federal student loan payments, rejoining the Paris climate accord, and canceling President Donald Trump’s ban on travel from nations posing a terror threat to the United States.

On the same day, the president-elect will impose a mask mandate on federal property and interstate travel. The mandate is part of Biden’s “100 Day Masking Challenge,” according to the memo. The list of actions on the first day also includes an extension on nationwide restrictions on evictions and foreclosures.

On Jan. 21, Biden’s second day in office, the president-elect “will sign a number of executive actions to move aggressively to change the course of the COVID-19 crisis and safely re-open schools and businesses, including by taking action to mitigate spread through expanding testing, protecting workers, and establishing clear public health standards,” the memo states.

So lets see. A $15 minimum wage will put many of the businesses not already closed by the coronavirus permanently out of business. It will also severely decrease the number of jobs available to people initially entering the workforce. It will hurt the economy. Rejoining the Paris climate accord will further cripple the American economy while allowing the Chinese economy to flourish. It will abolish a lot of manufacturing and carbon-related jobs in America. I should mention here that America has been reducing its carbon footprint in recent years due to an increased reliance on natural gas obtained through fracking. Fracking will be severely limited, and it is quite possible that under the Paris accord, America’s carbon footprint will grow–not shrink. Our energy independence is also at stake–posing a security threat as much as an economic threat.

Pausing student loans is an interesting concept. If those loans are forgiven, the taxpayers will be the ones actually paying them off. At that point you are asking a lot of people who didn’t go to college to pay the expenses of those who did. That is not only unfair–it is illogical.

Please follow the link to read the entire article. We are in for a bumpy ride.

 

Please Consider This Before Voting

In the October issue of The AMAC (The Association of Mature American Citizens) Magazine included an article titled, “The Accomplishments of President Donald J. Trump.” The list is too long to include in this article, but I would encourage you to follow the link for the entire list. It is an impressive list.

Here are a few highlights:

Building Economic Prosperity

    • Created an historic economic expansion that benefitted all Americans and will do so again following the interruption caused by coronavirus
    • Passed historic tax cuts, providing much-needed relief for American families and putting American businesses on a level playing field.
    • Created Opportunity Zones to spur investment and job creation in forgotten communities.
    • Restored American manufacturing, putting in place policies to bring supply chains back from overseas.
    • Preserving and Protecting social security for seniors.

Historic Deregulation

    • Cut regulations at a historic pace to free up American businesses— meeting and far exceeding the promise to cut two regulations for every new one.
    • Ended the Obama Administration’s war on coal as promised, rolling back the so-called Clean Power Plan, WOTUS (waters of the United States), stream protection rule, and other overregulations.
    • Replaced the Obama Administration’s disastrous CAFE (Corporate Average Fuel Economy) standards and rolled back burden- some Dodd-Frank provisions, as promised.
    • Regulatory relief will save Americans $377 billion per year, or $3100 per households.

Lifting Up American Workers and Families

    • Put in place policies to lift up working families, including releasing the first presidential budget in history to include a national paid family leave plan.
    • Invested in workforce development to ensure American workers are prepared to gain high-paying, family-supporting jobs.
    • Promoted school choice to ensure all families have access to quality education for their children.

Achieving Fair and Balanced Trade

    • Withdrew from the Trans-Pacific Partnership to protect American jobs.
    • Negotiated monumental new or revised deals with Canada, Mexico, South Korea, Japan, and other countries to put American workers first.
    • Confronted China’s decades of trade abuses, placing tariffs of hundreds of billions of dollars on Chinese goods.
    • Put in place tariffs on foreign steel that was undermining critical American industries.

Unleashing American Energy

    • Freed American energy producers to conduct their business, leading to record oil and natural gas production and expanded energy exports.
    • Followed through on his promise to approve new pipelines, including the Keystone and Dakota Access pipelines.
    • Withdrew from the job-killing Paris Agreement.
    • The typical American family now saves an average of $2500/year on their energy bills.

Protecting Our Nation

    • Rebuilt our military with historic investments in our defense and provided our troops the largest military pay raise in a decade.
    • Defeated ISIS’s territorial caliphate and brought terrorist leaders to justice, including ISIS leader Abu Bakr al-Baghdadi.
    • Restored American leadership in space and established the Space Force.
    • Took action to ensure America leads the way on the technologies of the future, like AI and 5G.

Restoring American Leadership on the World Stage

    • Ended the disastrous Iran deal and reimposed strong sanctions on the regime.
    • Stood up for our ally Israel and followed through on the pledge to move the American embassy to Jerusalem.
    • Released a vision for peace and prosperity in the Middle East.
    • Successfully urged our NATO allies to increase their defense spending to meet their obligations.
    • Reversed the Obama Administration’s disastrous Cuba appeasement policy.

Even this small portion of the article highlights some awesome achievements. Before you vote, consider the contrast of the impact of eight years of Obama-Biden versus almost four years of President Trump.

Losing Energy Independence

There are two groups of people who are attempting to end America’s energy independence–OPEC (The Organization of the Petroleum Exporting Countries) and the Democrat Party. OPEC is fighting American energy independence because it represents competition and loss of OPEC’s worldwide influence. I am not really sure what the Democrat Party stands to gain by fighting American energy independence except that the position opposes President Trump’s position, which seems to be their platform–if President Trump is for it, we’re against it.

Yesterday Fox News posted an article about the resistance to America’s energy independence.

The article reported:

The battle to win U.S. energy independence has been long, hard and well worth it but the industry is facing new foreign threats from OPEC as well as right here at home from Democratic presidential nominee Joe Biden.

Biden wants to ban U.S. fracking, which was the key to our winning the war of energy independence. The former vice president at one point has said “no new fracking” — which, because of the nature of the shale decline rate, would end the U.S. shale revolution. This would not only cost the U.S. thousands of high-paying jobs, it would allow other countries to fill the void and produce more oil and gas.

…Biden has also said he has a goal to completely eliminate fossil fuels. While all men are created equal, energy sources are not. The move to fossil fuel alternatives in the near future is not reasonable and handicapping the U.S. energy industry will only put U.S. energy security at risk.

In fact, because of demand drops due to the COVID-19 shutdowns, many alternative fuels have also seen setbacks in investment and are not viable. The truth is the road to get the world off of fossil fuels will be much longer than the original goal of energy independence and in some form, we will be using fossil fuels for energy for generations to come.

Having a presidential contender looking to curb the U.S. energy industry comes at a time when threats from foreign actors are rising amid allegations they have conspired to try to bankrupt the U.S. energy industry so that we return to depending on them for our economic and national security.

While Saudi Arabia and Russia denied it, many believe that the goal of an oil production war in the midst of COVID-19’s oil demand collapse was to once and for all neutralize and bury the hard-won U.S. energy independence.

Does anyone remember the gasoline crisis of the 1970’s? Because we were almost totally dependent on foreign oil, we had gas lines and high gasoline prices. Does anyone really want to do that again? Energy independence is an economic issue, a national security issue, and a geopolitical issue. It determines our economy, our national security, and can influence our foreign policy. The less dependent we are on foreign oil, the more free we are to stand up to tyrants in countries with large supplies of oil. Energy independence should not even be debatable–it it necessary for the survival of our republic.

Great News For America

Energy independence is wonderful, but in today’s technology age, there are other important areas where America needs to be self-sustaining. One of the them is the rare earth minerals used in the manufacture of our technology. On Wednesday (updated yesterday) The Epoch Times posted an article about one step that has been taken in this direction.

The article reports:

Owners of the Wheat Ridge facility for processing rare earth elements and critical minerals have received an operating permit that will enable minerals critical to advanced technology manufacturing to be mined and processed in the United States.

USA Rare Earth, LLC, and Texas Mineral Resources Corp. announced on June 18 that their Wheat Ridge, Colorado, facility has received its operating permit, with its pilot plant now in the commissioning process.

Texas Mineral said in a press release that the plant “will have the ability to produce the full range of high purity, separated rare earths as well as other critical minerals … which are essential for modern manufacturing ranging from defense applications to wind turbines, electric vehicles, smart phones, advanced medical devices, and the physical backbone of emerging 5G networks.”

The company says its objective is “to build the first rare earth and critical minerals processing facility outside China.”

The CEO of USA Rare Earth, Pini Althaus, said in a press release that the establishment of an independent, robust, and domestic rare earth metal and critical mineral supply chain is vital for the United States, “overcoming reliance on China.”

Congress and President Trump have both recognized the need to produce these minerals in America.

The article notes:

Reps. Michael Waltz (R-Fla.) and Paul Gosar (R-Ariz.) introduced legislation (pdf) on May 28 to protect American mineral supply chains.

Gosar described critical minerals as the building blocks of our modern lives, as they are vitally important for special components in defense systems, health care applications, and energy generation technology.

“For years, our country has become increasingly dependent on China and other nations to fulfill our demand for minerals,” said Gosar. “The global pandemic has demonstrated the severe consequences of allowing this longstanding over-reliance on China to go unchecked.”

Waltz said that critical minerals are integral to our way of life.

“As coronavirus has unfortunately demonstrated, if China can threaten to cut off our pharmaceutical supply, they can do the same with their supply of rare earth minerals,” said Waltz. “We need to bring this supply chain back to America—and this bill will be an important step to do that.”

…President Donald Trump issued Executive Order 13817 in December 2017, titled “A Federal Strategy to Ensure Secure and Reliable Supplies of Critical Minerals.” The order directed federal agencies to list critical minerals, develop strategies to reduce reliance on the minerals themselves and on foreign suppliers, and increase domestic production.

The positive impact of the coronavirus is that it reminded us that as a nation we need to be as self-sufficient as possible. It is encouraging to see steps being taken in this direction.

A Wise Move

Breitbart reported yesterday that President Trump has directed the Secretary of Energy to purchase large amounts of oil at the current low price to be placed in the U.S. strategic reserve. This is a great idea. It builds up our strategic reserve, and it helps the oil companies that may be struggling with the sudden drop in oil prices.

The article reports:

“We’re going to fill it right up to the top, saving the American taxpayer billions and billions of dollars, helping our oil industry [and furthering] that wonderful goal — which we’ve achieved, which nobody thought was possible — of energy independence,” Trump said.

Trump’s announcement follows market turmoil in the international market when Russia and Saudi Arabia’s negotiations recently broke down and the Saudis announced they were increasing production.

The industry reacted positively to the president’s announcement, CNBC reported.

“It is a fantastic idea,” John Kilduff, founding partner of Again Capital said in the CNBC report. “The SPR is one of the few levers that the U.S. can pull in times of oil market tumult.”

“It has served the country well when supplies get tight or otherwise become unavailable during times of natural disasters or geopolitical turmoil,” Kilduff said. “Releases of supplies have served to short-circuit price rallies in the past, and this filling may well serve to ebb the current sell-off.”

“Russia, the world’s second-largest producer, does not appear willing to return to its agreement with the Organization of the Petroleum Exporting Countries (OPEC), which has kept oil in a range around $30 a barrel for much of the last week,” CNBC reported.

Saudia Arabia is the de facto leader of OPEC.

So far, President Trump has been ahead of the curve in dealing with the consequences of the coronavirus–stopping flights to America from China and from Europe, setting up private-public alliances to provide testing and research for vaccines, and declaring a national emergency. Shoring up America’s oil reserves at this time is also a very wise move.

A Very Mixed Blessing

CNBC posted an article yesterday (updated today) that because OPEC has not been able to reach an agreement about oil prices with its allies (led by Russia), Saudi Arabia has cut its oil prices and increased its production. A price war is expected to follow. This is great news for consumers, but horrible news for American oil production.

The article reports:

U.S. West Texas Intermediate (WTI) crude and international benchmark Brent crude are both pacing for their worst day since 1991.

WTI plunged 18%, or $7.36, to trade at $33.92 per barrel. WTI is on pace for its second worst day on record. International benchmark Brent crude was down $8.44, or 18.7%, to trade at $36.80 per barrel. Earlier in the session WTI dropped to $30 while Brent traded as low as $31.02, both of which are the lowest levels since Feb. 2016. 

“This has turned into a scorched Earth approach by Saudi Arabia, in particular, to deal with the problem of chronic overproduction,” Again Capital’s John Kilduff said. “The Saudis are the lowest cost producer by far. There is a reckoning ahead for all other producers, especially those companies operating in the U.S shale patch.”

On Saturday, Saudi Arabia announced massive discounts to its official selling prices for April, and the nation is reportedly preparing to increase its production above the 10 million barrel per day mark, according to a Reuters report. The kingdom currently pumps 9.7 million barrels per day, but has the capacity to ramp up to 12.5 million barrels per day.

The article concludes:

“$20 oil in 2020 is coming,” Ali Khedery, formerly Exxon’s senior Middle East advisor and now CEO of U.S.-based strategy firm Dragoman Ventures, wrote Sunday on Twitter. “Huge geopolitical implications. Timely stimulus for net consumers. Catastrophic for failed/failing petro-kleptocracies Iraq, Iran, etc – may prove existential 1-2 punch when paired with COVID19.”

But others, including Eurasia Group, believe that Saudi Arabia and Russia will eventually come to an agreement.

“The most likely outcome of the failure of the Vienna talks is a limited oil price war before the two sides agree on a new deal,” analysts led by Ayham Kamel said in a note to clients Sunday. The firm puts the chances of an eventual agreement at 60%.

Vital Knowledge founder Adam Crisafulli said Sunday that oil “has become a bigger problem for markets than the coronavirus,” but also said that he does not foresee prices falling to the Jan. 2016 lows.

“Saudi Arabia can’t tolerate an oil depression – the country’s fiscal breakeven oil prices remain very high, Saudi Aramco is now a public company, and MBS’s grip on power isn’t yet absolute. As a result, the [government] won’t be so cavalier in sending oil back into the $30s (or even lower),” he said in a note to clients Sunday.

OPEC has played this game before. In the 1970’s oil crisis, OPEC boycotted America because of our support of Israel. When American energy companies responded by drilling wells to meet the need, OPEC dropped the boycott and lowered the price to put those companies out of business. I suspect there may be an attempt to do that again, but I am not sure we are as vulnerable as we were then. If America continues on the path to energy independence, our oil prices will be less vulnerable to foreign manipulation. We may have to pay a little more than the price the Saudis will drop to for our oil, but it would be worth it in the long run. Hopefully we have people currently in charge that are looking long term rather than short term.

If You Wondered Why Energy Independence Is Important

The Wall Street Journal posted an article yesterday about the drone attack on Saudi oil fields. The Iran-allied Houthi rebels in neighboring Yemen have claimed credit for the attack.

The article reports:

The production shutdown amounts to a loss of about 5.7 million barrels a day, the kingdom’s national oil company said, roughly 5% of the world’s daily production of crude oil.

Officials said they hoped to restore production to its regular level of 9.8 million barrels a day by Monday. Energy Minister Prince Abdulaziz bin Salman said lost production would be offset through supplies of oil already on hand.

The strikes mark the latest in a series of attacks on the country’s petroleum assets in recent months, as tensions rise among Iran and its proxies like the Houthis, and the U.S. and partners like Saudi Arabia. The attacks could drive up oil prices if the Saudis can’t turn production back on quickly and potentially rattle investor confidence in an initial public offering of Saudi Aramco, the national oil company.

The article concludes:

The Yemen war is a central front in a new and more aggressive foreign policy overseen by Prince Mohammed, who launched the intervention with a coalition of allied states in 2015. Under the prince’s watch, the kingdom also applied a blockade on neighboring Qatar, detained Lebanon’s prime minister, and sent a team of men to kill exiled journalist Jamal Khashoggi in Istanbul in 2018.

A conservative kingdom with a Sunni Muslim majority, Saudi Arabia has been an opponent of Iran in a struggle for power across the broader Middle East since the 1979 revolution that toppled Iran’s monarchy.

The attacks on Aramco’s facilities are poorly timed for Aramco’s coming IPO and pose a challenge to oil officials after a changing of the guard in their leadership. Aramco last week picked seven international banks to help it list on Saudi Arabia’s domestic exchange, an IPO that could value the company at about $2 trillion dollars and come before the end of the year.

There are a lot of things going on behind the scenes here. This is part of the conflict between Sunni and Shiite Muslims. At their core, both the Saudis and the Iranians want to bring back the former caliphate. The Ottoman Empire (which was that caliphate) existed until the early 1900’s. Many Muslims want that Empire restored. The argument is over who will rule the caliphate when it is established. Al Qaeda and the Muslim Brotherhood are players in this conflict, as is ISIS. Jamal Khashoggi was a part of the Muslim Brotherhood. Descriptions of him as simply a journalist were misleading. Another part of this puzzle is the fact that Saudi Arabia is drawing closer to aligning with Israel because of the fear of a nuclear Iran. That also would be a cause for increased aggression from Iran.

Generally speaking, any terrorism that goes on in the Middle East can be traced back to Iran. They have been training and funding terrorists since the Iranian Revolution in 1979.

I have no idea what impact this will have on world oil prices. I do know that Saudi Arabia will work to repair the damage as soon as possible. I have no doubt that Iran is violating the sanctions on its oil exports, so if the price of oil rises significantly, Iran may be able to pull itself out of its current economic difficulties and calm its population. America will continue to prosper as oil prices rise because we are now a net exporter of oil rather than a net importer. Because of the policies of President Trump, we are in a very different situation than we were during the oil crisis of the 1970’s.

The Power Of Energy Independence

America is now energy independent. We now export oil and natural gas. This gives us some degree of leverage against what used to be the monopoly held by OPEC (The Organization of the Petroleum Exporting Countries). Yesterday Townhall posted an article that illustrates the influence America now wields because of its energy independence.

The article reports:

In the midst of the oil price spike scare, President Donald Trump warned the Organization of Petroleum Exporting Countries (OPEC) on Monday to “take it easy” on raising the price of oil.

This is the tweet:

So what were the consequences of this tweet?

The article reports:

Since this morning, the price of crude oil dropped by more than a dollar per barrel in just an hour. Bloomberg reported today that New York saw a 2.7 percent decrease in oil prices, which is the lowest drop in two weeks.

“Analysts attributed the price rise to improving trade talks between the U.S. and China, unrest in Nigeria and Venezuela, Libya’s refusal to restart production in the El Sharara oil field and continued efforts to curtail supplies by OPEC and Russia,” according to The Daily Caller.

When you don’t have to depend on OPEC for oil to keep your economy going, you have much more power to negotiate oil prices.

Sometimes Getting Things Done Takes Time

The Daily Caller is reporting the following today: “Late-Night Deal Breaks Deadlock Over Natural Gas Exports. The Trump Administration Is Ecstatic.” Natural gas is one of the cleanest energy sources in the world. America has a lot of it. Exporting it will have financial and diplomatic rewards.

The article reports:

The Federal Energy Regulatory Commission (FERC) broke a two-year partisan deadlock Thursday night to approve a liquefied natural gas (LNG) export terminal in Louisiana.

Top Department of Energy (DOE) officials said this was a major breakthrough that will alleviate a growing problem for U.S. energy producers — a lack of export infrastructure.

“We have been promoting US energy around the world and today’s decision by the FERC is a very important one,” DOE Deputy Secretary Dan Brouillette told The Daily Caller News Foundation in an interview.

The Calcasieu Pass LNG export terminal is the first such project to get FERC approval in two years. Republican FERC commissioners Neil Chatterjee, the chairman, and Bernard McNamee worked with Democrat Cheryl LaFleur to hash out an agreement to get her support.

The article concludes:

FERC’s other Democratic commissioner Richard Glick opposed the terminal, arguing his colleagues were “deliberately ignoring the consequences that its actions have for climate change.”

The commission’s environmental review of Calcasieu Pass found the facility would emit roughly 3.9 million metric tons of carbon dioxide emissions per year — about 0.07 percent of total U.S. emissions.

Brouillette argued that while an individual LNG export terminal would emit greenhouse gases, it would help lower global emissions because countries want gas as an alternative to coal.

“To the extent that LNG is displacing coal around the world, we think the impact is going to be positive,” Brouillette said.

Brouillette also stressed the geopolitical implications of LNG exports and the role energy could play in President Donald Trump’s foreign policy.

“These are decisions that impact the President’s ability to make foreign policy decisions,” Brouillette told TheDCNF. “We get to assist Poland, we get to assist Lithuania, we get to assist the Baltic states.”

Energy independence for America is important, but it is also important to be able to export energy around the world when countries such as Russia threaten to shut down their energy pipelines in order the win political victories.

Sometimes The Lies Are Just Funny

The Daily Caller posted an article today about President Obama’s claim that he started the oil boom in America. Somehow that’s not the way I remember it.

The article reports:

Former president of Shell Oil Company John Hofmeister said former President Barack Obama had nothing to do with America’s increased oil production and actually frustrated many areas of the energy sector.

Obama claimed he was responsible for America’s recent oil boom during an event hosted by Rice University’s Baker Institute on Tuesday night and Hofmeister challenged his assessment.

…“The facts are the facts. And, yes, the production did increase throughout his term,” Hofmeister said on “Fox & Friends” Thursday. “But, frankly, he had nothing to do with it.”

“This was production in states like Texas, Oklahoma, Pennsylvania, Ohio, Colorado — North Dakota in particular. And these were all state decisions made with industry applications for permits. The federal government had no role.”

The article notes the roadblocks President Obama put in the way of accessing American oil:

Hofmeister said Obama opposed the energy industry at every turn with his actions against offshore drilling and his handling of the Keystone Pipeline.

“If anything, he was trying to frustrate the efforts by taking federal lands off of the availability list — putting them just, no more drilling [sic]. He shut down the Gulf of Mexico for a period of six months,” he said. “[He] changed the regulations from an average of 60 to 80 pages per permit to 600 to 800 pages per permit. He also never approved the Keystone XL pipeline after dangling all the potential customers for eight years. And it was in the eighth year when he said no Keystone Pipeline.”

“I would say that he was not a leader when it comes to energy,” Hofmeister said.

As far as President Obama’s opposition to the Keystone Pipeline goes, as long as that pipeline was not built, the oil was shipped via the Burlington Northern Santa Fe railroad, owned by Berkshire Hathaway, owned by Warren Buffett, a close friend of President Obama. On February 21, 2013, I reported the following (article here):

If the Obama administration holds firm on blocking Keystone, the big loser will be TransCanada Corporation. But who will the big winners be? American railroads:

And of them, the biggest winner might just be the Burlington Northern Santa Fe, which is owned by Berkshire Hathaway, the conglomerate controlled by Obama supporter and Omaha billionaire Warren Buffett. In December, the CEO of BNSF, Matthew Rose, said that his railroad was shipping about 500,000 barrels of oil per day out of the Bakken Shale in North Dakota and that it was seeking a permit to send “crude by rail to the Pacific Northwest.” He also said the railroad expects to “eventually” be shipping 1 million barrels of oil per day.

President Obama did not facilitate the energy independence of America. He did, however, do a pretty good job of lining the pockets of some good friends.

Economic Growth For The Second Quarter

The Conservative Treehouse posted an article today about the revised economic figures for the second quarter. It is always amazing to me that under a Republican President when the revisions come, they are higher than the original estimates and under a Democrat President when the revisions come, they are lower than the original estimates, but I guess that’s the way it is.

At any rate, this is the chart of growth from the article:

The article had some further observations about the current economy:

1) The upward revision to nonresidential fixed investment was mostly accounted for by investment in software. (2) Imports, which are a subtraction in the calculation of GDP, were revised down. Within goods, the downward revision was widespread, the largest contributor was petroleum.

In addition to presenting revised estimates for the second quarter, today’s release presents revised estimates of first-quarter wages and salaries, personal taxes, and contributions for government social insurance. Wages and salaries are now estimated to have increased $122.5 billion in the first quarter of 2018, an upward revision of $0.4 billion.  (source data)

The article also notes that President Trump’s economic policies have benefited Main Street as well as Wall Street.

The article concludes:

The economic models of the entire last generation+ are based on the assumptions of continuing globalist economics which advances, and has advanced, the interest of Wall Street over Main Street. They were driving a “service-driven economy” message.

Simultaneous to domestic capital investment inside the U.S., the ability of our nation to provide goods and services to meet the economic expansion, means less reliance on imported materials, goods and/or services. We are making more of our own stuff; exporting at a larger rate; and importing less – specifically due to the energy independence strategy within the larger Trump policy.

Every granular policy is like a small part in a larger machine. Each individual part of the MAGAnomic policy is working to compliment the larger objective.

We needed a businessman in the White House. Our current politicians don’t seem to understand economics.

Why Energy Independence Matters

The Washington Times posted an article today about Iranian military exercises in the Straits of Hormuz. The Straits of Hormuz is significant because 35% of all seaborne traded oil, or almost 20% of oil traded worldwide flows through the Straits of Hormuz. This is something to watch as the situation in Iran becomes more volatile.

This is today’s Dry Bones cartoon:

The Washington Times reports:

Iran’s navy sent dozens of small boats into the Strait of Hormuz on Thursday, dramatizing its ability to choke off the strategic Persian Gulf waterway — a move that could send global oil and U.S. gasoline prices soaring — and escalating the confrontation with the Trump administration for withdrawing from the 2015 nuclear deal.

U.S. officials said the naval exercise was Tehran’s way to show its capability to create a disruption in the waterway, through which some 30 percent of the world’s sea-transported oil passes daily. Officials at the Pentagon said they expected the exercise would last only a few hours, although it was unclear Thursday night whether it had ended.

“We are monitoring it closely, and will continue to work with our partners to ensure freedom of navigation and free flow of commerce,” said a statement by Navy Capt. Bill Urban, U.S. Central Command spokesman.

The development marked Iran’s latest escalation in response to Mr. Trump’s promise to begin reimposing harsh economic sanctions in the coming days that were suspended under the 2015 deal. One Pentagon source said the unexpected Iranian navy moves were meant to hammer home Tehran’s rejection of President Trump’s offer this week for direct, unconditional talks with Iranian President Hassan Rouhani.

The article details the unrest in Iran:

It is an increasingly delicate moment for Mr. Rouhani, who faces protests in Iran over the nation’s struggling economy, weak growth and declining currency.

The Rouhani government has been rocked by a string of protests in cities across the country over the failing currency, mismanagement and investor fears of U.S. sanctions, the first wave of which is set to begin Tuesday. The Trump administration is pressuring Iran’s other trading partners in Europe and elsewhere to curb trade and investment ties as well.

A report by the official IRNA news agency said about 100 people took to the streets Thursday in the northern city of Sari and that demonstrations broke out in at least three other cities. The agency reported that none of the protests had official permission and all were broken up by police.

Iranian dissident groups abroad have detailed multiple demonstrations in recent days, with harsh police crackdowns in response. The Associated Press cited videos circulating on social media purporting to show dozens of demonstrators setting fire to police vehicles and shouting “death to the dictator.” The authenticity of the videos could not immediately be verified.

One way for a dictator to unite his people is to unite them against a common enemy. This may or may not work in Iran since many of the younger people in the country are more inclined toward western ideas than the ideas of the mullahs.

The article concludes:

“Any disruption of oil supplies in the Persian Gulf would be a major threat to the global economy and would hurt U.S. trading partners, thereby damaging the U.S. economy,” said Amy Myers Jaffe, who heads the Program on Energy Security and Climate Change at the Council on Foreign Relations.

U.S. domestic oil and gas production and export increases in recent years “have not reduced the U.S. need to police the free flow of oil from the Middle East,” Ms. Myers Jaffe wrote in an analysis for the think tank this week. “An oil price rise due to the loss of supply in one part of the world is reflected in U.S. price levels as well all other locations across the globe.”

Rockford Weitz, who heads the Fletcher Maritime Studies Program at Tufts University, said that in the Strait of Hormuz, Iran “could damage commercial shipping with relatively cheap anti-ship missiles, fast patrol boats, submarines and mines.

“Even threats and modest disruption to commercial shipping could trigger economic damage in the form of higher marine insurance rates, crude oil supply concerns and unsettled stock markets,” Mr. Weitz wrote in an analysis published by Tufts last month.

We live in a fragile world–keep praying.

Russian Collusion Is Real–Just Not Where Robert Mueller Is Looking

The Daily Signal posted an article today about the collusion between Russia and some popular environmental groups in America.

The article reports:

New Yorkers who are missing out on the natural gas revolution could be victims of Russian spy operations that fund popular environmental groups, current and former U.S. government officials and experts on Russia worry.

Natural gas development of the celebrated Marcellus Shale deposits has spurred jobs and other economic growth in neighboring Pennsylvania. But not in New York, which nearly 10 years ago banned the process of hydraulic fracturing, also known as fracking, to produce natural gas.

Two environmental advocacy groups that successfully lobbied against fracking in New York each received more than $10 million in grants from a foundation in California that got financial support from a Bermuda company congressional investigators linked to the Russians, public documents show.

The environmental groups Natural Resources Defense Council and the Sierra Club Foundation millions of dollars in grants from the San Francisco-based Sea Change Foundation.

 “Follow the money trail, and this [New York] ban on fracking could be viewed as an example of successful Russian espionage,” Ken Stiles, a CIA veteran of 29 years who now teaches at Virginia Tech, told The Daily Signal.

The article explains why the Russians would be concerned about energy development in America:

Since the U.S. is now the top producer of natural gas in the world, and well positioned to export liquefied natural gas across the globe, Russia recognizes it gradually could lose influence in parts of the world where Moscow has been the dominant supplier of oil and gas, Stiles said in a phone interview.

“America’s natural gas revolution has huge geopolitical ramifications, so Russia’s motivation to try to block our natural gas development is easy to understand,” the CIA veteran said. “If you are worried about the Russian bear rearing its ugly head in the next several years, the way to stop that and put it back into its cage is to cut it off at the knees financially.”

“That’s what natural gas pipelines are all about and that’s what fracking is all about. We are providing affordable energy to average Americans at home and our allies overseas.”

The Russian economy depends on higher oil prices. Russia also uses energy to blackmail European countries into cooperation. America’s development of its own natural resources is a necessary balance to the Russian use of energy as a blackmail tool.

 

What World Is He Living In?

This is part of the transcript from the speech President Obama gave to the graduating cadets at West Point:

Four and a half years later, as you graduate, the landscape has changed. We have removed our troops from Iraq. We are winding down our war in Afghanistan. Al-Qaida’s leadership on the border region between Pakistan and Afghanistan has been decimated, and Osama bin Laden is no more. (Cheers, applause.) And through it all, we’ve refocused our investments in what has always been a key source of American strength: a growing economy that can provide opportunity for everybody who’s willing to work hard and take responsibility here at home.

In fact, by most measures America has rarely been stronger relative to the rest of the world. Those who argue otherwise — who suggest that America is in decline or has seen its global leadership slip away — are either misreading history or engaged in partisan politics.

Think about it. Our military has no peer. The odds of a direct threat against us by any nation are low, and do not come close to the dangers we faced during the Cold War. Meanwhile, our economy remains the most dynamic on Earth, our businesses the most innovative. Each year, we grow more energy independent. From Europe to Asia, we are the hub of alliances unrivaled in the history of nations.

I will admit that I am very partisan, but that is not why I believe that America’s global leadership is slipping away. We have an American marine in prison in Mexico because he made a wrong turn. We have an American pastor in prison in Iraq because he is a Christian while his wife is in America. If America were stronger, both of these people would be at home in America.

American energy independence will be achieved despite the government, not because of it. The Obama Administration has blocked oil exploration on federal land. The Obama Administration has also blocked construction of the Keystone Pipeline. The administration has spent millions of dollars investing in technology that has not yet been proven to work. The Obama Administration is a roadblock to energy independence–not a facilitator.

This is the link to a transcript of the speech. Please read the whole speech and draw your own conclusions.

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Something To Think About As Gas Prices Climb

Part of the cause of the rise in gasoline prices is increased tension in the Middle East. Part of the rise is caused by the fact that America is not energy independent and we are at the mercy of things we can’t control. One of the ways to solve that problem would be to become energy independent. Alternative energy may be part of that solution, but right now the technology is such that more carbon-based energy is the current answer. The Keystone Pipeline would have helped and more hydraulic fracturing (fracking) has helped. However, there is a movement among the radical environmentalists to shut down fracking. That movement is not based on scientific evidence.

Hot Air posted a story today about a university study on fracking.

The article reports:

The hydraulic fracturing of shale formations to develop natural gas has no direct connection to groundwater contamination, according to a study released Feb. 16 by the Energy Institute at the University of Texas at Austin.

The study reported that many problems blamed on hydraulic fracturing are related to processes common to all oil and gas drilling operations, such as casing failures or poor cement jobs.

University researchers also concluded that many reports of contamination can be traced to above-ground spills or other mishandling of wastewater produced from shale gas drilling, rather than from hydraulic fracturing, Charles “Chip” Groat, an Energy Institute associate director, said in a statement.

“These problems are not unique to hydraulic fracturing,” he said.

The article also points out that fracking takes place hundreds, if not thousands, of feet below the aquifer. Hydrocarbons are naturally found in the water in areas where there is a high presence of shale oil–that’s why they drill there! The development of shale oil resources in America will provide jobs (the current unemployment rate in North Dakota is 3.3%) and move us toward energy independence. If the technology in green energy moves forward, that would be wonderful, but it isn’t there yet.

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