Gee, I remember in the mid-70s that OPEC wanted us on our knees, oil-wise - Granite Grok

Gee, I remember in the mid-70s that OPEC wanted us on our knees, oil-wise

oilHeh!  Reformatted, emphasis mine:

OPEC to U.S.: Please don’t pump so much oil!

OPEC has asked a favor of other major producers: Please stop pumping so much and help us balance the market. The unusual plea was issued Thursday in the cartel’s closely-watched monthly report, which found that global markets are still suffering from too much supply.
The report said that balancing the market would “require the collective efforts of all oil producers” and should be done “not only for the benefit of the individual countries, but also for the general prosperity of the world economy.”

Those “other major producers” would include US frackers.  My, my, how times have changed – it’s our fault:

OPEC said that one producer in particular is to blame: The U.S., where shale producers have continued to ramp up their drilling despite lower crude prices. The increased production has undermined OPEC’s efforts to keep prices between $50 and $60 per barrel.

I love it – the translation is that the cartel is pleading “PLEASE, allow us to raise prices to save of nations budgets!!”  That’s how we ALL prosper.  That is, how the CARTEL nations prosper (pretty much the Middle Eastern countries) – mandate production to mandate prices.  That’s generally not how it works in the US where ruthless competition eliminate the unproductive.  Cartels, monopolies (e.g., OPEC)?  No clue to the phrase “Creative Destruction”.

Frankly, they started to force up MY gas prices at the pump – how is THAT supposed to help MY prosperity in forcing me to pay higher prices (exactly the same way that unions do)?  No, US frackers, by increasing their output, are breaking OPEC’s back and allowing me to keep more of my money.

That’s the prosperity that matters to me.  I love it.

OPEC thinks it was back in the 70s.  Thanks to American ingenuity, risk taking, and competition, OPEC is realizing that the jig may be up as far as dictating prices.

 

 

 

(H/T: CNN)

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