By DL White
News flash! Just as friends don’t allow friends to drive drunk….Oil producing countries (that are supposed to be an ally) don’t (or should not) cut crude oil production when crude is being withheld by a major oil producing country involved in an unprovoked war.
Welcome to the latest drama of gas prices rising and why?
Major oil-producing countries (OPEC), The Organization of the Petroleum Exploring Countries include Saudi Arabia, Russia and 23 other countries, they have announced (collectively as of early October) that they are cutting oil production by 2 million barrels per day. (Really Saudi, you are standing with Russia)?This decision comes (post) a visit by President Biden as well as the approval last summer of new military planes to Saudi…….This begs the question, “What in the @#$# is Saudi doing?
Americans will soon feel the effects of that decision when they fill up their gas tanks, but the impact will depend — at least in part — on where in the country they live, according to various reports. Russia, one of the largest oil producing countries in OPEC is at war (an unprovoked war) against Ukraine since February 2022. Russia initially perceived as a dominate force has been retreating for the past month and a half. Ukraine is doing immediately what Afghanistan did not in 20 years of American involvement. The Ukraine army is standing and fighting. Actually pushing the bigger Russian army back into Russia. On the flip side of the war, hundreds and thousands of young Russian men are leaving the country to not be drafted and shipped off to fight in what many now perceive as what it is…… an attempt by Putin to force his will on a smaller country.
From an outside perspective looking in, it appears OPEC and oil prices tend to rise during the presidency of Democrats and go down again when a Republican takes office?
Could this be a move similar to Nixon’s agreement with Iran to continue to hold and then release American hostages once he was elected to office?
A barrel of oil reached one of its highest prices ever shortly before President Obama took office in 2009. Prices began to creep up in late 2008, to $138 per barrel. Current prices are $88 per barrel.
Prices rose again in 2014, during President Obama’s second term in office. The result could have been attributed to the ongoing Iraq and Afghanistan wars at that time…..however?
As a result of there not being a regulation on what American Oil Companies can charge at the pump, the price of gas fluctuates from one section of a city to the next.
Saudi Arabia is a country on the Arabian Peninsula in Western Asia. It is the fifth (5th) largest country in Asia and the second largest in the Arab world. The country is an absolute Monarchy.
Since the gulf war and prior, America has been a friend and supplier of strategic military equipment to Saudi including planes, defense military systems and other new-age equipment.
For Saudi at this time to cut its crude oil production and to align with Russia is a complete slap in the face of America and the impact of such a decision is already impacting Americans and other countries around the world. There are several other factors contributing to already rising prices in certain parts of the country. Patrick De Haan, Head of Petroleum Analysis at Gas Buddy, an app which helps drivers find low fuel prices recently weighed in on the rising cost of gas.
“For the past few weeks, an onslaught of refinery issues both in the west coast and the Great Lakes has pushed gas prices up tremendously in places like California, some stations have raised their price $1 to $1.50.
“A gallon based on those refinery shutdowns, which has brought supply to its lowest level in the west coast in 10 years to refinery issues in the Great Lakes as well, will force gas prices up 50 cents to $1 a gallon in that region.
“OPEC cutting back productivity by two-million barrels a day will impact all countries around the world. They are saying they need to make more money? At last glance, it appears all those oil producing countries are doing quite well,” noted Haan.
Notable: The Biden Administration is researching alternative sources i.e., increased drilling in US oil fields, possibly Venezuela as well as Brazil for crude. The timing of the decision to cut oil production raises many questions.
DL White, for over 30 years has been writing reflectively in response to issues local and nationwide. His articles have appeared in the Tucson Citizen, the Arizona Daily Star, The Arizona Republic and Arizona Informant News Paper. DL is the author of highly regarded Children’s Book, “The Sensational Letter S,” which encourages early word development. Reading comprehension, Story recalls. He is the State Director for the NAACP AZ State Conference ACT-SO Program. A national academic program that recognizes African American youth (9th – 12th) grades for their achievement in such areas as STEM, Humanities, Visual & Performing Arts. ACT-SO, the Olympics of the Mind!! DL can be reached at dwhiteQ2@gmail.com.