Oil Crash, page-135

The low oil price is great for consumers but a bit of a disaster for those
who rely on high prices such as energy producers, investors and
Governments who rely on higher tax revenue from the high oil prices.

IMO, the drop in oil price has been engineered by the USA to banrupt Russia
and put the screws on Iran to scrap its nuclear program. The price slide
coincided with the phase-in of economic sanctions on Russia and Russia
had to pump out increasing volumes just to keep its head over water.

Then the Spin Doctors got at it and said that The Saudis wanted to put the
squeeze on US shale producers.

The US is now virtually oil self sufficient so the effect of balance of trade will be minimal
and the US economy always reacts positively to a drop in oil price. Th Government,
however will collect less VAT.

In Aus the situation is a bit different. While we import over 60% of our petroleum, we also
export LNG. Our other energy export, coal, has also been negatively impacted.
If we add our coal & LNG exports vs our petroleum imports we are tradewise a looser.
So is our Government with less GST & corporate tax reciepts.

The only winners are motorists and businesses with oil cost inputs (Qantas etc)
Like the USA, we simply have to become petroleum self sufficient. If the US could do it in
6 years then why can we not do so? We imported $38 billion petroleum products last year
which almost negated our entire coal exports.

The whole centre of Australia was a sea bed for hundreds of millions of years ; the very thing needed
for the formation of oil. We were a net exporter of oil when it was $20/bbl and we have become
increasingly dependant on imported product as the price went up. Not great strategic planning, eh?
So much for the free market working in our interests!
mm