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Disclaimer. After nearly 40 years managing money for some of the largest life offices and investment managers in the world, I think I have something to offer. These days I'm retired, and I can't by law give you advice. While I do make mistakes, I try hard to do my analysis thoroughly, and to make sure my data are correct (old habits die hard!) Also, don't ask me why I called it "Volewica". It's too late, now.

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Sunday, October 21, 2018

US now world's largest oil producer

Source: ClimateCrocks


Thanks to the shale/fracking revolution,  the USA is now once again the world's largest oil producer.  The second and third largest producers are Russia and Saudi Arabia respectively. 

Both countries are dictatorships which murder their own citizens, at home and abroad, and destabilise other countries.  Would it not be wonderful if the US, because of its domestic oil production bonanza, and a rapidly increasing fleet of electric vehicles, could stop kowtowing to these dangerous and vile tyrannies and rely on its own oil production?  Would it not be good if their power to do harm were diminished by falling oil demand and prices?  It is no accident that Russia has influenced US elections, and continues to try to do so.  Its budget receipts are dominated by oil, as are Saudi Arabia's.   They do not want to see the EV revolution succeed, any more than domestic US oil billionaires and companies do. 

But it is too late for them to stop the revolution, because China which produces and buys 1/3rd of the world's cars has set an EV target equal to 10% of sales for 2019, one which will rise each year into the future.  It will be China and India which will drive the EV revolution from now on.  And that will have excellent results, reducing our dependence on these autocracies and reducing their influence on world affairs.



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