OPEC Cuts Oil Production: Can We Drill Now? PLEASE?

Even though the 1.5 million barrel oil production cut agreed on by OPEC during an "emergency" meeting failed to stabilize the plummeting cost, the intent is clear. To suck the worlds (especially Americas) economies dry, through price manipulation of a world required product. Unfortunately for OPEC, the current demand for oil, or extreme lack there of, outweighs the regimes that be. Good thing for us I suppose. At least for now.

Can we please start drilling now? Before these type of actions DO get a grip on our wallets? We're already showing that it can in fact be profitable. Let's get moving shall we?

But we'll start with local news, displaying the manipulation ideal. Reuters had a piece yesterday afternoon, about everybody's favorite communist teddy bear. Hugo it seems, wants to return to the days of fixing, or "price banding" oil. And of course, the cost he calls for is about $10 a barrel above what will sustain his grip over the populace. Hugo, the cuddly bastard that he is, says his regime would of course survive at almost any price. He went so far as to say $7 a barrel he could survive. I say "let's find out." Start drilling here and see what happens to him. Oops, we didn't even have to drill yet to see pressure already mounting against him.

Let us now go for a swim, across the pond to the chaps in England. The Telegraph.uk also had a bit to say on the situation. And seeing how they pay considerably more than we do for fuel, they have a real interest in the overall outcome. Well what do you know? They also noticed that even though Iran and Venezuela were demanding a 3 million barrel cut, oil prices continued to plummet. Saudi Arabia was one of the few countries with at least a resemblant head on thier shoulders that mentioned massive cuts "will be self-defeating and only reduce demand from the major consuming nations in Europe and America." For how long we can only guess. Start drilling here, and keep the low oil cost pressure on.

How about China? They're a major consumption nation these days. What do they have to say about this? Well I'm glad you asked. Xinhuanet also had something on it. Guess what, they also noticed the fact that cutting oil production, more or less exactly failed in every way, shape and form, to stop the plummeting cost of oil. (That collar feelin' a little snug there yet Hugo? Is that steam rising?) They mention that OPEC has had three major oil cuts over the last decade. Those being in in 1998, 2001 and 2006. None of which generated any significant or immediate price rebounds. Start drilling. Imagine the money America could add to it's GDP by outdoing OPEC, by selling specifically to China at say, $25 a barrel?

Russia anyone? They've become an entity of note again. What do they think? Boy, you folks are on a roll for asking the right questions today. Because sure enough, ITAR-TASS does have a short piece on it. They mention that even though OPEC did agree to cut production by 1.5 million barrels, no one really cared. People are more concerned with the market. They even mentioned one analysts thoughts, which echoes pretty much everyone elses thoughts that, "OPEC’s decision merely demonstrated to the market how very weak the demand for crude really is." BINGO! And before that demand strengthens, what say we start drilling to outpace a renewed demand?

Even India had something to say. As you know, India has seen a bit of growth lately, and has become a part of the crude demand. But they acknowledged that OPEC's cut failed to perform an even marginally desired outcome. They had at least a more rosy picture for OPEC, mentioning that the oil cost will probably bottom out around $58-65 a barrel. (Hugo, you can go change your shorts now.) Except, we already dropped below the higher end of that bracket, having settled in at close around $61 a barrel.

I'm enjoying seeing some of these bastards sweat a bit. Let's pile on some more fun by drilling here and drilling now. I'd love to see what kinda crap these OPEC-ers pull outta their butts next?