Friday, April 10, 2020

Desperate to save fracking

A new bill has been introduced in the Senate which if passed would punish Saudi Arabia over failure to cut oil production by removing all US troops from the kingdom within 30 days.

Sen. Bill Cassidy (R-LA) introduced it after Louisiana and other states have been impacted by the ongoing OPEC+ crisis and price war between Russia and Saudi Arabia. As of Friday OPEC+ appears to be closing in on a deal which would see a production cut of 10 million barrels a day, which S&P Global Platts still warned "isn’t enough to plug the 15- to 20-million b/d near-term imbalance in the marketplace and avoid tank tops in May."
Sen. Cassidy's bill would also impose tariffs on all Saudi oil imports within ten days of enactment, also aiming to ensure prices would not dip to below $40 a barrel.
It was fracking that pulled us out of the 2009 crash.  Now we have to find another bubble.

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