Many people are wondering why gas and oil is falling in price in the USA. Why is gas so cheap? Although it is putting more money in people’s pockets, it still makes people wonder what happened? Is the demand for oil world-wide decreased due to economic shrinkage? Did increased production of oil in the USA cause prices to go down? Well, Yes and No. Let me explain it to you.
This is an increased supply of oil by Saudi Arabia into the global market. Why would they suddenly do this?
So what does “Hydraulic Fracturing” AKA “fracking” in the USA have to do with the Saudi’s decision to flood the market with cheap oil? Due to increased and improved fracking in the USA and the change in political climate from victim to victor. The Saudi’s are running scared of the competition by domestic oil production here in the USA on private land and they pretty much guessed that the elections in 2014 we were going to see a landslide for the Republicans resulting in the opening of public land for energy production in the future and that the Keystone pipeline would more than likely be built within the next few years whether Obama wants it or not.
The Saudi’s are simply lowering oil prices as much as possible to drive out/put out of business as many oil companies fracking in the USA as possible so they can keep their monopoly on the oil market. OPEC used to have a world monopoly which under USA law is not permitted but was permitted due to the fact we were heavily dependent on foreign oil. If the Saudi’s can drive the price of a barrel of oil to the point it is not economically feasible to frack, most of the oil companies fracking in the USA will stop, making the USA more dependent on cheap oil.
Being dependent on foreign oil is the biggest threat to our national security next to liberal progressive Saul Alinsky disciples that want to take away the USA constitution, your freedoms and liberty.