Rumored Russian intervention in the ruble and central bankers rushing out to put a positive spin on plunging oil prices helped stabilize a market that was in a dangerous freefall. Central Bankers were out in force taking up the benefits of lower energy prices and downplaying the potential risks as comparisons to the drop in 2008 were threatening to increase deflationary expectations. From IMF Chairperson Christine Lagarde to New York Fed President William Dudley and James Bullard it was all about how we should be rejoicing over falling oil prices instead of fearing them. Forget the geopolitical risks. Yet with signs that the drop in oil prices may already be impacting US shale production, isn’t it time for someone to step up and defend the US oil producer? If lower oil prices are such a good thing for the economy shouldn’t we try to protect the US energy producer that made it all possible? Reuters reported that permits for new wells dropped 15 percent across 12 major shale formations last month in a sign that the rapid growth in US production may slow in the coming months. OPEC has made it very clear that they are trying to flood the market in an attempt to break the back of the US energy producer. While politicians in Washington line up to take credit for the positive impact that shale production has had on the economy, isn’t it time they stand up against a conspiracy to undermine an industry that has helped revitalize the US economy and has created thousands of jobs. The Obama Administration has been openly hostile to what he likes to call big oil. He has called for raising taxes on the industry and has made it more difficult for producers to get access to federal land for drilling. Seeing that the administration likes to take credit for increased US production maybe they could help it withstand this economic attack by OPEC and provide tax breaks for US producers and lifting export restrictions on oil. They could fast track the approval of the Keystone pipeline and encourage the building of more pipelines with tax breaks and fast track approvals that could help us better utilize our shale oil and gas bonanza. Isn’t it time someone stood up for US energy companies that have been a major contributor to US energy security and our economic growth. Price Links Video series gives insight across the financial spectrum. https://www.youtube.com/playlist?list=PLDq9JQANqxRxCBaHqunzBT4Frxitjw-XV
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