The shale drillers are the Elon Musks of natural resources: they produce products at a loss, but intend to make it up on volume. From Tom Luongo at tomluongo.me:
All of President Trump’s foreign policy can be summed up by two themes, making the world safe for Israel and controlling the price of energy.
He calls the latter “Energy Dominance.” And to those who still believe Trump has a plan, these two things are the only ones consistently in evidence.
His reactions to things contrary to his plan, however, are purely limbic.
These two themes converge completely with Iran. Trump wants Iran neutered to force Jared Kushner’s now-delayed again, “Deal of the Century” onto the Palestinians while also taking Iran’s oil off the market to support surging U.S. domestic production in the hopes of taking market share permanently.
Everything Trump does is in support of these two themes while throwing some red meat at his base over China, Mexico and the border.
It was never his intention to leave Syria back in December, really. Look how easy was it for John Bolton and the Joint Chiefs to convince him to stay because how else would we cut Iran’s exports to zero if we didn’t stop the land route through Iraq?
This is why we’re still harboring ISIS cells in the desert crossing around Al-Tanf at the Jordan/Iraq/Syria border, to stop Iranian oil from coming into the country.
This feeds right into hurting all of Syria’s allies to strengthen Israel’s position.
To paraphrase the song from Aladdin, “It’s stupid, but hey, it’s home.”
If the average Trump voter truly understood the lengths we are going to starve the Syrian army from having enough energy to finish wiping out the Al-Qaeda-linked groups in Idlib and Homs provinces they would burn their MAGA hats and stay home next November.
But they don’t so Trump’s approval rating keeps climbing.
On the other hand, people mostly understand exactly what the “Bay of Fat Pigs” operation in Venezuela was all about, protecting domestic oil production and getting control of Venezuela’s.
The sad truth is that many Americans consider this comeuppance for being stupid enough to elect Nicolas Maduro President.
But this is the guts of Trump’s “Energy Dominance” policy. Use tariffs, sanctions, threats and hybrid warfare to destroy the competition and therefore MAGA.
It would be sad if it wasn’t so pathetic.
And the irony is that the whole plan is predicated on sustainable and nigh-exponential growth of U.S. domestic production.
There’s only one problem with that. It’s completely unsustainable.
The greatness of the U.S. production story is evident if you only look at the number of barrels produced. But that story turns into a nightmare the minute you look one inch deeper to see what the cost of those barrels are and what profit, if any, they produce […]
via Energy Dominance or Flatulence? Shale Drillers Bleed Cash, by Tom Luongo — STRAIGHT LINE LOGIC