T’was The Last Energy Report before Christmas when all through the pits, traders were wondering why crude supplies slipped! A 1O million barrel drawdown gave the traders a scare and with exports still rising, would we have some to share?
The big oil drawdown was it something to dread? While visions of a bull market danced in my head. Was it time to buy heavy or was it a trap? Was this year-end tax shenanigans or would the market just gap?
When across the pond there arose such a clatter, forget about inventories it is Europe that matters! Marion Draghi lent the banks a lot of cheap cash, in hopes that the Euro would not soon crash. The banks lapped up the newly printed dough and Mr. Draghi now hopes that credit will flow! Yet it is unlikely this move will remove lenders fears and a real Euro solution will likely take years.
The rally in the euro was over so quick and it’s clear that Europe’s banks are still very sick! More rapid than eagles for the handout they came and some countries are on downgrade watch let me call out some names!
Watch Belgium, watch France, and watch Greece and Slovenia! Or Austria, Ireland, Italy and even Estonia! Spain and Portugal has their backs to the wall and the world has to wonder if the Euro might fall.
And as the year ends rumors continue to fly about places like Iran and North Korea and possible threats to supply. Iranian oil sanctions will likely go through and with their nuclear ambition tensions will continue to brew. Iran’s Mahmoud Ahmadinejad is really a goof and if he tries to cause trouble oil will go through the roof. Just when US the economy was turning around a big spike in oil could cause a turndown.
If you are worried about global warming or coal output soot, a revolution in energy is coming afoot. When we directionally drill shale and use water to Frac our nation’s energy security is finally on track. And even though some environmentalists are wary Fracing is as safe as going out and picking some cherries. There is so much gas and oil down below and by embracing technology our economy will continue to grow.
The delay of the Keystone Pipeline though was like a kick in the teeth. Jobs could be created drilling oil from heath. Yet for politicians they all play Machiavelli and it is winning elections that count no matter how smelly. We could be getting oil as from Continental Shelf, yet when it comes to politicians they only think of themselves.
We need to produce more energy in the years ahead and if we fall behind further our economy is dead. The Keystone pipeline word put people right down to work jobs for unions and restaurants and even for clerks. While some environmentalist may turn up their nose, people need jobs to buy their children some clothes.
Some Soldiers are home but some still far away and we need to remember to pray for them each passing day. It is for freedom that they are putting up this victorious fight
So to them and all of you, Merry Christmas and good night!
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at email@example.com.