Congress's trillion dollar economic stimulus plan fails to address one of the primary threats to our future economic stability: OPEC's plan to push oil prices up which will siphon hundreds of millions of stimulus dollars to the offshore oil producers, according to John W. Rich, Jr., a leader in the waste coals to liquid transportation fuels field. "Just recently, OPEC announced plans to cut production by 4.2 million barrels a day and has stated its goal is to get oil prices back to $75 per barrel. If OPEC succeeds in getting oil prices back up, that could mean that more than 15 or 20% of the new stimulus dollars would simply be exported to foreign oil producers' bank accounts which will further diminish, not stimulate, our economy," said John W. Rich, Jr. "Congress should not ignore the problem with OPEC and prepare a stimulus bill that could essentially be a direct deposit of billions of dollars into foreign oil suppliers' pockets." Oil spiked to $147 per barrel last summer, driving gas prices to nearly $5 per gallon and crippling our economy. If OPEC succeeds in driving the $30 per barrel price ($300 million per day) of a month ago to $75 per barrel, that would mean the U.S. would be exporting another $450 million per day for a total of $750 million per day to the offshore oil suppliers.
Follow the money. John Rich isn't looking out for the US Taxpayer, John Rich is looking out for John Rich and his cabal of "green" or uncompetitive, subsidy-seeking parasite ilk. John Rich, of course, as a "leading expert" on "liquefied coal" is too honorable to have a horse of his own in this sorry race.
No need for a redherring. The issue itself is of concern to all of us. The stimulus done last year was given to OPEC. Remember the huge oil spike as the checks were being cashed in May/June? The same thing is going to happen again. OPEC has already laid the groundwork by cutting supply historically tight. Once the stumulus is passed, the sovereign wealth funds will come in and buy up oil futures.
Why wait? Many of these nations, including ex-opec countries like Russia, are reeling from low oil prices. If they could indeed affect price as you mention by simply coming in to buy oil futures, why wouldn't they do so now? No, I don't think it's that simple, mate.
The problem with OPEC is that they dont trust each other, continualy lie about production to each and are quite frankly prepared, albeit secrecty, to sell as much as oil as they can at any price to fund their own economies. If they wanted oil at 100 all they would have to do is turn the tap off and wait....its not that simple however.