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by Paladin
Tue Mar 10, 2020 6:00 am
Forum: Off-Topic
Topic: Saudi starts an oil price war, OPEC in shambles
Replies: 13
Views: 4135

Re: Saudi starts an oil price war, OPEC in shambles

Chaparral wrote: Mon Mar 09, 2020 10:04 pm
Paladin wrote: Mon Mar 09, 2020 7:26 am OPEC in shambles is a good thing. OPEC is a cartel which artificially restricts supply. Not good for the drilling industry, but low energy prices are generally good for the overall us economy.
Loss of oil royalties from state lands as well as a decrease in sales tax and other tax revenues will lead to a state budget shortfall. State unemployment will spike, and retail and real estate revenues will take a hit. Not necessarily good for the Texas economy.

Your description of OPEC is accurate, but an interesting historical note is that OPEC was modeled after the Texas Railroad Commission, which limited Texas oil production to support oil prices for much of the early and mid 20th century.
Yes. This award winning book talks about the Railroad Commission and tons of other really fascinating details:
The Prize: The Epic Quest for Oil, Money & Power
by Paladin
Mon Mar 09, 2020 7:26 am
Forum: Off-Topic
Topic: Saudi starts an oil price war, OPEC in shambles
Replies: 13
Views: 4135

Re: Saudi starts an oil price war, OPEC in shambles

OPEC in shambles is a good thing. OPEC is a cartel which artificially restricts supply. Not good for the drilling industry, but low energy prices are generally good for the overall us economy.

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