RUSH: Okay. I mentioned the plummeting oil price, and there are a lot of people trying to figure out, why is this happening? There are a lot of people that do not understand what it is that’s driving down the crude oil price. What explains it? When it happens and it’s a mystery, people look to traditional explanations, “Well, are people driving less? Is the demand for gasoline down? The economy bad? What’s going on?” And in this case that’s not the answer.
The simple explanation for much, not at all, but for much of the drop in the price of oil is found in Saudi Arabia. The Saudis are lowering their price because they are scared. They are very worried about the amount of oil now available in the United States and North America via fracking. Shale gas and oil. And it’s been reported in a number of official publications that the amount of oil, the reserves that are available in the United States and North America since fracking has become affordable, the reserves we have are greater than the reserves in Saudi Arabia.
Now, the Saudis have owned the notion that they have the world’s greatest supply of oil. And they are threatened gravely by this. They are lowering the price that they are charging in order to strangle their competition, which is in this country, in the Dakotas, anywhere where there is shale gas and oil and fracking going on. We got a Big Oil boom in this country, and they are doing everything they can in Saudi Arabia to strangle it. They’re trying to lower the price, get it to the point where it’s no longer profitable or sensible for the companies in this country to continue to frack and produce the oil. About $65 a barrel is that price, and the Saudis are doing what they can to get that price down there.
And of course if they arbitrarily decide to lower the price of oil, they are going to increase the demand for their oil, and this is, hey, competition in an open market, it’s bloodthirsty. I mean, capitalism, you can say good, bad, but when it is in full swing, it is just amazing to watch it. That’s exactly what happening here. That’s why the oil price is plummeting, is Saudis are trying to run their competitors out of business. The Saudis are trying to freeze the frackers, in essence. The Saudis, they have many more reserves at their disposal. The reserves the frackers have are yet to be produced. We just know they’re there.
RUSH: Do you remember how many people made fun of us when we said, “Hey, all we gotta do is drill, baby, drill?” Drill for oil will bring the price down, drill for oil will raise the supply, drill, baby, drill? Oh, you can’t, silly, made fun of it. We’ve drilled, we’ve drilled, we’ve fracked, and here are the Saudis lowering the price of oil. It works every time it’s tried.
RUSH: How many times were we and other people laughed at and mocked and made fun of for saying that the US can lower the oil price by drilling more? I mean, remember Sarah Palin? Drill, baby, drill? Remember how she was laughed at and made fun of and mocked? Anybody else who echoed the sentiment was laughed at, made fun of, and mocked. But that’s what’s happened. See the Saudis?
Because of our drilling — we’re fracking, same thing — we’re producing oil left and right in places heretofore it was unable to be had. We’re producing it, and the Saudis are threatened. They are lowering the price of their own oil to make it less profitable for the domestic producers in this country to bring that oil out of the ground or out of the shale. It’s cutthroat, and it’s bloodthirsty.
This is the way competition and capitalism work. UK Telegraph last Friday: “Oil Price Rout to Deepen Amid Supply Glut, Warns IEA — Brent crude tipped to fall to $75 per barrel as investors short the market and supply outstrips demand.” It’s another reason Obama doesn’t want the Keystone pipeline. Obama doesn’t want the oil industry going nuts. He doesn’t want oil cheap. He doesn’t want it plentiful.
Obama wants “alternatives.” He wants this idiotic solar, idiotic green, idiotic wind and all of this stuff, because that’s how he is able to make his cronies rich. But it’s also how he can wreak further damage on this country. Making sure that the oil that’s produced in this country can’t be produced? He’s all for all of that. He’s conflicted in a lot of ways about it, but it is what is happening, and that is why.
It’s because the Saudis are doing everything they can to damage the domestic market in this country which is just literally booming.