Monday, July 24, 2017

Why in the World Would the Russians Want to Back the Fracking Party in 2016?

Obviously the whole Russian Collusion thing is a cover job to hide the fact that the Obama administration was bending the rules for snooping on electronic eavesdropping. As in breaking the law.

Their cunning plan was that the rules allow the Deep State to surveil US persons if they are in a conversation with a foreigner. Thus the Obama administration found an excuse to spy on the Trump campaign.

I'd say that people should be going to jail for that, but what do I know.

The thing that doesn't pass the smell test is the idea that the Russians would want to tip the election to Trump and the Republicans, also known as the Fracking Party.

Here's a little factoid. In 2013 Russia's GDP was $2.2 trillion. In 2016 it was $1.3 trillion.

I asked a convenient young head full of mush what he thought might be going on.

"Sanctions," he asked?

"How about fracking," I replied.

Yes, our brave and noble frackers, chaps like Harold Hamm, have brought the price of oil down from $100 per barrel in 2014 to $50 per barrel in 2017.

If you are a oil producer like Russia, with very little economy other than resource extraction, the fracking revolution has hit you in the solar plexus, taking your GDP down by over 40 percent.

Frame of reference: in the Great Depression the US GDP went from $104 billion in 1929 to $59 billion in 1933. About the same. But it made Republicans into eevil exploiters for half a century, because the Great Depression happened on their watch.

And of course, in oil-state Venezuela, the economy is totally ruined thanks to bus driver Maduro at the controls.

Next question.

Why in the world would Putin and the boys have any interest in interfering in the US election to help Donald Trump win? The one thing that Putin wants is to stop fracking and stop the disastrous collapse in oil prices on his watch. The obvious thing for Putin and the boys to do would be to back Hillary and the Democrats and pour money into green foundations that are shilling for the ruinous renewable energy and high energy price policies of the international left. Because global warming and the frying of the planet! In fact, the Russians do back green NGOs that advocate against fracking.

Fracking, of course, is short-hand for the technology used in the oil and gas world for horizontal drilling and hydraulic fracturing that makes it possible to exploit narrow, tight oil and gas bearing formations that would be uneconomical to exploit using "conventional" drilling techniques.

The fracking revolution, in case you missed it, has increased US oil production from 5 million barrels per day in 2008 to 9 million barrels per day in 2017. Natural gas has gone from 20 million Mcf to 25 million Mcf. Today, the US is in the middle of converting from an oil and gas importer to an oil and gas exporter.

Remember when Candidate Obama said in 2008 that energy prices would necessarily "skyrocket." Rule One to understand politics: they are idiots.

Back to  the Russian Collusion story. Who in the world  would think that Putin and the boys would back the party whose vice-presidential candidate in 2008 deplorably said, "drill, baby, drill."

I'll tell you.  Someone that thinks that Russian GDP has declined by 40 percent due to sanctions. And there must be millions of people like that.

But here is another factoid. Per-capita GDP in Russia in 2016 is $8,700, just a little ahead of China. US per-capita GDP? $57,500.

OK, So US per-capita GDP is merely 6.6 times the Russian per-capita GDP.  Hey, socialism will do that to you. Now you can see why there are so many Russians in the US.

By the way. Some wag once said that in oil states the people are a cost. You could run the whole country without the people, because all you need is an ATM at the oil export terminal to make sure that the ruling class gets the cream. But in a conventional post-industrial country, the people are a resource. It is their innovations and their production and their work that fills the coffers of the ruling class.

OK. Back to your regularly scheduled programming.

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