Why the Oil Price Collapse Is Bad News for American Energy Independence

RUSH: The oil price right now is down 75%.

In the short version of this story, before this, we had become independent of world supplies of oil. We became the world’s number-one producer because of fracking. Sadly, folks, the oil price needs to be at $30 to $40 a barrel to make it profitable to produce in America. If it goes below that… If this keeps up and, if this doesn’t change, a bunch of the domestic oil business will shut down.

The Saudis are not gonna shut down. This is horrible… It may result in 75-cent-per-gallon gasoline for you, which, of course, is fine. But that’s way below what it ought to be, way below what the happy medium would be is. Oil is crashing.

Now, let me walk you through this, because this is crucial. This is another sector of the American economy that’s being hit by this. Now, this is not so much coronavirus, but it has an impact. This results largely from the argument going on between the Saudis and the Russians over oil.

The oil tankers are stuck on the water in various ports because there’s no place to put the oil. The strategic reserves are filled up. The refineries are filled. We’ve got no place to put the crude. We’re not using it! In case you hadn’t noticed, there’s a government shutdown going on. There’s an economic shutdown.

People are not driving anywhere ’cause they’re not allowed to. By the way, on that, it’s academic.

The point now is reopen and get it back up and running.

I want to throw something on that because the environmental wackos are paying special attention to this. They are already making the case that this is exactly what they’ve been advocating to save planet — stop use of fossil fuels — and they’re deliriously happy over this. They’re ecstatic that oil isn’t being used. They’re already got charts that they’ve made showing pollution in places like New York is way, way down.

… it’s gonna be used to further advance the Democrat Party’s agenda, and the fact that they know that because they don’t want anything to change.

It’s Democrats standing in the way of the economy reopening. It’s Democrats who urge everybody, “Don’t do it! We’re not ready yet!” If you hear somebody say, “We need to wait for a vaccine,”

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