Day 120: The Gutting of the US Oil Industry

Today is Thursday, May 7, 2020. It has been 120 days—4 months—since the start of the current grace period given by God and offered by the Iranian regime.

Funny, as recently as February of this year, the global oil price was a “normal” $50 to $60 per barrel. Then, with the lack of demand from Covd-19 shutdowns exacerbating the over-supply of Saudi Arabia and its oil price war, the price plunged to between $0 and $15 per barrel.

Some might say what harm could Iran and the Second Signpost do to us now?

The answer is that almost all nations, including the USA, cannot produce oil with any profit at prices that low. Only the Saudis can. The result in many places including here in America will be loss of production, and bankruptcies.

This article from spells out the dire situation right now and what will be happening in the near term regarding America’s oil industry.

The article is well written and covers most angles to the current situation.

Basically, America is more vulnerable to the Second Signpost then it ever was before. God knows what He is doing.

Categories: In The News, Signpost #2: Iran

Tags: , , ,

6 replies

  1. So what happens to all the oil in transit, in tankers, in pipe lines, in storage facilities if Iran attacks with all storage at 100+% capacity and U.S. oil producers bankrupt. Would an Iranian attack on Saudi Arabia tomorrow be a very odd blessing in disguise?

  2. Karl,
    It depends on the timing. Yes, if oil production is untouched but all this stored oil is around then it might provide some buffer. Its when oil production shuts down, and the stored oil is used up in a few days, that the problems of the Second Signpost become magnified.

  3. Isn’t there a sixty day supply in the Strategic Oil Reserve plus what’s in the glutted market?

  4. Iran attacks on behalf of many countries, price of oil skyrockets, higher oil prices, as most Mideast oil shuts down. For u.s And other countries there oil industries will be saved. A possibility? The only thing the US has to do is pull out.

  5. Karl,
    40 days. That’s 40 days plus what’s in the glutted market before the pain kicks in.

    Iran’s Supreme Leader says again he wants Americans to leave Iraq and Syria, this Sunday, May 17th.
    US pulls anti-missile systems from Saudi Arabia amid dispute, May 7th.
    5 Iran tankers sailing to Venezuela amid US pressure tactics, May 17th.
    Venezuela can’t produce their own gasoline right now. Brazil closed the border due to COVID-19, and Brazil’s own outbreak is worsening so they won’t reopen it anytime soon.
    Hezbollah’s Presence And Iran’s Influence In Venezuela Coming Into Focus, February last year.

    Iran has been using Venezuela as a base to prepare strikes against America, including arranging for fake I.D.’s. America would need a stronger military force deployed to the Gulf and Caribbean, which President Trump is working on. China won’t like it, they’ve got alot invested in Venezuela.

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