by Marita Noon
...Two years ago, Saudi Arabia did much the same thing—increasing
production and dropping oil/gasoline prices. At that time, the U.S.
faced an important presidential election where one candidate loudly
supported America’s new energy abundance and the other’s energy agenda
was all about “green.” Had gasoline still cost in the range of $4.00 on
November 6, 2012, the party in power would have suffered; the public
would have been screaming: “Drill, baby, drill.” The Saudis came in and
with their unique ability to throttle production up or down, took some
heat off of the Obama Administration.
Now, in the midst of another election cycle—one that is very
important to the future of oil production in America, the Saudis, once
again, appear to be orchestrating geopolitical outcomes. OPEC’s oil
output is close to a two-year high—despite production drops in Angola and Nigeria. Saudi Arabia has made up the difference.
Some observers say
the Saudis’ increased production in a time of global over-supply “is
not about a political attack on the U.S.” Others see it, as “more
nuanced.” Yet, last week a Saudi industry official, discussing the
production/export data leaks acknowledged: “Sorry, it is politics.”
It seems clear that OPEC does not want U.S. production to increase,
and Saudi Arabia is in a position to try influence American politics.
Lower prices favor the party in power. A shift in control of the Senate
would mean a change in America’s energy policy—one that favors our
homegrown energy resources; one that Saudi Arabia doesn’t want.
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