Home Opinion Dear Editor My explanation on what Fine, Yates wrote

My explanation on what Fine, Yates wrote

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We have all heard of fake news lately but what about selective memory? Our memory is not like an unedited video of an actual event but more like Wikipedia, where you can write or alter the text with (citation needed). I am not writing this letter to explain what tricky memory is all about, but to try and explain what Daniel Fine and John Yates Jr. were talking about in their recent articles to the RDR.

It is very simple. With the shale oil boom of the last 10 years the U.S. oil industry over produced and had nowhere to store or sell the oil and NG. So in 2015, they convince the Obama Administration to lift the ban on exporting oil and it didn’t take long before the U.S. flooded the world market. This left the Saudis and Russians scrabbling to hang onto their existing markets so they continued producing and lowered their price so the U.S. oil industry would have to slow down because of production cost.
Now we have too much cheap oil on the world market and the U.S. started importing it by as much as a 10 percent increase because it was/is cheaper then our own oil. Ooch! In order for some smaller oil producers (especially in New Mexico) to stay competitive, they are now asking the Trump Administration to put quotas on imported oil to counter the lower market prices so their businesses can survive. Talk about a one two punch of unintended consequences.

Natural gas is now the ‘go to’ source of energy for the utilities companies over other sources like: coal, wind, solar, hydro, biofuel and nuclear. Why? Because is it cheap. We have such an abundance of it that the lifting of the oil export ban allowed us to start exporting it to the European and Asians markets, the same markets the Saudis and Russians export to. According to Daniel and John, these and other countries are ‘dumping’ their oil on the world markets to compete for buyers, even in the United States. Therein lies the problem, OPEC is fighting back and that is what free markets do.
I’ll end this letter with two random thoughts: 1) New Mexico’s oil and natural gas industry employs 15,000 people in jobs that pay about 40 percent more than the average state wage. 2) While oil producers are asking the Federal Government for quotas to protect their interest, they are also spending millions to prevent utilities companies from getting some ‘special funding’ from the government to keep their clean and safe nuclear power plants operational. Just saying!
Martin Kral
Roswell