Kevin Price, USDR Publisher and Editor in Chief, Column from the Huffington Post.
The energy industry in the U.S. has a love/hate relationship with the government. On the one hand, it hates virtually every tax, regulation or barrier between business and production, on the other hand, when production tightens due to government intervention, prices can in fact grow. We are seeing that phenomenon on a very practical level where I live in Houston, Texas. When government does intervene, there is an affect on supply that can lead to higher prices. The energy industry might hate the action, but it benefits from the results of higher prices.
Everyday I read of another story of thousands of jobs being cut in the energy industry. This is a direct result of an influx of cheap oil being dumped into the United States by OPEC and Saudi Arabia, as well as the delivery of over a year of oil coming to the United States through the Keystone pipeline. Yes, the Keystone pipeline. It has been over a year since TransCanada released the… (read more)