Saudi's Drive Down Price Of Oil ...
After reading several articles about why the price of oil is coming down so dramatically and how ISIS finances its organization, I'm come to the conclusion that there might be an unintentional positive result for the drop in the price of oil other than cheaper prices at the pump for the average consumer.
What's the scoop?
Most report that the Saudi's are driving down the price of oil to compete with and teach the U.S. a lesson about accessing our own oil, selling it and undercutting sales of the Saudi/OPEC supply. It is thought that by doing so, they'll drive us out of the shale/oil business and continue to reign supreme in this field. No doubt the U.S. oil business is hurting to a certain degree, people are losing jobs and oil revenues are dropping off. But of course, us everyday consumers are appreciative of lower costs and now have more money to spend on other things. So it's a mixed bag of benefits and consequences for us.
However, ISIS' number #1 cash cow for funding the caliphate is selling oil on the black market at below market prices from fields taken by force in Northern Iraq and Syria. Of course oil isn't the only income generating business ISIS has. They extort fees, taxes, etc. from anyone living or doing business in those and other areas it controls much like the MOB does. But the main source of money comes from oil.
Enter the Saudi's.
By driving down the price of oil, yes, they hurt the American economy to a certain degree, but a possible by-product is that it also hurts ISIS whom already sells its oil at deeply discounted prices. Without a large and consistent source of funding, ISIS could not continue to operate at the magnitude it does now. And since U.S. bombing has not been able to destroy ISIS controlled oil fields, the other alternative could be to drive down the price of oil to the point where it really can handicap them.
Of all the articles I've read on the subject matter, not one has suggested the above as being a motive of the Saudi's for driving down the price of oil. But it could be a very potent strategy for lowering the power level of ISIS by decreasing its cash flow and thus hurting the ability to buy weapons and continue funding their objectives.
Just a little food for thought and a slight ray of hope ...
What's the scoop?
Most report that the Saudi's are driving down the price of oil to compete with and teach the U.S. a lesson about accessing our own oil, selling it and undercutting sales of the Saudi/OPEC supply. It is thought that by doing so, they'll drive us out of the shale/oil business and continue to reign supreme in this field. No doubt the U.S. oil business is hurting to a certain degree, people are losing jobs and oil revenues are dropping off. But of course, us everyday consumers are appreciative of lower costs and now have more money to spend on other things. So it's a mixed bag of benefits and consequences for us.
However, ISIS' number #1 cash cow for funding the caliphate is selling oil on the black market at below market prices from fields taken by force in Northern Iraq and Syria. Of course oil isn't the only income generating business ISIS has. They extort fees, taxes, etc. from anyone living or doing business in those and other areas it controls much like the MOB does. But the main source of money comes from oil.
Enter the Saudi's.
By driving down the price of oil, yes, they hurt the American economy to a certain degree, but a possible by-product is that it also hurts ISIS whom already sells its oil at deeply discounted prices. Without a large and consistent source of funding, ISIS could not continue to operate at the magnitude it does now. And since U.S. bombing has not been able to destroy ISIS controlled oil fields, the other alternative could be to drive down the price of oil to the point where it really can handicap them.
Of all the articles I've read on the subject matter, not one has suggested the above as being a motive of the Saudi's for driving down the price of oil. But it could be a very potent strategy for lowering the power level of ISIS by decreasing its cash flow and thus hurting the ability to buy weapons and continue funding their objectives.
Just a little food for thought and a slight ray of hope ...
posted by Candle in the Wind at
8:31 AM
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