In other news the sun rises in the east and water is wet. Wait! This just in women wants more sex when they are fertile. The title says it all, really. The U.S. State Department along with President Obama denied TransCanada’s permit application not on any other grounds than because House Republicans did not give them enough time to properly evaluate the project.
It has nothing to do with playing partisan politics or keeping a floor under the price of oil as the Americans boost their GDP numbers by being a net exporter of petroleum products. One wonders if this more than any other reason is why they keep sabre-rattling against Iran as well as interfere in other oil markets. Pull the other leg, mr. President it really does play “Jingle Bells.”
Now that the U.S. has successfully bled the rest of the world dry of their oil at $10 to $40 per barrel and given them worthless Treasury bonds in return, they can now become a chief exporter of petroleum having shut off much of their domestic production in the previous generation waiting for this time to come.
The long-term shift looks like a move towards using natural gas domestically while sending thee oil overseas. Denying the pipeline project plays into this strategy while allowing Obama to score points with his base.
Crude futures sold off on the news but recovered to close near $101 per barrel. Natural Gas prices have collapsed in recent months closing below $2.50 per million BTU’s.