by George Weir –
The story of today is, lower gas prices, but the story of tomorrow will be the lay-off of many of the hard working people that have made the gas prices affordable. Also there is another story being untold, the story of the many property owners that rely on their royalties checks to help pay their taxes, employees, or just their every day cost of living.
Much of the benefits we now enjoy due to the fracking industry and the enhanced technique of recovering oil have been on private lands. Sure President Obama would like to take credit for the great strides that the oil and gas industry has made over the past few years, but the credit really goes to those that have invested in the future by acquiring oil and gas leases from private lands, and by investing billions of dollars developing these fields.
These private lands are held by people from all backgrounds. Some of these lands are held by people of little means and some of the lands are held by those that are well healed, but each 10% drop in oil prices decrease their royalty check by 10%. For instance, when the oil was $100.00 a barrel some checks may have been $1,000,00, but when the same oil is prices at $48.00 dollars a barrel their check is $480.00 bucks. I know this sounds simple and by the old math it is simple, but multiply this by the thousands of people that rely on these checks it amounts to millions of dollars that is being kept out of the economy, from the neighbor grocery to the corner barber.
The OPEC Nations have looked at the strides that we as Americans have made over the past few years by coming to the point of self reliance and even to the point of being an exporter, they could see themselves going back to camels as their transportation, so in order to avoid this dilemma they opened the taps and lowered their price of oil believing that this would bring Americas oil to a halt.
Yes the oil fields in the OPEC nations are much different the American oil, the cost of bring the oil to the surface is but a fraction of our domestic oil. The American oil company’s pay their employees well, (very well) I might add, and the cost of trucking, oil well service, etc. is also well paid, and the American economy has been well endowed by these well paying jobs, also as mentioned above, the royalties paid to the private land owners also are a contributive factor to the well being of the American economy.
If I were and oil prophet and knew all the answers I believe that I would put my bet on the American oil, and I believe that I would place my bet on these royalties owner seeing their checks rebound. The American oil company’s aren’t new to this game played by OPEC, they have seen this oil war before and have overcome every obstacle that they put in their way.
Also the next time President Obama takes the credit, just say no, (You didn’t build this), the American people with the help of private lands built these great strides toward [E]nergy Independence.