By November 9, 2018 0 Comments Read More →

Opinion: Trump says to thank him for falling oil prices — you should probably thank George P. Mitchell instead

President Trump has claimed that recent decline in oil prices is thanks to him and his actions. He might well be right in the shortest possible short-term sense, but it’s just as likely that George P. Mitchell is responsible. Mitchell is known as the “father of fracking,” and it’s that technology that is the real driver of the global oil price these days.

In that short term, perhaps a couple weeks to a couple of months, it’s geopolitics more than anything else driving the price. The sanctions announced against Iran mean some nations aren’t going to be able to import from their traditional supplier. The waivers some have received mean there’s less worry there now. All of this happens much faster than anyone can curb or ramp up production, or send a ship of oil one way or another, and is thus what drives those prices in that short term.

So Trump is fair enough in claiming responsibility for those very short term price movements, as he is so claiming.

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Posted in: Opinion

About the Author:

The Louisiana Oil & Gas Association (known before 2006 as LIOGA) was organized in 1992 to represent the Independent and service sectors of the oil and gas industry in Louisiana; this representation includes exploration, production and oilfield services. Our primary goal is to provide our industry with a working environment that will enhance the industry. LOGA services its membership by creating incentives for Louisiana’s oil & gas industry, warding off tax increases, changing existing burdensome regulations, and educating the public and government of the importance of the oil and gas industry in the state of Louisiana.

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