How Dropping Oil Prices Threaten the Islamic State
While on vacation last week in South Carolina, I noticed a steep drop in the price of gas. By the time we came back home, I was paying $2.86 per gallon. In some states it’s even lower, a 55-cent swing from what I paid in Georgia.
Not only is this good news for consumers; it’s also bad news for the Islamic State.
Members of ISIS do not work for a living. They don’t have jobs.
They are professional terrorists.
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They are most likely funded with oil money. When the price of oil drops, so does their income.
The following is from the Financial Times:
“Saudi billionaire investor has sounded the alarm over the potential impact of falling oil prices on the Gulf kingdom’s economy.
“In an open letter to Saudi ministers posted via Twitter, Prince Alwaleed bin Talal al-Saud expressed his “astonishment” at comments made by Ali al-Naimi, the oil minister, who reportedly played down the impact of oil prices falling below $100 a barrel. Prices have since fallen below $88 a barrel, or a quarter since June.”
A year ago, Alwaleed bin Talal had warned that oil prices were going to drop because of increased production in the United States:
“Billionaire Prince Alwaleed bin Talal said the Gulf Arab kingdom needed to reduce its reliance on crude oil and diversify its revenues.
“His warning comes as rising shale energy supplies in the United States cut global demand for Saudi oil.
“In an open letter to his country’s oil minister Ali al Naimi and other government heads, published on Sunday via his Twitter account, Prince Alwaleed said demand for oil from Organisation of the Petroleum Exporting Countries (OPEC) member states was ‘in continuous decline.’”
The Saudis will cope with decreased revenue, “either by cutting spending or dipping into reserves or borrowing.” One way they will cut spending is by reducing the money they funnel to terrorists. They have a lush lifestyle and building programs to finance to keep the general population placated. If oil revenue drops, the people will get restless.
The longer we can put the pressure on by out producing the Saudis and their member oil states, the sooner we can dry up their reserves of money and oil.
What’s driving down the price? Most likely two things: (1) a potential slowdown in the worldwide economy and (2) an increase in oil production in the United States and Canada.
Building the Keystone Pipeline would seal the deal.
President Obama has opposed the Pipeline at every turn even though a recent study by the State Department concludes that the Keystone pipeline project will have no major environmental impact.
Is it possible that Obama wants America dependent on Islamic oil? Is this his way to advance his real agenda of turning the United States into a second-rate world economic power, thus, making it easier of the Islam State to advance worldwide?
Consider this lame excuse he offered for rejecting building the pipeline:
“Republicans have said that this would be a big jobs generator. There is no evidence that that’s true. The most realistic estimates are this might create maybe 2,000 jobs during the construction of the pipeline, which might take a year or two, and then after that we’re talking about somewhere between 50 and 100 jobs in an economy of 150 million working people.”
It’s obvious that Obama does not know anything about economics, let alone national security.
Not only would American oil independence create jobs far beyond just building the pipeline, but it would cripple the funding-arm of terrorists.
Following Obama’s economic logic, cell towers should never have been built since once they were built, the jobs would go away.
The same could be said about an oil refinery or anything else.
What cell towers and oil refineries do is make it possible for millions of other people to participate in a global economy at reduced prices and heightened efficiency.
Inexpensive energy benefits everybody. Costs are lowered, not just for the rich, but for the poorest among us. Domestic oil production will benefit every American.
This could be another reason Obama is opposing the Keystone Pipeline. He doesn’t want it said that Americans don’t need government.