As if OPEC needed more bad press…
A recent report by the non-partisan group Securing America’s Future Energy revealed something shocking.
Each and every year, OPEC’s illegal price-fixing costs American households billions of dollars.
Yes, you read that right. That’s billions with a ‘b.’
In fact, in 2008, hardworking Americans paid over a half a trillion dollars. That’s more than Apple is worth, and it’s even more than the entire GDP of Poland, Norway, or Sweden.
Believe me, if an American company operated like OPEC, the U.S. Department of Justice would break it up faster than you could say ‘Ma Bell.’
The OPEC That Stole Christmas
The truth is, OPEC’s scheming has grown more subtle since the major oil crises of the ’70s, when the cartel used its “oil weapon” to try to influence Western policy.
While it wasn’t all that successful in changing our opinions — chalk that up to the futility of economic sanctions — OPEC did succeed in making a ton of money.
From 1972 to 1980, OPEC’s net oil export revenue skyrocketed from $100 billion to $665 billion.
All the while, Americans were hurting. Shortages led to rationing, and the desperate resorted to stealing gas by siphon. States even banned Christmas lights, effectively making OPEC the Grinch whose heart never grew.
And just in case there’s any doubt about what OPEC has been doing, check out this quote from M.A. Adelman, the leading economic analyst of the oil industry:
“A competitive price for oil would not only be lower than current; it would also be more stable. The oil price explosions were unrelated to scarcity and entirely due to the cartel.”
Please Pass the Gravy
In Saudi Arabia, oil is so plentiful that the estimated breakeven cost for oil production is about $10 per barrel. Everything else is gravy.
As you may have heard, there’s so much cash pouring into the country that oil accounts for a staggering 92% of the Saudi government’s budget.
Here’s what you might not know…
The massive profits the Saudis get from oil allow them to fund the government’s extensive welfare state.
Economists say only 30%–40% of working-age adults are employed. Gee, I wonder how the rest of them get by?
Saudi Arabia provides so many benefits for its citizens that the IEA estimates oil must be at about $80 a barrel for the government to stay afloat — and this is the reason oil prices won’t collapse anytime soon!
The Blind Can See
You may have seen a story recently making the rounds about a man from the Milwaukee area who’s been putting the “con” in Wisconsin…
This guy was pretending to be blind to rake in hefty disability checks. He whined about being “unable” to drive, read, or bowl without bumpers.
It was all going swimmingly… until he was caught driving a speedboat. Authorities even recorded him driving a car to the benefits office.
It’s enough to make anyone’s blood boil, isn’t it?
Well, the situation with OPEC is even worse.
Think about it… if we’re handing over billions of dollars a year to the OPEC cartel, where’s the money going?
That’s right — straight to the Arab nation’s welfare programs.
In effect, the Saudi government is bribing its citizens into complacency as the rest of the Middle East erupts into chaos.
This year, the bill to keep the peace will amount to 820 billion riyals (or roughly $228 billion).
But that’s all about to change, and civil unrest is inevitable.
Revenge is a Dish Best Served Gassy
There’s a saying in Saudi Arabia: “My father rode a camel. I drive a car. My son flies a jet-plane. His son will ride a camel.”
They might be corrupt, but they’re not stupid. Oil dependence is bad — no matter if you’re on the supply side or the consumer side.
And while we can’t dismantle OPEC or sue it for antitrust violations, we will hasten its return to bumpy camel rides.
You see, right now in America, there’s a revolution going on.
That’s right, the shale revolution that was kick-started in North Dakota has spread deep into the heart of Texas.
The shale boom is so successful that the United Arab Emirates, an OPEC member, has said it is considering importing natural gas from North America.
Yet you can do more than support the revolution right now. The shale boom has created an unprecedented opportunity for individual investors like us… all at OPEC’s expense.
Click here for a free report on how to profit from OPEC’s downfall.
Until next time,
Keith Kohl
Check us out on YouTube!A true insider in the technology and energy markets, Keith’s research has helped everyday investors capitalize from the rapid adoption of new technology trends and energy transitions. Keith connects with hundreds of thousands of readers as the Managing Editor of Energy & Capital, as well as the investment director of Angel Publishing’s Energy Investor and Technology and Opportunity.
For nearly two decades, Keith has been providing in-depth coverage of the hottest investment trends before they go mainstream — from the shale oil and gas boom in the United States to the red-hot EV revolution currently underway. Keith and his readers have banked hundreds of winning trades on the 5G rollout and on key advancements in robotics and AI technology.
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