Saturday, September 08, 2012

They should thank Obama: Arab gulf states enjoy record oil revenue

Morton Grove, Illinois
There is some good economic news this evening. Good, that is, if you are an Arab state on the Persian Gulf. While President Obama couldn't boast of any domestic economic achievements--his anti-drilling polices have bolstered the economies of our fiends, the Saudis, and their neighbors.

From the Arab News:
Gulf economies now appear fairly firmly on track for historically high surpluses, according to a new report from the National Commercial Bank (NCB).

It said the Institute of International Finance had estimated that the GCC [Gulf Cooperation Council] countries can expect to reap record oil revenues of $572 billion this year. Last year's intake was $538 billion.

The GCC countries have enjoyed an exceptional fiscal windfall since the oil price rebounded from its lows of late 2008-early 2009, it said.

Apart from the benign price environment, the GCC producers have generally boosted their output levels, initially in response to production disruptions in Libya and subsequently also in connection with the tightening sanctions on Iran, according to the report.

It said the fiscal windfall has in turn made it easier for the GCC governments to continue with a generally permissive fiscal policy.
Let's take a look at this sentence one more time: "The GCC countries have enjoyed an exceptional fiscal windfall since the oil price rebounded from its lows of late 2008-early 2009..."

Early 2009 is when Obama became president. The cost of gasoline here has doubled since then.

Oh, in '09, Obama bowed to the Saudi king.

Hey Obama: Drill here, drill now, pay less should be our energy policy. It will be the policy of the Romney-Ryan White House.

Related posts:

Video: Newt on not bowing to a Saudi king

Video: Romney on Obama's "Gas Hike Trio" at Illinois town hall

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1 comment:

  1. Anonymous3:50 AM

    Today, outside the Middle East, new drillings make economic sense as long as oil prices remain above $70-$80 a barrel.

    Leading oil services firm Baker Hughes warned that booming drilling in the shale oil fields of North Dakota and even south Texas could slow if U.S. prices drop below $80 a barrel.

    So oil will remain expensive and OPEC will continue to earn at least $700-$800 billion a year.

    ReplyDelete