Trump supporters say they like two things about the spray tanned clown, his “straight talk,” and his “business experience.” We already know that his “straight talk” consists mostly of juvenile insults and untruths, but what about his “business experience?” Well that was on display in North Dakota yesterday during his news conference and frankly it didn’t go so well. Trump’s economic theories and results are already shown to be awful.
He spent a good part of his speaking time complaining about Obama’s environmental initiatives and how he was going to get rid of all that so that (basically) we could “drill baby drill” in North Dakota and other places. Now, this is the typical Republican line, but like most Republican lines, it just ain’t true.
Here is what oil and gas production have looked like in the US over the past two decades or so:
Immediately you will notice that although fracking started before Obama took office, it really took off since 2008. Oh yeah, Obama was elected in 2008. Now, it is true that the oil boom has cooled off in the past year or two, but it is not because of any new environmental regulations. It has been pretty much as a result of market forces.
The increase with US oil and gas production was met by OPEC (especially Saudi Arabia) pumping oil like there is no tomorrow, combined with the remnants of the 2007 crash to lead to a world wide oil glut and collapse of natural gas prices.
Fracking is not economically feasible with oil prices less that $50 or $60 dollars a barrel. Prices were as low as $35 a barrel over the past 2 years. And because of that we have been enjoying gas prices at the pump in $2 a gallon range, rather than $4 a gallon like we were seeing several years ago.
Apparently Dumb Dumb Donny wants to raise gas prices to $4 a gallon again.
Which actually, environmentalist would love. Hmmmm…maybe we could slap a $2 a gallon tax on all oil imports, which would actually get North Dakota drilling again. Good luck getting that through a Republican Congress.
It is this kind of brilliant thinking that leads to outstanding business results like these:
I will say, I do believe that Dumb Dumb Donny can do for the American economy what he did for his own business: Run it right into the ground.