Good day all. For the last six or so weeks, since the United States and Israel decided to put a formal end to Iran’s dreams of nuclear Armageddon, Oil and gas prices have gone up. As to why this is happening is, in my personal opinion, pure psychology.
The United States is pumping more oil then we can use, Venezuela is ramping up production and there doesn’t appear to be any shortages of refining capacity. In short, the Iranians trying to block the Straits of Falafel shouldn’t have any real impact on oil prices.
Now that the United States is beginning mine clearing operations, and Iran’s ability to do much of anything has been tremendously reduced, we have a large number of empty tankers sitting around doing nothing. It now appears that the oil companies have decided that letting these tanks sit around burning money was not a good idea, and now they are heading for the Gulf of America. Here are the details from Newsmax:
President Donald Trump said Saturday that large numbers of completely empty oil tankers were heading to the United States to load up with oil and gas.
“Massive numbers of completely empty oil tankers, some of the largest anywhere in the World, are heading, right now, to the United States to load up with the best and “sweetest” oil and gas anywhere in the World. We have more oil than the next two largest oil economies combined – and higher quality,” Trump said in a Truth Social post.
This is going to benefit the United States of course, but also Venezuela and Mexico. (Provided the Mexican government can keep the Cartels from stealing the oil) Venezuela’s oil is not of great quality and requires special refining processes. The United States has the refineries in place to handle that oil. I don’t have any details on Mexico’s oil facilities, but I’ve heard they’ve had problems with graft, corruption and incompetence. Still, this can only benefit all the North American oil producers.
His post came as senior U.S. and Iranian officials were meeting on Saturday in Islamabad with Pakistani intermediaries as Tehran laid down its red lines that it said Washington must accept before face-to-face talks could take place to end their six-week-old war.
Well, as of this post, the Talks are off. Iran’s regime, at least those still breathing, can’t get it through their thick, inbred heads that they aren’t going to get to play Nuclear Armed Islamic Empire any longer. Anyone with any functioning brain cells knew that the talks were a waste of time, but we had to at least make the effort. Now that we have done that, the airstrikes will continue until Freedom improves.
Trump said earlier this week Iran should not charge fees to tankers going through the blockaded Strait of Hormuz, which has caused the worst disruption to global energy supplies in history.
Yeah, about that. I recall the OPEC embargo against the United States and the West. That was far worse. It also caused all the non-OPEC countries that have oil to start looking into producing their own. About the only reason we have any shortages is due to politics. Far to many morons, moonbats and idiots have actively interfered with domestic energy production. When you tell those idiots to stand in the corner and let the adults work, energy production skyrockets.
As to the fees Iran was planning on charging, I did see something about this. Apparently, they were going to charge ships $2 million dollars each way, payable in bitcoin. The story I found about this is from the House of Saud, so feel free to question the source.
Iran has begun charging commercial vessels up to $2 million per voyage to transit the Strait of Hormuz, Bloomberg reported on March 24, transforming the world’s most critical maritime chokepoint into a wartime toll road controlled by the Islamic Revolutionary Guard Corps. The ad hoc fee regime, confirmed by an Iranian lawmaker on state television, marks the first time a nation has imposed unilateral transit charges on an international strait in modern maritime history — and Tehran’s parliament is now drafting legislation to make the toll permanent.
Good luck with that. All Iran is doing is providing incentives to the Gulf States to seek alternative methods to get their product to market. One thing they can and appear to be doing is building more pipelines to the Red Sea ports. There has also been any number of memes about digging a canal through the United Arab Emirates and Oman, however geology would make that very difficult. (Mountains)
They might be able to build pipelines across the region to new port facilities and I won’t be surprised if there isn’t some discussions and research into doing just this. One result of Operation Epic Fury was to show just how off the rails the regime in Iran is. Instead of trying to convince the gulf states to not assist the United States, they thought firing missiles and sending in drones to hit civilian targets would be the way to wind friends and influence people.
Instead, Iran has managed to piss of pretty much anyone that might have, if not supported them, at least remained neutral. The Strait of Falafel, (Formally the Strait of Hormuz), will be reopened in short order and tankers will begin transiting it again. However, I fully expect that in the next 5-10 years, alternate means of transport are going to be developed and built to bypass that choke point. In the mean time, North and South American oil producers stand to profit.
Thatisall
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