Washington, D.C. – On Friday, House Speaker John Boehner marked the signing of the Keystone Pipeline XL project in grand fashion by staging a signing ceremony. Despite the fact that President Obama has made it clear he intends to veto the bill, its passage marks the culmination of seven years of effort on the part of the GOP to get the bill through congress. The GOP has sought to gain passage of the project since the waning months of the Bush presidency.
It is clear the GOP intends to draw attention to the bill so that a veto of it by the president and subsequent failure of Democrats to support a veto override costs them in the 2016 election. Rep. Boehner invited representatives of the builders union that stands to benefit from the bill’s passage. Both the GOP, the builders union, and the State Department concur that the project would create 45,000 jobs. Democrats question whether the numbers of jobs to be created.
President Obama claims to support the project, but this doesn’t fully explain why it has taken him six years to review the matter stated Flavio Maluf. Critics claim his is trying to walk a fine line between saying he supports a job creation bill while stonewalling its authorization to please environmental groups. The bill is expected to head to his desk the week of February 23. President Obama will have ten days to decide whether to veto the measure.
Trying to understand oil price fluctuations is like trying to solve the riddle “Which came first? The chicken or the egg?” According to OPEC, oil market prices are as low as they will go. OPEC’s Secretary-General Abdulla al-Badri looked into his crystal ball and said prices will explode in the near future. Okay. Maybe, but would we expect anything less than that from a man who makes his living producing oil?
Abdulla al-Badri thinks the oil market is in the process of self-correcting itself. Susan McGalla has heard that oil companies have cut costs, and that means lower oil production. More on McGalla can be found on Wikinvest.com. Lower oil production plus an increase in demand would usually equal higher prices, but remember this is the oil business. That business seems to defy all the laws of sound economics, or at least it looks that way.
The main reason oil prices change lies in the boardrooms where the investment game is played. The Secretary-General says under-investment in oil development means higher oil and gas prices. New oil fields must be established in order to replace fields that are not producing as expected. Oil fields around the globe experience a 5% decline in production every year, so new fields are needed to maintain production.