A Pump War? – New York Times 10-14-14

Salient to Investors:

Thomas Friedman writes:

  • Is the US and Saudi Arabia engaged in another global war with Russia and Iran like when they pumped the former Soviet Union to death? Oil export revenues account for 60% of Iran’s government revenues and more than 50% of Russia’s.
  • Oil producers Libya, Iraq, Nigeria and Syria are in turmoil, Iran is hobbled by sanctions, yet oil prices are falling, in contrast to 10 years ago when oil prices surged on such turmoil.
  • Citigroup says that since 2007, net oil imports to the US have fallen by the near equivalent of total Saudi and Nigerian exports.
  • Energy technology is producing unprecedented gains in energy efficiency and productivity.
  • If the US would reform the tax code and replace payroll and corporate taxes with a carbon tax, it would possess a formula for resiliency and success far better than our adversaries.

Read the full article at http://www.nytimes.com/2014/10/15/opinion/thomas-friedman-a-pump-war.html

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