Oil Price Conspiracies Point in Different Directions
Most conspiracy theories surround negatives that the general public would hate if they ever became aware. When it comes to the strangely low oil values that have been “plaguing” gas prices lately, most Americans and people around the world don’t really care why it’s happening. They’re reaping the benefits and that’s good enough for them.
The problem with that mentality is that all of the oil price conspiracies point to one potential end: confrontation and turmoil. While consumers like the benefits of lower prices at the pump, a sustained reduction in oil prices will have negative results for everyone involved. We’ll discuss those in a moment, but first let’s look at the conspiracy theories surrounding the drop in oil prices.
These are in no particular order of likelihood:
Conspiracy Theory #1: Saudi Arabia Wants to Halt US Shale Oil Competition
The United States is on pace to be the world’s top producer of oil by 2018. More companies are getting into the business. Restrictions against them are being met with patriotic vigor determined to get us off of the black IV line that connects us to the Middle East. Things have been looking good for shale oil producers for some time now.
The problem is that shale oil is more expensive to extract than traditional methods used in other environments. Domestic shale oil companies depend on the prices being high in order for them to be able to afford to produce it in the first place. Lower prices mean big risks for these companies, many of whom have gambled on loans and investments in order to take advantage of the boom.
If the prices stay at their current level or go down for a sustained period of time, many of these companies will have to fold. Drilling permits dropped 36% from October to November alone. What was seen as a potentially lucrative industry just a few months ago has many investors scared. That could be the point. If Saudi Arabia can spook American companies from trying to get in on their territory, it’s a huge competitor that they eliminated right when they were starting to form.
Conspiracy Theory #2: Saudi Arabia and the US are Conspiring Against Russia and Iran
If we could root for a conspiracy to be true, this is it. We would all like to believe that the two countries are aligned against their two biggest shared threats in Russia and Iran. The US relies on oil for stability and Saudi Arabia relies on oil for their economy, but both can withstand “petroleum hardships” much longer than Iran or Russia. Last week, Iranian President Hassan Rouhani blamed the drop in prices on a conspiracy against his country, but fell short of naming Saudi Arabia and the United States as the perpetrators.
One could also throw ISIS into this mix as some estimates put their sales around $3 million per day. It would likely be more of a fringe benefit rather than a goal, but if this conspiracy theory is true, ISIS could become the scapegoat for the strategy if Snowdenesque revelations ever came to light.
Conspiracy Theory #3: A Controlled Global Economic Meltdown
This is the one that would effect us all. If it’s true, then we will see sharp spikes in oil prices coming sometime in the near future, followed by crashes. This is the worst case scenario that is showing some signs of being true. According to USA Today:
Stock markets in the Persian Gulf got drilled Sunday as worries about further price declines grew. The Dubai stock index fell 7.6% Sunday, the equivalent of a 1,313-point plunge in the Dow Jones industrial average. The Saudi Arabian market fell 3.3%
The first question any sane person would ask is, “Why would they want to promote an economic meltdown?”
To understand this, we must look at a larger global agenda. There are those in the know who say that an economic meltdown is inevitable. It’s not a matter of if but when. If that’s the case, creating the circumstances for one that is controlled by oil prices affecting global markets rather than less controllable circumstances such as food shortages or war in the Middle East would allow for a softer landing. In essence, they can prepare the world for facing the hardest economic times in the modern era by artificially creating financial problems that are manageable to some extent.
As farfetched as all of that sounds, it might not be too far from the reality. If one does not believe in concepts such as the New World Order, then the reasoning for something like this would be a humanitarian way to prevent as many disasters as possible in the face of certain doom. For those who believe in a globalist agenda and population control, then this is would be a way of expediting plans that have been in place for a long time.
Confrontation and Turmoil
If there is no oil conspiracy, we will know this for sure in a couple of months. These prices cannot be sustained and yet they continue to drop. OPEC is currently refusing to drop oil production, but they will have to blink sometime soon or they will do themselves more harm than good. In all of these conspiracies are false, we will see production dropped and prices increased by February, 2015.
If we do not see the prices rising by then, we’re in the middle of a major global operation. Regardless of the actual intent of the conspiracy, the results will be similar. There will be confrontation. Russia, Iran, and potentially even China are aware of the threats that these prices pose to their countries and they will be forced into some sort of action, most likely military but potentially something surrounding espionage. Saudi Arabia will be the most likely target of either type of action, but the US will be drawn in.
As far as global turmoil, that can manifest in dozens of different ways. Stock markets are already feeling the heat. Any major action by one of the suffering players could lead to events that could cripple the economies and dramatically affect trade. Those possibilities are countless but they all point to turmoil that would spread globally.
Before you continue to rejoice about lower prices at the pump, it’s important to understand what all of this could mean globally, locally, and directly to you.