VIEW from behind the plow

Thanks to Bob Bomhoff for sending along a column from Livestock Weekly written by Dennis McBeth.

The column, entitled, “Oil About Ranching,” talks about the importance of America’s oil industry to the economy, as well as cross-over influences on agriculture.

The lead paragraph sets the tone, pointing out that America’s revitalized petroleum industry is saving the U.S. economy $500 million a day – as a reduction in that amount of oil that no longer has to be imported from foreign countries.

McBeth checked the Energy Information Authority, complete with graphs, as the basis for his column.

Our thought: Those savings could go a long way in building a wall on the southern border (or several walls).

He reported that in 2005, net petroleum imports into the country totaled 12.5 million barrels per day. Imports peaked in the 2005-07 time frame and then dropped below 12MBPD in 2008, followed by a near steady decline for the next 10 years.

For the first two months of 2019, net petroleum imports have been less than two MBPD, he continues.

He multiplies the more than 10MBPD by a lower than actual $50 per barrel of oil to come up with the $500,000,000 daily savings.

Our questionable math skills total that to $1.825 trillion a year.

He points out that using the $50 bbl. oil price means his savings projections are underestimated.

“Remember in 2007 when oil went over $130 per barrel?” he asks.

Imports have decreased because America has employed fracking operations, allowing recovery of oil that previously was inaccessible in tight shale formations.

He points out that the increased production has added jobs, royalty payments and increased tax for several levels of government. (Local sales tax receipts have gone up double, triple or more in some instances.)

“It would be nice if those who are promoting the ‘Green Movement’ would stop flying around in jets with their mouths full and instead give credit to the oil companies that have delivered an economic miracle of ample fuel supplies right to their neighborhood,” he writes.

“So far, the reward for the oil companies has been to work hard and take huge risks and sell their product for almost half of what it was bringing just a few years ago,” he adds.

He referred to the pathetic situation in oil-rich Venezuela where millions are going hungry and without basic needs because its socialist government took over the oil industry.

He points out that 60 years ago Venezuela was the fourth largest economy in the world and their currency was second only to the United States.

Some people may think Venezuela ran out of oil but that is not the case, he says.

Venezuela still has the largest oil reserves in the world.

Getting back to the U.S., he points out that while oil production has gone up here, there is almost an epidemic of obesity, which he comments may be connected to the U.S. farmers using efficient diesel-powered equipment, thereby producing more food and oftentimes cheaper food.

Meanwhile it has been reported that the average Venezuelan has lost 10 pounds.

(We suppose that refers to those who have stayed there. Thousands have fled the country and its repressive socialist regime.)

He discusses American fracking operations as a technological breakthrough done with private enterprise (entrepreneurs) who have taken the risk to develop the nation’s oil industry.

Venezuela’s oil industry, which has been nationalized (government run) has gone to pot, illustrating the difference between free enterprise and socialism.

“Based on the evidence would you prefer a government-owned oil monopoly or one owned by individuals?” he asks.

Then he jumps to some of the strange things that have been happening in America (now being exposed), such as the big bribes being paid by wealthy individuals to get their children admitted into prestigious universities, where they could not gain admission on their own effort or ability.

“Pardon me for not having a shocked look on my face except for the surprise that it was reported,” he comments as an aside.

Why are some parents not suing universities who promote socialism? he wonders.

He also wonders why some of the politicians who embrace socialism are not taking advantage of the opportunity to catch the next boat south.

Good question.

Kingfisher and Canadian counties are feeling the double blessing of an oil boom that is boosting economies and helping keep gasoline (and other product) prices down.

State tax revenues, which are greatly dependent on petroleum, are higher, providing many of the services each citizen receives – schools, roads, bridges and more.

It seems to us that the further people get off the farm, the more ignorant they become; common sense is often the first asset that goes. People start thinking food actually does just miraculously appear at the grocery store, or that gas prices would be cheaper if the government was in control.

We’ll refer you again to Venezuela: What if there is no gas, or food – or money to buy either with?

We remember a conversation with a Venezuelan a number of years ago in which he suggested “nationalization” of the American oil industry as a reasonable way of paying off the national debt.

We wonder what he thinks now … or if he figured out a way to stay in the U.S., national debt and all. Maybe he’s advising our left-wing lawmakers.

McBeth’s column certainly provides food for thought whether you agree or not.