US OIL PRODUCTION HIGHEST SINCE 1970

    While the Corporate Media was busy trying to prop up the NFL's declining ratings (the playoff games were at a nine-year low); positive things were happening in the real world. On Friday, the US Energy Information Administration announced that American oil production as of November, 2017 was at the highest rate since late 1970. 

     Domestic oil production surpassed 10 million barrels per day. About 2/3 of that number comes directly from the President's lifting of regulation on shale oil extraction. Several consultants within the oil industry say that the full effect of Trump's energy policies have yet to be realized. They are predicting that American production potentially can eclipse Saudi Arabia and at least challenge Russia's petroleum dominance.

     To give an example of what this means to consumers, gasoline in 1970 cost 36 cents per gallon (about $2.30 in 2018 dollars). In other words, the current price of gasoline should fall about one dollar per gallon if the current production rate stays stable. But production is likely to go even higher.

     One point that we've stressed a lot here is that deflationary economics is essential for a sustained economic recovery. The price of petroleum has been one of the major factors driving our out-of-control inflation rate. In spite of what the phony 'environmentalists' say, the high cost of gasoline as an inflationary catalyst is not because of individual auto-owners. The price effects us collectively in the cost of freight and production. 

        Americans have been getting price-gouged by shady politicians who pass regulations and restrictions benefiting robber-barons and speculators like George Soros. The price of gas goes up. That's increased costs to farmers and manufacturers. The producers then contract with freight companies, whose fuel costs have also gone up. By the time it reaches the consumer, the consumer is paying increased fuel costs for his groceries or clothing; then gets gouged again at the gas station for his own car. 

         This is why opening America to oil production again is so critical to full economic recovery. While it's also good news that wages in the US are rising, the increase means little in a long-term sense unless lower prices come with it. This is the mistake that Reagan made in the 1980's and Bush Jr. made in the 2000's. Both boom-cycles led to recession in 1990 and 2007. 

          The Democrats, in contrast, created economic stimulus with tax-and-spend policies. This too puts money temporarily in the economy, but also creates economic stagnation. Obama's policies never brought us out of the 2007 Recession. Had it not been for the Tech Boom of the mid-1990's, Clinton's policies would have had little or no effect. In fact, Clinton did nothing for the economy except to take credit for what the private sector actually did. 

        For once, expert predictions about the future of American Oil Production are probably correct. We haven't scratched the surface of the vast Alaskan reserves or reached the full capacity for shale-refining. And projects like Keystone are just starting up as are long-neglected oil fields and refineries. If the Energy Sector continues on this course, we may see levels of prosperity in America again that hasn't been seen in decades. We're already well on the way.