This week, shale oil and gas take center stage in the economic picture that affects the chemical industry. Also, President Obama said in a recent speech that he believes the Democrats can hold the senate. He based his record on the economy since he took office as ample proof that his party gets the job done no matter what obstacles stand in the way. And Fox News political analyst Juan Williams agrees. We’ll also see how chemical industry analyst Paul Hodges feels about the Fed helping fund the Alibaba bubble.
Is It Logical to Export U.S. Oil?
Robert J. Samuelson seems to think so. His Washington Post article explains his reasoning.
One would think that we as a country should be working hard to sustain the recent oil boom. We aren’t, and one of the reasons is because of the current ban on exporting U.S. crude oil. Current events forced the ban onto the political agenda. The benefits of sustaining the industry are huge. From 2008 to 2014, net imports dropped by about 50 percent.
If we want companies to search for oil, they must have a viable market to make their efforts profitable. How we address the web of issues that are keeping that from happening will measure our seriousness to resolve those problems.
Obama’s Economic Record Backed by Facts
According to a Newsmax article by Sandy Fitzgerald, Fox News political analyst Juan Williams backs President Obama’s claims for the recovery of the U.S. economy.
Williams said in an opinion piece for The Hill, “On Obama’s watch, 5.1 million jobs have been added to payrolls, the S&P/Case-Shiller national home price index is up about 17 percent and the S&P 500 stock index has more than doubled while hitting all-time records.” Those statistics are hard to refute.
Shale Gas Linked to $125 Billion U.S. Chemical Investment
The American Chemistry Council published an article chastising U.S. investors for not supporting the natural gas and natural gas liquids that have created a competitive advantage for U.S. manufacturers. The investment of $125 billion and counting is a formidable number. Unfortunately, according to the article, more than half of the announced investment is by firms based outside the U.S.
U.S. Fed Governor Agrees It Helped Fund Alibaba Bubble
Chairman of International eChem, Paul Hodges, trusted commercial advisor to the chemical industry in an ICIS blog article said, “The last days of a bubble are always the most fun. And Alibaba’s New York market debut last Friday will be one of those to treasure and report to the grandchildren in decades to come.” The investment bankers got the price wrong by 40%, but will still make $250m in fees. They priced it at $68/share, but it peaked at $99.70 and closed at $93.89. Apparently, they got away with their colossal errors with impunity. Even U.S. Federal Reserve Governor Richard Fisher agrees that on of the largest speculative frenzies in history was actually funded by the U.S. central ban and its partners around the world.