Much in the news regarding what Washington is giving us for the Holiday Season. Some of the news is good:
- More Covid-19 vaccine shots for all. (By the way, some newscasters call them “jabs.” What an unpleasant expression!)
- The President has authorized pumping oil out of the nation’s strategic reserve in effort to reduce gasoline prices-at-the-pump. (But let’s be honest; the amount won’t make much a dent in consumption, and it will take several months before it gets into gasoline tanks.)
Some of the news is misleading:
- Washington is also giving us an explanation for high oil prices: the major oil companies are manipulating them. (The government always blames them, but after all these years doing so, politicians can’t prove their scapegoating claim.)
And some news on the economic front is confusing:
- Lots of talk about how MMT (Modern Monetary Theory) allows governments to spend a lot without fear of causing inflation. I have watched videos explaining the pros and cons, and what “pay for” programs really do (simultaneously increase spending by the government and reduce spending by the people). You can hear “convincing” arguments for both sides. Some say that only post-Keynesian spending programs (Fiscal Policy) are the only ones that work. The old Monetary Policy (money supply and interest rates) don’t.
Chris Christie, the former Governor of New Jersey, has just given podcast summaries of his latest book: “Republican Rescue.” Reporters and interviewers like him because unlike many politicos, he doesn’t dodge answering questions. Here is a short list of what he says:
- Trump did some good as president (by pushing back against a relentlessly too left-leaning Academia, Liberal Left, Big Business, Big Media, and Big Data.)
- The current administration deserves a little credit and a lot of blame for why Washington’s approval rating is so low.
- The Republican Party must develop a convincing alternative and explain to our people why the Democratic Party’s “Woke Imperialism” is a threat to Democracy.
And John Kerry, our highest-ranking representative at the recently concluded International Conference on Climate Change, presented this outlook:
- The nations of the world agree that climate change needs to be addressed. It is not the hyped existential threat that the media often fuels, but dealing with green/renewable energy, conservation, and recycling will lead to a better future.
- The nations of the world have the money and the technology to work on the issue as soon as they reach a workable consensus.
That’s enough for now!
And as we always try to do, let’s bring all the above back to Allied Resource Partners. Our takeaway is the same as stated in some of our previous posts. No one knows what will hold longer-term. But please note: there’s money to be made going forward for Allied Resource Partners. And we are confident that all the above jibes with “staying the course” on our current strategy. We continue acquiring attractive leases while drilling and operating low-risk, high-return wells.
We want you to be well informed, because the more you know about O&G, the more you’ll understand why we can say that Allied is leading the way by treating smart, accredited O&G investors the way today’s business climate demands. Please contact us if you would like to know more about our latest drilling projects or discuss further any of the items we touched on above.