Low Oil Prices and Bible Prophecy
By Dr. James & Natalie Ricks
Immutable Law of Supply and Demand
This fall oil production rose to create an oil surplus. Supply outpaced demand. Demand declined because of a recession in Europe, the slowing Chinese economy and increased energy efficiency in the developed world. Supply expanded because U.S. shale and Canadian tar sands oil production increased.
Saudi Princes’ Power Gamble
It was November 4th and nearly everything in the energy complex went red (falling in prices). Why, because the Saudi princes lowered the price of oil sold to America. Their goal is to dump oil until they squeeze profit margins on U.S. shale oil producers and eliminate that competition in the future. Will it work? The Saudis’ are very frustrated that they are losing control over global oil pricing. This is a power they have held for many decades. Some think the Saudis have made the biggest strategic pricing error in the Kingdom’s history.
The wealthy OPEC members can survive this price war but it is hurting many other oil producing nations. Russia, Iran and ISIS are hit hardest by the price war and this may be a welcomed side benefit to Saudis Arabia. The Saudis won a price war like this once before, but investors think market and production environments are different now. Will God bless America and our oil industry or let the wealthy OPEC countries win in the long run?
Oil Price Drops Puts Chill on U.S. Drilling
The number of rigs working in North Dakota and Texas has started to decline. Workers are being laid off as oil prices fell to a 5 year low. EOG Resources Inc. this week said it would shed many of its Canadian oil and gas fields and close the Calgary office. A contraction of production is unavoidable at this point. There was a 36% decline in issued drilling permits during the last two months. The search for new oil is declining.
Will America and Canada Be Blessed In The Long Run?
Financial and material blessing ultimately come from God. America was warmly blessed from the very beginning of the nation materially and financially. Will God continue to give us those blessing?( See Deut 28:44 and Gen 49:22-25) In the past we have had the world’s best agricultural industry and a bountiful mix of natural resources including oil and natural gas. The U.S. Shale Oil seems to be the swing capacity that keeps oil prices down. Can the Saudis’ dumping of cheap oil destroy much of this industry?
Will our own government help keep America dependent on OPEC even though we have great oil reserves? Earth worshipping radicals could either regulate the shale oil (fracking) industry out of existence as they are doing to the Coal Industry or make it totally unprofitable to restart closed wells by use of excessive regulations. It is sort of like closing your own pantry and buying needed supplies from your enemy across town that hates you, and wants to destroy you. Instead of using the natural resources that God so mercifully gave, you would rather keep yourself in perpetual and growing debt!
God could easily remove His blessings from us because of our growing set of ungodly beliefs and actions and be totally justified. Will America appreciate and use the blessings of natural resources God has given us under our feet? At this time, only God knows.
IS THE DUMPING OF OIL A FUTURE TRAP SET BY THE KING OF THE SOUTH?
The low oil prices are a clear blessing to our economy in the short run. The drop in oil prices will save the average U.S. household $550 on gas next year according to the U.S. Energy Information Agency. Consumers will have that much more money to spend on themselves. But if we are not wise, and lose the window of opportunity to become energy independent and maintain lower prices, we may never have the opportunity again! We will be at the mercy of Middle Eastern potentates again when the demand for oil rises and supplies flattens. Will God be able to continue to bless America in the long run, or will we listen to the devil saying to us ‘Eat another piece of candy and forget about obeying and worshipping the God of the Bible ’? ‘Keep on doing what you are doing and you will be just fine.’ We can’t continue ignoring God and His Bible and survive. Let’s hope and pray that our nation can wake up and repent before it is too late.
