# Donald Trump is actually kind of stupid when it comes to oil prices **URL:** \ **Category:** The BBQ Pit\ **Created:** [September 23, 2005, 7:46pm UTC](https://boards.straightdope.com/t/donald-trump-is-actually-kind-of-stupid-when-it-comes-to-oil-prices/323110 "2005-09-23T19:46:01Z")\ **Posts on this page:** 2\ **Page:** 2
**Author:** ![raindog](https://avatars.discourse-cdn.com/v4/letter/r/2bfe46/32.png) [@raindog](https://boards.straightdope.com/u/raindog)\ **Post date:** [September 25, 2005, 3:48am UTC](https://boards.straightdope.com/t/donald-trump-is-actually-kind-of-stupid-when-it-comes-to-oil-prices/323110/21 "2005-09-25T03:48:57Z")
> [@RickJay](#): > > Actually, I did provide it. That is Trump’s entire stated position on the matter. If he has something else up his sleeve he’d best start stating it or else he’s going to continue to look like a fool. > We’re all very impressed with your allegedly brainy reading habits. > > The United States does not get most of its oil from OPEC nations. That is not merely an opinion, nor is it something you need tremendous insight into the petroleum industry to understand. It is an absolute, unvarnished fact. > > That the petroleum industry is somewhat complicated is kind of the central point here, which you’ve missed. It’s TRUMP who claims that the issue is a simple matter of threatening Saudi Arabia with destruction. It’s Trump who doesn’t seem to be accounting for the fact that it’s not as simple as “The Ay-rabs pump all the oil and we should be able to buy it for cheap.” It’s Trump who’s playing on national chauvinism, and it’s Trump who does not grasp the fact that the United States needs to be looking at something other than achieving $1.50/gallon gas in perpetuity. > > Trump is presenting the solution as: “Threaten the ragheads and make them give us cheap gas.” He’s full of shit. Well, I’m glad you’re impressed. That was my intent. The oil market is a _single market._ It means little _where_ we get our oil. If any major oil producing nation were to interupt production it would drive up _worldwide_ oil prices _for all worldwide buyers._ Best I can remember Japan gets more than 50% of it’s oil from the ME, and Eurpoe gets a significant amount from them. We’re 8/9/10%ish from the ME I think. Still, that is significant enough that an interuption of ME oil would drive US gasoline and oil prices through the roof. (As Japan, China, Europe would be also competing for oil purchases in the _worldwide market_) The point is simply this: The oil industry is intertwined worldwide. What happens in South America, the Middle East or Africa is pertinent to _all buyers_, no matter where they get their oil. So I don’t know what nation you’re suggesting is “the right country.” AFAIK, Saudia Arabia is sitting on something like 25% of all the known oil reserves _in the world._ **If any one nation in the world has the capacity to influence worldwide oil supply it is unquestionably Saudia Arabia.** Lastly, the comment, “Something’s worth what it’s worth. Oil prices are up because that’s what oil costs. Why are Arabs not allowed to sell their property for a decent price?” got my attention. OPEC is a price fixing cartel. That is anathema to the American mindset. To the extent oil’s “worth” is artificially elevated by price fixing (which is **exactly** what OPEC does) (Read: colluding to reduce output and maintain stable pricing) it engenders resentment from a nation hooked on Suburbans, Expeditions and Escalades. If BP, Royal Dutch Shell, ExxonMobil, Conoco, et al met regularly met to discuss output they’d all be indicted. Still, you have a point and if that is indeed his complete thoughts that seems hopelessly foolish, from a practical, political and operational POV. Still, it remains a fact that the only nation on earth, (if you must choose a _single_ nation) that has both the capacity and leadership to influence worldwide oil supply it is Saudia Arabia. (including American gas prices) He’s also not suggesting that hasn’t been done in a milder fashion. Saudia Arabia has a long, close relationship with the west, especially the US. You don’t think that politicians haven’t in [sometimes less than] subtle ways reminded SA that it in their best interest to keep US oil prices low? Maybe The Donald is all wet, but it’s not as far fetched as it would seem. Not is it conceptually out of the question that SA use it’s own capacity and influence to increase—at least temporarily–output. But threatening SA is about the last thing this world needs right now. ---
**Author:** ![raindog](https://avatars.discourse-cdn.com/v4/letter/r/2bfe46/32.png) [@raindog](https://boards.straightdope.com/u/raindog)\ **Post date:** [September 25, 2005, 3:53am UTC](https://boards.straightdope.com/t/donald-trump-is-actually-kind-of-stupid-when-it-comes-to-oil-prices/323110/22 "2005-09-25T03:53:11Z")
> [@Marley23](#): > > I admit I’m not a big follower of real estate news. Perhaps I’d only had a spotty picture of his financial savvy. > > I’m going to stick to the contention that he’s a self-obsessed asshole, though. 😉 I wouldn’t disagree with that. 😉 [Previous page](https://boards.straightdope.com/t/donald-trump-is-actually-kind-of-stupid-when-it-comes-to-oil-prices/323110.md?page=1)