Robert Sczech

BP CEO: Three Oil Myths

People who criticize resource nationalism, conveniently ignore the fact that all oil exporting countries are being ripped off. The reason being that the economic value of the oil they deliver is by no means equivalent to the amount of money they receive. In the case of the US, because of the many accumulated trade deficits, the US has not properly paid yet for its past oil imports for a long time. Proper payment means not US treasuries (which are promises of future payments) but real products and goods. The huge oversupply of Dollars in the world (in form of cash and US Treasuries) is mostly due to past oil deliveries to the US which have not been paid yet properly. Doesn't it make sense in a world like this to slow down oil production so some of the oil is going to be preserved for times when real money is going to be paid for oil? The Russians might be paranoid, but they are definitely not stupid.