It's probably a strategic bet on the future of energy prices.. "not a big deal in today's environment" however, where are prices headed?
I posted this below but it's relevant here also..
We can also talk about Credible threats to Oil Supply specifically in the Middle East..
( http://www.politico.com/magazine/story/2016/12/trump-avoid-mistakes-iran-214502 )
Given its hawkish posture, the Trump team can credibly invoke the threat of force to coerce concessions out of Iran. Despite the chorus warning the new administration that it cannot possibly revise any aspect of the arms control agreement signed by Obama, Trump has a real chance of scaring the mullahs back to the negotiating table and getting a deal that dispenses with problematic aspects of the Joint Comprehensive Plan of Action such as its sunset clauses and lenient research and development provisions. Trump and his advisers should also note that Tehran will assess their intentions not just by what they say but how they behave elsewhere in the Middle East. Should the new administration neglect America’s Arab allies and denigrate Israel as the Obama White House often did, then the clerical rulers will sense that they have more room to maneuver. Trump sure is adding a lot of Generals to his cabinent picks.. hmmm.. ??
Shaking the Iranian tree may be a little "rough" on world Crude Oil markets.. afterall Iran is either #2,#3 or #4 in World proven supplies depending upon the year.. outlook.. price.. and author.
You go back over $100 on Crude Oil prices.. and things may shift in terms of how we view energy supplies..
Is it CHEAPER to Stop Earthquakes in Oklahoma by some engineering solution WHILE continuing to Produce Crude OR.. go another direction..??? |