Weâre going to have a front row seat to OPECâs revenge for... Weâre going to have a front row seat to OPECâs revenge for...
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Feb 05, 2024 By Keith Kohl for the Outsider Club Cheating on Oil Output Quotas? When did we stop taking OPEC seriously? OPEC had our curiosity during the 1970s when member countries took control of their destiny and nationalized their oil industries. By doing so, they shifted the power of the worldâs oil supply out of the hands of the Seven Sisters â you know them better as Chevron, Exxon, Gulf, Mobil, Texaco, BP and Royal Dutch Shell.  In 1974, Saudi Aramco gained a 60% stake in Saudi fields and completed the takeover in 1980. Kuwait wrested control of their oil resources in 1975. Of course, the oil cartel certainly had our attention in 1973â1974, when they established an oil embargo in retaliation for the United Statesâ decision to side with Israel during the Arab-Israeli War. Google CEO Prepares to (Voluntarily) KILL Search Google Search is a moneymaking machine like no other. The platform turned free internet searches into $162 billion in cash last year. It dominates the industry, owning more than 90% of the market share (with 8.5 billion searches per day). Googleâs name is a synonym for looking up information. But now CEO Sundar Pichai is about to pull the plug on search. Google has developed a new technology said to be 1000x more powerful than search. Employees have been testing internally for two years, and now the company is ready to unleash it on the world. [You have to see this to believe it.]( I wonât go so far as to say we completely stopped taking OPEC seriously, especially when a dozen countries control roughly one-third of the worldâs oil supply. But itâs hard not to roll your eyes when you see them pull off some shady moves. Some of the veteran members of our community remember the suspicious increases to OPEC membersâ declared reserves during the 1980s, when within the span of seven years we saw several OPEC countries suddenly double their reserve base: [opec reserves] It wasnât just the Saudis, mind you. Iraq dramatically boosted their declared reserves TWICE in five years! And thatâs just reserves, too. Cheating on output quotas became a running joke among oil traders. Adding insult to injury was the fact that oil field data was one of the tightest closely held secrets among OPECâs massive national oil companies. For decades, Saudi Aramco insisted that production at the mighty Ghawar oil field was humming at 5 million barrels per day. We later discovered that was a bold-faced lie when the Saudis tried to IPO part of Aramcoâs refining business and were forced to reveal that Ghawarâs output was actually closer to 3.5 million barrels per day.  Shots Fired!!! A war is raging between Wall Street and Main Street, and weâre going to battle. Join our private community of like-minded investors every trading day at 9:00 a.m. for our "Opening Salvo." Weâll tell you which stocks weâre watching. Weâll catch you up on key market-driving events. And weâll be speaking our minds without any corporate sponsors or three-letter agencies peering over our shoulders. Participation is free for anyone with [this invitation.]( P.S. This is an exclusive, limited-time event. We rally at 9:00 a.m. until market open. Trading days only. You must be a member of our private Discord to participate. [Join here]( and check back in at the "Opening Salvo." Still, back then we accepted the lies and manipulation because⦠well, we had to. By 2008, our addiction to OPEC oil had grown to nearly 6 million barrels per day. You know just as well as I do what happened next â an unprecedented tight oil boom that not only unshackled us from OPECâs chains, but allowed us to become a major oil exporter on the world stage. Within the last seven years, U.S. oil exports have grown from NOTHING to more than 4 million barrels per day today. Sure, the Saudis tried their best to throw a wrench into the works by collapsing oil prices in a hope of crippling the U.S. oil industry. But it didnât work. U.S. production surprised everyone by climbing to new all-time records in 2023. Unfortunately, thereâs a catch here, and I wouldnât celebrate and declare victory just yet. Weâve talked before about the downside to surging U.S. oil production â that future growth is quite limited in the coming years. In other words, we canât realistically expect our domestic production to grow anywhere close to how it did over the last decade. Weâll see it move higher, but it wonât come to the rescue as global demand continues pushing into record territory from here on out. Investors may not realize the years of runaway production growth are over, but OPEC sure as hell does. And this is the year that greedy Saudi oil princes have been waiting a long time for⦠Weâre going to have a front row seat to OPECâs revenge for years of stealing their market share, and it all starts now. In January 2024, OPEC output will record its largest monthly drop in six months, pumping 26.33 million barrels per day â 410,000 barrels per day below Decemberâs levels. Even more troublesome than OPEC putting the squeeze on global oil supply is the fact that the Saudis are halting development on boosting the Kingdomâs production capacity. The government has told Saudi Aramco directly to stop expansion plans that wouldâve added another million barrels per day to total capacity. Tightening supply will mean higher prices as demand grows. That alone will put a huge premium on U.S. oil companies that have an edge in increasing output through utilizing new techniques. Donât take my word for it â [I recommend you check this one out for yourself.Â]( Until next time, [Keith Kohl Signature] Keith Kohl [[follow basic]Check us out on YouTube!]( P.S. Todayâs article was originally published by our sister publication [Energy and Capital](, which is solely dedicated to helping readers profit from the ever-expanding and ever-changing energy sector. If you would like to receive daily free email investment letters from the editors of Energy and Capital, [simply click here.]( Follow the Outsiders [YouTube]( This email was sent to {EMAIL}. You can manage your subscription and get our privacy policy[here](. 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