The Russians and the Chinese are ganging up on the U.S. dollar encouraging international trade to go to currencies other than the American greenback. They hold a fairly big hammer in that…Chinese as bankrollers of huge American debt and Russians as a leading exporter of energy. But here’s the rub…. Oil is traded in dollars, worldwide….and the bad news for our competitors, the United States now surpasses Saudi Arabia and Russia as the world’s biggest oil producer. U.S output of crude oil passed 11 million barrels a day in the first quarter, and Texas leads the way.
The Lone Star state gets credit for 36% of U.S. production, thanks to the miracle of “fracking”. Growth should continue for decades to come….unless federal and political policy get in the way.
With a threat to the American dollar, black gold is looking a lot like Texas greenbacks.