Crude oil is on the rise again as some reports document the commodity hitting $80 a barrel for the first time since 2014.
The immediate increase in oil prices came from President Trump getting the United States out of the Iran Deal and sanctioning Iran’s central bank. Trump also gave companies doing business with Iran 90 to 180 days to halt all transactions that would be subject to international sanctions.
Victims of the Iran Deal and Low Oil Prices
The Iran Deal is another subject altogether, but there is no doubt that getting out of it helped the price of oil. This will benefit a lot of areas around the United States who depend on high oil prices, such as the state of Oklahoma. But don’t take my word for it; here is a situation in which a specific corporation was severely hurt and forced to downsize their workforce dramatically due to the Iran Deal, which led to lower oil prices.
Chesapeake Energy, a petroleum-based energy company with a large following in the American Midwest, had to downsize about a quarter of their workforce due to the inadequate price of oil. This was going on in 2016, the year when the United States just entered the Iran Deal, and the executives of Chesapeake insisted they downsize, or they would be subject to dramatic losses.
My friend’s mom was one of the managers who was instructed to fire several people, totaling maybe a hundred or so. Chesapeake was eventually forced to terminate her as well because she wasn’t willing to send so many of her coworkers home unemployed.
The Oklahoma budget has been in a tight spot for a few years now due to the low price of oil. Since the state’s economy is so dependent on the cost of fuel, we lack the necessary funds we need to keep our state’s infrastructure afloat, save our schools from complaining about state budget cuts, and keep taxes from rising to supplement the losses to the state budget.
Other states have had similar problems, such as Texas and Nebraska. The point here is that the Iran Deal has successfully destroyed regions of the oil-rich United States by essentially funding Iran oil production and importation.
Benefits of Getting Out of the Iran Deal
Now that the United States is effectively out of the Iran Deal, oil is likely to experience a massive hike in price, leading to increased state funding, less dependence on foreign oil, but most importantly, those people who were fired by Chesapeake might have a chance to get their jobs back.
Oil prices have a lot of influence across the country, and they primarily affect the American Midwest. With the United States getting out of the Iran Deal and re-sanctioning the Islamist State, oil will have no choice but to continue to rise in price, benefiting a lot of people across the country.
I’m sure President Trump has thought this through with his team, but if he hasn’t, he needs to know how this will affect the forgotten men and women he regularly talked about during his campaign. I would like to applaud the president on this move, and hopefully, he takes similar steps toward government funding in Afghanistan and other Middle-Eastern countries.