They won't last forever.

Over the holiday weekend, OPEC (that's another name for Saudi Arabia) decided not to cut back on oil production. Good news, right? Well, it's not so great for U.S. fracking businesses, or for those companies working the Canadian oil sands. West Texas crude hit $65/barrel earlier this morning, and at about $40/barrel or so, these operations become unprofitable.

Saudi Arabia may well be trying to drive these companies out of business. Saudi Arabia, being the world's low-cost producer, can afford to do this. But it's not the only producer, and this could be a problem for several other countries . Countries like Russia, Iran, and Venezuela - already strapped for cash - are going to be facing even harder times that they are now.

What's going to be the result of all this? well, there's going to be a lot of pressure on Saudi Arabia to cut production. But if they refuse, things could get interesting. Really interesting.

In the meantime, enjoy these gas prices!

Onward and upward,
airforce