Nigeria produces about 1.2 million barrels of oil per day. The United States does about 13.3 million barrels per day. But while Nigeria is an “oil producing country”, not many people in the real sense think of the United States as first an oil producing country. Why? The diversified US economy with New York anchoring banking, Silicon Valley technology, and so much, obscures the fact that non-OPEC+ countries (which the US belongs to) produce more oil in the world today than OPEC+ countries (which Nigeria is a member).

I have written here many times that the long term trajectory for oil price will be “low price” because it will be an era of quantity (adjusted by disintermediation from renewable energy), and whenever that happens, price struggles. Yes, as the US produces more oil, some OPEC+ members may decide to pull out (hello Angola which exited OPEC+) to enable them to produce unconstrained, and as that happens, prices will fall. That would be a vicious circle where more production will lead to lower global prices.

The Republic of Angola’s abrupt departure from the Organization of the Petroleum Exporting Countries (OPEC) marks a decisive turn in the group’s unity, raising concerns and signaling a growing rift within the coalition of oil-producing nations.

The move announced following a cabinet meeting on Thursday, lays bare a deepening conflict between Angola and OPEC, exposing underlying tensions over output limits that failed to accommodate Angola’s diminishing oil production capacities.

Good People, Nigeria has a few more years to fundamentally redesign the architecture of its economy because we can suddenly wake up to see that this oil will be there with few interested in buying it from us. Indeed, the real “producers” of oil are not making noise!

The U.S. now pumps more oil than any country in history, aided by new policies and technology. Federal and state tax breaks, along with relaxed regulation, paved the way for output of 13.3 million barrels per day in December, according to the Energy Information Administration. At the same time, new efficiencies including horizontal drilling techniques require fewer rigs. The output gains undercut the power of Saudi-led OPEC+, which now accounts for only 48% of global market share. 

In a stunning turnaround, Meta, the parent company of Facebook and Instagram, is on the cusp of achieving a market capitalization of $1 trillion.

The company’s shares have experienced a phenomenal 200% surge in 2023, propelling its market cap to an impressive $966.60 billion, tantalizingly close to the coveted trillion-dollar milestone.

Meta, if successful in reaching the $1 trillion mark, will join the elite league of technology giants, including Microsoft, Apple, Alphabet, Amazon, and Nvidia, all currently valued at $1 trillion or more. Microsoft, leading the pack with a market cap of $2.93 trillion, signifies the significant achievement that awaits Meta should it cross this threshold.

This is not the first time Meta has flirted with the trillion-dollar valuation. In June 2021, the tech behemoth breached the milestone, reaching an all-time high closing valuation of $1.08 trillion on September 7 of the same year, according to Dow Jones Market Data.

However, Meta faced a tumultuous period as demand for tech products and services waned following the easing of Covid-related restrictions. The company suffered a severe setback in February 2022 when it reported a historic one-day wipeout in US corporate history after revealing a contraction in Facebook’s daily active user base, marking the first decline ever.

Responding to the challenges, Meta undertook significant cost-cutting measures, including laying off 11,000 employees in November 2022, marking the company’s first major round of layoffs. The strategic move aimed to navigate a landscape of reduced demand and uncertainty, with promises from Meta’s leadership that 2023 would be a “year of efficiency.”

The efforts seem to have paid off, as Meta reported robust earnings in the third quarter of 2023, surpassing analysts’ expectations. The stellar performance translated into a remarkable 200% increase in Meta’s stock value, making it the second-best performing company on the S&P 500, only trailing behind chipmaker Nvidia.

As of Thursday, Meta’s shares closed 2.1% higher at $376.13 apiece, inching closer to the $389.13 threshold that would catapult the company’s market cap into trillion-dollar territory, as per MarketWatch calculations.

This resurgence in Meta’s stock has not only benefited the company but also significantly boosted the wealth of its co-founder and CEO, Mark Zuckerberg. Holding a 13% stake in Meta, Zuckerberg’s net worth has skyrocketed from $48 billion at the beginning of 2023 to an impressive $136 billion, making him the world’s 6th-richest person, according to the Bloomberg Billionaires Index.

In 2023, the year of efficiency

Reflecting on the pivotal “year of efficiency,” Zuckerberg highlighted Meta’s strategic shift toward key areas driving growth for the social media giant. The emphasis on relevant content recommended by AI systems, particularly in the rapidly growing short-form video formats like Reels, has been a focal point.

“Facebook and Instagram are shifting from being organized solely around people and accounts you follow to increasingly showing more relevant content recommended by our AI systems,” he said.

Zuckerberg’s plans extend to improving monetization efficiency in Reels, with a broader investment in AI across the company’s advertising business. The last quarter saw advertisers experiencing over 20% more conversions compared to the previous year, coupled with a declining cost per acquisition, resulting in higher returns on ad spend.

Excitement also surrounds the monetization prospects of business messaging, with plans to bring messaging online as the next pillar of Meta’s business. Initiatives like click-to-message ads, operating at a $10 billion run rate, and the onboarding of businesses to the WhatsApp Business Platform for direct communication with customers, are indicative of Meta’s diversified approach to revenue streams.

These strategic shifts have led to unprecedented revenue growth, surpassing analysts’ predictions and solidifying Meta’s resurgence as a powerhouse in the tech industry.

The recent political turmoil in Israel has exposed the fragility of its democracy and the deep divisions within its society. The long reign of Prime Minister Benjamin Netanyahu, who is facing corruption charges and a possible jail sentence, has been challenged by a diverse coalition of parties that span the ideological spectrum, from the far-right to the Arab-led Joint List.

The coalition, led by former Netanyahu ally Naftali Bennett, has agreed to form a government that would end Netanyahu’s 12-year rule and usher in a new era of Israeli politics.

But what would this mean for Israel’s democracy and its future? How would the new government deal with the pressing issues of security, peace, economy, and social justice? And how would it cope with the internal and external pressures that threaten to tear it apart?

One thing is clear: when Netanyahu falls, Israel’s democracy will need new political realignments. The current coalition is unlikely to last long, as it is held together by a common desire to oust Netanyahu rather than a shared vision for the country.

The coalition partners have different and often contradictory agendas, such as annexing parts of the West Bank, pursuing a two-state solution, strengthening the rule of law, or weakening the judiciary. The coalition also faces fierce opposition from Netanyahu’s loyalists, who accuse it of betraying the right-wing voters and forming an illegitimate government with the support of Arab parties.

The new government will have to find a way to balance these competing interests and build trust among its members and the public. It will have to address the deep-rooted problems that plague Israel’s democracy, such as the lack of a constitution, the erosion of civil rights, the discrimination against minorities, and the influence of religion on politics. It will also have to restore Israel’s image and relations with its allies, especially the United States, which have been damaged by Netanyahu’s confrontational style and policies.

The new government will have a historic opportunity to reshape Israel’s democracy and society for the better. But it will also face enormous challenges and risks. It will need courage, wisdom, and pragmatism to succeed. And it will need the support of all Israelis who care about their country’s future.

Israel is a country that prides itself on being the only democracy in the Middle East, but it also faces many challenges and criticisms regarding its political system and its treatment of minorities and the occupied territories. In this blog post, I will explore some of the ways that Israel’s democracy can be improved, based on my own opinions and observations.

One of the main issues that affects Israel’s democracy is the electoral system, which is based on proportional representation with a low threshold of 3.25% for parties to enter the parliament. This system leads to a fragmentation of the political spectrum, with many small parties competing for votes and seats, and often results in unstable coalitions that depend on the support of extremist or sectarian factions.

A possible solution to this problem is to raise the electoral threshold to a higher percentage, such as 5% or 10%, which would reduce the number of parties and encourage more moderation and compromise among them. Alternatively, Israel could adopt a mixed electoral system, with some seats allocated by proportional representation and some by district-based voting, which would increase the accountability and representation of individual candidates and regions.

Another issue that undermines Israel’s democracy is the lack of a written constitution that defines the basic rights and principles of the state and its citizens. Israel has a set of Basic Laws that serve as a quasi-constitution, but they are not comprehensive or coherent, and they can be easily amended or overridden by a simple majority in the parliament.

A written constitution would provide a clear and consistent framework for the rule of law, the separation of powers, and the protection of human rights, especially for minorities and marginalized groups. A written constitution would also help to resolve some of the conflicts between the secular and religious sectors of Israeli society, by establishing the boundaries and limits of state intervention in matters of personal status, education, culture, and public life.

A third issue that affects Israel’s democracy is the ongoing occupation of the Palestinian territories, which has lasted for more than half a century and has created a situation of inequality, oppression, and violence for millions of people. The occupation not only violates international law and human rights norms, but also erodes Israel’s own democratic values and institutions, by creating a dual legal system, a military bureaucracy, a culture of impunity, and a climate of fear and hatred.

The only way to end the occupation and its negative consequences is to reach a just and lasting peace agreement with the Palestinians, based on the two-state solution that recognizes their right to self-determination and sovereignty alongside Israel. Such an agreement would also enhance Israel’s security, legitimacy, and integration in the region and the world.

These are some of the ideas that I have for improving Israel’s democracy, but I am sure that there are many others that could be discussed and debated. I believe that Israel has the potential and the responsibility to become a more democratic, inclusive, and peaceful country, for the benefit of all its citizens and neighbors.