- This topic is empty.
-
Posts
-
Hey Everyone,
I found this video at Google that is very interesting and gives thought to our current economic crisis here in the US and the rest of the world.Lindsey Williams talks about his first hand knowledge of Alaskan oil reserves larger than any on earth. And he talks about how the oil companies and U.S. government won’t send it through the pipeline for U.S. citizens to use.
Out of all the conspiracy theories I have read about in the recent past this one has a lot more that rings true.
How long ago was this recorded? What are you paing today for a gallon of fuel? :hmmm:
it is worth mentioning that current oil and petrol prices do not reflect the laws of supply and demand. the demand for oil from china, india and US (who is in a recession) is in no way near of having $140/barrel price for oil. furthermore, there have been no shocks to oil supply so the surge in price can’t be explained there either. instead they are based on speculative trades on oil futures by massive hedge funds and the like.
Here is a good article from an alternative media source http://www.globalresearch.ca/index.php?context=va&aid=8878 written by F. William Engdahl called Perhaps 60% of today’s oil price is pure speculation
I saw bush on CNN yesterday saying that he understood the citizens’ worries that gas prices have reached $4/gallon (err…three months ago bush played stupid when one of reporters asked about future $4 price, see article here), and that he has proposed to congress to drill for more oil in alaska (as mentioned above, the problem with today’s price is not supply/demand, but instead price speculation).
more information on oil and food prices surge and possible reasons for it can be found http://www.informationclearinghouse.info/article20011.htm, http://americangoy.blogspot.com/2008/06/oil-bubble.html, and all over ze internets. just google for it.
That does look like an excellent way for Bush, his family and his aides to push their agenda because their interests are heavily vested in oil…lots of oil…here is what he is saying – “while you are paying lots of money for petrol, let companies that pay me money to pass this law dig for more oil to sell it to you and make money for me and the company…it’s ok if you continue paying $4 though, i can afford it, and i make money when you spend money! haha…
right, the president has spoken…everyone duck and cover!
Amen to that Splinter. The Bushes are reaping huge returns via investments and consulting to ARAMCO (Saudi Arabia). Dick Cheney is making a mint via Halliburton. Condeleezza Rice via Chevron. This is the most corrupt administration in US history.
You can open up drilling in Alaska. You can even figure out how to rape the rest of Canada and the Middle East for oil but these are all short term solutions.
What we need is a leadership that is willing to commit to finding an alternative to oil. If the United States could bring the country together to send a man to the moon they can find an alternative to oil. Unfortunately due to vested interests in oil this will never happen. But drilling here or there is always going to be a short term solution with horrible long term consequences.
Having lived in some of the biggest oil towns (fort mcmurray for example) I would not be surprised if in 20 years they discover the cancer rate in those areas is significantly above the national average.
I thought i’d point out a few figures i remember
back in 1999 when oil was back near $10 a barrel i read/heard that there was a surplus in supply of between 2% to 3%, which was why it had dropped from the high $20s.
I heard Boone Pickens and others point our there is a 2+ Million barrel shortage in an 80 mill barrel a day market, about 2.5% under supply.
It seems that certainly seems to be the other side of the same coin. A year of so ago, oil at 60-70 was seen as the expected price range
Demand in 2008 is estimated at 87 million barrels a day, 2007 production was 81.5 million barrels. So there could well be a gap shortage of of nearly 5%.
These major oil producers have had dropping output for the last several years:
Venezula (major us supplier)
Mexico (major us Supplier)
Iraq
Iran
north sea (UK, Norway)I’m sure speculation is a big part of this, but it also helped keep prices low 10 years ago.
@antoine 164969 wrote:
What we need is a leadership that is willing to commit to finding an alternative to oil…Having lived in some of the biggest oil towns (fort mcmurray for example) I would not be surprised if in 20 years they discover the cancer rate in those areas is significantly above the national average.
this is rather a scary thought and for some reason one i’d not considered. its amazing how we’re willing to take risks for an easy life/money.
finally this is getting into mainstream media…
http://www.marketwatch.com/news/story/gas-could-fall-2-if/story.aspx?guid={2673C102-68E0-41D9-9C9A-10EE2E723948}&dist=msr_13
Gas could fall to $2 if Congress acts, analysts say
Limiting speculation would push prices to fundamental level, lawmakers told
WASHINGTON (MarketWatch) — The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.
Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.
Fadel Gheit of Oppenheimer & Co., Edward Krapels of Energy Security Analysis and Roger Diwan of PFC Energy Consultants agreed with Masters’ assessment at a hearing on proposed legislation to limit speculation in futures markets.
Krapels said that it wouldn’t even take 30 days to drive prices lower, as fund managers quickly liquidated their positions in futures markets.
“Record oil prices are inflated by speculation and not justified by market fundamentals,” according to Gheit. “Based on supply and demand fundamentals, crude-oil prices should not be above $60 per barrel.”
Futures trading in London has not been a major factor in rising oil prices, testified Sir Bob Reid, chairman of the Chairman of London-based ICE Futures Europe. Rising prices are largely a function of fundamental supply and demand, not manipulation or speculation, he said.
“Energy speculation has become a growth industry and it is time for the government to intervene,” said Rep. John Dingell, D-Mich., chairman of the full committee. “We need to consider a full range of options to counter this rapacious speculation.” It was Dingell’s strongest statement yet on the role of speculators.
Dingell introduced a bill on June 11 that would ask the Energy Department to gather the facts on energy prices, including the role played by speculators. See full story.
There are two kinds of speculators in the futures markets, Masters said. Traditional speculators are those who need to hedge because they actually take physical possession of the commodities. Index speculators, on the other hand, are merely allocating a portion of their portfolio to commodity futures.
Index speculation damages price-discovery mechanisms provided by futures markets, Masters addedThe committee will likely consider legislation that would rein in index speculation by imposing higher-margin requirements; setting position limits for speculators; requiring more disclosure of positions; and preventing pension funds and investment banks from owning commodities.
Both major presidential candidates have supported closing loopholes that encourage speculation in the energy markets. Read more on Election Blog.
However, other witnesses said that pure speculators have had little impact on energy prices, which have doubled in the past year to about $135 per barrel. Both Treasury Secretary Henry Paulson and Energy Secretary Samuel Bodman have dismissed the impact of speculators on prices paid by consumers.Speculators now account for about 70% of all benchmark crude trading on the New York Mercantile Exchange, up from 37% in 2000, said Rep. Bart Stupak, D-Mich., chairman of the investigations subcommittee. Stupak introduced a bill on Friday that would limit index speculation.
There has been much discussion recently about how big a role speculators have been playing in the sharp rise in energy prices, though no consensus has emerged on this point.
Congress, however, has grown increasingly concerned over speculative investors’ role in the energy market in comparison with those buying futures contracts to hedge against risk from price changes. Lawmakers are expected to consider legislation to set strict limits — or in some cases, an outright ban — on speculative trading in energy futures in some markets.
Dingell is looking into any legal loopholes that may have contributed to speculation in energy markets. In 1991, according to documents provided by the Commodity Futures Trading Commission to the committee’s investigators, the agency authorized the first exemption from position limits for swap dealers with no physical commodity exposure. This began what Dingell said was “a process that has enabled investment banks to accumulate enormous positions in commodity markets.”
Is Congress barking up the wrong tree?
Neal Ryan, manager at Ryan Oil & Gas Partners, said that if Congress develops regulations to cut back speculative trading, speculation will just find a new home.“Speculation is the root of capitalism,” he said. “If the speculation is forced out of the U.S. exchanges, it’ll simply show up on other exchanges that are OTC like the ICE, or new exchanges will pop up to allow for the spec trades to continue functioning.”
Ryan said he does see a reason for Congress to look at eliminating aspects such as allowing West Texas intermediate crude oil futures to trade on foreign markets and the “Enron loophole,” but “these exchanges are currently functioning as they are supposed to in a free marketplace.”
The creation of a comprehensive U.S. energy policy that tackles issues of increasing domestic supply and reining in consumer demand via conservation should be Congress’ focus, Ryan said. “Instead we’re on bended knee begging the Saudis to put more oil on the market and talking about shutting down spec trades.”
