Oil speculators are not that stupid, sorry. They do listen to what is going on
but then they snoop around like private investigators. If you have ever talked
to Wall Street types you know they will do anything to get the right kind of
information.As an example, the stories about Obama cirulating Wall
Street make a marxist from the 60's look John Birch. They don't get their news
from channel 5 and the Deseret News.You could announce it but if
there wasn't serious policy being developed behind the scenes to make it happen
you would get nothing. And if there were serious policies being developed behind
the scenes to make it happen they would know it before you announced it.These people don't make hundreds of millions of dollars by being stupid
@wrz 8:39. I usually think you're a piece of work, but I love the way you're
thinking on this! Can I vote for you for US Oil Czar???
All the US needs to do is ANNOUNCE that we are going to drill in ANWR and the
coastal waters, gasify coal, mine oil shale and tar sands, and buy sugar cane
ethanol from Brazil. Oil and gas prices would drop precipitously. Just
announce it. Speculators would drop oil futures like hot potatoes.Then go about developing alternative sources.
Did anyone watch the Congressional hearings on energy? US oil companies are
small potatoes in the world market. The majority of oil is controlled by nation
states primarily in the hands of dictators. Go ahead, chop off the heads of the
american oil people, they are our only friends. They could help out our
situation, if we would unlock our own resources, including oil shale. The
speculators are betting on the Democrats controlling our energy policy, we are
cutting off our nose to spite our face. I'll be fine, how bout' the rest of
"Refineries are running at 93%. From a business perspective this is perfect. Why
would you invest money to drop your capital utilization when your money can earn
you more somewhere else?"And a question for you, Logic -Reportedly, refineries are the bottleneck. No new ones for 30 some years.
And if refineries go down from hurricanes, etc., (and they do) prices spike
because of full capacity utilization.OPEC seems to think there's
enough oil on the market. Saudis are saying they don't intend to increase
production.I think most of the problem is oil futures
speculation.Here's the funny part - Bush goes to the Saudis to ask
for increased production while the US sits on its collective a**-ets.
GWB, (George W Bush?) a very large part of the increase in gas prices has been
that of speculation. Who disagrees with that?The speculators have
been out in force since 2006. Admitted some of that increase is due to a falling
dollar with REAL inflation actually around 10%.Speculators look at
the lay of the land and guestimate the cost of goods/commodities in the future.
What has changed since 2006 that has caused prices to soar?The War
in Iraq is actually improving with increased production of oil by US and UK
firms. Less attacks on oil pipelines/infrastructure. World production of oil has
kept pace with expectations. World consumption of oil has actually decreased
ever so slightly over the last 12 months. OPEC/Saudis has actually agreed to
increase output.What has changed? The party that controls both
houses of Congress is the only change. The first act of Congress was to pass new
vehicle standards, new safety regulations and oh by the way, outlaw the
lightbulb.Speculators have anticipated for months that Obama will
win and when they hear what he wants to do with energy they are saying
$200/barrel of oil. The expectations of radical policies.
GWB What extreme environment law as been voted on?Bush could use
that mandate Rush told you he has to get voters to write congress.
BBKing: You say "When Bush took office gas was at roughly $1.80/gl. After 6
years of war it climbed to $2.60/gl. In 2006 the Democrats and extreme
environmentalism took office. Gas was at $2.60/gl. After less than 2 years it is
at $4/gl. Speculation is based NOT on war but Democratic policies."Could you please define which laws passed by the Democratic Congress, vetoed
by the President and over-ridden by congress that account for the problem?Please inform me of the policies to which you refer.Thanks,
otherwise I guess you are just trying to displace blame for failed Bush policies
to the Congress, when they have little power to change things.
Big oil is getting rich. They intentionally create shortages to keep the prices
up. More refineries need to be built to keep up with the demand but it won`t be
done. Bush is an oilman so he likes the high prices. If something isn`t done
this country is heading for a depression.
Try telling the truckers to carpool. We can all see the food prices going up
because of diesel. We can do better and tell our elected officials that we do
not want our children to have a poorer quality of life than we have. Let's get
started now and drill and refine oil on our own soil.
A couple questions for you ditto heads. You recite the refinery
mantra.There is the concept of "capital utilization." Refineries are
assets. Good business means getting the most for your dollar.Refineries are running at 93%. From a business perspective this is perfect.
Why would you invest money to drop your capital utilization when your money can
earn you more somewhere else?We import refined oil. Why can we use
the wonder of the global market place that brings in cheap American flags from
China to celebrate freedom but we can't do it with gas? Why does oil refining
demand being located thousands of miles from the resource? The
dollar has declined 50% against the euro. How much has borrowing money from
China to bring freedom to Iraq has raised gas prices?By the use of
deductive logic you can surmise we are being spun a tale. What is the record
these folks have for creditability? Rule of business: pass performance is a
great indicator of future performance.
Wow, is the letter writer serious?Do you really think a bill taxing
profits that the rich speculative investor class people are making on running up
OIL prices could pass congress?First off, it may pass the house on a
party-line vote with every Dem for it and the Repubs against it.Then, the Senate requires 60 votes to stop a filibuster for a vote to occur.
Democrats hold 51 seats. Which 9 Republican Senators (Hatch, Bennett,
anyone???) would join the Democrats in voting for such a law?Then
say it does get through the Congress, would the Administration of George
(Arbusto Drilling, Harken Energy) Bush or Dick (Halliburton) Cheney ever sign
the law?Of course not!!!If it was vetoed, what 16
Republican Senators would vote for an over-ride on a tax for Rich Investors?Which 40 Republican Congressmen would vote to Over-ride the Veto.Therein lies the problem.The way to lower Oil prices is
simple, stop borrowing money from China!!! When the US proves capable of
supporting our currency by limiting spending ($150 Billion a year of borrowed
money for a unneccessary war is a good start) and making changes to end our
reliance on middle-eastern oil.
The government needs a leader with a plan that is more than "drill in Alaska".
We haven't had a leader in this area for sometime. The good news is that we had
a huge part of the world's deposits right here in the USA. The bad news is that
we started sucking it out of the ground about 50 years before most other
countries did. It fueled our rise a the prime industrial power in the world. Now
we need new ideas and a plan, not people who want the government to save them
from their own behavior. Remember the 55 mph speed limit in the 70's? That
worked, right? Not! How about banning all boating except for commercial boats
this summer? What about banning teens from driving State street all year? If you
are not in those two groups, you might agree with the idea. If you a boater or
teen, it is easier to wail that the government needs to do something.
Wow, never ceases to amaze me how ignorant many are on this issue. The dollar is
down to h istoric lows and is part of the problem. Speculation is the other. But
a poster above claimed that speculators would move to another market but little
did he/she realise that the US and Saudi Arabia have a pact to value oil on the
USD. Some OPEC members have tried to move to the Euro which would ultimately
double our costs. I understand speculation cannot sustain long periods of time
and therefore the bubble will burst and prices will dive, just as the housing
Not all in congress are MIA on the oil issue. Look up the work of Roscoe
Bartlett and the Peak Oil Caucus. You can download and watch some of Congressman
Bartlett's many speeches on the subject.
I agree with Why is this Congress's fault. It's our own fault, and if we want
the price of gas to come down, we should conserve. My personal recommendation
is to carpool. That put's money in your pocket right away. If enough other
people do it too, the price of gas goes down. Not to mention unclogging the
Lots of forces at play here.I understand that South Dakota just
approved a refinery, if so that would be the first since the late 1970's.China is working with Cuba to drill oil off the coast of Florida, in
waters enviros and Congress refused to allow US firms to drill. Maybe we can buy
our oil back from them.Speculators are holding oil because they
think it will be more profitable in the future. They are speculating, based on
current laws and trends, that oil will be worth more in future. This means they
think our laws and trends stink. Maybe we should stop blaming them and start
chaning our laws and trends.ANWR is the size of several states. The
size of the area that would be affected by drilling is about twice the size of
the SLC airport!When Bush took office gas was at roughly $1.80/gl.
After 6 years of war it climbed to $2.60/gl. In 2006 the Democrats and extreme
environmentalism took office. Gas was at $2.60/gl. After less than 2 years it is
at $4/gl.Speculation is based NOT on war but Democratic policies.
This IS the party that outlawed the incandecent lightbulb, remember.
The high cost of oil will FINALLY yield an innovation in transportation. About
the time we figure out how to improve gas mileage, the cost drops and we lose
interest. I don't think costs are dropping again. We'll have to find something
I say let the sticker shock settle in. Maybe enough people will get concerned
enough that we'll see real conservation efforts and real movement on alternative
energy ideas. Let the market roll!
Everyone keeps blaming environmentalist for failure to drill for more oil. Look
to Big Oil is well aware that shortages bring higher prices and thus higher
profits.Oil prices will climb until Big Oil profit increases max out
due to reduced usage. Hopefully we've hit that mark for awhile. Then, when we
get used to $4 gas, demand/usage will begin again to rise, pushing prices to new
Instead of attempting to find the last few drops of oil left, we should be using
our national treasure (in both money and mind power) to move us away from an oil
based economy towards one that is powered by renewable fuels that can be
produced inside the USA.We should DEMAND that our government make
this priority #1 for the next 10 years. It is madness that we allow ourselves
to be controlled by a cartel of oil producers that not only take our money for
oil, but actually fund our enemies with our own money.Anyone who
believes that we can drill our way to freedom is naive. We need to imagine a
world where oil is not necessary. When we become energy independent we will
gain power over OPEC, its governments and the terrorists they support.DEMAND that your representative make this priority #1. There is nothing more
important to our national and financial security than becoming energy
independent. Every day our government twiddles its thumbs brings us that much
closer to collapse and domination by foreign governments.This is not
a Republican or Democratic problem. This is an American problem.
Remember the S&L debacle, California Power crisis, the dot.com bubble,
subprimes and now commodities? Notice the market is given as an explanation.
When Bush failed to investigate "Kenny Boy" and Enron, he said let the market
work. It was supply and demand. We were really getting ripped off.We
are getting ripped off again. In order for these sharks to get fat someone must
get hooked. There must be the dumbie that you can sell you over priced
investment to in order to cash in.There is a rule in investing. When
the small guys get in to a market, it is time for the big sharks sell and move
on to seek other prey.
I guess you cant see the forest of Democrats for the tree huggers. Can you say
Al Gore? I knew you could.
Because, Congress is kowtowing to the Green Marxists!
Typical liberal solution, like we're not paying enough in taxes. Everything
will be ok as soon as we give more money and power to the government, because
they're just too weak and poor to do anything to save us from ourselves!
Anything the Government does makes things worse. They don't know anything about
producing energy. Would you invest billions in a new refinary with the
government doing all it can to end the use of oil?
Greed is good, isn't it? We rant and rail against environmentalists but don't
you think oil companies could build refining capacity if they wanted to? You
bet. There seems to be no impetus to do so, however. One reason is probably
because it increases profit. Another,less discussed reason is that oil companies
know it takes years and billions to bring on a big refinery, and the cheap oil
is gone, production declining of any oil whatsoever, so it wouldn't be worth it.
So should government make them do it? No, of course not. Not here, where
the hint of any sort of government intervention in any industry brands them
socialists, a term worse than liberal or terrorist. The free market will guide
and protect us. It's what we vote for every time.
I am sorry but why is this congress responciblity? Why is it not an indavidual
responciblity? Americans need to Drive Less. We use 25 Barrels of Oil per person
compared to 2 barrels per person in China. I am sorry but it is our indavidual
responciblity to Drive Less. Walk More, Bike More, Think More about where we are
going and how we are going to get there. We need to Get Creative to the solution
of Gas Usage and Prices. I think if We decreased our Demand for the Oil we use
we will see a difference no only in our Wallets but also our Waist Line.
Maybe they'll come to the rescue right after they save the poor from health care
Yes, Congress has been MIA on energy, and we're now paying for its myopic
policies... however, drilling and forcing more refineries will be difficult.
First, America doesn't have the oil reserves to truly sate America's oil thirst.
Even if we drill in Alaska, it will take 10 years to get that oil, and the
foreign oil companies (e.g., BP, Shell) will ship it to the closest markets --
Russia and China -- to keep their own shipping costs down. Second, the Bush
Administration's push for ethanol (via big subsidies) has spooked oil companies
from wanting to expand oil refineries should biofuels really take off. Third,
oil continues to be worth more in the ground than burned, so Arabs aren't in a
rush to turn up the spigots. Bottom line: We need to change the game. Plug-in
hybrids and electric vehicles will make electricity a true substitute for oil
(coming 2010 from GM, Toyota). Wind power is booming and pouring billions of
economic development dollars in America's rural heartland! Energy storage
innovations are the next piece of the puzzle! Congress needs the political will
be change the game to truly solve America's energy woes!
Everyone is getting what they want. We don't have to look at oil rigs. We don't
have to look at refineries. We are saving the planet. That's the best that
Congress can do. They can't produce product. There's an all-time
high amount of investment capital in the commodities markets. Given that most of
Congress doesn't understand supply and demand, expecting them to understand and
regulate the commodities market seems unreasonable. If there is a bubble, the
bubble will pop. If you don't thank that there's a bubble, call your securities
trader and buy up some oil futures.The people don't want shale oil.
They don't want coal gasification. They don't want refineries or new drilling.
The price is the one factor that can't be controlled. We have
everything that we want, except price. If we focus on price, then we would have
to do everything that we don't want to do. Congress is not MIA. They
reflect the people's wishes.
You got the right idea. Politicians are corrupt. Neither party has monopoly on
this scam. Did you see the story on Dennis Hastert. He made millions of a land
deal that was bolstered by a "earmark" he sponsored. The congressman from
Lousiana still has not gone to jail despite the stash of cash found in his
freezer. We have pedophiles and sexual predators on both sides of the isle.
Hopefully people will not rant about neocons or liberals today. Lets vote for
change. Vote for a third party candidate.
When Nancy Pelosi and other democrats took control of Congress they promised to
lower gas prices. Prices have never gone up faster since then. What has
happened? Why is congress sitting on their hands?
As for a tax on speculation making any difference, the US has no franchise on
the oil market. Speculators would just move to markets outside the US.This supposed "speculation" is happening in the "Futures" market. What is it
they see in the "Future" that makes them think the world will buy oil at a
higher rate. What makes them think that there will be no one offering or
producing cheaper oil and popping this supposed "bubble"?I'd suggest
reading what the IEA is forecasting for oil in the next four years. It might
give you a better idea what the "speculators" are planning on (and maybe you
should be also).
What happens when you put multiple straws in a chocolate shake. You may get a
little more flow but you run out sooner. That's what the oil companies know.
What's left of the world's oil is not within the USA's border. The majority is
under the Persian Gulf.It takes more than ten years to bring a new
oil field to the market. With the world's current depletion rate, what is still
under the USA won't make much of a difference for you and I as we go through the
energy shortages we are sure to encounter in the next four years. I'd look to lifestyle and landuse changes to solve the coming shortfalls. If
you're looking for technology to save your butt, I'd read the Energy
Department's Hirsch Report. There are no silver bullets here!!!