To Oil Prices: I agree that what you point out is going on. However, this is a
world market and not within our control. The bubble may burst on it own accord,
or innovative methods may be found to correct the situation. My guess, the
market will collapse on itself with all the attendant cries of foul from the
speculating public. It's a game the average investor should not be playing,
just like dirivatives, dot-coms and other more arcane markets.
You all miss the primary reason for oil prices running amuck. In the year 2000,
Senator Gramm (Republican Texas) designed a bill which was attached to a
desirable bill (this is called a rider) in an increasingly utilized method of
getting bad laws passed. This bill allowed trading of oil futures outside of
gov't regulation, the bill was signed into law by then President Clinton.It works like this, I buy a million barrels of oil to be delivered at a future
date for $100.00 a barrel, I sell it to you for $110.00 a barrel, you sell it to
they for $120.00, etc. etc. by the time it is purchased by a marketing company
(Texaco etal), they pay $135.00 a barrel. The traders call it free enterprise,
when it is a real license to steal!
Yes, I cry myself to sleep every night thinking about the poor Exxon CEO, Lee
Raymond, who just retired with only $350 million in the bank. Poor downtrodden
Sounds like writter is an oilman.
To Dutchman: Our strongarm regulation has driven the capital markets off our
shores. London and East Asia are where it is at. Think you can get worldwide
regulation that would be favorable to us? You will be bald, blind and in the
grave before that happens. Forces in the world are trying to cripple us with
constructs like the Kyota treaty. Incentives come through mutual benefit. We
can't just demand equitable treatment.
Regulation of speculation and buying on margins in the commodity markets is the
right place for government in a free market.
Couple things...First, the increasing price of energy isn't a 'crisis'. This
being the case, then, the government really needn't intervene. Second, if the
market is going to take care of it, we all have a role to play.
Mr. Parker neglects one detail that illustrates the difference between the oil
companies and Oprah, 50 Cent, Steven Spielberg and Beyonce Knowles. The latter
4 mentioned above are not making their money off someone else's property.
Whether it is off-shore, the Alaska wildlife refuge or the shale oil fields,
virtually all of that land is public land. As long as the oil companies are
making money of the government's land, the government has a right to stick their
nose in the oil companies' business.