Replies to This Discussion

Permalink Reply by essay on April 19, 2011 at 12:10

speculators and a weak dollar have basically been OPEC's excuse for quite a while now, the fact is they cannot replace shut in light sweet production, they tried to offer a substitute and stopped after they blended 2million barrels or so and didn't have any buyers.  even their blend had over 5% sulfur content, many times that of the production they were aiming to offset.

 

that article is basically saying peak oil is here, so taking it at face value when does speculation become smart investing, and how are higher prices laid exclusively at the feet of the greedy capitalist speculators?

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Permalink Reply by Wilma Watts on April 20, 2011 at 1:39

4/20/2011 6:45:19 AM
OK, just got the real story on what is going on. Glad to hear it is just speculators and not Chinese demand or a weak dollar that is pushing gasoline prices over $4 gal:

 

U.S. President Barack Obama on Tuesday blamed speculators for driving gasoline prices higher and straining American consumers, saying there was enough oil in world markets to meet demand. Speaking at a community college in suburban Virginia, Obama said increasing production of U.S. oil and creating a market for fuel-efficient cars would help meet the country's energy challenges.

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Permalink Reply by Wilma Watts on April 19, 2011 at 13:58

China is sucking up its share and more as they crank out cars and other stuff, sort of explains stuff as much as 'speculators'. I mean they had record demand last month, up 11% from year earlier levels, and last I looked their oil production was dropping. They are a huge importer of oil.

 

So the weak dollar and speculators play a role, but Chinese demand increases are also a big factor. Will be interesting to see the election cycle if gasoline is over $4 next summer before elections. I'm sure there will be a lot of 'plans' to mitigate the pain. Many other countries subsidize oil consumption, includcing China.

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Permalink Reply by Max on April 20, 2011 at 2:06

"China is sucking up its share"

 

How much should "we" let "China's" share be?  The article said China is using somewhere around 6000 BBL's of oil each day.  We use over 20,000 BBL's everyday.  If China used the same ratio of oil per person that we use, they would be using somewhere around 80,000 BBL's everyday.

 

Forget about India, if China used their "share" guess who would be paying $10 gal. gasoline, you and me.  America's energy policy has to change.  We can't drill our way out of the mess we're in.  A crash program to switch fuels to NG in real dollars would still cost around $4 dollars per/gallon, until the infrastructure was installed and paid for. 

 

Yes, the government could subsidize the switch with other peoples tax dollars and borrowed money from China, reducing the cost to fill your tank, but what would that do to our National Debt?  Real capitalism would take dollars from the pockets of the folks who uses a fuel, not everybody else. 

 

The sleeping giant has woken up.  It's a good thing that we have the Jenny Lynn diet program available, that giant has to lose weight.  

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Permalink Reply by P.G. on April 20, 2011 at 3:11

Seems like it would be simple to install public access to CNG by utility companies which are in about every city..They already have the infrastructure in place and ng flowing through their lines..a small fee tacked on to gas bills could cover costs which could be removed when such access was no longer needed..

Just look at the 911 service...everyone pays a small fee for that and aren't whining..the same could be done with cng by Utility companies..

This wouldn't take a huge investment by our government like they are doing with all those tax credits they are giving to already successful corporations who would save costs by switching without subsidies anyway..

With plenty of access to cng, sales of cng powered vehicles would probably soar considering the price differences between cng and gasoline..

It's not going to happen without reasonable access to cng refuelling sources...

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Permalink Reply by JHH on April 21, 2011 at 11:01

Since you started this post... Gasoline now hovering and topping $5.

tick...tick...tick...tick...

our fearless leaders keep fiddling while Rome burns.

tick...tick...tick...tick

and go on break from important work...

tick...tick...tick...tick

 

 

 

 

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Permalink Reply by essay on April 21, 2011 at 11:21

in other news, chinese state oil company sinopec suspends export of refined petroleum products to help shore up domestic supplies

 

http://business.globaltimes.cn/industries/2011-04/647024.html

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Permalink Reply by JHH on April 21, 2011 at 11:41

Gotta hand it to the Chi-Coms.... they act in their self interest.  But we're still the greatest country in the world...right?

 

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Permalink Reply by Wilma Watts on April 21, 2011 at 14:00

Our President (Obama) announced today he was authorizing an "investigation" if speculators were manipulating the oil market. Forget which department of his is leading the effort. Probably will have to hire dozens of folks to do the work. Great stuff, you can't make this stuff up

 

 

Fraud in gas and oil prices? Obama's new task force will investigate.

A new working group with officials from nine federal agencies will monitor oil and gas markets for fraud, Obama announced Thursday at a town hall meeting in Reno, Nev.

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Permalink Reply by P.G. on April 21, 2011 at 14:09

So what if speculators were manipulating the "World" market? What could he do about it?

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Permalink Reply by essay on April 21, 2011 at 14:34

this "evil speculator" meme has been rolling around for about as long as there have been speculators, and in my opinion is still being used as a red herring today, i swear crack a history book and read about the arguments our founding fathers had for starters.  the ignorance is staggering.  if most people didn't live hand to mouth they would be just as capable these days as anyone else of hedging the rising cost of transportation fuel (or even profiting from it) by doing something crazy like, i dunno, buying stock in an oil company.  as with all things, you pays your money and you takes your chances.  nobody should have to hold your little hand as you make your own way through the big wide world.

 

what is it, like 85% of the world's oil is controlled by state owned oil companies, people like exxon, chveron, etc that are commonly vilified by phony populists only make up a small fraction of the total.

 

maybe they'll investigate OPEC?  fat chance.  oh or what about silver, maybe they should investigate that?  anyone remember when it was as little as $5 an ounce back in the 00's?  i do... almost $47 an ounce now.  /evil speculator.

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Permalink Reply by P.G. on April 22, 2011 at 1:39

So you believe this to be merely more show and no go for the benefit of campaigning purposes. What will be will be..right?

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