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Things That Make You Go Hmmm - Such As $4.00 Gas (Again)
From Grant Williams' Things That Make You Go Hmmm
After the attack on ‘speculators’ failed to lower gas prices (here’s a piece of free advice by way of a simple mathematical equation for anybody in the current Administration who may be reading: ZIRP ? Low Gas Prices), it was the turn of the other staple solution to an intractable problem; the US Strategic Petroleum Reserve (SPR):
(Montreal Gazette): A group of Democratic lawmakers in the U.S. House of Representatives is again urging President Barack Obama to aggressively use the threat of releasing oil from emergency reserves to rain on speculators driving up oil prices.
The three lawmakers are gathering signatures from others in Congress for a letter to Obama to press him to wield the 696 million barrels of oil that the government stores in salt caverns as a weapon against “rapid price escalations resulting from speculation in the oil markets.”
Last June (the 24th to be precise), it was announced that 60 million barrels of oil would be released from world reserves, with about half of that amount being taken from the SPR. Oil was trading at $91 when the announcement was made but actually rose in price - hitting $97 - before dropping to $88 once the surplus oil was introduced on July 15.
60 million barrels = $3 lower price. Hardly bang for the buck - especially as oil was back above $100 before the end of the year.
As much as the SPR is seen by many to be the panacea for high prices, the lack of available additional supply from the world’s biggest producers is a far bigger concern; one which my friend Ronni Stoeferle from Vienna wrote a fantastic report on recently entitled “Nothing To Spare” (you can email Ronni HERE for a copy of the report which is an incredibly detailed piece of work). In it he took an in-depth look at some of the supply constraints facing the world and his conclusions are, to say the least, troubling:
The still low reserve capacity makes the oil price vulnerable to geopolitical tensions. With the exception of Saudi Arabia, no country holds any significant reserve capacities. But since Saudi Arabia has never exceeded the barrier of 10 mbd on a sustainable basis, we harbor doubts as to whether the country can actually produce 12.5 mbd. Risks are that it will take a supply side crunch to find out whether the alleged reserve capacity actually exists to the extent proclaimed. At any rate, the decision of IEA to tap the strategic reserves during the Libya crisis is a clear indicator of the strained supply situation.
Ronni goes on to examine the price forecasts of many major oil producers and their projections also point the way to higher prices:
A comparison of the oil price forecasts from various oil producers reveals that, in the period of 1999 to 2010 Mexico, Saudi Arabia, and Russia made the most accurate forecasts. All three of them also came closest to the actual price last year, which is why it makes sense to listen to their expectations. For 2012 they predict substantially higher oil prices. Saudi Arabia expects an average WTI price of USD 97, Mexico forecasts USD 116, and Russia USD 120/barrel. Iran has given the highest forecast at USD 137/barrel.
But these producers have their own problems - most notably the Gulf States who, in order to calm tempers amidst last year’s Arab Spring, handed out billions of dollars to placate their angry citizens which has driven up their breakeven cost to between $80 - $90 per barrel. In fact, the sheer magnitude of the Saudi “stimulus package’ was simply staggering. Ronni again:
The Saudi Arabian “Day of Rage” in March was without any consequences due to the generous governmental handouts. The economic stimulus package worth USD 130bn contained a wage increase of 15% for civil servants, an increase in the minimum wage, cheques for two months’ salary for civil servants, and an unemployment program.
Almost USD 70bn will be invested in the construction of 500,000 social flats, and all mosques across the country will be renovated. Overall, the package equals more than 20% of the Saudi Arabian GDP (by comparison, TARP in the US accounted for 5% of GDP).
Clearly, talk of speculators is (as it invariably is) a convenient attempt to find a scapegoat for a problem that doesn’t sit well with the public (incidentally, in an in-depth study that I won’t even bother conducting, it was proven that scapegoats are extra-convenient in election years), but the real problems are far more complex and far less solvable by policy - at least in the West.
Much more in the full report (pdf)
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buried in the pdf is a table showing california tax revenues 2012 vs 2011 - check it out!
Can I use food stamps to buy gas? I bet Obama will come up with Bama Gas Bucks to buy some more votes soon!
No, but you can sell your car to buy food.
Who is going to buy a used car they can't afford to put gas in? Anyone that can afford the current gas prices will buy a new car. That new car is not going to be a tiny gas sipper. It's going to be a huge SUV.
A family of four. Bam.
http://www.youtube.com/watch?v=RSwcrFrLsgM
You buncha freakin Philistine flat earthers probably think drilling more supply would bring the price down........HAH!!!!
Just go get some Obama gas.......it's freakin free don't you know!
/YesWeCan
I'd like to see domestic oil production from federal lands be named a strategic resource and a law passed saying any oil produced from federal lands must be sold in the USA.
The USA is the 3rd largest oil producer by country on the planet.
Let's keep that black gold in the USA.
Oh can't win an election with gas or $3. Gas prices have double since Obama took office.
Thank you central planning
So has Fed money printing...excuse me...."quantitative easing"
But the people notice gas prices, not stock prices.
That's because all the QE cash has gone to supporting equities not gasoline prices......cause lower gas prices would help out the little people....and that just makes way too much sense to do that.
If Obama wins a second term he will double gas again by March and if people still refuse to buy Chevy volts he will double it again by June.
They cant even sell the European version of the Volt, and they’re already paying twice as much for Gas. Govt. Motors was another one of Obama's many accomplishments. And next years line of Chevy Volts are going to be made in China. for real.
I sat in it yesterday at the Geneva Car show. And it is very boring. Why did they make it look like a Ford Mondeo from 2001? I then sat in the Tesla S and the Fisker and both have way more exciting interiors and exteriors than the Volt.
P.S I also cancelled my Fisker order last week. It has been on order since 2008 so it's not like I didn't give them a chance to deliver.....
It has been on order since 2008 so it's not like I didn't give them a chance to deliver.....
It's almost insane to think anyone can get anything done in that amount of time....clearly you should give them 4 more years.
Consumer Reports wrote in a blog post:
We buy about 80 cars a year and this is the first time in memory that we have had a car that is undriveable before it has finished our check-in process.
Good thing you canceled that order.
It went up at times during Bush, Reagan years as well.
Rise of oil has NOTHING to do with presidental policies, for the most part. Or oil speculators (although their input into the final price has increased due to volume being spurred by volitility in the economy, Middle East, corporate shenanegians, etc).
Where can we trace that volitlity in USD and Oil? Well, oil, as we know....is traded in the world's reserve currency......the US Dollar.
Who controls the US Dollar? The Federal Reserve.
Yet, we don't hear about their role in oil's price in MSM. Hmmmmmmmmmmm
when I was a kid my folks used green stamps, maybe they'll come back
http://en.wikipedia.org/wiki/S%26H_Green_Stamps
Gawd.
And it will take a whole 10 minutes to count and verify them. hell, there were 6 lanes about 30 feet wide and every one was staffed with two managers, 6 baggers, 6 cashiers and 4 people to help load your car.
MAN those were the days.... work for all who wanted to even if it was folding boxes for the export dumpster.
And the store bought and stocked only what the local area in terms of city blocks would eat. For us German Americans... it was great. And so it was for the Irish, French and so on down the street.
lmfao, I remember my grandma, at 6th street grocery store, cashing in those fucking green stamps, a little fucker back then!
Bought my first ounce of silver back then........I uas just a tiny tyke with a pocket full of bullion.
you can sell your "benefits" 2-1 for cash
I am not surprised, there is a little underground trade in that. The problem is you needed one hungry Benefit card holder to swipe something for cash.
I think $4 gas is one of many things that is going to bring markets lower. It is the new Fed Funds rate. This article provides a lot more reasons, through an easy to understand format, on why stocks are very overpriced right now:
http://www.ftense.com/2012/03/global-market-forecast-introduction.html
Well, the last time we reached $4 / gallon for a sustained period, we ended up with a massive market melt down and a financial crisis. I can't help but think that the two things are related, as people begin spending more on gas (and other items affected by high oil prices) and less on paying off their debts, we may see it all play out again.
The early summer/spring ain't going to help. People are out and about which they say... Is driving up sales at retail places like home depot.
wha? reallly?
696 million barrels - (1/2)*60 million barrels = 666 million barrels
we only have 666 million barrels left in the SPR, seems like a good number.
Solution: maintain stock of said 666 blah blah bs until oil approaches asymptote, then lease it back to the public to settle the national debt. lulz
cheers zhers
Instead of this drivel, I suggest you google
EIA Cushing Stocks
or
EIA SPR Stocks
It might open your eyes....
Revenues down 22.5% is one helluva change.
Also, for a heart rending story of what totalitarianism is, begin on page 14...
Shin and his mother lived in the best prisoner accommodation the camp had to offer. They had their own room, where they slept on a concrete floor, and they shared a kitchen with four other families. Electricity ran for two hours a day. There were no beds, chairs or tables. No running water.
If Shin’s mother met her daily work quota, she could bring home food. At 4am, she would prepare breakfast and lunch for her son and for herself. Every meal was the same: corn porridge, pickled cabbage and cabbage soup. Shin was always hungry and he would eat his lunch as soon as his mother left for work. He also ate her lunch. When she came back from the fields at midday and found nothing to eat, she would beat him with a shovel.
Her name was Jang Hye Gyung. She never talked to him about her past, her family, or why she was in the camp, and he never asked. His existence as her son had been arranged by the guards. They chose her and the man who became Shin’s father as prizes for each other in a "reward" marriage."
?Lovely.
Vehicle License fee revenue dropped from 102,386 to 2,573.
That's caused by Truck Drivers getting the hell out and refusing to take loads into California.
And half of those truck drivers will fall into tier two or completely out of the CDL pool by mid 2014.
POVs are to the trucking industry what junk mail is to the USPS. A vast reduction in POV travel will force trucking costs, which translates to increased costs of goods sold, UP! And This, my friends, is what I've been trying to warn about for a LONG time; this is a perfect example of "economies of scale" in reverse, how it works/plays out.
...and those Mexican truckers, they don't pay either.
I suspect that Canadian truckers surpass the numbers of Mexican truckers. Regardless, it does bring up an interesting point: one way to avoid paying road taxes is to relocate your company next door and then use the same road systems for free (though I'm not sure the taxes paid by the Canadians would be less; for the Mexicans, I'd figure so).
What pdf table? BTW who was the President who added to the SPR at $35/bbl?? Should that President be praised rather the Obama who wants to deplete the SPR for political reasons? BTW SPX and AAPl should go higher until the end of the quarter as more and more hedge funds must show they hold a AAPL position.
A friend made another video for you guys. Enjoy.
http://www.youtube.com/watch?v=RgE563VCDOg&feature=youtu.be
Great video sitenine. Thanks.
Given the other EOs, the NDAA, 30K domestic drones, and the Utah spy center information getting out, I think it is all escalation in posturing and implied threats, like Putin usually does.
If TPTB were going to escalate, next up would be making a few select public examples out of target groups with arrests, like Putin just did. This is an old playbook. We'll see. I will be interesting times if the Liberator USA were to suddenly be killing their own people, like Assad and Ghadafi, and China then send us aid and air support to help us kick out the regime.
OH, what a devious twist on international affairs. Just imagine what TPOTUS would say with his teleprompter. Would it sound like Ghadafi or Assad? Would China even step in?
That video lost all credibility by that Jefferson quote. He never ever said that. It's a phoney quote that's made it's way around the net. The executive order is serious shit. But if you don't do due diligent research on what you are posting people will not lend the subject matter any credibility.
I didn't make the video, but I can pass on that advice. I would like more information on why that quote is not attributable to Jefferson if you are able to pass it along, as I've heard it many times over - including some of Bill Still's stuff (who I respect very much for thorough research).
http://www.monticello.org/site/jefferson/private-banks-quotation
EDIT: Also kind of interesting - http://books.google.com/ngrams/graph?content=first+by+inflation&year_sta...
Here's a link to snopes on that quote.
http://www.snopes.com/quotes/jefferson/banks.asp
I'm not trying to be crass. That Executive order needs to be taken seriously and the more awareness the better.
In full agreement on the seriousness.
Thank you both for the links.
Maybe you should do your own research better, that quote is only partly spurious, much of it however is actually Jefferons opinion on private banks.
You're a moron noob .Just because he didn't care for banks doesn't make it okay to attribute a quote to him that he never said. I can assure you that I've probably forgotten more about Jefferson than you know. Just because you displayed your intelligence level with a comment like that doesn't make it okay to put the following words in your mouth....... "I'm stupid and I don't know what the hell I'm talking about." that may line up with the facts but you still never said it. .... At least I don't think you have. Have you?
Tell your friend that the Thomas Jefferson quote is bogus.
It's one thing to bash bad things, but it's another to do it in ways that use falsehoods.
To me this smacks of party pussy-ism. It's immaterial whether Obama did or didn't want to sign this thing (like anyone could know what's in his, or anyone else's, head?), the signing was mandated by TPTB.
So what is the relative highest price for gasoline adjusted for inflation? Anyone know if are we there yet?
Methinks we are close. But the middle 1980's were pretty high too, like about $1.35 in the SF Bay Area, which might convert to about $3.75.
We're past that point. This provides some background: http://zfacts.com/p/35.html
Short answer is that the peak gas price in today's dollars in history happened in 1980, at $3.55.
So current "normal" gas prices are very near the highest seen in a full-on crisis (Iran-Iraq war) 30 years ago. The structural difference between the pricing situation is huge, it's unlikely that the current situation will resolve the way the crisis 30 years ago did, because current pricing is reflecting a lot of inflation and only a little bit of the crisis/shortage mentality. If we get a hot war in Iran, we could easily go higher, if it settles down, I doubt we get below $3.
The main difference is that every Tom, Dick & Harry has a credit card to pass the buck onto their future selves.
Here's a historical price chart for gasoline:
http://gasbuddy.com/gb_retail_price_chart.aspx
I'm not sure how you would want to adjust for inflation. CPI? Gold price?
Anyway, the price went to $4.12 in 2008, then fell off a cliff, down to $1.61 at about the time of Obama's inauguration, then back up from there.
If you take the oil out, you're gona' have to put it back in except you'll be buying it back at higher prices.
Yes, logic that comes from congressmen who think borrowing more money is good because interest rates are so low....after all, what can go wrong......lasik surgery couldn't fix their short sightedness.......
I wonder who donates the most to campaigns that would benefit tremendously from this exercise (just like they did through two terms of Bush and his daddy's buddies).
Clearly, unions! </sarc>
Now then, quit bothering me, I've got to get back to pushing the buttons controlling the drones...
Insanity rules the day, yet again!!
Has anyone noticed that all explanations for oil supply problems never ever address . . . oil supply problems?
It's always "lack of investment" or "high breakeven point because of government spending" or even the always popular "speculators have reason to restrict supply to make a profit on their trades, so they (pick one) fill up tankers and don't allow them to port, they start a war to shut the Straits of Hormuz, they . . . whatever.
I'm taking an amused perspective on this, and I predict that on the day it is clear there are outright gasoline shortages in the US, it will be blamed on government intervention or big oil shutting refineries or the bogeyman-du-jour. That bogeyman will never be geology. Not ever.
For some very odd reason, it seems to be unacceptable for people to embrace the concept of . . . if there's not enough coming out of the ground for needs of 7 Billion people then maybe no more can come out. Period. Maxed out. This is an unacceptable concept. And yet people have accepted nature before. People dying of heat in a desert never imagine that they can do something to turn down the sun. It's very odd.
For 40 years we've had "no oil problem". And higher prices would force more production to come online. But US imports ahve only gone up. And US production peaked in 1970. I think we all gotta stop our day jobs starting Monday and help drill for oil.
i will tell you what. This LTRO/Feds gonna buy more MBS/Treasury liquidity meme better peak relatively soon or I am going to be looking for a job in the NoDak oil patch. I know I am an idiot to be short in the face of the trillions in money printing and larry fink screaming to go all in stocks (surely he had just come from a meeting with someone where he learned where the money flows would go). Somehow I just cannot believe that all the price signal distortion and capital misallocation will lead to such an awesome outcome that all markets surpass their 2007 highs. Nevertheless, in an analog to "I'm afraid it's medical experiments for the lot of you" I am slowly resigning myself to "I'm afraid it's oil derricks for the lot of you".
Ironic, because 40 years ago is also when the USD went off the gold standard.
Like Chazz Palmateri's character Sonny said in "A Bronx Tale":
"The Working Man is the biggest sucker."
No, it is not ironic...
http://mazamascience.com/OilExport/output_en/Exports_BP_2011_oil_mtoe_US_MZM_NONE_auto_M.pdf
I am not totally opposed to that idea. I have to admit that I don't know enough in that area to formulate an honest opinion. But from what I have read it seems all the easy oil has been reached, but there is a lot more difficult oil to find. It's just not cost effectient right now. Like I said though it's a topic I have to do more research on.
"That bogeyman will never be geology."
Or, too much consumption...
Kind of like Easter Islanders probably never suspected that their consumption of forests would ever stall their statue-building (and thus their very [in Dick Cheney's voice] "Easter Island way of life").
I think we have reached the point where supply and demand have zip to do with oil price.
Of course you do.
Price has nothing to do with supply and demand if market participants are wrong about future supplies which I think they are. I think most market participants believe that myriad of hopium exists in the form of unconventional oil and natural gas. Once the veil of hopium is lifted and market participants realize that the next 10 years is not an extrapolation of the past 150 TSHTF.
I think oil prices are well below what they would be if market participants were realistic about present and future supply and demand.
I think prices are being kept artificially low because fiat currencies fail in the absence of confidence of future growth. If energy, the master commodity declines, then fiat currencies will no longer have the false notion of infinite growth to rely on.
I believe that a great veil of false beliefs exists world wide when it comes to energy. This false belief is due to the past 150 years of persistent economic growth entirely attributable to the past 150 years of persistent growth in energy and technology that consumes it. The past 150 years of persistent economic growth is not attributable to our greater understanding of economics.
I agree trustee. A few years ago I came across this site when I was trying to learn about oil pricing. http://www.radford.edu/~wkovarik/oil/6oilbiblio.html
I don't believe in peak oil. Peak Oil is nothing more than bullshit fearmongering propaganda. I wish this site would be updated past 2006. Since then Brazil has had major discoveries and become an oil exporter. The Bakken oil fields keep growing in size. It seems every year there is a new discovery in the Gulf of Mexico that is the largest ever found. The finds in Uganda. And the untapped resources in ANWR. At least the Canadians are smart enough to be drilling right on the other side of the Alaskan/Canadian border in Mackenzie Bay & Yukon Territory.
From the link above: • 1879 -- US Geological Survey formed in part because of fear of oil shortages.
It's a great read, check it out. We aren't running out of oil any time soon. Global warming is bullshit too.
From the link above: • 1879 -- US Geological Survey formed in part because of fear of oil shortages.
Ohhhh... you believe in government and it's statistics when it comes to oil...
"I don't believe in peak oil."
It's not a religion. It's geology. No multi million dollar churches. Just pages of seismic imagery.
And you do realize that at the end of the boy who cried wolf story . . . the wolf did show up and kill everyone.
I'll never know how anyone can think any differently. Sure, conspiracies can exist, but even manipulations cannot alter the FACT that consumption of a fixed quantity DOES actually DEPLETE that thing. I know, hard to believe... ANYONE can test this out by filling up a glass of water, you only get that one glass, and then drink it at whatever rate and then see if in fact there is LESS water in it than you started out with (and if it's a hot day and there really isn't any other water, it's quite probable that you'll experience your very own peak water in only one day!).
>>
Since then Brazil has had major discoveries and become an oil exporter. The Bakken oil fields keep growing in size. It seems every year there is a new discovery in the Gulf of Mexico that is the largest ever found. The finds in Uganda. And the untapped resources in ANWR.
>>
One other thing, there guy. Without addressing each of these at all . . . in the interests of objectivity, why didn't you list the wells/fields that declined in production or outright shut down because empty the past year, or five years? Do you think such things do not exist?
You do realize the oil industry has a sub category of companies who specialize in C&A, cap and abandon? And that's not just in the US. When a well is dry you cap and abandon it. You pour a couple of miles of concrete in and smooth it over and leave the site. Such companies are paid very well to do that. It's the mortuary of the oil business. Zero glamour, but a lot of money.
Regardless of numbers, why did you not mention any dying or dead wells in your list? Wouldn't that be fair? Aren't you thinking of only one side of the equation?
The problem isn't Peak Oil. It's Peak Humans. Soon the Peak Human Problem is going to resolve itself. Then there will be plenty of oil to around.
Well, well, well.
Typical US citizenism.
Currently, 3 billion people are out of oil consumption.
For this solution to work, for oil to be plentiful, the population to be eliminated has to be the population that consumes oil.
So well, does not look as if this peak human probem is going to resolve itself.
Ahem. Here are links to parts 1&2 of an 8 video series, you can find the rest. You need to watch all eight. It's just facts, no propaganda. But it explains in no uncertain terms how these things work. It's like an innoculation against being ignorant.
http://www.youtube.com/watch?v=F-QA2rkpBSY
http://www.youtube.com/watch?v=Pb3JI8F9LQQ
It's like an innoculation against being ignorant.
Yup. As a matter of fact, I toss this at anyone who thinks of affecting ANY change. Unless you know the fundamentals there's ZERO chance that what you do can possibly turn out right.
Here's a better place to watch this, only one link required:
http://video.google.com/videoplay?docid=4364780292633368976
The first time that I've read about peak oil was back in the 1920's when there were oil rigs all over Pennsylvania and they were having a hard time finding new locations to drill.
The term has been thrown around a lot ever since. I beliieve there is a lot more oil on the planet than anyone knows.
It is true that US citizens entered the age of oil knowing oil was a finite resource.
Kicking the can as usual... Usual US citizen procedure.
Consume now and see what happens later.
Hey Doubletap...
You are not allowed to make shit up on the fly... Bad form..
Brazilian Oil Production and Imports
And as for Global Warming, please explain this result:
http://www.skepticalscience.com/pics/FR11_All.gif
taken from this elegant simple paper
http://iopscience.iop.org/1748-9326/6/4/044022
"The Saudi Arabian “Day of Rage” in March was without any consequences due to the generous governmental handouts. The economic stimulus package worth USD 130bn contained a wage increase of 15% for civil servants, an increase in the minimum wage, cheques for two months’ salary for civil servants, and an unemployment program."
Just goes to show you that it's not just in the U.S. where the sheeple can be bought off with a few trinkets.
Worked great with the Native Ameri-...oh, wait.
We got no worries. Prices are up even though demand is down. No worries at all
You can find the camera guys story herehttp://www.dailypaul.com/221418/im-the-camera-man more athttp://www.WarnWire.com GOP once again just like Georgia trys to disenfranchise voters and rigg and hijack the delegate process by not allowing a vote! Ron Paul Supporter Arrested St Charles Missouri Caucus March 17 2012 Delegates Rigged Fraud Missouri Caucus Rigged Fraud, NO Camera's Allowed Ron Paul Mitt Romney Voters Election St Charles Remove the Chair, We make the rules!
But, but, I thought the higher prices were due to growth in the US economy. That it was getting better with more jobs, higher pay, and construction up. That is what they told me on NBC. Oh my!
no the problem is Wank Paulson (again) flogging fraudulent paper contracts as buy orders ...especially just before the price setting mechanism so the oil monopolists, sorry majors, can fleece the motorist out of another 3 Cents ($3 Billion nationally) the following month
dunno but we keep getting problems with Wank at the centre!
More good news if you own anything of value........
http://beforeitsnews.com/story/1906/406/Obama_Executive_Order:_Peacetime...
I truly wish someone would tell these idiots in Washington that there's absolutely nothing wrong with speculation. We ALL speculate for Christ sake. When someone buys a stock, you're speculating that the price is going to go up and you're going to make money. When you sell that same stock, you're either speculating that the price of the stock is going to drop, or that you can find something else to make a greater amount of profit on. For everyone speculating that oil is going to rise and buying futures based on that speculation, there has got to be someone on the opposite side speculating that oil is either going to drop or that something else is going to go up faster in order for there to be two parties in the transaction. Speculation is not only good, but in a fair and open market (something we can only dream of in this and most other countries), it's actually a prerequisite.
What these idiots SHOULD be saying is that there's a lot wrong with manipulation of the oil market. Of course, if they admit to manipulation in the oil market, they're left with egg on their collective faces when someone asks them about manipulation of every fucking market around.
Noble speculators are the only thing between us and $175 oil, which would be the price today without their superhuman efforts.
Speculating is one thing. Taking commodities into a huge bubble using free money printed up by the Fed at the expense of every single decent American is quit another.
I laugh when people post about oil not pricing in future shortages. When the hell are you going wake up and realize that these markets are a joke? They're trading with computers based on sub-second changes. There is no consideration for the future unless you are talking a maximum of five minutes from now. These markets are hopelessly broken.
You're correct, but you being correct is not relevant.
A refinery buys oil from a tanker and is under no obligation to look at, and generally does not look at, NYMEX pricing to decide what he'll pay.
He pays as little as he can without the tanker owner shrugging and sending the ship to the next refinery. They don't make these decisions based on what computers do in NYC. They decide at the port where the tanker leaves when they get an order from a refinery willing to pay the price they want for their oil, and . . . they don't have any obligation to look at NYMEX either.
We have a cart and horse issue here. NYMEX is looking at what refineries are paying, not vice versa.
From wikipedia:
Markets are all about speculation. Anyone who promises safety is THE problem: such a condition could only be attained through manipulation/subversion of regular market forces.
As noted in another response, the vast quantities of "free" money is effectively rigging/manipulating markets.
I just looked up "Bad News" in the dictionary ....... cause I forgot what it was ----- just as I figured...... wasn't anything there.
Need to track down one of those dictionaries that was published pre-totalitarian days...
Drover our 4 wheelers all over tarnation last night. Didn't even burn a 1/4tank. Spent some time at the nudist coloney and listened to the Pagans play bongo drums and chant. I'm neither, but still a good time. Some gal was there in a coyote sorta dress with a coyote tail hanging off her ass I asked her if I could pull her tail she said sure. Of course screw the tail I had a handful of ass. Get this....the bitch growled at me?? She said it was a friendly growl though lmao.
Awe........does'em poor babies want to sit around and cry about high gas prices all sunday night? This shit's going where it's going....my as well have a good time before the bottom drops out.
Gold and oil prices are going to get slammed going into the elections.
Bank on it. Below three bucks by September. Gold to 800. Read it and weep.
Are you Mathman with a new handle?
Only $5 per hour to troll from my basement!
Oil south of $75 is inevitable. It happens when $150 oil smashes world GDP to -3% and consequent consumption.
Down goes the price until the world dares attempt growth again (1.7%), at which point $175 oil arrives to smash it all again.
Yes, it's about "affordability." If no one can afford it then it won't command a high price; though, however, economies of scale might suggest that it would be hard to pump a single barrel of oil for such a small amount: some rich fuckers will be able afford limited quantities, but it won't come cheap (unless you're the US military).
You mean, read it and stack!
lol, don't i wish.
/sarc?
Is the US fiat going to increase in value by elections? Is the FED going to rescind reserves to primary dealers? That would certainly drop the equities markets
Please do tell
I want to party with you, Cowboy...lol
Congressman Submits Impeachment Resolution Due to Obama's Failure to Get Congressional Authorization for Military Action in Libya.
http://voices.yahoo.com/congressman-submits-impeachment-resolution-due-to-11077044.html?cat=62
Bless Walter Jones. He had a real come-to-Jesus moment when he realized that his helping to lead the charge of war against Iraq was wrong: he's since been an active supported of ending the war. Anyone who remembers will recall that Walter was the one who started the stupid campaign to pressure the French to jump on the war bandwagon, it was he who made the bold contribution to America's fighting forces by... suggesting that the congressional cafeteria call "French Fries" "Freedom Fries."
I now have more respect for Walter after admitting his mistake, AND, for actually learning from it!
A pencil and blank piece of paper yields the highest ROI.
O'bama....O'Nero....O'Hoover....O'Carter 4 Losers ! Monedas 2012 $4 gas = 4 year presidency !
I know how to lower the price,
Drill Baby Drill
Meanwhile in other news: Chevron and Transocean executives detained in Brazil. Passports seized pending criminal charges...
http://www.reuters.com/article/2012/03/18/brazil-chevron-spill-idUSL2E8E...
Going Back to the First Look at Saudi Arabian Oil Production:
http://www.theoildrum.com/node/9034
Instead of the SPR why noy just get it from the BAKKEN oil reserves, oh thats right we cant buy our own oil because of federal regulations
There are no restrictions on Bakken drilling. It's taking place frantically every single day.
http://www.energyindepth.org/tag/bakken-shale/
Some members of Congress have discussed attempting to attach new regulations on hydraulic fracturing to legislation aimed at addressing that tragedy, according to Pomeroy.
Lynn Helms, director of the N.D. Department of Mineral Resources, during a presentation in Minot in May, spoke about if the Environmental Protection Agency decides to regulate hydraulic fracturing.
“We really have got to stop that from happening,” he said. He said his department put together a document which tells how North Dakota regulates it and has gone to EPA headquarters and Gov. John Hoeven.
“If this happens, I can tell you that our Bakken and Three Forks drilling will have to stop for two to three years,” he said. He said when it happened to Alabama for coalbed methane, “they completely had to shut the door” for two years.
“By the time they got the rules written, the play had moved on and it has never been what it was before,” he said. “So that’s a huge cloud sitting over our industry a major impact. It would just reduce our activity to almost zero for two to three years.”
In his letter to Pelosi, Pomeroy said, “I believe that this would be a mistake and would find little support in the Senate. The EPA is currently undergoing a congressionally mandated study into hydraulic fracturing that is expected to be completed in 2012.”
Pomeroy called it “irresponsible” for Congress to enact new regulations
"There are no restrictions on Bakken drilling. It's taking place frantically every single day."
So you agree with me. Those regulations were discussed and are not in place and may never be.
"we cant buy our own oil because of federal regulations"
Who is "we?"
No, US citizens can't buy they're own "oil" because they're fucking broke. Further, oil is pooled into the global market.
If you persist that it's about "federal regulations" then back up that assertion and provide the relevant govt documents.
PMs ramping up on a Sunday night?
that's not normal.
While everyone is focused on how many US warships are busy making themselves targets in the Persian Gulf has anyone noticed that the French carrier Charles de Gaulle and its 'strike force' is busy steaming in circles too?
Would anybody really care if the Iranians sank Le Grande Nez? I think we have the scenario. OMG - those camel jockeys sank our ally's precious carrier. Tally ho!
Yea there's a difference thought, the de Gaulle is steaming in circles because their rudder is stuck, the US fleet is voluntarily holding their pattern.
Ask Walter Jones what happens when you make stupid French-bashing jokes (or, in Walter's case, stupid propaganda campaigns).
Nah, the frogs would just haul that old railcar out of storage in Compiegne. float it over to Bushehr, and surrender to the Iranians over cheese and wine.
Cushing abuzz about Obama visit
"This is an oil-based economy. It always has been and always will be," Kinzie said. "Fortunately, the economy (in Cushing) is really good right now. We've been blessed."
I wish that it were legal to shoot people with no brains. "It always has been" blah blah blah... yeah, in your myopic, self-centered life, you piece of shit.
And from this (http://www.okmag.com/May-2011/Trouble-In-Pipeline-USA/):
“Historically, Cushing has been the center point for oil in America,” says Mike Cantrell, president of the Oklahoma-based Domestic Energy Producers Alliance (DEPA).
Fucking Orwell lives! Someone named after a dying Mexican oil field (OK, it's a close spelling!) and who is for DOMESTIC energy production is campaining to help IMPORT MORE OIL?
People would often compare quitting smoking to kicking an heroin addiction. I think that kicking the oil addiction will be like kicking an heroin addiction.
See loads of cars and SUVs now with $4.39/gallon gas. No effect. Gasoline will have to go a great deal higher to make an impact!
Maybe $6.00 or $7.00 gas may put a dent in consumption by Americans. There are huge SUVs racing to the lights and still plenty of traffic.
Bottom lie no impact, Americans are used to $4.39/gallon gasoline.
Yeah, loads of 'em.
Parked in the yard with "For Sale" signs on 'em. Right next to the ReMax sign that's been up 3 years.
They haven't got their credit card bill yet. Give em time.
You are partially right.
Americans who aren't making their mortgage payments and have no housing costs are not upset by $4.39/gallon gasoline.
Depetion of the SPR is an intentional act obfuscated by 'goodwill' politics that will ensure resource scarcity when they are needed most, at a time of crisis not to be unexpected nor avoided.
Nixon's price controls and 10% tariff on imports was a total disaster for those who remember. Why not let free markets work.
Today I was in a traffic jam with gasoline stations nearby posting $4.39/gallon around a popular mall due to nice weather. The resturants were packed and parking lots full. That's why I stated there seems to be no effect and gasoline could climb much much higher before there is an impact. People are still at the malls, resturants are still buzzing and a local convention center, casino are going like gangbusters.
Refiners/suppliers keep raising the prices people will keep cruising/boating and going out to eat to the Applebees, Olive Gardens, Weber Grill, etc!!!
NSF has been replaced by Credit Cards. Problem is, CCs come due at some point, and you can only get so many.
Yogibear,
I have'nt heard a thing about the recovery you speak of
the tylers say just the opposite
what is this all about?
have you told the tylers yet?
HEY, TYLER!!!!!!!!!!!!!!!!! om
Does the word "enclave" mean anything to you?
oh come on, as if you haven't been to SFbay in CA..
oh wait a minute, we don't have $4 per gallon, it is $5 per gallon, self-service cash price...
Move north. At least in Oregon, you've got someone to pump it for you.
high gas prices, war, and education are the largest problems of this world
2012
and we are still talking about gas prices?
and still driving SUVs?
nothing new in the good old us of a?
no wonder you're stuck with fox, cnn, and obama om
If you need oil, which you don't - the economy of bureaucrats doesn't do anything, then why can't you just print it?
A quote from a recent R. Heinberg piece:
Zzzz...call me when the lowest price in the US is just over $5 a gallon then we'll start to see some interesting stuff happen.