47 replies to this topic

[xg22]

egghead, on March 17 2012 - 08:32 AM, said:

progress--you are very slowly getting it-it takes a long time to drill new oil fields-and we have a lot of it in the ground-technology is bringing more supply than we ever dreamed about -supply and demand matter--and the monetary policy is most important-eureka

though you are still caught up in that old ideological passion--"evil Oil companies "manipulation of supply and demand" "the wars" and of course the "wealthy"

One day you will wake up from your slumber and realize the economic debate isn't about about "fairness" which is both subjective and ideological--it is simply about sound basic economics--

'fairness" isn't about revenue XG--ABC's Charlie Gibson asked candidate Obama if he would raise capital gains taxes even if, as in the past, that brought in less revenue to the federal government.--Yes, said Obama. "I would look at raising the capital gains tax for purposes of fairness."

I know what I don't like which I suppose I will call it 'unfair'

I think it's unfair that those who are 'connected' can buy Congress people to enhance their hold on any given issue, in this case 'unegulated Oil futures purchases'.

That is unfair to us peons..............



http://www.nber.org/papers/w14492

[egghead]

XG once again The futures market is a "zero sum" game- there is no such thing as 'unegulated Oil futures purchases' it is just propaganda and great politics--What you want to regulate is the speculators who game the current regulatory system--and they game the system based on regulations they try to influence to their advantage-it is a very slippery slope--The best regulation is the fact that futrues is a zero sum game--The speculative investor attempts to profit from the price fluctuations of real estate, commodities, stocks, or any other type of investment that stands to churn out a profit.--Howed that work for those "evil speculators" (except where the government gets involved and bails out stupidity making risk taking less risky)--the regulation is there are winners and losers in future prices--it is called risk (you never heard about those evil speculators who bet on $140 bucks for oil when the price dropped to 70)

The next step in oil is to answer this question--Is oil abiogenic or biogenic?

We were all taught in school about "fossil fuels"--however when I was working in the old Soviet Union in the late 80's and early 90's it was pretty clear the Soviets had long moved on from the old "fossil fuels" concept--which was ironic since it was a Russian who is credited with first coming up with the theory that "oil is biogenically created from the buried remains of living things"--Fossil fuel ultimately implies one thing – finite resource

then we had herbert the man that scared us to death who produced a video and talked about "peak oil" and that 77 percent of the world’s known oil reserves are in the hands of state owned oil companies--We were all doomed-except "peak oil" was a little off in predictions

and then a book came out called The Myth of Scarcity and The Politics of Oil--and a new theory in the west was starting to get traction-Abiotic Theory -a theory that had long been adapted by the Soviets--Who knew Stalin had only one success--the gift that saved Russia--Since that time 80 oil and gas fields in the Caspian district have been developed from crystalline basement (bedrock) far below the sedimentary blanket--and western Siberian cratonic rift has led to the development of 90 petroleum fields of which 80 produce either partly or entirely from the crystalline basement

At the very least the conventional attitude toward the origins of oil seem to be based on very old theories of which the largest oil producer in the world rejects outright

But the evironmental industry and the left has a vested interest in continuing that old "biogenic theory"

And if your interested this is a scientific research paper that looks at the known facts and explores all oil theories and makes no conclusions

https://netfiles.uiu...20Petroleum.pdf

[xg22]

An amendment by Sen. Ron Wyden (D-OR) to keep the Keystone XL tar sands pipeline American-made and its oil for American markets was defeated 34-64, on strong Republican opposition. The amendment to the unrelated highway bill was designed to expose the hypocrisy of Keystone XL advocates who have argued that the foreign-owned, foreign-oil pipeline was a patriotic American priority.

As Sen. John Hoeven (R-ND) admitted before the vote, the passage of this amendment would doom the project — because Keystone XL’s owner, TransCanada, intends to build the pipeline with foreign steel and ship its foreign oil for export to foreign markets.


http://thinkprogress...xl-us-friendly/

[egghead]

and yet your President says we are pumping way to much oil but the problem, he says, is that we don’t have enough pipeline to transport all of that--We don't have enough pipeline you say?-- Oh well guess thats why he switched gears on Keystone

The truth--we are at an 8 year high in production but at a 9 year low on drilling on federal land--you know the stuff he controls--This president makes a fool out of himself every time he goes on a swing to protect his butt on oil prices--

http://www.youtube.c...d&v=1zGeyEZ6JrE

[xg22]

So there's too much Oil yet the prices keep going up.

So why the need for the Keystone XL for Oil from Canada and what would that Oil do for America and the gas price?

You may not be aware of this BUT Gas prices are going up everywhere, Europe, Scandinavia,Canada etc., just like in the USA. They are going up wherever there isin't a Nationalized Control because of the 'free market' principle of 'speculation'.

But it's nice to see the Republicans refuse to support a 'Buy American' effort to employ Americans.

They are so Patriotic it must make you weep from pride.............


GOP presidential candidates and other Republicans have attacked Obama for supposedly letting gasoline prices rise by not approving Keystone or letting oil companies drill anywhere they can sink a bit. In fact, as the president has frequently stated in the past few weeks, he has opened up millions of acres of previously off-limits public land, on-shore and in the ocean, and the number of drilling rigs is at their peak.

"Anyone who says that we're somehow suppressing domestic oil production isn't paying attention," Obama said.

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Eric Cantor Promises Oil Speculators That Republicans Will Block Financial Regulations







"A decade ago, speculators controlled only about 30 percent of the oil futures market. Today, Wall Street speculators control nearly 80 percent of this market. Many of those buying and selling oil in the commodity markets will never use a drop of this oil. They are not airlines or trucking companies who will use the fuel in the future. The only function of the speculators in this process is to make as much money as they can, as quickly as they can."

Sanders and Klobuchar are among dozens of lawmakers who wrote to the Commodity Futures Trading Commission (CFTC) earlier this month to implore the body to use position limits to address excessive speculation.

Klobuchar said in a Thursday news release that she's carried her message of cracking down on speculators directly to CFTC Chairman Gary Gensler.


http://www.minnpost....s-near-4-gallon



Ohhhhhhh.......Forbes Mag even agree's......


If there were no speculation in oil futures on commodities exchange, the price of a barrel of oil might be as low as $74.61– not more than the present price of $108.00 a barrel.

But, there is plenty of speculation as the possibility of strife in Iran, one of the globe’s largest crude oil producers, pushes up the price of oil futures, which in turn impact the price of buying crude oil in the open market. As of February 23, 2012 “managed money” held positions in NYMEX crude oil contracts equivalent to 233.9 million barrels of oil– the equivalent of about one year’s crude oil supply from Iran to Western European nations like France, Belgium, Greece, Italy and Spain.


http://www.forbes.co...ice-per-barrel/

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Measured in dollars, the nation is on pace this year to ship more gasoline, diesel, and jet fuel than any other single export. It will also be the first year in more than 60 that America has been a net exporter of these fuels.

The volume of fuel exports is rising. The U.S. is using less fuel because of a weak economy and more efficient cars and trucks. That allows refiners to sell more fuel to rapidly growing economies in Latin America, for example. In 2011, U.S. refiners exported 117 million gallons per day of gasoline, diesel, jet fuel and other petroleum products, up from 40 million gallons per day a decade earlier.

There's at least one domestic downside to America's growing role as a fuel exporter. Experts say the trend helps explain why U.S. motorists are paying more for gasoline. The more fuel that's sent overseas, the less of a supply cushion there is at home

Gasoline supplies are being exported to the highest bidder, says Tom Kloza, chief oil analyst at Oil Price Information Service. "It's a world market," he says.

Refining companies won't say how much they make by selling fuel overseas. But analysts say those sales are likely generating higher profits per gallon than they would have generated in the U.S. Otherwise, they wouldn't occur. (duh)


http://www.usatoday....52298812/1?q1=1


And that my friends is why they want the Keystone Pipeline. So they can refine and sell the Oil to the highest bidder which is not you................

[xg22]

When in December 2008, 60 Minutes correspondent Lesley Stahl asked Saudi Oil Minister Ali al-Naimi how much it cost Saudi Arabia to produce one barrel of oil, he didn't blink: "Probably less than $2 to produce a barrel."

If it costs only $2 to produce a barrel of oil, then why do we pay over $105 a barrel?

Wall Street, Big Oil, President Obama, the Fed, environmentalists, the EPA have all been accused of pinching hardworking Americans at the pump.

But there is a much more important player that gets much less attention: OPEC.

Members of the oil cartel sit on top of nearly 80 percent of the world's conventional crude reserves. Yet they account for only a third of global oil production.

We need oil now more than ever. In the past three decades, global oil demand grew 45 percent.

During that same time, OPEC's production increased by merely 19 percent, despite the fact that two new countries (Angola and Ecuador) joined the cartel during that time.

Clearly, OPEC could produce more oil if it wanted to. But it won't.


http://www.npr.org/b...osts-4-a-gallon