Mad about this war for oil and gas prices?

Jun. 5, 2007 at 12:27:01 PM

If you oil prices to come down, we need to end the violence in Iraq, and stop threatening Iran. Then the oil markets will return to normal, and the Iran fears will be taken out of the pricing.

Commodity prices always trend with the cost of production, unless there is some force, fear, or natural disaster hurting production. So during the 70's when OPEC came along, they distorted the oil market, and within 5 years enough new production came online that the price reverted back to the cost of production. There it stayed until 2002, when Chuckle Nuts started fear mongering and the traders put in a "fear" premium on oil prices. Very little oil has been taken off the world market as a result of Iraq, and China and India aren't creating so much more demand than they producing.

So if you prices to return to normal, get out of the Middle East.

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Scott Manley

Jun. 5, 2007 at 01:29:49 PM

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Pheadrus, you are dead on when you say traders put a "fear" premium on oil prices. We need to kick the fearmongering profiteers out of office, we need clean elections, renuable energy, and oversight and regulation on this OPEC cartel. Just say no to laissez-faire economic paradigms.

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AZRWinger

Jun. 10, 2007 at 08:26:22 AM

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"we need clean elections, renuable energy, and oversight and regulation on this OPEC cartel. Just say no to laissez-faire economic paradigms"

Brilliant ideas! Government coerced contributions to the "proper" political candidates coupled with a government dictated economy. That sounds so wonderful it must have just been bad luck that brought down the USSR. Capitalism in a free market wipes the floor with the economy you envisage. Another example of the reactionary nature of progressive thought.

How would "oversight and regulation of OPEC" be accomplished? They are dominated by oil exporting countries beyond the reach of San Fran Nanny unless you are advocating a true war for oil.

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AZRWinger

Jun. 10, 2007 at 09:54:29 AM

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TC,

A fundamental difference between Communism and capitalism is that communism requires the government to subsume the economy. This what Mr. Manley refers to as "Just say no to laissez-faire economic paradigms" institute a communist planned economy. My point is there is no reason to exchange the current dominant economic model for a clearly inferior one.

Sorry, I can't follow your logic that democracy and capitalism are incompatible. In fact capitalism and democracy are strongly correlated as are despotism and poverty. Look at the instances of famine in the 20th century all occured in dictatorships communist or otherwise.

IIRC Lenin made the famous remark about capitalist selling the rope nearly 100 years ago. It has proven as accurate a prediction as the form of government he pioneered has been successful, not at all.

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FHardison

Aug. 2, 2007 at 02:14:55 PM

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I think you are missing the point.

Oil prices are "out there" because some chicken little scientist made the observation then the announcement that no more oil was being produced. Which made folks think that oil was now suddenly in finite supply.

The point that was missed was that we as humans have yet to discover ALL of the oil that has already been "created". We have not found all of the oil producing areas of the globe.

The next thing folks are over looking is that US petroleum companies sell US produced oil on the open market just like OPEC does. They make a ton of money over the stock futures thinking we are out of oil. I'll tell you something else, the US production fields are not empty. When oil was $70 a barrel - the pumps in Texas were working over time! By the way another little known fact, even a dry well has 60% of it's oil still in the ground. We have yet to figure out how to obtain it from the deposits after the positive pressure flow ebbs and gravity wells are not filling up.

What we need to do, is support new companies that are out there that are producing electric vehicles that use solar panels, hydrogen fuel cells and hybrid bio electrical cells.

I remember reading an article from the 1960's that said by the mid 1980's Americans would be driving nuclear powered electric cars that used a new technology of protonic battery - like the deep space probes we launched in the 1970's did.

Yes sure the big oil companies are at the root of most of what is going wrong in our world... but as consumers without the spirit of invention to solve our own problems and get rid of the market driven reason these companies exist in the first place - we ourselves are a big piece of the problem and solution.

You want a solution? Pass legislation to make the US energy independent within 2 years. Explode and grow the resources we have thrown at bio-diesel technologies. Pass legislation that makes all domestically produced oil illegal to export. If the oil companies don't like it, nationalize them domestically, move the country to high tech industry that uses oil products only for lubrication, fertilizers, plastics etc... and move the US away from need for oil all together.

But what do I know? I am the guy that stood up against Al Gore for not exploring ALL the science that is available that says the sun is our issue - not selling carbon credits and raising taxes.

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FHardison

Aug. 2, 2007 at 08:59:01 PM

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I think you are missing the point.

Oil prices are "out there" because some chicken little scientist made the observation then the announcement that no more oil was being produced. Which made folks think that oil was now suddenly in finite supply.

The point that was missed was that we as humans have yet to discover ALL of the oil that has already been "created". We have not found all of the oil producing areas of the globe.

The next thing folks are over looking is that US petroleum companies sell US produced oil on the open market just like OPEC does. They make a ton of money over the stock futures thinking we are out of oil. I'll tell you something else, the US production fields are not empty. When oil was $70 a barrel - the pumps in Texas were working over time! By the way another little known fact, even a dry well has 60% of it's oil still in the ground. We have yet to figure out how to obtain it from the deposits after the positive pressure flow ebbs and gravity wells are not filling up.

What we need to do, is support new companies that are out there that are producing electric vehicles that use solar panels, hydrogen fuel cells and hybrid bio electrical cells.

I remember reading an article from the 1960's that said by the mid 1980's Americans would be driving nuclear powered electric cars that used a new technology of protonic battery - like the deep space probes we launched in the 1970's did.

Yes sure the big oil companies are at the root of most of what is going wrong in our world... but as consumers without the spirit of invention to solve our own problems and get rid of the market driven reason these companies exist in the first place - we ourselves are a big piece of the problem and solution.

You want a solution? Pass legislation to make the US energy independent within 2 years. Explode and grow the resources we have thrown at bio-diesel technologies. Pass legislation that makes all domestically produced oil illegal to export. If the oil companies don't like it, nationalize them domestically, move the country to high tech industry that uses oil products only for lubrication, fertilizers, plastics etc... and move the US away from need for oil all together.

But what do I know? I am the guy that stood up against Al Gore for not exploring ALL the science that is available that says the sun is our issue - not selling carbon credits and raising taxes.

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Mad about this war for oil and gas prices?

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