Oil, Oil Everywhere

The Wall Street Journal Opinion Journal ^ | Sunday, January 30, 2005 12:01 a.m. EST | PETER HUBER AND MARK MILLS

[E.G.C.]

BTTT!!!!!!

[raygun]

They can only manipulate the price so high until it becomes cost effective to extract it from shale. THEN the gig is up (and the mid-East becomes utterly irrelevent).

[YOUGOTIT]

They did it to silver (just two people)in early 1980 so why could they not do it to oil? The daily trade in futures in oil is somewhere between 50,000 to 100,000 contracts and each contract controls 1,000 barrels. Why could a group of speculators not drive the price.

[An Old Marine]

Neither do I, unless however, Quebec starts the race for the door. My prediction is that Canada as Canada would not last 5 years if Quebec left.

[An Old Marine]

Might not be that great an idea. THe most conservative Canadian thinks like a Kennedy Lib. DO you really think that they'd be prepared to give up their "free" health care even if it meant that they'd finally actually get access to medical care.

[dennisw]

btttttttt

[Major_Risktaker]

They did it to silver (just two people)in early 1980 so why could they not do it to oil? The daily trade in futures in oil is somewhere between 50,000 to 100,000 contracts and each contract controls 1,000 barrels. Why could a group of speculators not drive the price.

Well, the Hunt Brothers.

and the Silver Bubble

The collapse of the silver market meant countless losses for speculators. The Hunt brothers declared bankruptcy.

By 1987 their liabilities had grown to nearly $2.5 billion against assets of $1.5 billion. In August of 1988 the Hunts were convicted of conspiring to manipulate the market.

_______________________

Well, so much for cornering the market.

_______________________

The Coming Oil Crisis

You say the price of oil will rise much higher than it already has. Why?

"The problem we have is that there are 2.3 billion people in Chindia," Leeb says, using shorthand for a combined China and India.

"Today, China and India use the energy-equivalent of 5.5 barrels of oil per person per year, while rich nations use 39. No matter how rosy your thinking is as to the global supply of oil, there is no way there is going to be enough to satisfy the demands of an extra 2.3 billion people coming online."

_______________________

The National Debt.

Please take a look at the charts and see how printing money and Nixon's gold standard move makes gold and oil rise in price.

Gold Chart

Oil Chart

The Hunt bothers were hedging because Nixon took the US off the gold standard in 1971.

The National Debt doubled between 1971 and 1979 and is on the RISE today because of Bush's policies.

Because of a higher global demand for oil (remember oil prices are based on Dollars) and the US printing money to finance the war just like Vietnam era everything is priced higher.

Check housing prices lately?

One more thing about oil prices and Asia. 1998 was the last time I bought gas in Northern Virgina at .86 a gallon. I just came back from working in Europe and I couldn't believe my eyes when I pulled into the gas station.

How could fuel sell at that low, low price.

The 1997-98 East Asian financial crisis cause all of those oil tanks to turn around and headed to US ports with load of oil and gasoline that couldn't sell in Asia.

As the prices fell the cop layed off stop people from speeding on the highways in 1998. Well it looked that way in those days. Higher speeds burns up more gas.

WOW! look at those 1999 enforcement moving citations increase in Ohio.

Thanks to the IMF South Korean Union Sues the IMF in the wake of the 1997-98 East Asian financial crisis.

So Asia is back on line. Oil is in big demand all over the world and I'm out of here!!!

[norraad]

Yep, there's is enough for everyone forever

by Secret Insider

Half a century ago every car could have double mpg with higher pressure fuel injection.

At some point those who manage the in~dust~trial fleet mpg dial setting* will allow same.

HP FI allows each hydrocarbon molecule change into energy without waste.

You could breathe the exhaust & drink the distilled water that comes out.

It's no secret, look into it.

* A crude capacity & refining ratio formula.

Hint= after no jets flying in the days following 9-11 you should have seen all the JP-5 & JP-8 going up the flares because all the storage & pipelines were full.

[Major_Risktaker]

I see you rebuilt your Citroén. Did you install that higher pressure fuel injection system for double the mileage?

Then you could breathe the exhaust & drink the distilled water that comes out.

Hint= after no jets flying in the days following 9-11 you should have seen all the JP-5 & JP-8 going up the flares because all the storage & pipelines were full.

What do you mean "going up in flares"?

If you meant "FLAMES" why should they go up
because all the storage & pipelines were full?

[Moonman62]

Nixon didn't have much of a choice but to take us off the Bretton Woods "gold standard." And the oil embargo just made the problem worse. The two combined were pretty much an act of war by France and OPEC, IMO.

[chuckwalla]

Environazi's motto;
OUR WAY OR EVERYONE DIES.
They prefer giving money to terrorists who care nothing about the environment than being more self sufficient.

[ChildOfThe60s]

So true.
Another point that is usually missed, is that oil is a global market. US does not have to be "energy independent" to seriously affect the global price. If we pumped 2 million barrels a day more (a fraction of our imports *and* a practical, obtainable goal) for our own use, that would, for all practical purposes, add the same amount to the open market. Bingo, oil prices take a serious dip.

40% of our domestic output comes from the North Slope. Drilling there passed the Senate by 1 vote. Where would we be right now without that one vote? Pretty scary to contemplate. Will we look back 20 years from now and wish we had tried harder to get those few votes needed to drill in ANWAR? Yep.

[norraad]

Unusable excess goes up the flares (tall burners whose tips would fill a living room) because it's cheaper than shutting down or reforming.

Didn't refit the Cit's because I was selling them as restored originals.

To make a real difference it has to be industry wide standard.

Fleet MPG has not really increased much beyond a minuscule factor of the formula stated above.

Radial tires made as much a difference as anything.