Bush Halts Oil to Strategic Reserve

CNN MONEY ^ | April 25, 2006: 10:13 AM EDT | staff

[barnswallow]

"What we need is tighter enforcment and regulation of the futures market and prosecution of those guilty of manipulating it. This is why gas is high right now, it has NOTHING to do with shortages of supply or increase in demand... just pure and simple greed and corruption in the futures market."


BINGO! Give that man a cigar. It is true that environuts and their paid ho's in congress (primarily democrats but a fair number of RINOs as well) deserve a huge share of the blame for the mess we are in (blocking refineries and drilling)--BUT--why are the oil industry and its allies strangely silent on this issue; they are allowing the enviros sole use of the megaphone. After all, the oil companies are so flush with cash compared to sierra club etc. that it would be possible for the oil companies--via an agressive advertising and lobbying blitz--to sweep aside much of the enviro objection to oil exploration and refinery building--IF THE OIL INDUSTRY CHOSE TO DO SO. I suspect that that the American oil industry considers the enviros useful idiots--as it is the excuse that oil refineries cannot be built or offshore drilling take place because of environmental regs which is keeping the price of oil HIGH! If your enemy is helping you to make a big profit, why stand in his way. If you made your living selling diamonds--a scarce resource found mostly in Africa with huge markup, the last thing you would want is for some upstart to find a motherlode of diamonds in the USA. That would depress the price of diamonds big time. If some anti-diamond group was preventing that upstart from mining for domestic diamonds, you'd be all for that anti-mining group. Oil is no different. Think about it; the advertising and lobbying muscle of the oil industry (as muscular as Charles Atlas) vs the advertising and lobbying muscle of the envirowhackos (as scrawny as Woody Allen). Combine that with the best Congress money can buy. Yet the oil industry is not taking advantage of this muscle. Strange, huh?

[VictoryGal]

> Still not the right thing to do though, IMO.

You're darn tootin'-- this is outrageous. I screamed bloody murder when algore suggested it (and he was an idiot for doing so), and I'm screaming now.

You DON'T release STRATEGIC reserves just to relieve prices. Yet more evidence that Bush is moving left and abandoning conservatism? Outrageous spending, porous borders, and now this? What's next, I hate to contemplate? :-(

[HamiltonJay]

Yes, yes, enforcement of laws is such a Liberal idea... go get bent.

[bill1952]

I just read an investors report that stated that the refinery capacity that currently exists is more than likely all that will ever exist.

As in really "ever."

It was the informed opinion that no refineries will ever be built again, certainly not in this country, and in all probability, not in the entire world, although there may be an exception for the Peoples Army of China.

No business will touch it.

[roaddog727]

"I just read an investors report that stated that the refinery capacity that currently exists is more than likely all that will ever exist."

If that truly is the case, the cost of REFINED fuels will become astronomically high, due to supply/demand issues.

He who owns the refineries will be king.

Which further emphasizes the critical necessity to wean ourselves from oil as a fuel source.

[CzarNicky]

I am going to give away a little secret you are not apparently not aware of. The highway bill is not an earmark. It is a disbursement of the collected funds for the Highway Trust Fund by a formula where every state is guaranteed a minimum and includes some projects that are earmarked by congress members. The past year's bill includes anything for 12-23 billion of these specific outlays depending on the source you use.

http://www.taxpayer.net/Transportation/capitolhill.htm

However, I believe you will not let any ugly facts spoil your beautiful idea.

[joesnuffy]

Pump it into empty wells or old salt mines

[BenLurkin]

70s style "stagflation" is my concern but

This time we may be headed into enough activity that the economy will heat up across the board

[Rockitz]

Keeping prices low for the future lower class is important. With the collapsing dollar many in the middle class will soon be in the lower class and keeping prices low on food and transportation are important to keep these people from revolting. The government of Argentina learned this lesson well and has managed to keep food and transportation costs low since their currency collapse.

[NJ_gent]

"How can a willing participant be "raped"? If a person thinks the price of gas is too high then they shouldn't buy it."

That's like saying if you think the price of water is too high, stop drinking water. Or, perhaps even more aptly put, if you think the price of heating oil is too high, stop heating your house (even when it's 20 below zero and your children are freezing to death).

You make it sound as though people have a choice. Unless you work within a few miles of home, there is no alternative but to use a fuel combustion powered vehicle to commute. No commute, no job, no money, and no food. Not everyone can get a job that will support their family within walking/bicycling distance of their home, and most people are not financially capable of moving suddenly without warning simply because gas prices have increased.

Simply put, gasoline has become every bit as much a necessity for a great many people in this country as food, water, and shelter. Without the former, the latter three are unaffordable.

Your comment is self-centered, short-sighted, and absolutely ridiculous. However, I think you made it purposely (twice) just to get people angry.

[300magnum]

IRVING, Texas - Exxon Mobil Corp., the world's largest oil company, on Thursday said higher oil prices drove first-quarter profit up 7 percent from the prior year.

Net income rose to $8.4 billion, or $1.37 per share, for the January-March period from $7.86 billion, or $1.22 per share, a year ago.

Analysts polled by Thomson Financial were looking for a higher profit of $1.47 per share, and shares fell $1.20, or almost 2 percent, in premarket trading.

Revenue grew to $88.98 billion from $82.05 billion a year earlier. Higher crude oil and natural gas prices and improved marketing margins were partly offset by lower chemical margins.

Worldwide production of oil equivalent in the first quarter of 2006 rose 5 percent.

The report comes amid consumer outcry in the U.S. about soaring gasoline prices. The average retail price of gasoline in the U.S. is now $2.91 a gallon, or 68 cents higher than a year ago.

In January, Exxon Mobil posted the highest quarterly and annual profits of any U.S. company in history: $10.71 billion for the fourth quarter of 2005 and $36.13 billion for the full year.

http://news.yahoo.com/s/ap/20060427/ap_on_bi_ge/earns_exxon_mobil_2

[mjaneangels@aolcom]

The profit rose by 7 percent, but if you look at sales, they had to increase sales by 8.44 percent to increase the profits by 7 percent. If they do that every year they will be out of business.