johnthebear

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  • Oil Will Peak at $150-200 - Barron's Interview
    Here are some questions I would like for you to consider:

    Congress is about to enact a windfall profits tax on the Major Oil Companies to return the money to us, the outraged drivers of America. Do the profits support excessive share prices? I don't think so based on the chart evidence. Are the dividend outstanding? Absolutely not. China is selling most of the retail goods we Americans buy at Walmart. Should they be charged a Windfall Profits tax too? Wait till they start increasing their prices the way OPEC has done, and I might say yes! But certainly not now.

    So where is the money going?

    Simple, the countries that pump and sell the crude oil. Oil is $137/barrel and it cost our companies that buy and transport it to refineries huge amounts to process into gasoline and distribute in many thousands of service stations.

    It is the Arab-Muslim nations that are making a killing. They have a club called OPEC that determines how much each country will sell on the open market. They control the supply through their oil monopoly. When they produce and sell more, the price goes down. The world markets and governments have absolutely no control over OPEC.

    Remember the oil shortages in the 1970s? Remember the long lines at gas stations? Remember how high the prices were then? What happened.... We cut the speed limit to 55, drove less, started importing small more efficient cars that took away GM monopoly in this country. As a result of our required conservation and changed habits, we caused a major recession in the oil industry. The price of oil dropped to $10/barrel. Gas got cheap, we continued building more efficient cars and passed laws requiring that cars get higher m/g. Then in 2007, OPEC declared war on the world economies. They could not take us with their military, but they could easily declare economic war of a very effective and efficient nature. They can take over our banks, companies and effectively our future by owning our national debt. The wealth of the Arab kingdoms is unbelievable.

    So what does all this mean for our future?

    We have huge oil reserves offshore, oil sands in the western states, huge proven reserves in Alaska that our environmentalist wackos refuse to let us drill. The same is true in other countries.

    Trees are a renewable resource and I guess you can say that people are as well. The reason for not drilling in 1979 in Anwar was Jimmie Carter. He thought more of a few animals in Alaska than it did of humans, Americans.

    If we exterminated 95% of the caribou, they would grow back, but if we are defeated in an economic war waged by OPEC, we become slaves.

    So if you agree with this notion, you should share your feelings with those unrealistic folks you know that value trees and animals more than Americans and tell them that we need to immediately begin drilling off shore and every where we can to produce as much oil in the US as possible. We cannot afford to pay the OPEC more than $400 billion a year and allow our balance of payments reach the point that they can control our government. We must defeat the notion of Windfall profits tax and even give additional tax incentives to spur our oil companies to rapidly drill on our own soil as fast as possible.

    At the same time we can still go full speed ahead with alternate energy and conservation sources. The problem is America is running out of time. There is much to worry about. Do what you can to change the minds and hearts of those that are standing in the way.
    Jun 10 19:49 pm |Rating: 0 0 |Link to Comment |View article

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