VP of Common Sense

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  • How Bad Is the Oil Shock of 2008?
    Purely for entertainment:

    We do have a functional energy policy... USE OIL!
    Jun 07 08:18 am |Rating: 0 0 |Link to Comment |View article
  • How Bad Is the Oil Shock of 2008?
    I find all the social commentary amusing, but irrelevent. Bakken oil shale, Canadian oil sands, ANWR, drilling 5 miles off Biscayne Bay, my evil imperialist capitalist views on the world etc. etc. etc. We get it, there is more oil, and high prices will bring some or all of this online over time. The problem there is the market is not elastic, the only people that can bring 2MM bpd on tomorrow are in the midde east. Further, those people have said they like prices right where they are now.

    The USA is a functional supply and demand marketplace, yet the price of oil continues to rise, thus we are not the culprit. I think it's great that US demand is clearly decreasing, but again, look at price. We are not driving the market.

    Nearly half the world's population purchases oil in NON supply and demand marketplaces where the price is fixed or modified by the local governments (see: India, China, most of the Middle East, Malaysia, Venezuala, etc.)

    Because all of those governments are pumping money into oil subsidies at close to a billion dollars a day, speculators are irrelevent. Said governments actions have affect of driving up demand, which is what speculators depend on. As I've said before: (speculators : supply and demand) as (amplifier : guitar).

    So, keep track of news regarding subsidy modifications. In the last week Malaysia and India have both moved towards lifiting their subsidies, once China blinks the bubble will burst.
    Jun 06 11:10 am |Rating: 0 0 |Link to Comment |View article

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