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Oil rises above $90 amid US crude supply drop

Gulf oil was not a major source of our oil before 1978 and demand was no where near as high as now.Here's a few examples of many:



Oil Prices Rise As Hurricane Ike Threatens Coastal Oil Facilities


Economic effects of Hurricane Katrina - Wikipedia, the free encyclopedia

Almost 30% of our oil production and 50% of our refineries are vulnerable to hurricanes. If we have to import more oil and gas due to hurricane damage (real or potential), THAT affects world prices.

Got a link for your first statement? I grew up in east Texas, before 78....Gulf oil was big then, do some googling that includes the decades before 1980....
 
Got a link for your first statement? I grew up in east Texas, before 78....Gulf oil was big then, do some googling that includes the decades before 1980....

No, and I'm not going to. I should not have given you the links on hurricanes, since the affect of hurricanes on oil/gas pricing is major news every time a hurricane gets near the GOM. You can do your own homework from now on.

But here's a hint......... oil speculation before the 1990s was insignificant, but has become rampant today. THAT'S where you need to be looking. If there were no speculators before 1978, then obviously speculation of the hurricane's affect on oil prices would be insignificant.
 
Not really. It would go on the world market with all of the other oil, and you can't really separate it out.

Unless you nationalize the oil industry and don't let businesses sell it on the open market, but I don't think that's what you're talking about.

You are assuming that all oil sells for the same price, which is not true. You also have to include transportation costs. Obviously, it is much cheaper to import oil from Mexico than from Saudi Arabia.
 
Not really. It would go on the world market with all of the other oil, and you can't really separate it out.

Unless you nationalize the oil industry and don't let businesses sell it on the open market, but I don't think that's what you're talking about.

If you build refineries here and it is refined here it most likly will stay here
 
No, and I'm not going to. I should not have given you the links on hurricanes, since the affect of hurricanes on oil/gas pricing is major news every time a hurricane gets near the GOM. You can do your own homework from now on.

But here's a hint......... oil speculation before the 1990s was insignificant, but has become rampant today. THAT'S where you need to be looking. If there were no speculators before 1978, then obviously speculation of the hurricane's affect on oil prices would be insignificant.

Exxon says oil barrel should be in $60-$70 range - Yahoo! News

The head of Exxon Mobil (XOM.N) stopped short of blaming speculators for the run-up in oil prices, but he told Congress on Thursday that based only on the fundamentals of supply and demand, the price of oil should be in the range of $60 to $70 a barrel.

"When we look at it, it's going to be somewhere in the $60 to $70 range if you said: 'If I had access to the next marketable barrel, what would it cost?" Exxon's CEO and Chairman Rex Tillerson told the Senate Finance Committee in response to a question about the influence of speculators on high oil prices.
 
No, and I'm not going to. I should not have given you the links on hurricanes, since the affect of hurricanes on oil/gas pricing is major news every time a hurricane gets near the GOM. You can do your own homework from now on.

But here's a hint......... oil speculation before the 1990s was insignificant, but has become rampant today. THAT'S where you need to be looking. If there were no speculators before 1978, then obviously speculation of the hurricane's affect on oil prices would be insignificant.

RECENT history is what you want to deal with, and make the absurd claim that hurricanes affect world oil price....
Look at this chart and you will see that oil prices were low and stable for a long time...even thru hurricane seasons.

Price of petroleum - Wikipedia, the free encyclopedia
 
RECENT history is what you want to deal with, and make the absurd claim that hurricanes affect world oil price....
Look at this chart and you will see that oil prices were low and stable for a long time...even thru hurricane seasons.

Price of petroleum - Wikipedia, the free encyclopedia

Good job of totally ignoring the links and quotes I provided. I can't believe you are seriously claiming that hurricanes don't affect prices.

Question: How many oil speculators were there before 1990?

Price spikes from hurricanes are so short lived that they wouldn't even show up on your graph.
 
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Good job of totally ignoring the links and quotes I provided. I can't believe you are seriously claiming that hurricanes don't affect prices.

Question: How many oil speculators were there before 1990?

Price spikes from hurricanes are so short lived that they wouldn't even show up on your graph.

We are almost saying the same thing....I say it is speculation that is a more direct cause of price fluctuations compared to hurricanes, not that those are the only 2 causes.
Once the speculators, and oil companies, discovered they could use hurricanes as an excuse to jack up the prices, they did just that.
But, like I said, before the late 70's, or your year of 1990, or before speculators, the price of oil was stable during hurricane seasons, which run for many months. Now, each and every hurricane is treated as impending doom.
Bear in mind as well that the U.S. oil supply from non U. S. sources wouldn't be affected at all by hurricanes, other than getting foreign oil to the refineries...
I didn't ignore your links, I was trying to say that you are using very short term history...
 
If you build refineries here and it is refined here it most likly will stay here

There still has to be something to refine. It's not the place of the government to build refineries anyway.
 
Then explain why the price of oil and gas goes up every time a hurricane enters the Gulf of Mexico. Or why the price of gas jumped 40 cents last week because of fears that refineries would be shut down due to flooding although the price of oil is dropping.

If any product that is in short supply experiences further supply problems it of course makes the price go up even more.

hint: Speculators fear that our Gulf oil production will shut down and production will drop. A corresponding increase in our production does the opposite, i.e., lowers the price of oil.

Unregulated speculators adds to the problem, I've heard estimates that say by as much as 20%. Their deregulation which was pushed through by the GOP in the 90's was a bad thing and I am glad this administration is looking into re-regulating speculators. This problem is in addition to the world supply problem. You are correct that if the world supply increased and consumption declined, prices would go down. However the facts are that world production peaked in 2006 while world consumption continued to increase.
 
If any product that is in short supply experiences further supply problems it of course makes the price go up even more.

Oil wasn't in short supply, speculators were guessing that it might be if the hurricane damaged production.

Their deregulation which was pushed through by the GOP in the 90's was a bad thing

Proof ??
 

The Subprime Mess and Phil Gramm: An Experiment in Deregulation

"In 1933, a few years following the stock market crash, Congress passes the Glass-Steagall Act, in hopes that regulating banks will help prevent market instability, particularly amongst Wall Street banks. The purpose of the act is to separate commercial banks that focus on consumers from investment banks, which deal with speculative trading and mergers.

The Glass-Steagall Act provided the proper oversight and entity separation that would prohibit banks and other financial companies from merging into giant trusts (conflict of interests) -- giant trusts or corporations being more powerful, naturally, and having the seemingly limitless capital to lobby their corporate interests, however, with a very myopic scope (particularly when it comes to factoring in potential losses -- most banks, as seen in contemporary times, chose not to anticipate losses in the mortgage market; they presumed home prices would continue to appreciate).

In 1999, former Senator Phil Gramm (who is, incidentally, Senator John McCain's economic adviser and cochairs his presidential campaign) set out to completely gut the Glass-Steagall Act, and did so successfully, replacing most of its components with the new Gramm-Leach-Bliley Act: allowing commercial banks, investment banks, and insurers to merge (which would have violated antitrust laws under Glass-Steagall). Sen. Gramm was the driving force behind the Gramm-Leach-Bliley Act, as he had received over $4.6 million from the FIRE sector (Finance, Insurance and Real Estate donations) over the previous decade, and once the Act passed, an influx of "megamergers" took place among banks and insurance and securities companies, as if they had been eagerly awaiting the passage of Gramm's Act. Everything in between Glass-Steagall and Gramm-Leach-Bliley (i.e. Savings and Loan crisis/bust) was, in large part, the incubation period for what would take place over the nine years that would follow the passage of Gramm's Act: an experiment in deregulation."
 
Are you guys just noticing that gas prices have been going up shaply for the last decade?


See the warning by the US military last year: "The US military has warned that surplus oil production capacity could disappear within two years and there could be serious shortages by 2015 with a significant economic and political impact."
US military warns oil output may dip causing massive shortages by 2015 | Business | The Guardian

It's not "supply and demand". (That's only an excuse). What Pentagon needs is a war on Iran.

The high price is done by the big firms and bankers. They are the real rulers of the US. Obama dares not to touch them, and only call it "speculators". If it's because "supply and demand", the media would have already beaten the drum on that. Now they can only whisper and do nothing on those "speculators". Even though it's the public's number one concerning.

Obama Must Enforce Oil Speculation Laws

By Mhost on Apr 30, 2011 | In US Federal Issues



By Sen. Bernie Sanders, Reader Supported News - 30 April 11



With Wall Street speculators driving up oil and gas prices to near record highs, Sen. Bernie Sanders (I-Vt.) today urged President Obama to ask for the immediate resignation of federal regulators who won't enforce a new law to stop excessive speculation in oil markets

Obama Must Enforce Oil Speculation Laws
 
It's not "supply and demand". (That's only an excuse). What Pentagon needs is a war on Iran.

The high price is done by the big firms and bankers. They are the real rulers of the US. Obama dares not to touch them, and only call it "speculators". If it's because "supply and demand", the media would have already beaten the drum on that. Now they can only whisper and do nothing on those "speculators". Even though it's the public's number one concerning.

Thanks for your opinion but I've got to go with the experts. :sun
 
We are the laughingstock of the world. We're sitting on more oil than probably any country in the world, and yet, we won't use our OWN resources.

Stupid.

Please tell me which countries are laughing at us? Did you know that gas is cheaper here on average than most industrialized nations by a large margin? Also gas has gone down in my area. I suspect that by years end the average will be around $2.75 nationwide. It currently is $3.80 around here down from $4.25.
 
today:

One sausage or two? You may be lucky to get half at this weekend's Memorial Day cookout, which is set to cost 29 per cent more than last year, thanks to inflation.

Those thinking of hosting a BBQ - even a modest one - can expect to fork out an extra $45 on food to serve a dozen guests. The total cost comes to $199, or around 29 per cent more than last year... and that's before soda and alcohol, according to the latest data for metro New York.

Lettuce has sky-rocketed 28 per cent since last year's traditional BBQ, while an ear of sweet corn is now 50 cents, up from 20 cents last year. Those who don't like tomatoes are in luck though: they're up a staggering 86 per cent on last year.

Nationwide the story is the same. Ground beef is up 12.1 per cent on last year and sausages are up 6.2 per cent, according to the U.S. Bureau of Labor Statistics. And don't even think about potato salad. The apple of the ground is up 13.4 per cent. Ice cream is up 5.1 per cent, beer up 2.4 per cent and coffee has increased by 13.8 per cent nationwide.

The ever increasing price of gasoline is being blamed for the hike in food prices. Over the past year the cost of gas has increased by 33.6 per cent, along with similar diesel hikes nationwide.

Memorial Day cookout will cost you 29% more this year thanks to inflation

$8 gas, secretary chu?
 
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As long as they agree with your opinions.


j-mac

LOL! You think the Pentagon makes their determinations based on my opinion???
 
Right now, it is almost that bad. When we boot Obama out of office things will get better.

Every president, Dem or Rep, has said the same thing from Nixon through Obama. Looks like the clock ran out before anyone took head and the chickens have come home to roost! :sun
 
nyt yesterday:

Until last year, the 17-mile stretch of road between this forsaken South Texas village and the county seat of Carrizo Springs was a patchwork of derelict gasoline stations and rusting warehouses.

Now the region is in the hottest new oil play in the country, with giant oil terminals and sprawling RV parks replacing fields of mesquite. More than a dozen companies plan to drill up to 3,000 wells around here in the next 12 months.

The Texas field, known as the Eagle Ford, is just one of about 20 new onshore oil fields that advocates say could collectively increase the nation’s oil output by 25 percent within a decade — without the dangers of drilling in the deep waters of the Gulf of Mexico or the delicate coastal areas off Alaska.

There is only one catch: the oil from the Eagle Ford and similar fields of tightly packed rock can be extracted only by using hydraulic fracturing, a method that uses a high-pressure mix of water, sand and hazardous chemicals to blast through the rocks to release the oil inside.

The technique, also called fracking, has been widely used in the last decade to unlock vast new fields of natural gas, but drillers only recently figured out how to release large quantities of oil, which flows less easily through rock than gas. As evidence mounts that fracking poses risks to water supplies, the federal government and regulators in various states are considering tighter regulations on it.

http://www.nytimes.com/2011/05/28/business/energy-environment/28shale.html?_r=1

"this is like adding another venezuela or kuwait by 2020, except these tight oil fields are in the us”

and it's not just the energy

its JOBS, it's real estate...

it's a comprehensive economic revivial of an entire region

good news for america!

bad news for chu
 
Every president, Dem or Rep, has said the same thing from Nixon through Obama. Looks like the clock ran out before anyone took head and the chickens have come home to roost! :sun

Ah, channeling the rev. Wrong...typical.

J-mac
 
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