Less than 1% of US oil imports come from Libya.....so the question is obvious; Why are Gas prices up dramatically across the Nation? Unrest? Hmmm....There has always been unrest in the Middle East. If the US just upped it's production a mere 1% or imported that same amount extra from other countries OR tapped it's vast oil reserves that small amount for a short period OR decreased it's consumption by 1%, we would actually have MORE oil than before the Libyan uprising. It clearly seems that the BP's, Chevron' and Shell's of the world are greatly benefiting from this "crisis".....which poses the next question. Could they be involved in creating it at some level?
Would you put it past them? Hmmmmm:hmmm:
It is truly amazing that our inept Government does not do the numbers and not allow these greed driven companies to raise prices without cause, crippling the economy and driving the middle class further into need.
podfish
03-08-2011, 09:48 AM
Less than 1% of US oil imports come from Libya.....so the question is obvious; Why are Gas prices up dramatically across the Nation? Unrest? Hmmm....... Chevron' and Shell's of the world are greatly benefiting from this "crisis".....which poses the next question. Could they be involved in creating it at some level?....
It is truly amazing that our inept Government does not do the numbers and not allow these greed driven companies to raise prices without cause, crippling the economy and driving the middle class further into need.
sure, it's possible, and of course I wouldn't put it past them. But I don't believe that's an accurate description, either. Look at the stock market oscillations - it's primarily psychological rather than analytic forces that drive them. People are speculating that there will be supply problems ahead.
These blips aren't the real story. It's the whole modus operandi of the industry and its integration with governments all over the world that's the real issue. Whether it's $50 or $150 a barrel, there's enough economic clout so that the companies can influence governments everywhere. And we junkies will apparently accept all kinds of unsavory behaviors as long as we can buy gas for our vehicles - cheaply or not. We'll jump through hoops if they'll promise to drop the price a nickel.
Jojo333
03-08-2011, 10:07 AM
No question that a huge part of the problem is the fact that our Government and others are corporate controlled (or at the very least heavily influenced) so there is virtually no regulation and the oil companies and their other lobbying cohorts can pretty much do whatever they want. The market is always "emotional" and tends to over react in either direction.....There will always be potential supply problems as long as our economy is held hostage by it's insatiable need for fossil fuel. At least we are starting to see some inroads with more electric and hybrid vehicles becoming available in the market as well as solar heating alternatives....it's a start.
podfish
03-09-2011, 12:51 PM
interesting article about this here (from Fortune magazine) (https://features.blogs.fortune.cnn.com/2011/03/09/excerpt-from-the-asylum-the-renegades-who-hijacked-the-worlds-oil-market/)
it's not enough on its own to convince anyone who thinks the markets are centrally controlled; it's just illustrative.
One thing struck me about it, kind of on a different line. When he recounts Bill OReilly's conversation, it shows how some people who think "the market" is great at setting prices in the capitalist system actually have no idea what that really means. They instead seem to think of it as a glorified 7-11 store at the center of all economic transactions.
"Mad" Miles
03-09-2011, 02:25 PM
Buy low, sell high. That's as old as the oldest profession.
Remember that oil was at a record high price in the fall of 2008? It's not emphasized in the analysis of the housing and financial markets crisis, but I think that was the needle that popped the balloon. Those prices are back up. Ominous news.
The turmoil in North Africa and the greater Arab world is a great excuse for the big traders to run up the price. That's how they got their jobs, showing they can take advantage of such opportunities.
But oil prices are set on commodity markets. Spec prices designed to anticipate future problems. So even without manipulation, this rise is no surprise.
Notice that gas prices always seem to go up in the late winter, early spring. I think it's because they want to get the shock out of the way, in preparation for the summer driving season.
Ultimately markets are irrational. Subject to the perturbations and oscillations of fear and exuberance. And since oil is the foundation of the global economy, what happens there affects everything else (see bubble burst comment above).
We do not have alternatives to petroleum. Notice I didn't say "yet". Read Richard Heinberg et al. Check out the Post Carbon Institute (https://www.postcarbon.org/). Important and sobering information.
The problem is that if the big boys run up the prices to a point that the system buckles, they suffer as well. When the house of cards comes crashing down. But they suffer nowhere near as much as the vast majority of us peons.
"29% Of Homeowners In Distress" (Today's PD, above the fold headline in the Business section)
For all you free marketeers, how's that working for you?
jbox
03-10-2011, 07:05 AM
Buy low, sell high. That's as old as the oldest profession.
Remember that oil was at a record high price in the fall of 2008? It's not emphasized in the analysis of the housing and financial markets crisis, but I think that was the needle that popped the balloon. Those prices are back up. Ominous news.
The turmoil in North Africa and the greater Arab world is a great excuse for the big traders to run up the price. That's how they got their jobs, showing they can take advantage of such opportunities.
But oil prices are set on commodity markets. Spec prices designed to anticipate future problems. So even without manipulation, this rise is no surprise.
Notice that gas prices always seem to go up in the late winter, early spring. I think it's because they want to get the shock out of the way, in preparation for the summer driving season.
Ultimately markets are irrational. Subject to the perturbations and oscillations of fear and exuberance. And since oil is the foundation of the global economy, what happens there affects everything else (see bubble burst comment above).
We do not have alternatives to petroleum. Notice I didn't say "yet". Read Richard Heinberg et al. Check out the Post Carbon Institute (https://www.postcarbon.org/). Important and sobering information.
The problem is that if the big boys run up the prices to a point that the system buckles, they suffer as well. When the house of cards comes crashing down. But they suffer nowhere near as much as the vast majority of us peons.
"29% Of Homeowners In Distress" (Today's PD, above the fold headline in the Business section)
For all you free marketeers, how's that working for you?
I might add that the sometimes painful fluctuations in the market which are the result of "perceived uncertainty" primarily benefit, in the form of out of this world profits, far fewer big oil companies than in the past. It's now Chevron/Texaco, Exxon/Mobil, BP/Arco/Amoco. I can only imagine what their CEO's discuss over a round of golf. Just as a footnote, most of these mergers took place on Clinton's watch. Are we better off with less competition in this market sector? Could the Democrats be in bed with Big Oil too?
Jojo333
03-10-2011, 12:55 PM
Bottom line is that collusion (price fixing) by big oil and the fact that we have allowed our own government to be influenced and act in ways that are unconstitutional (You can not have gov't "By The People and For The People" if the system allows for Corporate influence in the form of lobbying...aka bribery...to undermine the very core of the system)
I do not believe that we can not successfully distance ourselves from dependence on fossil fuel and specifically dependence on foreign oil in the short term. I do believe the government drags it's collective heels in implementing meaningful change because a big part of what we consider "our" government is simply a hood ornament for the huge multinational corporations that seek the continuation of the status quo so they can milk it for all it's worth. It's not about Democrats or Republicans....it is that the very core of a system that is supposed to represent the interests of "The People" is broken. Elimination of influence (lobbying) and any type of campaign contributions or "perks" has to occur before we can reclaim our government and our constitutional rights. One thing at a time....