Oil Price Redux
With oil prices again above $50, we revisit the question of why?
In "The Formula," when a cringing underling suggests to an oil executive (Marlon Brando) that the price of gasoline at the pumps be raised, and then blamed on the Arabs, Brando's retort says it all: "Arthur, your missed the point, we are the Arabs."
Many of those who believe what they are fed by the media want to blame a veritable plethora of hobgoblins and media hyped stories. Such as, oil field worker unrest, political instability, refining capacity, oil reserves, weather, demand from China and increased global demand.
You want the truth? If you can handle the truth, your in the right place. If you want hyperbole, go elsewhere or worse yet to pablum spewing academians.
Granted refining capacity is less than in 1980, and this is by design and necessity. Refineries in the USA are a non PC environmental issue, thats why none have been built since the 70's, no one wants it in their hood.
Isn't that convenient though? Why weren't additional refineries built in Mexico? This is where industrialist's drop toxic material at Maquiladoras like Paris Hilton drops her linen before she starts sinnin. Come on now, we've outsourced everything else through Globalization. Sounds like a refinery shortage by design to me.
Oil demand has increased, but very little, as technological efficiency has more than made up for the increases in demand. In addition, the EIA numbers prove that China is importing only 3% of the worlds oil to supply 33% of their energy needs, so don't even try to pin the tail on that false donkey's ass.
The real reasons for energy price increases: the systematic debauching of the dollar over the last few years by the central banks and control of the oil arbitrage industry by the oil companies and Wall Street brokerages themselves.
All oil exchanges are paid in Dollars, 40% down on the dollar means oil prices go from $15 to $45 real quick. In the meantime, what is left of the seven sisters (4), their hedge fund friends, the brokerage houses and The Carlyle Group have made a windfall fortune off of leveraged speculation runups.
By the way, much like housing market speculation, there should be a law against this kind of activity. And in fact there are, The Sherman Anti Trust Act and the Federal RICO statutes. Alas, not in our lifetime will these laws be used against the incumbent corporate mafia.
What blows my mind is while these guys are bending over the public, and profiting hand over fist after giving us the business, the public is still floundering around looking for rationalizations, let alone a single legitimate answer. Come on now folks, lets wake up, and get real, remember always follow the money. This class is dismissed.
$130 Oil Justified? No Way
Oil Price Redux
OIL: Demand, Production and Speculation
Peak Oil - The Myth, The Legend, The Fraud
Spreading "Peak Oil" Crack
"Peking" Oil, the Saudis and China
Peak Oil? Not!
Peak Oil? Not! Part Deux
Peak Oil? Not! - Update
Peak Oil Redux Part I
Peak Oil Redux - Part II
Peak Oil Redux Part III
Peak Oil Redux Part IV
Peak Oil Redux Part V
Peak Oil Redux Part VI
Peak Oil Redux Part VII
Peak Oil Redux Part VIII
The Blame for $135 a Barrel Oil
Blame it on Markman's Myopia or The Day They Burned Ol' Dixie Down - A "Peak Oil" Commentary
Another Peak Oil Cufuffle Series
In "The Formula," when a cringing underling suggests to an oil executive (Marlon Brando) that the price of gasoline at the pumps be raised, and then blamed on the Arabs, Brando's retort says it all: "Arthur, your missed the point, we are the Arabs."
Many of those who believe what they are fed by the media want to blame a veritable plethora of hobgoblins and media hyped stories. Such as, oil field worker unrest, political instability, refining capacity, oil reserves, weather, demand from China and increased global demand.
You want the truth? If you can handle the truth, your in the right place. If you want hyperbole, go elsewhere or worse yet to pablum spewing academians.
Granted refining capacity is less than in 1980, and this is by design and necessity. Refineries in the USA are a non PC environmental issue, thats why none have been built since the 70's, no one wants it in their hood.
Isn't that convenient though? Why weren't additional refineries built in Mexico? This is where industrialist's drop toxic material at Maquiladoras like Paris Hilton drops her linen before she starts sinnin. Come on now, we've outsourced everything else through Globalization. Sounds like a refinery shortage by design to me.
Oil demand has increased, but very little, as technological efficiency has more than made up for the increases in demand. In addition, the EIA numbers prove that China is importing only 3% of the worlds oil to supply 33% of their energy needs, so don't even try to pin the tail on that false donkey's ass.
The real reasons for energy price increases: the systematic debauching of the dollar over the last few years by the central banks and control of the oil arbitrage industry by the oil companies and Wall Street brokerages themselves.
All oil exchanges are paid in Dollars, 40% down on the dollar means oil prices go from $15 to $45 real quick. In the meantime, what is left of the seven sisters (4), their hedge fund friends, the brokerage houses and The Carlyle Group have made a windfall fortune off of leveraged speculation runups.
By the way, much like housing market speculation, there should be a law against this kind of activity. And in fact there are, The Sherman Anti Trust Act and the Federal RICO statutes. Alas, not in our lifetime will these laws be used against the incumbent corporate mafia.
What blows my mind is while these guys are bending over the public, and profiting hand over fist after giving us the business, the public is still floundering around looking for rationalizations, let alone a single legitimate answer. Come on now folks, lets wake up, and get real, remember always follow the money. This class is dismissed.
$130 Oil Justified? No Way
Oil Price Redux
OIL: Demand, Production and Speculation
Peak Oil - The Myth, The Legend, The Fraud
Spreading "Peak Oil" Crack
"Peking" Oil, the Saudis and China
Peak Oil? Not!
Peak Oil? Not! Part Deux
Peak Oil? Not! - Update
Peak Oil Redux Part I
Peak Oil Redux - Part II
Peak Oil Redux Part III
Peak Oil Redux Part IV
Peak Oil Redux Part V
Peak Oil Redux Part VI
Peak Oil Redux Part VII
Peak Oil Redux Part VIII
The Blame for $135 a Barrel Oil
Blame it on Markman's Myopia or The Day They Burned Ol' Dixie Down - A "Peak Oil" Commentary
Another Peak Oil Cufuffle Series
Comments
There is no global conspiracy between multinational oil corporations not to build refineries.
Peak oil is here, peak oil already happened: Occam's Razor.
Didn't Bartlett, former editor of The Wall Street Journal, write something on this?