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2008-07-06 Home Front: Politix

Gingrich's take on why oil prices are so high . . .

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Posted by gorb 2008-07-06 03:08|| || Front Page|| [1 views ] Top

#1 Sounds Presidential. I agree with everything he said. As for Oil Shale sources, Obamists call derivative petroleum: "dirty oil." I have seen some proof that refined catalytic converters would reduce carbon content of gasoline exhaust to reasonable levels. Obamists chose not to factor current or future technologies into their petroleum policy (if they are capable of devising one). Also, Newt should have mentioned Clinton's indulgence of the NYMEX "futures" market in oil. (Wonder why Hillary received NYMEX money?) Trading in oil futures should be outlawed.

Pre-Clinton, the Chicago EX had a near monopoly on the Commodities trade. Industries like Citric Fruit need to earn from that market in order to maintain revenues, should there be a crop failure. The oil business doesn't need a hedge.

As for the SPR, Clinton made an unnecessary hack at the Reserves; those are emergency resources.

How are oil prices set? NYMEX gurus issue statements which "Platts" reports posts, and vendors take notice and alter the spot price, which is fed back to Platts, and they report the change, which ALL vendors follow. Oil spikes can be created artificially.

Please google "Arjun N. Murti" and do a little of your own research on the Spike-Phenomena. Forget about the Iran/Nigeria, etc factors; the current price rise followed Murti's prediction of a spike to "$200" a barrel.

Also, staff and contract workers with inside information on the 3800 Gulf of Mexico drilling rigs, have leaked that many wells found to produce are capped, making reserve data delivery impossible. Unless reports are BS, there could be huge resources that are not flowing. However, it is true that drillers often chose to use only 1 of many entries into a single oil pool. That would be another explanation for drill, cap, and leave phenomena.

Posted by McZoid 2008-07-06 04:27|| 2008-07-06 04:27|| Front Page Top

#2 The price of oil is high
a) Because the dollar is low
b) Because demand is high (Chinese spending their depreciating dollars).

Posted by Bright Pebbles 2008-07-06 06:32|| 2008-07-06 06:32|| Front Page Top

#3 #3 Supply is low
#4 The supply of substitutes is low

Posted by Perfesser 2008-07-06 08:13|| 2008-07-06 08:13|| Front Page Top

#4 And you can buy 'futures' on margin.

Posted by Procopius2k 2008-07-06 08:43|| 2008-07-06 08:43|| Front Page Top

#5 Many times you will see them drill and cap for access only. Also, this is done to increase flow rate in oil veins.

Posted by newc">newc 2008-07-06 09:06|| 2008-07-06 09:06|| Front Page Top

#6 First of all, let me say that doesn't he look better now?

But second, while it would be gratifying to dump oil from the strategic reserve, it is not a good idea for three reasons.

First of all, if we or Israel get into a war with Iran, we will need that oil.

And second, oil can only be pumped out of the reserve at not a very fast rate, then it will only do us any good if the refineries have available capacity, or it just sits there until they are ready for it.

Third, China is radically expanding its strategic reserves as well, and trying to put every drop they can in there. So this is not just a whim by president Bush.

Posted by Anonymoose 2008-07-06 13:23|| 2008-07-06 13:23|| Front Page Top

#7 Simple fix, 3 parts.

One : no margin purchases allowed on oil futures. Cash ONLY. This kills the "easy money" thats inflating the markerts.

Two : purchases of futures must take delivery. Consumers ONLY. This kills the "free rider" problem of peopel that neither produce not use the oil controlling it.

Three: Drill ANWR, OCS and develop Oil Shale. Remember Reagan and the SUPPLY SIDE! This decreases the pressure on prices, and scares away the speculative buyers, as well as ensureing better domestic supply instead of sending the money to the Wahabbis and Chavez, while we get moving to alternate soruces for vehicles (hydrogen fuel cell, nukes and electrical).

Posted by OldSpook 2008-07-06 16:56|| 2008-07-06 16:56|| Front Page Top

#8 Are there numbers out there on whether our refineries have any excess capacity?

Posted by eLarson 2008-07-06 17:48|| 2008-07-06 17:48|| Front Page Top

#9 IIRC USA TODAY OP-ED > MANY OF NATION's/WALL STREET's STOCK PROBLEMS ARE LINKED TO OIL[prices].

Posted by JosephMendiola 2008-07-06 19:17|| 2008-07-06 19:17|| Front Page Top

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