| Most folks do not really understand much about oil | | | | barrel, thus, just under the amount needed for our |
| barrel prices or how the price of gasoline gets so high | | | | enemies to turn a profit, but high enough to garner |
| in the summer each year - although most everyone | | | | capital investment. Meanwhile, the lever against that |
| does realize that events around the world are a huge | | | | abuse could be alternative sources of fuel, a |
| factor, so let's discuss this for a moment, shall we? | | | | percentage of electric cars, etc. |
| Not long ago, an acquaintance of mine asked me | | | | Indeed, much of the price of oil has to do with the |
| several questions about these issues; | | | | commodity trading aspects of it all, and the |
| "Do you understand how this whole oil thing works? In | | | | manipulation, not any of this other stuff. Historically and |
| the summer when demand is higher, they raise the | | | | you can go back many decades oil prices always |
| prices, and in the winter when they are selling more - | | | | ratchet up in summer months. May as well invest in oil |
| they raise the prices. Now because of a lack of | | | | stocks in Feb - March and sell at the top of the price |
| demand in a poor economy, they have not been able | | | | point. Many savvy investors do this "every year" and |
| to invest in production and will have to raise prices. So, | | | | always win. |
| if they don't sell it, the price goes up versus if they do | | | | Then we have those who've placed their bets on oil |
| sell it the price goes up. Aren't these merely | | | | futures using the media to ramp up the fear, using |
| manufactured problems?" | | | | extrapolation and doom and gloom predictions every |
| Well, consider if you will that at $35 per barrel in the | | | | time someone in Nigeria blows up a pipeline, some |
| current global economy, the nations who own oil fields | | | | group in Saudi Arabia terrorizes the royal family, |
| and production cannot make money. In some ways | | | | President of Iran threatens to go to war in and block |
| that is good for us - for instance - Iran, Venezuela, and | | | | the Staights of Hormuz, Hugo Chavez makes a |
| African Nations which are not such good human rights | | | | speech at ALBA, a Hurricane heads for the Gulf of |
| folks. Of course, next door in Mexico, which is at about | | | | Mexico, or Soros and company starts bidding up the |
| their peak oil challenge right now, Pemex cannot make | | | | price with his friends with numbered Swiss accounts |
| money, and that translates to nearly 30% of their | | | | buying huge trades on Sweet Crude. |
| economy. Bad for us, as a collapsed economy in | | | | The poor consumer, yah that's you, has no choice, |
| Mexico, anarchy, or an out of control lawlessness will | | | | takes it in the shorts (how does that feel?) and starts |
| spill over the borders. | | | | having to borrow on credit cards to buy gasoline to |
| Consider if you will that Mexico sends folks here to | | | | get to work paying another 18% in interest (don't |
| work and perhaps you are in an industry which has | | | | believe me, ask any single mom with a Honda Car), |
| seen your job disappear to some aspect of this job | | | | then the US government and local states want to |
| migration. Mexican workers in the US can send money | | | | "Tax" oil because it is dirty and take that money and |
| back to their families struggling in tough times in Mexico, | | | | gift it to alternative energy schemes which are not |
| see, how this effects us? In times of high employment, | | | | viable, to balance the playing field to MAKE them |
| that wouldn't be too catastrophic for our US economy, | | | | economically viable in the market place, how absurd is |
| but in times of recession, completely a problem for | | | | that? Please, that's ridiculous. |
| economic recovery in many sectors in our economy. | | | | And my acquaintance did bring up the politics, money |
| When we have above $70 a barrel we definitely see | | | | flow, lobbyists, coo'coo' heads, and the |
| the effect in our economy, as it becomes similar too | | | | environmentalists who are preventing pipelines, drilling, |
| and mimics a huge burdensome tax on our overall | | | | storage, production, usage - by filing lawsuits for EIRs |
| economy as everything is effected by transportation | | | | etc, raising the costs to $100 million dollars just for the |
| costs. Next, I'd like you to consider politics of World Oil | | | | EIR to upgrade? And, as long as we are talking about |
| Supply - for instance, we have levers in Saudi Arabia, | | | | energy, let's talk about our non-transportation energy |
| UAE, Kuwait etc, to get those OPEC members to see | | | | component too? |
| our way when oil gets too astronomical, as in above | | | | You want CO2 out of the air? Fine, allow the coal-fired |
| $80 or $90 (currently - that will indeed change in the | | | | plants to put in better scrubbers, upgrades, and |
| future as India and China etc grow and demand more, | | | | clean-coal smoke-stack technologies, that solves the |
| build more cars etc.). | | | | problem, but no, the Global Warming Alarmists with |
| Meanwhile the huge oil fields in Iraq are even bigger | | | | their new religion wants to file an EIR and deal with |
| than Saudi Arabia, but we don't have a good control | | | | law-suits for 10-years, while they deal with a new Cap |
| on that, and even if we did, it will be a good 3-7 years | | | | and Trade tax which could double and in some cases |
| before that oil is flowing in large quantities anyway. | | | | triple electric costs? |
| Also, on the world oil consumption front, we have even | | | | So, whereas, I can charge up my golf cart for $1.80 |
| more challenges and we need to worry about China | | | | and drive it 26 miles, now it's triple, so, I may as well |
| doing what they are doing with iron ore, industrial | | | | take the car even if gasoline is at $5 per gallon or |
| metals and rare earth elements in the oil sector, we | | | | higher, see that point. The economics do not work, as |
| SHOULD expect them to do that. | | | | there is a free-market component and consumer |
| Perhaps, a recent clue to illustrate this point was the | | | | choice. "Ah, but if we take away consumer choice it |
| Tar Sands bid in Canada, which was so high that oil | | | | can work!" says the socialist-liberal, okay great, then |
| would have to be $100 per barrel to make it worthy of | | | | we all pay more anyway, and since the money isn't |
| a decent ROI or even a break-even point. Wow, $100 | | | | going to be worth anything if we keep spending - we |
| oil is in our future, and the Iraq supply is not even online | | | | destroy our economy based on the law of unintended |
| yet. Nor are the planet's Northern Most oil deposits | | | | consequences and socialist-liberal academics in |
| anywhere near available to be harvested, that is way | | | | government. |
| off, along with Argentina, Brazilian, and Cuban coastal | | | | Some say; "We ought to tell them to go pound sand - |
| oil. Those deposits are massive when put together. | | | | tar sand to be exact," but that seems unfortunate, as |
| The environmentalists have made a mockery of | | | | they are still going to be the ones our government |
| production, supply, distribution, drilling, and usage. They | | | | turns to in the future to solve the very problems that |
| propose more taxes, meanwhile we have a Cartel | | | | are being created today. Alienating that group is |
| "OPEC" which we would never allow in the US, | | | | unwise, and it is obvious they believe they are wiser |
| remember anti-trust law history, but we are deeply | | | | and thus, do not care what the citizens of this great |
| involved in that as well. The USA should have seized | | | | nation think anyway. Please think on all this, and read |
| the oil in Iraq to pay for the war and removal of | | | | the rest of the 50-articles on energy, oil, and the future |
| Saddam, then used that as a lever to control OPEC, | | | | in this series. Thanks for listening. |
| and worked production to keep oil at $45-65 per | | | | |