Message to Congress, Stop Scamming and Start Drilling. It is time the environmentalist and global warming fanatics begin to back off. With millions of Americans living below the poverty level we can no longer wait for science and technology to come to the rescue. Our economy and the world's economy is petroleum based. In one way or another everything we produce or manufacture is tied to petroleum.
For the last 50 years, countries around the world have studied ways to break their dependence on oil. The research into solar, wind and electric is nothing new. Now we have all types of scams running around the Internet and wild announcements of concept cars that can get between 50-100 mpg or (in the case of electric) up to 100 miles between recharging of the batteries. All of these concepts are 20-30years away and depend on too many variables to be trusted. If any country or company could come up with vehicles that were dependable, safe and consumer friendly that country or company would become the most powerful entity overnight.
For the past 40 years battery companies have been researching ways to be the first to patent a new battery that will make electric vehicles viable. The result has been dismal to say the least. Their failures are not due to a lack of effort, if they ever succeed they will own the market, but their failures are due to a lack of science and technology. Like the discussion on global warming the world of science and technology is divided on finding an answer to the problems we face. The simple truth is there are things in this world mankind has never been able to understand. Weather, nature and alternative energy are things that have divided the world of science for decades and I don't see anything changing in the near future. We are still divided as to whether man arrived on earth from Darwin's theory of evolution or God's hands.
Since the 60s there have been countless attempts to build vehicles that run off solar power and alternative fuels. Electric and steam powered vehicles were some of the earliest vehicles to be offered to the public. They all failed in comparison to the combustion engine. Today we are betting our future on alternative fuels like ethanol, liquefied petroleum gas (LPG), bio-diesel and even water. While these efforts in research and development should continue, we have reached the point where Congress must step in and admit we must open the wells and restart our own domestic drilling. The technology for drilling oil is safe and can be done far more rapidly than waiting for the world of science and technology to catch up. Since drilling began in the Gulf Coast we have not experienced a major oil leak. Even with the Katrina disaster no oil rigs suffered significant damage resulting in leaks.
Some 'Greenies' are hoping the price of gas in America will reach the $7-$8 range forcing Americans to turn in their gas guzzlers and environmentally unfriendly vehicles for more modern, environmentally safe and efficient cars. This will not solve our problem. Relying on the manufacturers mpg sticker on a vehicle is misleading. In the real world of driving, the consumer will not achieve the same gas mileage demonstrated on the sticker. The CAFE reached by the manufacturer is done under controlled standards and ideal situations. Everything from the driver, weather, traffic, vehicle maintenance, road condition and speed, to the amount of weight in the vehicle will reduce the actual miles per gallon the consumer will achieve. With electric vehicles these variables plus the terrain with drastically reduce the miles you can travel before recharging the batteries. When the price does reach the $7 a gallon mark and I see a 'Greenie' or some environmentalist sitting broke down beside the rode with his environmentally safe vehicle, please do not expect me to stop and please do not complain when the price of a loaf of bread is $6.
Sunday, June 15, 2008
Saturday, June 14, 2008
Election Year History Repeating Itself
The supposed oil crisis today is like returning to days of old, 1979 - 1986. History always has a way of repeating itself and the times we are experiencing today are no different than 20 years ago. The rhetoric and reaction from Congress and the auto industry is the same as we heard and experienced during the '80s.
Everyone blamed OPEC, our dependency on foreign oil, big oil companies and over consumption due to the publics wasteful habits and auto industry's failure to provide more fuel efficient vehicles. The answers back then were to raise the CAFE standards, reduce consumption, institute price controls, ration gas, use of alternative energy sources like solar, wind and alternative fuels for our vehicles, and the 1980 Windfall Profit Tax. Nothing worked until the mid 80s when countries that were not part of OPEC like, Mexico, Canada, Venezuela, Nigeria and others started producing more oil and we upped our own production in Texas, Oklahoma and Prudhoe Bay Alaska. We also imported more oil from the North Sea region. The result was an over abundance of oil in the market creating the oil glut. Oil prices tumbled to an all time low. The auto industry experienced a public outcry from their dangerous fuel efficient cars they had introduced in order to satisfy the new CAFE standards. Congress added more and more safety standards forcing the price of cars to skyrocket and the industry responded by taking the cheaper smaller vehicles off the market. The CAFE standards were never met and Congress forgot about them after the oil crisis subsided.
In 1990 President Bush caved into the pressure from environmentalist and court decisions by signing the executive order increasing the ban on offshore drilling. This led to an increased dependence on foreign oil and a loss of American jobs. Over the years Congress has placed more and more restrictions on oil refineries and oil production in the United States. The same old rhetoric is being heard in Congress today by Senators like Frank Lautenberg and Bob Menendez:
"This administration has proposed one reckless drilling plan after another that threatens our environment and risks harm to New Jersey's economy," Menendez said. "This is unacceptable, and I pledge to do everything in my power to ensure that their plan does not become reality."
Everyone blamed OPEC, our dependency on foreign oil, big oil companies and over consumption due to the publics wasteful habits and auto industry's failure to provide more fuel efficient vehicles. The answers back then were to raise the CAFE standards, reduce consumption, institute price controls, ration gas, use of alternative energy sources like solar, wind and alternative fuels for our vehicles, and the 1980 Windfall Profit Tax. Nothing worked until the mid 80s when countries that were not part of OPEC like, Mexico, Canada, Venezuela, Nigeria and others started producing more oil and we upped our own production in Texas, Oklahoma and Prudhoe Bay Alaska. We also imported more oil from the North Sea region. The result was an over abundance of oil in the market creating the oil glut. Oil prices tumbled to an all time low. The auto industry experienced a public outcry from their dangerous fuel efficient cars they had introduced in order to satisfy the new CAFE standards. Congress added more and more safety standards forcing the price of cars to skyrocket and the industry responded by taking the cheaper smaller vehicles off the market. The CAFE standards were never met and Congress forgot about them after the oil crisis subsided.
In 1990 President Bush caved into the pressure from environmentalist and court decisions by signing the executive order increasing the ban on offshore drilling. This led to an increased dependence on foreign oil and a loss of American jobs. Over the years Congress has placed more and more restrictions on oil refineries and oil production in the United States. The same old rhetoric is being heard in Congress today by Senators like Frank Lautenberg and Bob Menendez:
"This administration has proposed one reckless drilling plan after another that threatens our environment and risks harm to New Jersey's economy," Menendez said. "This is unacceptable, and I pledge to do everything in my power to ensure that their plan does not become reality."
Thursday, June 5, 2008
Oil Speculators May Face Prison
Rumors and speculation have surfaced that the 6 month investigation by the Commodities Futures Trading Commission believe some oil speculators may face prison. It is rumored the Commission has or is ready to, ask the Department of Justice/FBI to join in the Commission's investigation.
``The key to this is: what is the intent of the trading?'' said Geoffery Aronow a former head of enforcement for the CFTC. ``Is the sole intent to try to move the price of the commodity - - in this case, crude oil? Or does the trading have a reasonable commercial justification?'' Bloomberg.com May 31, 2008
In this case some investigators are questioning if Obama supporters are investing solely to manipulate the market for political reasons.
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``The key to this is: what is the intent of the trading?'' said Geoffery Aronow a former head of enforcement for the CFTC. ``Is the sole intent to try to move the price of the commodity - - in this case, crude oil? Or does the trading have a reasonable commercial justification?'' Bloomberg.com May 31, 2008
In this case some investigators are questioning if Obama supporters are investing solely to manipulate the market for political reasons.
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Obama No Iraq No Town Hall
Does Obama's recent silence on Iraq visit and his statement on town hall meetings mean the answer to both is no?
One reason he may not wish to visit Iraq is simply it's a no win situation. With all of his previous statements on what a failure the Maliki government and Iraqi military has been, he must worry that he will not be well received. With the recent victories of the Central government and Iraqi military the last thing he can afford is having to say; I was wrong about the government, military and the American military surge. Another problem for him would be the customary greetings of Muslim countries. If the respected leaders he met in Iraq offered to give him the traditional kiss on each cheek how would Obama respond and how would it be received in American politics.
The reason he may decline the Town Hall meetings with McCain is style and not being able to control the situation. Having truly independent voters asking questions that have not been vetted first can be a dangerous thing. Obama does best giving revamped rhetorical speeches from past Democratic candidates and presidents. He simply rewrites them using new words but the tone and message remains the same. In Town Hall meetings you cannot rely on old speeches, voters want real answers to their questions.
Obama believes the Town Hall meeting style debate is too structured. The truth is the Lincoln vs Douglas style debate is entirely structured. Each candidate gives a prepared speech for a set amount of time and is allowed a follow-up speech at the end with no questions. There is a moderator agreed upon by both parties. Voters hear only the speeches the candidates have prepared in advance, voters may as well spend their time going to the candidate's campaign rally.
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One reason he may not wish to visit Iraq is simply it's a no win situation. With all of his previous statements on what a failure the Maliki government and Iraqi military has been, he must worry that he will not be well received. With the recent victories of the Central government and Iraqi military the last thing he can afford is having to say; I was wrong about the government, military and the American military surge. Another problem for him would be the customary greetings of Muslim countries. If the respected leaders he met in Iraq offered to give him the traditional kiss on each cheek how would Obama respond and how would it be received in American politics.
The reason he may decline the Town Hall meetings with McCain is style and not being able to control the situation. Having truly independent voters asking questions that have not been vetted first can be a dangerous thing. Obama does best giving revamped rhetorical speeches from past Democratic candidates and presidents. He simply rewrites them using new words but the tone and message remains the same. In Town Hall meetings you cannot rely on old speeches, voters want real answers to their questions.
Obama believes the Town Hall meeting style debate is too structured. The truth is the Lincoln vs Douglas style debate is entirely structured. Each candidate gives a prepared speech for a set amount of time and is allowed a follow-up speech at the end with no questions. There is a moderator agreed upon by both parties. Voters hear only the speeches the candidates have prepared in advance, voters may as well spend their time going to the candidate's campaign rally.
Wednesday, June 4, 2008
Is Oil Market Beginning to Burst
Like the housing industry is the oil market bubble beginning to burst? With the daily drop in prices and news of the market manipulation investigation it makes you wonder what's ahead for investors. News leaking out that U S imports of foreign oil are down and production of gasoline and diesel at U S refineries are running well below capacity leaves serious questions for investigators. Add to the news that ships are being delayed from offloading could lead to an oil glut in the market have some investors selling off their futures.
Who will be hurt in a mass sell off? Small investors and the banks that are loaning the large portion of funds to investors. Wealthy investors that only pay 6% of the cost per barrel and bower the rest from the investment banks can simply default, leaving the banks to pass on the loss to other customers. Is it time for small investors to divest their funds into other markets before it's too late, maybe.
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Who will be hurt in a mass sell off? Small investors and the banks that are loaning the large portion of funds to investors. Wealthy investors that only pay 6% of the cost per barrel and bower the rest from the investment banks can simply default, leaving the banks to pass on the loss to other customers. Is it time for small investors to divest their funds into other markets before it's too late, maybe.
Oil and The 7 Deadly Sins
What does oil have to do with the 7 Deadly Sins ? Pride for which the other 6 are derived from and Greed are a prime reason for commodities and hedge fund trading. The rich that can invest in others failures which is hedge funds (betting on housing and banking failures resulting in home foreclosures), is Greed. The rich that don't need more money are doing it for Pride being able to say "I'm richer Than You." The ones speculating on commodities are hoping for bad times so the price will increase and they will make more money. Seeing people around the world facing hard times and suffering is the worst type of Greed. Not all people investing in the markets do it out of Greed. Most small investors do it for income no different than working. Gaming the oil market to become rich out of Pride or Greed is using oil to indulge in 2 of the most Deadly Sins.
In "Proverbs" 6:16–19, it is stated that "These six things doth the Lord hate: yea, seven are an abomination unto him:"
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In "Proverbs" 6:16–19, it is stated that "These six things doth the Lord hate: yea, seven are an abomination unto him:"
- A proud look,
- a lying tongue,
- and hands that shed innocent blood,
- A heart that deviseth wicked imaginations,
- feet that be swift in running to mischief,
- A false witness that speaketh lies,
- and he that soweth discord among brethren.
Oil Inventory Up Imports Down Refineries Down
For the past 5 weeks oil inventories have been up and it is expected to rise again this week. At the same time reports are coming out that U S imports of foreign oil are down and production of gasoline and diesel at U S refineries are running at only 86% capacity. Unloading ships delivering oil are deliberately being delayed causing a slowdown in the delivery of crude oil to American refineries. This has forced some oil producing countries to stock pile oil on ships off their coasts, waiting in line for a delivery date. The same report says fuel consumption has steadily decreased due to high gas prices.
In the normal scheme of things when inventories are high, production is at or higher than 90%, crude oil deliveries are waiting offshore and demand has fallen an oil glut is the result. Prices fall at the both the pumps and on the open market. Something strange is happening, supply and demand is not working. There is no natural reason for refineries to be operating at only 86% of capacity. There is no excuse for ports to delay offloading ships with crude oil. This sounds more like price fixing than the normal supply and demand of a Capitalist market.
America is reaching a crisis level with the continued daily price increase at the pumps. Auto industries are falling back to the 1980's strategy of cutting the production of trucks, SUV s and next will be 4 wheel drives and mid-size autos. People are losing their jobs and foreclosures continue.
Other actions around the country are beginning to hit the news:
-Airlines are charging for every bag, raising prices and cutting services
-Airlines are considering charging passengers according to weight
-Local governments are increasing license fees for vehicles, wheel tax
-Local governments are charging school and surge charge taxes, to cover fuel price increases
-(Some) Local governments are considering extra license plate fees for older less fuel efficient vehicles
-(Some) Local governments are trying to pass obesity tax on fast food restaurants
-Restaurants are trying to charge extra for people they consider overweight
-Green taxes are being considered, the more energy (electricity, natural gas, etc.) a customer consumes the higher the tax
-Cheap dangerous imports from China are up (consumers cannot afford American made/produced products)
-The number of Americans selling their blood for gas and food are increasing daily.
We cannot wait for the promised change in '09 with a new president. This Congress had better do something, instead of spending on pork barrel projects and playing politics, or it will be too late for the next president. Like Nero's Rome, America is slowly burning.
2D8D7D72D11A4C3BBE25D5D055A63821
In the normal scheme of things when inventories are high, production is at or higher than 90%, crude oil deliveries are waiting offshore and demand has fallen an oil glut is the result. Prices fall at the both the pumps and on the open market. Something strange is happening, supply and demand is not working. There is no natural reason for refineries to be operating at only 86% of capacity. There is no excuse for ports to delay offloading ships with crude oil. This sounds more like price fixing than the normal supply and demand of a Capitalist market.
America is reaching a crisis level with the continued daily price increase at the pumps. Auto industries are falling back to the 1980's strategy of cutting the production of trucks, SUV s and next will be 4 wheel drives and mid-size autos. People are losing their jobs and foreclosures continue.
Other actions around the country are beginning to hit the news:
-Airlines are charging for every bag, raising prices and cutting services
-Airlines are considering charging passengers according to weight
-Local governments are increasing license fees for vehicles, wheel tax
-Local governments are charging school and surge charge taxes, to cover fuel price increases
-(Some) Local governments are considering extra license plate fees for older less fuel efficient vehicles
-(Some) Local governments are trying to pass obesity tax on fast food restaurants
-Restaurants are trying to charge extra for people they consider overweight
-Green taxes are being considered, the more energy (electricity, natural gas, etc.) a customer consumes the higher the tax
-Cheap dangerous imports from China are up (consumers cannot afford American made/produced products)
-The number of Americans selling their blood for gas and food are increasing daily.
We cannot wait for the promised change in '09 with a new president. This Congress had better do something, instead of spending on pork barrel projects and playing politics, or it will be too late for the next president. Like Nero's Rome, America is slowly burning.
Tuesday, June 3, 2008
GM Follows Ford: Been Here Before
The auto industry shifted from large automobiles to smaller more compact cars and trucks. This was done to satisfy the new 27.5 mpg CAFE that was passed by Congress. The American auto industry also had to compete with imports to America. Companies that had built smaller vehicles that worked well in their own countries began to be very popular in America. Honda, Toyota, Nissan, Subaru, Mazda and Yugo found a new market in the U S. The big three countered with their own versions of small fuel efficient vehicles. Unfortunately the CAFE standards were never met and the small engines that worked well in the smaller countries would not stand up to the daily transportation needs of Americans.
Along with some American brands most of the models offered eventually failed. The Mazda rotary engine, Yugo and most 4 cylinder engines fell out of favor with most Americans that lived outside of our major cities. American cars like : Pinto, Vega, Escort, Omni, Aspen, Skylark and others that were equipped with 4 cylinder engines also fell out of favor.
The oil crisis in '73 and '79 not only effected the auto industry it effected everything with the rise in fuel prices at the pumps. The government reacted with conservation, rationing of gas, tax breaks for using alternative energy sources like Solar and Wind, new home construction responded with totally electric homes, and industry was given tax breaks for research into alternative fuels. Universities around the country were given government grants to research alternative fuels, renewable sources of energy, and an alternative to the combustion engine. The Federal Government also restricted the speed limit on interstates to 55 mph.
Not much has changed today than in the 1980-1989 period. CAFE standards have really not been met. Most vehicles on the road today don't meet the 27.5 mpg required in the 1980's. We increased the size of our engines to V-6 and V-8 to satisfy the needs of American motorist and added electronic gadgets and emissions controls to satisfy the environmentalist. What did change is we started buying oil from countries other than OPEC. While we are still dependent on them countries like Mexico, Canada, Venezuela, and others started increasing production and brought the price down.
Traveling down the same road we traveled before will not help us today. It will only bring about more Pintos, Vegas, and Yugos. Congress will hold hearings, raise the CAFE standards, preach conservation, spend, spend, spend tax payer money but never allow drilling off shore for are own oil.
Monday, June 2, 2008
How Obama Can Beat McCain
According to a recent Gallop Poll survey "
"Six in 10 think it's a good idea to meet with President of Iran"
Over the week of July 4th Sen Obama should meet with not only Ahmadinejad, but also include Venezuela President Hugo Chavez, Syrian President Bashar al-Assad, Hamas Leader Khaled Mashaal, and Hezbollah Leader Sayyed Hassan Nasrallah. Meet them in a neutral country visited by many members of Congress like Speaker Pelosi, say Syria. Sen Obama can work out a deal with Mashaal and Nasrallah to recognize a 1 year cease fire with Israel, no more rockets or suicide bombings and return all Israeli soldiers. In return he will convince Israel to release all Palestinians Israel is holding prisoner.
With Ahmadinejad and Chavez, all Obama needs to do is get them to agree to produce more oil for the American market and have Ahmadinejad promise his nuclear plants are for peaceful purposes only. In return all Obama has to do is promise a closer more understanding relationship with the U. S. and guarantee we will pull all of our forces in Iraq out and will never return.
On his trip home he can meet with Fidel and Raul Castro. He could get an agreement with Raul to consider opening travel restrictions in return for Sen Obama promising to lift American sanctions on Cuba. A simple letter of agreement to hold meaningful negotiations in the future would satisfy most Americans.
If Sen Obama starts his preparations now, he can have these meetings the 1st week of July and have the Presidential election sowed up before Aug. These are all knowledgeable men willing to negotiate in good faith with the next President. With Sen Obama's power of persuasion he should have no problem negotiating with these leaders.
Obama Democracy Alliance and Oil
In an earlier post State_of _America: Using Oil To Sway Elections I question if some of our billionaires could really be manipulating the market in an effort to sway the elections in Sen Obama's favor. Now we hear the Federal Trade Commission is investigating the market for possible manipulation of oil prices. In another post, FTC: Oil Market Manipulation, I raised doubts that the government would be capable of finding a smoking gun. Should the government take a hard look at the Democracy Alliance group's donor-members, some of whom are?:
-George Soros, and possible members or donors (the list is mostly private): Jim Rogers, Victor Niederhoffer and Stanley Druckenmiller
-Board Directors:
-Rob McKay
-Anna Burger
-Drummond Pike
-William Budinger
-Robert Dugger
-Al Dwoskin
-Gail Furman
-Robert Johnson
-Steven Phillips
-Charles Rodgers
-Deborah Sagner
-Michael Vachon
-Rob Stein
Other public known donor-members are:
Peter B. Lewis
Herb and Marion Sandler
Tim Gill
Rachel Pritzker Hunter
Gara LaMarche
Guy Saperstein
Rob Reiner
Herb Miller
David A. Friedman
Ann S. Bowers
Albert C. Yates
Davidi Gilo
Mark Buell
Like Soros some of these people are the richest people in America, invest in commodities and hedge funds, and are Obama supporters. It is no secret that George Soros will do anything to see a Democrat win the White House. The question is, would he go so far as to destroy America economically so he could see her rebuilt in accordance with his Open Society beliefs?
None of the people I mention in this post may be doing anything illegal, they may only be guilty of following the ideals and advice of people like George Soros and Robert Dugger, of the Tudor Foundation a global funds management company participating in major debt, equity, currency, and commodity markets worldwide.
With prices going up on everything because the price of fuel is steadily increasing, the poor get poorer and the rich get richer. Manipulating and gaming the market to effect the overall economy is nothing new. To do it in an effort to sway an election is nothing short of treason against your country. If Americans care about America now would be the time to sell your oil futures and re-invest in America.
-George Soros, and possible members or donors (the list is mostly private): Jim Rogers, Victor Niederhoffer and Stanley Druckenmiller
-Board Directors:
-Rob McKay
-Anna Burger
-Drummond Pike
-William Budinger
-Robert Dugger
-Al Dwoskin
-Gail Furman
-Robert Johnson
-Steven Phillips
-Charles Rodgers
-Deborah Sagner
-Michael Vachon
-Rob Stein
Other public known donor-members are:
Peter B. Lewis
Herb and Marion Sandler
Tim Gill
Rachel Pritzker Hunter
Gara LaMarche
Guy Saperstein
Rob Reiner
Herb Miller
David A. Friedman
Ann S. Bowers
Albert C. Yates
Davidi Gilo
Mark Buell
Like Soros some of these people are the richest people in America, invest in commodities and hedge funds, and are Obama supporters. It is no secret that George Soros will do anything to see a Democrat win the White House. The question is, would he go so far as to destroy America economically so he could see her rebuilt in accordance with his Open Society beliefs?
None of the people I mention in this post may be doing anything illegal, they may only be guilty of following the ideals and advice of people like George Soros and Robert Dugger, of the Tudor Foundation a global funds management company participating in major debt, equity, currency, and commodity markets worldwide.
With prices going up on everything because the price of fuel is steadily increasing, the poor get poorer and the rich get richer. Manipulating and gaming the market to effect the overall economy is nothing new. To do it in an effort to sway an election is nothing short of treason against your country. If Americans care about America now would be the time to sell your oil futures and re-invest in America.
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