Oil up to $138

[American Air Surf]

Why is oil over $139?

OilIntel.com

As if in direct defiance to the CFTC, speculators reacted as if Katrina II hit the Gulf and wiped out all refineries, the Saudi oilfields were on fire and Iran closed the Strait of Hormuz. A sequence of events like these would be necessary to justify the unprecedented gains today in energy futures, not a 4 or 5 cent drop in the dollar, or a well-timed forecast from Morgan Stanley.

What happened today is another severe blow to the U.S. economy as Wall Street keeps plowing the money that the Federal reserve made available to them back into commodities to make up for the huge losses they sustained in the housing crisis.

Which begs the question, will the airlines be able to use the Fed as the 'lender of last resort'? I mean come on now, if the Fed can bankroll the theft (And make no mistake, that's what it was) of Bear Stearns by JP Morgan and then guarantee hundreds of millions in more speculative debt in the transaction for JPM, why the hell can't the airlines belly up to the Fed?



WashingtonPost


Hedge funds and big Wall Street banks are taking advantage of loopholes in federal trading limits to buy massive amounts of oil contracts, according to a growing number of lawmakers and prominent investors, who blame the practice for helping to push oil prices to record highs.

The federal agency that oversees oil trading, the Commodity Futures Trading Commission, has exempted these firms from rules that limit speculative buying, a prerogative traditionally reserved for airlines and trucking companies that need to lock in future fuel costs.


Light at the end of the tunnel? Or freight train rushing towards us?

NYPostOpEd

Two-thirds of petroleum in the United States is used for transportation - but half of the transportation sector's fuel flows into commercial trucks, trains, buses, airplanes and ships. As a result, only 44 percent of each barrel of oil is used to produce gasoline in this country, and some of that gasoline fuels business - delivery vans, landscapers' trucks, fishing boats, industrial and farm machinery, etc.

Not $139/brl ...., be LQQKING for $250/brl .....

http://www.ft.com/cms/s/0/23928598-36c1-11...00779fd2ac.html

 

[delldude]

Dem failed oil policies for the past 30 some years have finally come home to roost.And what do they want to do? Tax the oil companies....
China looks into offshore drilling 60 miles off our coast and its illegal here
Oil shale.....ANWR...Rocky Mountain oil....

Tax the oil companies....now thats leadership.

Oh my....NYT

Cuba's drilling plans have been in place for several years, but now that China, India and others are involved and fuel prices are unusually high, a growing number of lawmakers and business leaders in the United States are starting to complain. They argue that the United States' decades-old ban against drilling in coastal waters is driving up domestic energy costs and, in this case, is giving two of America's chief economic competitors access to energy at the United States' expense .( Obviously those nasty Republicans)

Oil out the butt....

The US holds the world's biggest shale reserves, trailed by Brazil and by the former Soviet Union.

Out the butt

 

[Cosworth]

Dem failed oil policies for the past 30 some years have finally come home to roost.And what do they want to do? Tax the oil companies....
China looks into offshore drilling 60 miles off our coast and its illegal here
Oil shale.....ANWR...Rocky Mountain oil....

Tax the oil companies....now thats leadership.

Oh my....NYT



Oil out the butt....



Out the butt

What policies did the republicans put forth from 1994-2006? I do not believe this one can be hung on either party. Both are culpable. The biggest culprit is us, the people. My in-laws are over 70 yrs old and just bought a Expedition. There are only 2 of them and they bought this POS. They already had a F-250. How many times do you see a SUV traveling down the road with more than 2 people in it? How about more than 1 person in it? How many times do you see a pick up going down the road doing something that it was actually designed to do?

The 1970's should have been a wake up call for us. We as a nation decided to hit the snooze button. If we had chosen to start being more fuel conscious and purchased smaller vehicles, voted for public transportation we would not be in the mess. The US has a world reputation of being selfish and greedy for a reason. IMO, this is the biggest culprit. We are one of the biggest consumers in the world and we contribute very little as of late.

I'll tell you what. You go over to China and swim in their waters, drink the water ot of the taps and breath the air for a while and you let me know how that works for you.

How many times are you going to say looking for more oil is the answer? How many times are ou going to ignore the fact that oil is a finite resource that we need to get away from. By the time the wells get drilled and the refineries get put on line we could be well on our way toward having cars that run on electric and hydrogen. We could be well on our way toward having most homes having supplementary solar or wind power.

Dell, you are thinking short term. Finding a few more barrels of oil is not going to solve anything. All it will do is delay the inevitable. And we have not even begun to talk about the environmental impact of your idea.

 

[delldude]

Thats the problem...environmental impact......Dem's cow towed to the eco-wonks and now today we livewith their policies from the past thirty years.Last I heard,offshore and continental drilling was pretty
reliable.The pipeline proved the eco-wonks wrong too.....you can compromise......but letting others drill off our shores isn't any more wise than us doing the same.Keeping our head in the sand won't make it any better.....true,oil may someday be a finite resource....but thats no reason now for crippling the global economy.

By the time the wells get drilled and the refineries get put on line we could be well on our way toward having cars that run on electric and hydrogen. We could be well on our way toward having most homes having supplementary solar or wind power.

All the while China and several others punch holes off our shores and lots of domestic oil lies waiting protected by stupid legislation and we can't pay to go to work.

 

[Cosworth]

I think yuo are missing the point I am making. In the time it takes to drill new wells to extract more pollution causing oil we can have substantially cheaper power sources already on line and in our garages. The ones you should be angry at are the companies and individuals who are against this technology.

Oil will never 'become' a finite resource, it IS a finite resource and it always was a finite resource.

Every thing is reliable till it breaks down. I am sure the same thing was said about oil ships till the first one broke open and spewed it's guts out. Take a look at the asthma rates among children. Do you not believe that has something to do with the pollution in the air? Our economy is crippled because we rely on oil, not because we are not drilling for it in ANWAR or of the coast of Bel-Air. Our economy is being crippled because this nation is shot sighted and it's leaders are greedy selfish bastards.

 

[cooper43]

I think yuo are missing the point I am making. In the time it takes to drill new wells to extract more pollution causing oil we can have substantially cheaper power sources already on line and in our garages. The ones you should be angry at are the companies and individuals who are against this technology.

Oil will never 'become' a finite resource, it IS a finite resource and it always was a finite resource.

Every thing is reliable till it breaks down. I am sure the same thing was said about oil ships till the first one broke open and spewed it's guts out. Take a look at the asthma rates among children. Do you not believe that has something to do with the pollution in the air? Our economy is crippled because we rely on oil, not because we are not drilling for it in ANWAR or of the coast of Bel-Air. Our economy is being crippled because this nation is shot sighted and it's leaders are greedy selfish bastards.

Right on man!!!

 

[delldude]

I think yuo are missing the point I am making. In the time it takes to drill new wells to extract more pollution causing oil we can have substantially cheaper power sources already on line and in our garages. The ones you should be angry at are the companies and individuals who are against this technology.

So then...let the Chinese drill off our coast and sell it back to us while we let sit mega amounts of oil in our own backyard?

Take a look at the asthma rates among children. Do you not believe that has something to do with the pollution in the air?

Pollution yes...solely oil...no.

Our economy is crippled because we rely on oil, not because we are not drilling for it in ANWAR or of the coast of Bel-Air. Our economy is being crippled because this nation is shot sighted and it's leaders are greedy selfish bastards.

No...our nation is crippled because we have not let any domestic production or built any new refineries for over thirty some years because the left took lobby money from the eco-wonks and now you and I pay the price.....

Curious......how many Pounds Per Hour did you have in your paycheck from our favorite career?
Maybe eliminate air travel as a serious conservation measure?

Who was the Prez who vetoed ANWR drilling?? I'm sure there was no lobby money in that decision...

Don't remember too many drilling accidents as of late around our country.....remember some loo loo tanker problems though....we lead the world in pollution control technology but rely on import oil from so many countries that sell us soiled food and dangerous products but we just can't drill here at home...my my.

 

[cooper43]

So then...let the Chinese drill off our coast and sell it back to us while we let sit mega amounts of oil in our own backyard?



Pollution yes...solely oil...no.



No...our nation is crippled because we have not let any domestic production or built any new refineries for over thirty some years because the left took lobby money from the eco-wonks and now you and I pay the price.....

Curious......how many Pounds Per Hour did you have in your paycheck from our favorite career?
Maybe eliminate air travel as a serious conservation measure?

Who was the Prez who vetoed ANWR drilling?? I'm sure there was no lobby money in that decision...

Don't remember too many drilling accidents as of late around our country.....remember some loo loo tanker problems though....we lead the world in pollution control technology but rely on import oil from so many countries that sell us soiled food and dangerous products but we just can't drill here at home...my my.

so lets not rely on those countries, lets do both; do some drilling (reluctantly) and make major commitments to clean energy, and not phony promises of research. We have the technology lets put it to work now. I have to disagree about blaming this on the leftyies. There is blame on both sides. Big oil doesnt want to get off oil just yet because they are making a killing. I wonder if they really want us to drill becuase then the price of oil will go down due to more supply. This is just my humble opinion, but They would have to spend some of that huge profit on drilling for what? So they can lower the price?

 

[Cosworth]

So then...let the Chinese drill off our coast and sell it back to us while we let sit mega amounts of oil in our own backyard?

If it were so easy they would already be doing so. If it were worth it they would already be doing so.

Pollution yes...solely oil...no.

Never said solely but it is a huge factor

No...our nation is crippled because we have not let any domestic production or built any new refineries for over thirty some years because the left took lobby money from the eco-wonks and now you and I pay the price.....

No we are crippled because the generation before us did nothing but satisfy their own selfish needs at the expense of the future. Your plan does the same to the next generation.

Curious......how many Pounds Per Hour did you have in your paycheck from our favorite career?

No idea what this means.

Maybe eliminate air travel as a serious conservation measure?

Not practical. A huge amount of commerce takes place via air craft.

Who was the Prez who vetoed ANWR drilling?? I'm sure there was no lobby money in that decision...

No idea but I am glad he did. Lobbies run this nation. Congress and the POTUS have been for sale to the highest bidder for quite some time.

Don't remember too many drilling accidents as of late around our country.....remember some loo loo tanker problems though....we lead the world in pollution control technology but rely on import oil from so many countries that sell us soiled food and dangerous products but we just can't drill here at home...my my.

What does that have to do with the price of tea in China? I was not arguing from an environmental impact POV. Although accidents are not the only impact from a drilling site. I am arguing that as long as we are drilling for oil, we are not looking for alternate power sources. We are not developing the power sources that we have at our disposal right now that can get us well on our way toward independence from the oil companies, the ME and all the environmental night mares that are involved with the burning of fossil fuels. Again, if you want independence, drilling is only a short term fix. If you want real independence, getting AWAY from oil is the answer. Looking for more oil is only going to delay the inevitable.

I would prefer not to be yet another generation of Americans that screws over the following generation. We have had enough of that in our history. That is why we are in the mess that we are in now. It is time to start thinking 20 and 30 years down the line. We need to stop acting like a crack addict looking for a short term fix.

 

[delldude]

If it were so easy they would already be doing so. If it were worth it they would already be doing so.

keep your eyes offshore of the US

Never said solely but it is a huge factor
No we are crippled because the generation before us did nothing but satisfy their own selfish needs at the expense of the future. Your plan does the same to the next generation.

No...just like many other things......complacency set in,it was off the radar and it went away.If they did nothing about it,why then are automakers selling hybrids and researching into alternate fuels?You know it takes many years,even decades of research in these fields....so looks like we have been doing something positive,Gar.

No idea what this means.

Aircraft burn fuel in pounds per hour dude


Not practical. A huge amount of commerce takes place via air craft.

So facing real efforts to get away from oil dependence...its not practical?Drastic measures are what the eco-wonks want....why not start here.

No idea but I am glad he did. Lobbies run this nation My point exactly. Congress and the POTUS have been for sale to the highest bidder for quite some time.

Hint: He didn't inhale,but Monica did....King of the contributions

What does that have to do with the price of tea in China? I was not arguing from an environmental impact POV. Although accidents are not the only impact from a drilling site. I am arguing that as long as we are drilling for oil, we are not looking for alternate power sources. We are not developing the power sources that we have at our disposal right now that can get us well on our way toward independence from the oil companies, the ME and all the environmental night mares that are involved with the burning of fossil fuels. Again, if you want independence, drilling is only a short term fix. If you want real independence, getting AWAY from oil is the answer. Looking for more oil is only going to delay the inevitable.

I would prefer not to be yet another generation of Americans that screws over the following generation. We have had enough of that in our history. That is why we are in the mess that we are in now. It is time to start thinking 20 and 30 years down the line. We need to stop acting like a crack addict looking for a short term fix.

Cooper43 about says it right on the mark............

 

[Cosworth]

Yes it does take time for research, we have had 30 years to make progress. While the Japanes were making Civics, we were still cranking out bloated SUV's, pick ups, high powered sports cars (the new ZR1 has over 600 HP).

I agree with Clintons decision to prohibit drilling in ANWAR.

I do not believe extreme actions are going to work. Shutting down air travel is going to do far more harm than good. From what I have read, ground transportation puts out far more pollution (due to the sheer volume of cars, trucks .. etc) than planes do. Also, at the moment, there is not substitute power source for air planes. There are substitute power sources for cars and trucks. At some point, I am sure air travel will make changes as well.

 

[delldude]

Yes it does take time for research, we have had 30 years to make progress. While the Japanes were making Civics, we were still cranking out bloated SUV's, pick ups, high powered sports cars (the new ZR1 has over 600 HP).

I agree with Clintons decision to prohibit drilling in ANWAR.

I do not believe extreme actions are going to work. Shutting down air travel is going to do far more harm than good. From what I have read, ground transportation puts out far more pollution (due to the sheer volume of cars, trucks .. etc) than planes do. Also, at the moment, there is not substitute power source for air planes. There are substitute power sources for cars and trucks. At some point, I am sure air travel will make changes as well.

As for Japanese cars and such.....on your EU venture you mention all the small cars.When I was working in a foreign car shop back around 1971,there already were Renaults,Datsuns,Toyotas,Mini-Coopers,TR3's,MG's and a whole bunch of others...and they all got pretty good mileage then.
You go where gas is cheap in those impoverished third world countries and you'll find all kinds gas guzzlers.They aren't very concerned.

Cash with out a doubt helped Clinton's signing and its a BS decision.

As for air travel.....lots and lots of planes have been flying less than half full wasting valuable oil...What say you to that?Lots and lots of airline companies have been wasting untold billions of pounds per hour (PPH) for more years than SUV's and not making much cash while wasting our oil.

 

[Cosworth]

As for Japanese cars and such.....on your EU venture you mention all the small cars.When I was working in a foreign car shop back around 1971,there already were Renaults,Datsuns,Toyotas,Mini-Coopers,TR3's,MG's and a whole bunch of others...and they all got pretty good mileage then.
You go where gas is cheap in those impoverished third world countries and you'll find all kinds gas guzzlers.They aren't very concerned.

Cash with out a doubt helped Clinton's signing and its a BS decision.

As for air travel.....lots and lots of planes have been flying less than half full wasting valuable oil...What say you to that?Lots and lots of airline companies have been wasting untold billions of pounds per hour (PPH) for more years than SUV's and not making much cash while wasting our oil.

It may be cheap now but it will go up and then dry up. Like I said, we need to stop worrying about right now and worry about 20 to 30 years from now. It is already way too late to fix the issues that are on our door step.

Like I stated, regardless of why Clinton signed the bill, I believe it was the correct out come.

The airlines that mismanage their resources will pay the price. I assume you work in the industry so you should know that even if an aircraft does not have a full load up top, there may be valuable cargo down below. Baring that, they plane is probably needed down line for another flight.

SWA seemed to look at the future and hedged their fuel. The LLC are burdened with incompetent management, bitter labor and high fuel prices. Personally, I am pretty sure most of them will not survive. Given the quality of their service as of late, I am not so sure that is a bad thing. I feel bad for the employees but noting lasts for ever.

 

[delldude]

We have to balance right now with the future.Oil will still be around for quite some time.So will alternatives.

As to ANWR....then its ok to sell out to special interests? Another one of liberalism's unintended consequences....economy shot to hell in thirty years.

Lobbies run this nation. Congress and the POTUS have been for sale to the highest bidder for quite some time.

SWA seemed to look at the future and hedged their fuel.

This was one of their advantages....but last I heard...their hedges were expiring.Welcome to LLC land.

 

[Gilding the Lily]

This was one of their advantages....but last I heard...their hedges were expiring.Welcome to LLC land.

They have had some expire; but they are still purchasing about 70% of their fuel at $51 a barrel. Not bad, eh?