Oil price plunge, drilling, and the Republicans

As I write this today, Russia has furthered their campaign into Georgia. This entire region produces about 1 million barrels of oil daily, and Europe and the region can expected to be greatly impacted. Many analysts are scratching their heads that the price of oil and gold are not on a steep rise resulting from very probable supply disruptions of oil and nat gas from this area.

In spite of this, the price of oil has dropped another $2 today, and gold has plummeted over $30. After Bush gave his speech a few weeks ago in which he painted severe consequences for not pursuing offshore drilling (and sold 75% of the brainless American public), the price of oil started plummeting immediately from that point.

Just a few weeks ago if someone in Nigeria or Venezuela sneezed, the price of oil would run up $5 a barrel immediately! It's not difficult folks! The big oil companies clearly want a Republican in power so they (via the hedgefunds) ran their profits up as much as possible and now they are running prices into the dirt just in time for the elections because THEY KNOW that the single biggest obstacle that McCain faces politically is the economy! With the price of oil falling, the economic picture is looking far better for the Republicans.

Of course, another factor is that there is an attempt to drive down investment in alternative energy. Just a couple of days ago on CNBC was a solar scientist from MIT and he and his team has developed a cheap way to store solar via splitting water and creating very inexpensive fuel cells. He stated that science is way ahead of the curve on cheap and efficient energy but it's being fought by Washington. He then added (with visible anger) that he was just informed that Washington had cut funding for his project. Boone Pickens (the famous oil guy who is now promoting cheap and reliable wind energy) shares these same frustrations with Washington.

So just watch; McCain will get elected and you can read and weep as the oil companies do a complete about face resulting in another steep increase in the price of oil, gold, and nat gas. Meanwhile, the oil companies and all their contractors will profit big time with the construction of new oil rigs (while existing oil leases totaling 100's of thousands of acres of available oil land continue to be left dormant by the GOP). Wake up America and "smell the oil trail."

[edit on 11-8-2008 by whatsup]

[edit on 11-8-2008 by whatsup]

You bring up some valid points. It is funny that the oil price is not sky rocketing with these volatile events in the Middle East and Georgia. It pays to be backed by the correct family corporations?

It is more than just funny, it's intended! This is as clear to me as the nose on my face (which is pretty clear LOL). Folks just need to do a little research into the production and logistics of nat gas and oil in the region for most of Europe, and it's clear that something is up (especially given my other points above).

[edit on 11-8-2008 by whatsup]

Just a couple of days ago on CNBC was a solar scientist from MIT and he and his team has developed a cheap way to store solar via splitting water and creating very inexpensive fuel cells. He stated that science is way ahead of the curve on cheap and efficient energy but it's being fought by Washington. He then added (with visible anger) that he was just informed that Washington had cut funding for his project.

If the technology is so good why does he need federal funding? Solar isnt an alterntive untill it can compete with oil and coal in the free market. As to me and the other 74% of americasn who are "brainless", I personally think its far more brainless to prohibit exploiting a proven source of energy while throwing money at technologies that cant compete even with massive subsidies.

Um, it's not hundreds of thousands of acres, its MILLIONS of acres they refuse to drill on even though the LOW estimate is 100BILLION Barrels of Oil!

www.abovetopsecret.com...

on a side note to the "oil price" part

when a barrel of oil was 140 dolars
my gas pump price was $4.17

when a barrel of oil is 115 dollars
My gas pump price is $3.89

.....and its still being blamed on the price of a barrel.





This might be the next big lie of 2009

Here we are now with Gustav bearing down as a cat 3 and pointed at the major oil production in the gulf and oil is only flirting with a $1 gain. It just makes my case even stronger. I listened to a bunch of oil analysts shaking their heads this morning about how/why oil was barely budging. They should read my thread.

People give in too easily into political pandering.

www.eia.doe.gov...

Not long before there had been drilling on Alaska's northern slopes as shown in the image below. BP, the main profiteer in the area set aside for drilling, ended their drilling west of Anwr because they were coming up with less and less oil from that area. Heres some facts those oil men and women up there in Washington have not top you:

-It will take 10years for that oil produced from Alaska to reach the fuel pumps.

-Fuel prices will only drop down by afew cents and the relief will ony last for afew years.

-229 native Alaskan tribes of the Inter-Tribal Council are against drilling in Alaska. aitc.org...

-Both McCain and Bush admitted that further drilling will only be positive pyschologically. They fail to mention the factors above of drilling.



Instead of drilling our way out the problem as we have always done before why not invest heavily into cheaper hybrid car production? We cannot drill our way out of dependence on a limited resource.

This is exactly why we always end up with such corrupt and careless politicians, voters give into political pandering and propaganda then athe few years down the tract we find out these very elected leaders have lied and cheated the american people. But then who will the american people blame again? The media! the liberals!, people never blame themselves for electing these corrupt leaders, they never blame themselves for listening to this garbage in the first place.


[edit on 27-8-2008 by southern_Guardian]

In addition to Gustav, I also heard there is supposed to be a bit of a refinery crunch and yet oil is now even down slightly! The Saudis and oil companies want McCain in REAL BAD! This in addition to wanting to crush the investment initiatives in alternative energies.

[edit on 28-8-2008 by whatsup]

Since you've obviously placed the blame for this situation entirely at the feet of the republican administration, can you please tell me how a democrat administration is going to fix it? The only solution I've seen put forth so far is the initiation of a windfall profits tax on the oil companies which I believe will raise prices.

come now shazam, the subsidies to oil and the oil companies are massively more than those to alternative energy. The reason these companies cant compete is because not only do the oil industries have massive power over legislation with lobbyists, but they also are in bed with the automakers, which means that manufacturing options for alternative fuel promoters is highly limited. We all know the story of the guy who invented the carburator that got like 100 miles to the gallon back in the 60's, and the patent was bought up by the auto industry and burried. The same thing happens to all the prototypes for functioning electric cars and others. Theres a documentary called something like "who killed the electric car" and it shows how in the last generation of electric cars the new batteries made them MUCH more practical and efficient, but then for some unexplained reason, the industry did a massive reversal, bought back all the electric cars they had been selling, and destroyed them. Our countries progress is motivated by money and politics, not human need, and as long as more money can be milked progress gets put on hold. You can see this in simple things like the fact that the exact same services (phone, internet, cable) continue to CLIMB in cost despite the fact that most change very little since their first widestream use. You know it doesnt cost the cable company any more for the service they provide now, but their rates hike every year...you know it doesnt cost them any more to provide highest bandwidth to everyone, yet they dumb it down so they can charge you more. When i lived in phoenix 5 years ago i got their service and it was 29 a month, and it was all at max speed. now 29 a month only gets you the bottom tier service which is a DOWNGRADE from what it used to be! Point being here, I thought the whole point of human progress was so that we could all get and achieve more with less work, but apparently thats not the case. The point of human progress is apparently to get us all indebted as indentured servants to the corporate masters, the bankers, and the credit card companies, and to funnel all our productive increases directly to THEIR benefit, as the rest of us maintain a level well below that of the 50's and 60's where one man with a factory blue collar job could support a family of 8, have a stay at home wife, own a nice house, a car, and the security of knowing his family was taken care of.

Originally posted by pexx421
You know it doesnt cost the cable company any more for the service they provide now, but their rates hike every year

Actually, their prices DO go up. Employees get raises every year, the cost of their raw materials go up every year, gas bills for their repair technicians are also higher. My wife works for a cable company so I can vouch for the fact that she gets a 5% raise every year.

Originally posted by pexx421you know it doesnt cost them any more to provide highest bandwidth to everyone, yet they dumb it down so they can charge you more.

Again, incorrect. It is true that they are limiting the bandwidth you could be getting. However, they have infrastructure in place that provides a certain amount of bandwidth When more customers use more bandwidth, they have to purchase more bandwidth to accomodate the increased demand. Hence, the higher cost. Similar to above, I have knowledge in this field as well. I work in a data center and we are constantly ordering more bandwidth to support customer applications. It's not cheap either.

Originally posted by pexx421
come now shazam, the subsidies to oil and the oil companies are massively more than those to alternative energy.

No, they arent. Most of the "oil companies subsidies" are actually nothing more than accelerated depreciation on equipment.

The reason these companies cant compete is because not only do the oil industries have massive power over legislation with lobbyists, but they also are in bed with the automakers, which means that manufacturing options for alternative fuel promoters is highly limited.

No. They cant compete because they cant compete. As an example, I live in Florida, which gets more sunlight hours per years than most states. We also have a 50% state subsidy on any solar power purchases. Despite this, in order to get off the grid, and recoup what I spent on panels from the savings in electricity bills would take 40 years.
Wind power is even more inefficient. They simply arent competitive.

We all know the story of the guy who invented the carburator that got like 100 miles to the gallon back in the 60's, and the patent was bought up by the auto industry and burried.

You present urban legends, I present verifiable facts. See the difference?

The same thing happens to all the prototypes for functioning electric cars and others. Theres a documentary called something like "who killed the electric car" and it shows how in the last generation of electric cars the new batteries made them MUCH more practical and efficient, but then for some unexplained reason, the industry did a massive reversal, bought back all the electric cars they had been selling, and destroyed them.

Leasing not selling. They were never sold. ANd only 80 were ever leased. Despite the propoganda you refer to, the market didnt want them.

Our countries progress is motivated by money and politics, not human need, and as long as more money can be milked progress gets put on hold.

Uhh the easiest way to make money, is TO MEET A NEED.

You can see this in simple things like the fact that the exact same services (phone, internet, cable) continue to CLIMB in cost despite the fact that most change very little since their first widestream use.

Really?
Little change?
Just the underlying techonology, necessary infrastructure, power demands, number of users, bandwidth expected per user etc. etc. ad naseaum.

You know it doesnt cost the cable company any more for the service they provide now,

Really? Why not pull up, say, Comcasts' 10Q's for the last several years and prove it?
Oh wait, because if you had read thier 10q's, youd know tier infrastructure, eqipment and other costs have increased steadily. Not to mention thier investments in new infrastructure.

When i lived in phoenix 5 years ago i got their service and it was 29 a month, and it was all at max speed. now 29 a month only gets you the bottom tier service which is a DOWNGRADE from what it used to be!

Phoenix also happens to be one of the fastest growing cities in america. What happens when demand for a prodcut increases faster than suplly?
Thats right prices increase.

Id adress the rest of your screed, but to be frank I dont see the point.

Originally posted by Andrew E. Wiggin


.....and its still being blamed on the price of a barrel.





This might be the next big lie of 2009

www.google.com...

Here ya go wiggy. I know you have little knowledge of economic principles, so I searched the pertinent phenomonon for you. Feel free to learn about "stickyness" as it applies to pricing issues.

We all know the story of the guy who invented the carburator that got like 100 miles to the gallon back in the 60's, and the patent was bought up by the auto industry and burried.

Actually the one I know of was in the late seventies, the V-8 got 50mpg and one of the research scientists was my boyfriend. He was at the trial and came home very excited after the test run.

My 1976 V-8 cutlass with a carborator got 26mpg and my 1981 4 banger diesel pickup got 50mpg (those are my actual mpg) How come the fuel injected vehicles do not measure up to these old vehicles? I have always wondered about that.

Originally posted by crimvelvet



My 1976 V-8 cutlass with a carborator got 26mpg and my 1981 4 banger diesel pickup got 50mpg (those are my actual mpg) How come the fuel injected vehicles do not measure up to these old vehicles? I have always wondered about that.

Know what they didnt have in 76? Pollution standards, exhaust standards, and restrictions on emissions.