New Oil Discovery

Now we’re talking. Let’s see Obama take credit for this, since he can’t block it.

Largest Oil and Gas Reserves Ever Assessed Found in West Texas

Breitbart — by Merrill Hope  —  Dec 7, 2018

The U.S. Department of the Interior announced Thursday the Permian Basin’s Wolfcamp shale and Bone Spring formation spanning parts of West Texas and eastern New Mexico hold the largest potential oil and gas resources ever discovered. Federal surveyors note the Bone Spring plays could offer roughly seven times the amount of oil as the Bakken shale in North Dakota.

In a new assessment, the U.S. Geological Survey (USGS) estimated these untapped regions in the Delaware Basin of the Permian contained 46.3 billion barrels of oil, 281 trillion cubic feet of natural gas, and 20 billion barrels of natural gas liquids, more than two times larger than its 2016 assessment of the Wolfcamp shale play in the Permian’s Midland Basin.

“Christmas came a few weeks early this year,” said U.S. Secretary of the Interior Ryan Zinke in a prepared statement. “American strength flows from American energy, and as it turns out, we have a lot of American energy.” Zinke added, “Before this assessment came down, I was bullish on oil and gas production in the United States. …../

More: https://www.breitbart.com/border/2018/12/07/largest-oil-and-gas-reserves-ever-assessed-found-in-west-texas/

If liberals cannot find grounds to condemn the news, then they’ll go out of their way to ignore it. But they won’t be happy because these days all that excites them is doom.

Yet they wonder why we need pipelines and infrastructure development for it. Or they will be back to talking about taking over and socializing oil companies.

I figure the next thing is if Dems can’t find ways to block any good news, or turn it rotten, they’ll try to tax it somehow. It could be called the “good news tax”. I wouldn’t doubt it.

Market Maneuvers

Two things tripped my radar on the economy. First is the gas prices and the rise in oil prices.(71.00 ^) There is a point where it is counter productive to the economy.

I don’t know that exact number but already the gas prices are having an effect. And excessive inventories have gone down. Consumer demand goes down, even while the economy is heated up. So when does the lower demand cool the economy?

The second is a lesser known rise in lumber and building material costs. Lumber futures increased 66% over the last year. (Bloomberg) That’s stunning. What effect will that have on the economy? Maybe the better question is what effect will both factors have on the economy — and on growth? At a time when we are trying to break 3% growth.

Death of a price point

Now with the death of Saudi King Abdullah, the flurries of questions began. What about the oil market, prices in particular, and what effect new leadership will mean for oil?

Well, complex answers don’t stop reporters from asking, except maybe in the case of Obama. The go to man is apparently Prince Alwaleed. He gave a robust defense of supply and demand, then shocked probably even OPEC countries by declaring we will never see triple digit oil again. In fact, he said we will never see hundred-dollar oil prices again.

See CNBC for video and article: http://www.cnbc.com/id/102363511

“I can assure you that Saudi Arabia is not using the oil price right now to impact the fracking industry in the United States,” he said, adding that “there’s an oversupply and demand is not so high.”

He insists there will be little change on current oil policy from a King Salaman government. He does have a grasp of understanding about the subject. It’s obviously true the current prices do hurt the Kingdom. It also hurts other oil-dependent countries. But his point was if they cut production that “gap” would only be filled by some other country. And it would. So it seems their production level alone is not running the market. The dynamics indeed have shifted since the US began producing more.

Now there’s one voice on the record publicly declaring the death of triple digit oil. That in itself should be a big deal. So stick a fork in hundred-dollar oil?

Russia under the gun

The incredible shrinking Ruble.

The ruble’s collapse is disastrous for Putin – and bad for you too

by Geoffrey Smith |December 15, 2014 | Fortune

A financial crisis would make the Kremlin more unpredictable, wreck western banks and heap misery on the Russian people.

Russia’s ruble is melting down faster than you can say “Vladimir Vladimirovich”. That’s nothing short of disastrous for him–but it ain’t good for you either.

The ruble fell a jaw-dropping 11% against the dollar Monday. Even when seen in the context of the dollar routing all emerging market currencies (Brazil’s real fell 1.2% and South Africa’s rand 1.5%), a move like that is straight out of the Financial Crisis Handbook–completely unsustainable. Russia has seen nothing like it since it defaulted on its domestic debt in 1998.

Given President Vladimir Putin’s status as the West’s new bogeyman, the temptation to rejoice ….

See details and the possibilities:

http://fortune.com/2014/12/15/the-rubles-collapse-is-disastrous-for-putin-and-bad-for-you-too/

At the risk of celebrating someone’s demise, it couldn’t have come at a better time. (late as it is) Be honest, if it were us they would be dancing in the streets. Sorry, I don’t see a good reason to temper my exuberant glee. This article cautions that. And the message their tentacles send to every enemy of ours will be swift.

The important thing to remember is this is absolutely not Obama’s doing. Though like Obama, Putin has a good blame game — probably even better at it. Obama’s regime and Democrats have forgotten what a threat Russia is(has been) — if they ever knew.

However, Obama is as ill suited to correctly deal with Putin and the effects this will cause, as he has been all along. Obama cannot afford another hit on his credibility, while Putin is still riding high on popularity. If Putin seemed out of control before, he’s about to get more unpredictable. The forecast already was a 4.5% shrinkage next year in their economy.

Oil illusions and/or delusions – pt 2

(Part 2)
What is interesting is that for years we heard the Mid East production level adjustments, such as OPEC’s or Saudis’, had little to do with the price we were paying for refined goods. When we complained in general about high oil prices, we were told their decisions and production had really no effect on overall prices. We are always reminded that supply and demand are driving those prices. It’s the hidden hand of the economy.

But now we have a situation where Saudis are actively flooding the market with their oil to drive oil prices down, which makes it hard for others to do business. So are they now admitting Saudis’ production control has an effect on prices? Yes, they are. Flashback to all those times we were told it was only consumer demand, no foul. We were imagining things. Remember, they said the free market was setting those prices. Which is it?

Apparently, someone woke them up and told them the power they have over oil prices. Who let that out of the bag? Do you think it took them all these years to realize it? And took our domestic fracking ability and development to show them? Anyway, now they know the dirty little secret and are using it against us to curb our ability to produce.

Here is a newer article examining the issue that Saudis are at war with our domestic production. He compares this reaction to the subprime bubble, and presumably meltdown, as the perfect analogy.

As soon as oil’s price headed in the undesired direction in this highly leveraged market, the dreams evaporated, just as they did in the highly leveraged housing market. The debt of the most indebted producers, now losing money, is worth less than face value. Their creditors will eventually recognize losses. As previously noted, the one wrinkle is that so many producers are governments. They have not, in most cases, explicitly backed their debt with oil revenues, but they had assumed those revenues and based their future spending plans on them. Call it “soft” debt. — Robert Gore; straightlinelogic

Long ago I figured if Saudis’ had real fear about Iran, they could put pressure on the market and oil prices, which Iran is dependent on. This would have the effect of sanctions. Maybe this is what they did, or maybe they are only reacting to us? If we listen to these economists, Saudis are responding namely to us.

I admit having a bias that I prefer to buy gas below 3.00 to paying about 4.00 per/gallon. (or at 2.00) At 4.00 per/gallon, the fracking is more profitable. So am I supposed to be happy knowing they are producing and growing, and just pay 4 dollars and shut up?

I realize how much high prices affect the whole economy. So that works in favor of my bias for lower prices. Am I to say: our economy is sputtering and people can’t afford the high costs… but at least we are producing more oil, thank goodness? I’m not there yet.

On the other hand, should I worry prices will decline so far the market will collapse to where no drilling is profitable? Well, I already heard one person put it this way: ‘you have to produce something before it is consumed.’ IOW, oil must be profitable to be produced, so we can consume it — in all its forms. If it is not, we will not have it available.

But in that case, prices would go up due to lacking supply, per supply and demand.

Here is an interesting article about the scoreboard

Biggest Winners and Losers of International Oil Price Crash

By Isaac Arnsdorf Dec 4, 2014 | Bloomberg

Oil prices around the world have fallen more than 38 percent since the year’s high in June.

Among the winners are airlines, which are saving on fuel and not reducing fares for customers. Bank of America Corp. predicts earnings will gain 73 percent in 2015.

Saudi Arabia flexed its muscle at November’s OPEC meeting by overruling other members, showing that it’s still the dominant producer. The desert kingdom needs oil at $83.60 a barrel to balance its budget, according to the International Monetary Fund, but it’s got $736 billion in reserves.

Apollo Global Management LLC, the New York buyout firm run by billionaire Leon Black, announced the sale of shale driller Athlon Energy Inc. on Sept. 29 — before oil dropped 29 percent.

More on Bloomberg

See the list of winners and losers. Saudis need 83.60 and currently it is below that, though they have substantial revenues.(they should) Iran needs 117. And we know that OPEC members cheat on quotas anyway. They probably want to sell what they can even at a lower price. But I don’t see articles about the negative effects to them.

I know it’s a complex issue. Yes, lower prices are hurting the producers, like fracking and development. It is in Saudis interest that we decrease our production.I understand the price declines are undermining fracking. Hey, there’s an angle for the enviro-gurus. They should favor lower prices. Though judging market effects as either good or bad is tougher. And motives can be almost as hard.

[My past article]

RightRing | Bullright

Oil boom, doom and gloom

I have to take some disagreement with the general views in this piece.
So I’ll take some issue with it.

OPEC Messes With Texas

by Kristin Tate 28 Nov 2014 | Brietbart

It’s official: OPED has declared war on Texas gas and oil. During a meeting in Vienna yesterday, OPEC countries kept crude oil output targets unchanged. The policy is likely to cause trouble for U.S. oil production, much of which is conducted in Texas.

As to not lose market share to the American fracking boom, Saudi Arabia has inundated the U.S. with cheap oil. The intention is to push U.S. producers out of the market space.

Crude oil is currently selling for around $70 per barrel. At this rate, much U.S. drilling could become unprofitable. Leonid Fedun, oil tycoon and vice president of OAO Lukoil, said that some U.S.-based producers are at risk of becoming “victims of their own success,” according to Bloomberg News.

Fedun reportedly said, “In 2016, when OPEC completes this objective of cleaning up the American marginal market, the oil price will start growing again. The shale boom is on a par with the dot-com boom. The strong players will remain, the weak ones will vanish….The major strike is against the American market.”

Fracking helped transform Texas into an energy powerhouse. The process — which involves blasting water, sand, and other chemicals deep into the ground the bring up oil and gas — has allowed for cost-efficient oil extraction. Earlier this year, the Lone Star State was projected to produce 3.4 million barrels of oil by the end of 2014. If this threshold is met, Texas alone would likely outproduce every OPEC nation except for Saudi Arabia, the world’s cheapest oil producer.

To combat the competition posed by U.S. fracking, Saudi Arabia has flooded the market with cheap oil. So far they have been successful, wiping out “hundreds of billions of dollars in equity value from the market capitalization of U.S.-traded securities,” according to the Dallas Morning News. […\]

More: http://www.breitbart.com/Breitbart-Texas/2014/11/28/OPEC-Messes-With-Texas

Well, I don’t buy all that. As if lower prices hurt us not help us. The eye always has to be on the longer term. Not to be beholden to OPEC’s and Saudis’ agenda would be a good thing. We’ve been strictly reactionary too long.

Also break that down, the other people hurt by collapsing prices — which were over inflated to begin with — are Iran and Russia. Should we accommodate their wishes for higher prices? The market will drive costs down, with the right policy adjustments.

The expense of building our infrastructure was a big part of getting started. Now that is well under way. The cost curve in most things inevitably bends downward. But meanwhile, price reduction does break the bubble of conventional wisdom on oil — over the last six or so years. So those players are not happy.

I think it is a positive that OPEC has not cut production. Saudis know those high prices were helping Iran. I would hate to fall in line with the agenda of Russia and Iran.

If it is a “war”, let’s examine the other side’s motives for a minute. A war means that they, predominately socialist economies, are inflicting lower prices on us as a weapon. Do you remember price wars? Who benefits by those? So now we are worried about the lower prices of oil, because the prices of heating fuel oils are still high. Have you checked, too, the difference in prices between regular and upper grades of gas? I’ve seen 60 an 70 cents per/gal differences.High test is only where regular was months back. Since when are lowering prices a problem?

I’ve read elsewhere that at 65$ per/barrel fracking etc is still profitable. And Iran needs about 117 per/barrel to fund themselves.(part of which is their terrorism outreach) And the profit margin still appears to be there in the refined products.(crack spread [1]) Maybe its me, but I’d think our government poses a bigger threat to the industry(bottom line) than Saudis flooding us with cheap oil.

But the way it hurts those mostly socialistic economies is worse, in effect, than what we see here. The article mentions the mitigating factor, Texas is invested in much more than oil. Even in the Midwest there is a lot more to the economic story than oil prices. Contrast that with Mid East countries. They depend on oil revenue for everything. It pays their bills.

So who is hurting whom? Are we to believe they are intentionally hurting their own economies to spite themselves, just to make it harder on Texas, and the US, to carry out our policies? If they are, that is a competition(challenge) worth engaging in. We need to win in the end by not being hostage to their demands and desires. In the above thinking, I guess we owe a big thanks to Saudis and OPEC for propping up oil prices to help Texas, and develop our resources. In effect, that would mean we are cutting our throats by developing these resources. Thus, they want OPEC cuts and higher prices?

Note: “A crack spread measures the difference between the purchase price of crude oil and the selling price of finished products, such as gasoline and distillate fuel, that a refinery produces from the crude oil. Crack spreads are an indicator of the short-term profit margin of oil refineries because they compare the cost of the crude oil inputs to the wholesale, or spot, prices of the outputs (although they do not include other variable costs or any fixed costs). The 3:2:1 crack spread approximates the product yield at a typical U.S. refinery: for every three barrels of crude oil the refinery processes, it makes two barrels of gasoline and one barrel of distillate fuel.” –  eia.gov

RightRing | Bullright

What’s behind gas relief?

A broad question but Bloomberg diagnoses some reasons, starting with the Fed.

Crude Falls on Federal Reserve Stimulus Halt, U.S. Supply

By Mark Shenk Oct 30, 2014 | Bloomberg

West Texas Intermediate oil fell after the Federal Reserve ended its asset-purchase program and U.S. crude production surged to the highest level since the 1980s. Brent declined in London.

Futures slipped as much as 1.7 percent in New York. The dollar strengthened a second day against the euro after the Fed’s announcement, curbing the appeal of commodities priced in the U.S. currency as a store of value. U.S. crude supplies rose for a fourth week as output increased to 8.97 million barrels a day,

“Yesterday’s Fed announcement is pushing the dollar higher, which is putting selling pressure on commodities,” Gene McGillian, an analyst and broker at Tradition Energy in Stamford, Connecticut, said by phone. “The supply build yesterday may have been smaller than expected but it was still quite large. Ample supply and economic worry are going to continue to weigh on the market.”

WTI for December delivery dropped $1.05, or 1.3 percent, to $81.14 a barrel at 11:59 a.m. on the New York Mercantile Exchange.

Crude has collapsed into a bear market amid increasing global supplies as leading members of the Organization of Petroleum Exporting Countries resisted calls to cut production. Futures are down about 11 percent in October, set for the largest monthly loss since May 2012.

More Bloomberg

It’s only about time. We cannot have economic growth when oil is sucking up all the oxygen. Prices have been doubled since Obama took office. So the Fed is a reason. I guess we should have been blaming the Fed for the high prices, then.

The interesting thing is that Opec is holding production. Prices are bound to affect oil rich countries, especially Iran. Reuters 2012: “Tehran requires $117 [per barrel] to balance the books, according to the IMF”.

Here’s to hoping Obummer doesn’t do anything to stop the long-awaited correction. Was this supposed to be a pre-midterm surprise? I don’t know. The Opec statement hints at it.

Canada passes pipeline

Canada OKs oil pipeline to the Pacific Coast

TORONTO (AP) — Canada’s government on Tuesday approved a controversial pipeline proposal that would bring oil to the Pacific Coast for shipment to Asia, a major step in the country’s efforts to diversify its oil exports if it can overcome fierce opposition from environmental and aboriginal groups.

Approval for Enbridge’s Northern Gateway project was expected as Canada needs infrastructure in place to export its growing oil sands production. The project’s importance has only grown since the U.S. delayed a decision on TransCanada’s Keystone XL pipeline that would take oil from Alberta to the U.S. Gulf Coast.

The northern Alberta region has the world’s third largest oil reserves, with 170 billion barrels of proven reserves. Enbridge’s pipeline would transport 525,000 barrels of oil a day from Alberta’s oil sands to the Pacific to deliver oil to Asia, mainly energy-hungry China. About 220 large oil tankers a year would visit the Pacific coast town of Kitimat and opponents fear pipeline leaks and a potential tanker spill on the pristine Pacific coast.

Continue

While the US passes gas.

Rosie is off her meds again

American Overlook

VIDEO Just When You Thought She Couldn’t Get Any More Idiotic, Rosie O’Donnell Said This

Rosie O’Donnell, who is known for her conspiracy theories surrounding the tragic events of 9/11, voiced her opinion on the bombings on ISIS in Syria and what she said stunned the entire cast of The View.

In this clip of the popular morning show, O’Donnell says, “I can’t get out of my head that Syria has a lot of oil.” The group of hosts went silent following her statement.

She seems to think the U.S. has decided to enter Syria because of its’ oil, not the fact that ISIS has been murdering Americans on video while also threatening our country. Her theory is slightly outlandish.

O’Donnell goes on to say that she believes there is a financial agenda backing the ISIS bombings in Syria.

Is this a serious theory to consider? Probably not considering the same woman believes that Muslim terrorists weren’t responsible for the 9/11 tragedies.

So Rosie is on her oil kick. You know she didn’t think that up all by her lonesome. And a financial agenda in her conspiracy. Yep, she figured out Obama, finally. She apparently can’t get the voices out of her head.

Middle East Oil Power

In keeping with the energy oil theme, I found this article by Victor Hansen Davis:

http://www.nationalreview.com/article/347108/irrelevant-middle-east

An Irrelevant Middle East

Thanks to oil discoveries elsewhere, the region is losing its geostrategic clout.

Yet the Middle East is becoming irrelevant. The discovery of enormous new oil and gas reserves along with the use of new oil-recovery technology in North America and China is steadily curbing the demand for Middle Eastern oil. Soon, countries such as Kuwait, Saudi Arabia, and Iran are going to have less income and geostrategic clout. In both Iran and the Gulf, domestic demand is rising, while there is neither the technical know-how nor the water to master the new art of fracking to sustain exports.

In it, he talks about t the Middle East situation and the changing dynamics. Would anyone in the Middle East really take a second to realize the only reason we care anything at all about their cute little governments and relationships is the oil and dependency situation. Oh, and now for Israel too, who happens to live in a very troubling neighborhood. But its the oil that supplies them the money and power that fuels their influence.

But a new dawn is breaking. As Hanson points out, with the new technology and discoveries, it’s all too clear that the old situation is giving birth to a new one. One thing that has interested me for as long as the concerns of Iran have been at the fore, is the price of oil. Iran has admitted that it needs a price point of 117 a barrel to satisfy their demands. Whether this is by wish or necessity matters little. They have been fortunate enough in the last few years to benefit from oil prices and spikes.

Now as Victor suggests, with these new developments it could sort of “spread the wealth” around. Oil sheiks may not laugh it off as proudly as they once did. And more of their production is going to feed domestic demands than ever. So what to do if you are a rich oil sheik in say Saudi Arabia? Well, they might be looking for other lucrative businesses. As some of the oil money dries up, or they receive  less of a share than they’re used to, they will have less of those petro dollars to buy influence around the world. Their loss might well be our gain.

Back to the neighborhood. If they have less expendable world oil money, they become less of a problem for Israel. How you say, because their radical culture still exists? Well, the funny part is that with Israel’s discoveries it puts them higher on the totem pole than Arab sheiks. Call it a balancing. They can resent it all they want but it will not change that coming paradigm. And Israel, actually having a functioning burgeoning economy, will benefit all the way around while their economies based almost entirely on oil, and exporting jihad, may take a distant backseat to that real economy.

Off to see the wizard, the wonderful wizard of Obamaland

Barry started his term out on a rocky road. That is if you call playing golf with a couple of big-oil guys in Palm Springs while his minions are screaming for ending the Keystone pipeline outside the White House, “rocky”.

So his sycophant, low information voters weren’t too happy with that news. Oh well, welcome to the land of disenchantment with the rest of us. Do they want to compare outrage? I don’t think so. His magical mystery agenda will not solve our country’s problems, nor will the Kool Aid.

Everyone who uses oil or its byproducts has seen the price tag double since he came to office. But that matters not to the anti-energy tyrant or his little green friends with their war on energy. They scream for more inaction. “Can we have LESS, please?”

It is entirely contrary to the needs of the nation, but that’s okay to the Left. They’ll run their cars on mushrooms and algae or nothing. Meanwhile, everyone on the Left is quite content to pay double for their fuel, triple if they could have their way. And they would praise the results, as people go to the poorhouse for their agenda.

If people cannot afford to heat their homes or neglect their other necessities to pay for their fuel, it bothers the Left about as much as a flea on a grizzly bear. Whoops, sorry to bring those poor bears into a matter of politics. Well, it is politics. Does anyone in Obama’s land of make-believe really think this is about the environment, climate, or being stewards of our resources? Of course it isn’t. It’s politics, pure and simple.

That’s why, in my opinion, it was good to see all the green hypocrites and all their friends out demonstrating for what they believe in. Remember they “believed” in Obama too. It must make any used car salesman drool with envy that there are still that many suckers. Why worry about a sucker being born a minute when there are already that many of them out there, probably multiplying too…even if it’s by accident. It only shows how out of step they really are.

Isn’t it convenient for the left that the mantra “drill baby drill” has been replaced with pay baby pay? They are ecstatic about what that does to consumers forcing cuts in use and choices. That’s what they wanted and they got it. The next time Obama tries to twist the oil issue into an illogical pretzel, remember who is getting what they want.

The who by the way applies to Iran too. While they talk about the tough sanctions, Iran knows the one thing that hurts their economy drastically is low oil prices. They need or want the price of Brent around 117 /barrel. And they are near enough to their optimal price it doesn’t hurt them much. We, however, are hurting. The economy is still sputtering. Do you think the high cost of oil and energy has anything to do with it? Not if you are in their land of make-believe. (it might be a nice place to visit, but you sure wouldn’t want to live there.)

Bloomberg.com

The rally in crude prices earlier this month was driven by renewed optimism in economic growth rather than “hard demand data,” according to a report by Goldman Sachs Group Inc. Brent prices reached a 2013 high of $118.90 on Feb. 8.

“The current sell-off in oil is bringing prices more in line with the underlying fundamentals,” said the bank’s New York-based head of commodities research, Jeffrey Currie, in a report e-mailed today.

Price Outlook
WTI may fall next week after weak consumption boosted crude inventories, a separate Bloomberg News survey showed.

http://oilprice.com/Latest-Energy-News/World-News/Pollution-Laws-Threaten-to-Drop-Britain-into-an-Energy-Crisis.html

It sort of makes you curious what other solutions may lurk along their yellow brick road in Obamaland?

The Two-Step Economy

Tiptoe through the tulips with me.-(Tiny Tim)

 


All of lamestream zoomed in on the unemployment rate dropping below 8%. Media is hailing it everywhere as a solid sign the economy is getting better. (so it has less tumors than it had last month) Proof that its on the mend, so they say. Forget Obama’s failures which are not adding jobs or promise to this economy. I am no economist or scholar, but you don’t have to be to see some trends.

I’ve been watching the to and fro of this economic rollercoaster we’ve been on. How many times has the groundhog stuck his head out of the hole to call for an early spring? (Punxsutawney Phil would be delirious) Whenever there is moderately decent economic news, and wall street follows suit, they said we are on the “road to recovery”.

And there are certainly political reasons they want to wish it better. Contrary to what the lib-progs think, no one is hoping for doom and gloom. No one wants to talk it down. Don’t confuse warnings for wishful thinking. They don’t have to, if the recovery was real you would feel it.

However, there sure are people who want to talk it up. That is very evident. (Jack Welsh wasn’t entirely wrong) But they miss the point. Virtually every time I hear good economic news, I see the price of oil jump, gas and fuel follows. Its been doing that for a few years. I don’t think you need to validate it with a chart. It happens. We get no relief for the oil prices which doubled in Obama’s term. If we project it out, it could triple in his second term, if we see any economic growth. My guess is as good as anyone’s, since that is the direction its been heading based on good news, up.

So that tells me that the other shoe is bound to drop. Sure the Dow may rally on this bit of good news. But then the other shoe will slam to the ground. When it does, oil will shoot up again – call it another gusher. It does that as reality sets in to people that we aren’t “healed” yet and we do not have much to be “confident” about. As far as I can tell, it isn’t really a decent economy until people feel it. They can’t fool and fake people on that. (Hey Jed, let’s move to Beverly Hills…NOT)

Energy is sucking the life-blood out of the economy, but they will parade around the gusher saying we’re on the rebound with oil right in the middle of their celebration. ‘We are on the road forward, and don’t look back’, we hear. When it does shoot up, the economy takes a deep breath and seems to crawl back in its hole. That’s what I’ve seen in this term. There are plenty of reasons they can justify it with from the ME to China to closing coal supplies. There are a plethora of excuses they can make. But it will still have a negative effect on the economy.

So they can tout the below 8% record-breaking trend on unemployment. But there is always room for new record highs for oil. And there will be no shortage of the reasons for it.

Washington wish-mongers may be in denial but the rest of America is not. That is on top of inflation and prices of everything from food to clothing on the rise too. They should feel more like tiptoeing when shouting “recovery!”

High Gas Prices: an investigation

In-depth: The truth behind high pump prices

By Douglas J. Hagmann & Joe Hagmann

10 August 2012:
We’re seasoned investigators, so we have an inherent desire to dig for the truth. Experience and common sense has shown us that we should never rely on the “accepted” explanation for something when that explanation involves money or politics, and is repeated without challenge by the media. We don’t like liars and thieves, and will expose them whenever possible.

We wanted to get to the bottom of why we’re paying nearly $4.00 per gallon for gasoline at the pump. We wanted to know who or what is responsible for the current high price of gasoline? In addition to being a major economic burden for American families, it is also a national security issue, especially when our petrodollars are subsidizing Islamic terrorist activities.

The task to determine the truth was indeed a daunting one, not only because of the complexity of the issue but due to the facts being tightly wrapped inside various political and globalist agendas, “cooking the books” by using different reporting standards, and various other tangential issues. During our investigation, we even found two energy “analysts” using the same graph to arrive at opposite conclusions.

Nonetheless, we’ve conducted an extensive investigation in an effort to provide our readers with a concise and unbiased report that explains why we are suffering at the gasoline pumps. In the process, we’ve identified several significant lies that we are told to accept as the truth. [/…]

Read the whole report: http://www.homelandsecurityus.com/archives/6552


Its chilling that the explanations we keep hearing, repeatedly, do not touch the surface of it. And the sophistry in the blanket explanations do not cut it for many of us, they do not connect the dots. I thought it interesting how important the debasing of our currency has been, under the watchful eye of the fed, on oil and goods in general. But while many of us have been focusing our criticism domestically, isn’t it strange how no one wants to hear that? Yet we should just accept their specious reasons for high prices? This is only another part of the agenda of the powerful. But the powerful doesn’t mean the big evil oil companies. We had big oil companies when the prices were lower, by any comparison, so it is not unreasonable to look elsewhere.

And there are a lot of other explanations.

What should bother anyone is the way our tax dollars subsidize bio-fuels and alternatives while also paying the higher prices at the pump. Every time I see Obama or one of his cronies talking up their “energy policies” I want to scream, “would he ever want to tell us the truth about anything?” Only if it were aligned with his perpetual political agenda — which is basically one big lie anyway.

Oil War

In recent weeks we have seen the price of oil come down. Saudi Arabia has boosted production to levels of 1990. The Saudi oil minister in May said oil was over priced and thought Brent should be around 100 a barrel. And with economies here and in Europe feeling pain, along with the talk in the election heated up about oil and energy costs, Saudi is pushing for lower prices. Obama has been taking a beating for gas prices.  When have they made such bold statements and stands?

Usually we get vague comments from them like the mantra that markets control prices and they have little influence. I.e. ‘talk to someone that cares’.

What is it good for?

 Far from the positive relief it offers US consumers, there is another effect in the Mid East. It is putting strain on Iran. According to reports they need 117 dollar a barrel to balance the books. Naturally, they are one of the loudest protesting the production increases. Too bad, they need high levels to balance the books.  For years we were told Saudi’s and OPEC can’t help with high prices. And Saudi production has always been so secretive. Now they are boasting and advocating increases.

Let’s see how long before Obama boasts about lower oil/gas prices, calling it a stimulus for the economy. Too bad he won’t take any credit for the current economic or energy conditions. His so-called “all the above” strategy really means ‘some of the above’.

Referrence:

http://www.reuters.com/article/2012/06/01/opec-saudi-oil-idUSL5E8H17X020120601
 http://www.sfgate.com/cgi-bin/article.cgi?f=/g/a/2012/06/01/bloomberg_articlesM4XH7X1A74E901-M4XRA.DTL
 http://www.bloomberg.com/news/2012-05-10/saudi-oil-minister-naimi-to-visit-australia-may-11-spa-says-1-.html
http://factcheck.org/2012/06/obamas-truth-team-wrong-on-gop-donor/