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Wednesday, August 13, 2008
Terry Jeffrey :: Townhall.com Columnist
A Crude October Surprise
by Terry Jeffrey
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Republicans may be planning a crude surprise for Democrats this October. I mean crude in the sense that it will involve unrefined petroleum.

Since the House recessed earlier this month, Republicans have been demanding that Speaker Nancy Pelosi call it back into special session to vote on whether to allow new offshore oil-drilling.

The Republicans know Pelosi won't do that. So, what do they really want?

Let's start with some sense of the oil resources America could develop if Congress would allow it.

In 2006, the Interior Department estimated that about 85.9 billion barrels of "undiscovered technically recoverable" oil sits offshore on the Outer Continental Shelf within U.S. territory.

In 2007, the Energy Department's "Task Force on Strategic Unconventional Fuels" reported that: "America's oil shale resource exceeds 2 trillion barrels, including about 1.5 trillion barrels of oil equivalent in high quality shales concentrated in the Green River Formation in Colorado, Utah and Wyoming. ... Depending on technology and economics, as much as 800 billion barrels of oil equivalent could be recoverable from oil shale resources yielding (more than) 25 gallons per ton."

This combined 885.9 billion barrels of recoverable oil that the government estimates lies undeveloped within U.S. territory is almost three and a half times as much as the 260 billion barrels in proven oil reserves that lie under Saudi territory.

America is an oil-rich country.

Since 1982, however, each year's Interior appropriation has included language forbidding Interior from selling oil-drilling leases in about 85 percent of the acreage comprising the U.S. Outer Continental Shelf. (In July, President Bush lifted an executive order -- originally imposed by his father -- that essentially duplicated this congressional moratorium.)

Since this fiscal year, the Interior appropriation has also included a moratorium, sponsored by Rep. Mark Udall, D-Colo., that forbids Interior from issuing final regulations governing the sale of leases to develop oil shale lands. This effectively stops leases from being sold.

Because these moratoria are part of an appropriations bill that runs for only one fiscal year, they also run for one year. If not renewed by Sept. 30, they expire.

Unless Congress enacts a new law banning offshore leases and oil-shale leases, Interior can legally start selling these leases on Oct. 1.

This fact was not lost on House Minority Whip Roy Blunt, R-Mo., when I interviewed him on Aug. 7. I asked him if President Bush should veto any bill that includes a moratorium.

"My view is that the president should just take the position right now that these moratoriums will end on September the 30th and the Democrats have to be responsible for putting them back in," said Blunt.

"Well, the Democrats wouldn't be responsible, congressman," I said. "With all due respect, President Bush would have to sign the moratorium into law for it to exist."

"And I don't think he should do that," said Blunt.

"So, if a bill passes Congress that has that moratorium, your belief is President Bush, your advice to him is: Mr. President, veto that bill?" I asked.

"That's right," said Blunt. "And my advice to him today would be to start the process up right now for what we do on Oct. 1 when this moratorium is ended and move forward assuming that there will be no moratorium after September the 30th."

"You would tell him to instruct those people in the Interior Department, who are responsible for administering these leases for the offshore oil and the shale oil, to begin the process of getting ready so that on Oct. 1 he can sell a lease?" I asked.

"I would," said Blunt.

"And you would go ahead and sell those leases? You would say: 'Let's do it. Let's move ahead'?" I asked.

"Well, after Oct. 1 when there is no moratorium," said Blunt. "The studies are there. The resource is there. We know you can safely go after it. The American people are hurting. We need to do whatever is necessary."

The Democrats would likely attempt to pre-empt such a strategy by using the traditional method Congress uses for ramming through legislation that cannot stand on its own: They will roll almost all fiscal 2009 appropriations into one monstrous continuing resolution and attach to that monstrosity the offshore oil and shale oil moratoria.

They will say to President Bush: If you want to develop U.S. oil resources, you must first shut down most of the U.S. government. You must be willing to face a massive national controversy over oil drilling and government spending.

President Bush might balk at that. For conservatives, it's a two-fer.

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Terence P. Jeffrey is the editor-in-chief of CNSNews

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Nancy Will Make Sure Nothing Gets Done
Nancy is feeling the pressure, so she HAS to make it look like she's trying to work to get something done, but trust her to make sure nothing gets done. Some little technicality, or unreasonable provisions, pork, etc.

Nancy is too beholden to the environmentalist crowd to actually let us use more Evil Oil, especially since she actually sees herself as the self-appointed Savior of the planet. Nancy may call herself a Catholic sometimes, but she worships daily at the altar of Mother Earff.

Bush
should veto any bill that has the moratorium in it. Let the government shut down just like Pelosi shut down the congress.

I, A GOVERNMENT EMPLOYEE
at the time, was completely in favor of the shutdown that occurred during the Clinton presidency! And I certainly would approve of another shutdown over oil. Bush can redeem himself for his miserable failure to save Social Security by privatizing it.

I think this is a dandy idea...
they don't appear to be getting any work done anyway...can we dock their pay for failing to keep the government running?

Time for a reality check...
Yes there is a lot of oil on the continental shelfs, but as for oil shale? Hate to break your bubble, but getting it out is not easy. We are approaching when it might be economically feasible to do so on a large scale, but given the high costs we are not there yet. Plus evinviromentally it would require a massive strip mining effort to bring such oil to marked.

We probably have a better shot turning coal reserves into oil than we do mining oil shale. Plus there are lots of Canadian tar sands that could be exploited first.

moventure
Bureaucrats like you are the main problem in this country. Government employees don't add anything to our prosperity except obstacles to free enterprise.

Mystified
Perhaps the government should compel us all to photosynthesize by taking most of our agricultural land out of production and refusing to let us build new food-processing plants. That would make no less sense than our current energy policy -- if you want to dignify stupidity with a high-sounding name. Of course, anyone who had disrupted the food supply this badly would have been strung up long ago.

Shut Government Down?
Bush 41 didn’t have the balls to shut down the government in a disagreement with the congress. While Clueless Ross was the reason for his defeat by Clinton in 1992, Bush could possibly have survived that split vote if he had shown greater strength of character.

I suspect Bush 43 might tell congress to take a hike. What a remarkable event that would be. He has failed to address our energy needs for almost all his 8 years in office. In the final months of his administration he might get us started in the right direction.

His is not the only failure in this matter. From the days of 20% interest Jimmy, we have enjoyed a constant failure of our government to wean our economy off cheap foreign oil. We are paying for that failure today. I hope our only pain is at the pump.

Shut er down
What has the President got to lose? Close the doors, shut off the lights, turn off the heat and let them stew until they can do what they ought to do.

And as for the guy who said WE have Canadian tar sands -- news flash: Canada is a soverign country and right now the socialists are attempting to force the area where these tar sands are to SHARE (i.e. they are planning to CONFISCATE) the profits made from these tar sands by imposing huge royalties and taxes for the benefit of Quebec and Ontario, but mostly Quebec. The sad fact of the matter is that Alberta has a huge reserve of cash on which to run their province, and they are ruled by conservatives, and that tar sand will not be developed if their profits will be stolen.

Shut er down. That is what they have done. That is what President Bush should do too.

I think it might get
shut down in Nov. in the form of a democrat butt whipping.
75% of the American people want to drill for OUR oil and also to build new nuke plants and refinaries which Mccain advocates....this brings thousands of jobs.
Obama wants to do nothing except ensure our tires are inflated and pelosi, reid and their minions are playing politics protecting him from having to vote on it while the rest of us go broke payiong for gas that went past 4 bucks on their watch.

Only a complete fool would vote for obama when Putin is attacking Georgia and the Ukraine may be next. Obama is so far out of his element on foreign policy it is ridiculous, what's he going to do. "organize" him?

Of course since obama has this commie alinsky and the other commie from Hawaii as soulmates, he and putin might actually get along pretty well, birds of a feather and all that, but it doesn't bode well for America.

When the folks wake up after labor day, it's McCain and a republican congress.

OIL Shale
Oil Shale was profitable when oil was around $50 - $60 a barrel, now at $115 it is obviously very profitable. There is new technology that avoids stripping the land. It is some type of steam extraction that allows the shale to melt and be recovered as a liquid.

Oil Shale
The Oil shale industry has always told Western Coloradoans that the pollution would reduce the visability to 15 miles in the areas that they industrialize there. Well that is a real negative thing because on a clear day you can see at least 150-200 miles. We need to go nuclear. That is a win for western Colorado because then we can open open up the uranium mines again with a full scale nuclear program of course the nuclear waste has to go to New Jersey or Pensylvania.

Bush and Energy
It's not fair to say that Bush has failed to address our energy needs. He has put forth at least two major comprehensive energy plans that included increasing domestic production and opening ANWR. The Dems got enough weenie Republicans to shoot it down. There was also no outcry form any major right wing media.

I guess it didn't make as good a topic as Illegal Mexicans or Dubois Ports.

NINBY
A little different than NIMBY -- not in Nancy's back yard Kalifornia. The Demos want more than ordinary drilling and it will be an October surprise. Drilling is a huge weapon for the Repubs but they will be thwarted by Demos offering more in the package than drilling. If Jorge Bush vetoes the legislation it will on the Repub's head that drilling will not get done. If he vetoes, he will be responsible for no drilling and shutting down the govmint, the savior for us all.

Democrat Playbook
The Democrats have demonstrated time and again that they are untrustworthy with their compromises. They will always find a way, or rationalize to weasel out of their end of any deal on energy. Case in point is Pinky Reid's refusal to bring judicial nominees to a vote after promising otherwise. Let's take a page from the Democrat playbook and when an oil drilling moratorium amendment is brought up for a vote, it is loudly declared to be "Dead on Arrival."

Shale Oil Extraction
How about useing solar furniace to super heat CO2 gas to inject into targeted shale bed.
A twofer, sequester CO2 and not disturb the surface geology.

DAR.FL.

Why Not
Why not explore the possiblities of expanding the off drilling sites. it doesn't like to me that the environment is going to be effected by what we do but our wallets sure are (leather or not) but yet we see all this politicians GOP or donkeys drive around with their 50 "SUV" convoys from city to city. Can't anyone see what the hell the oil prices have done to the whole economy a a whole. Look the unemployment, housing crisis, and the banking closures as well as the weeked dollar. All due to the oil price qauging as well and the deomcrats fighting each other on what "not" to doinstead of what to do. It's very simple; vote in the GOP as our next Prez.

Dumb question
If the Saudi's have 260 billion barrels plus the rest of the ME, Russia, Mexico, North Sea and Venezuela controlling energy, and with China & India leading a third world explosion what in the h@#1 is our alternative energy going to do but cost us more money? A lot more money.

I am sick of this pack of libs trying to drive the rest of us into the poor house with their rich dreams of Nirvana.

Yes, John
and vote out dim and rino reps. All of them. Even if they haven't bought into the leftists they sure aren't standing up to them either.

What is the greater risk?
If you ignore the din and prattle of the environmental idiots just long enough to allow yourself to pay attention to the rest of the story, you might realize that we face a far greater risk from the immediate interruption of our oil supply than we do from a few caribou not getting serviced.

You can spout your optimism regarding bringing wind, solar and electric cars online but even the experts will admit that it will take longer to bring these new technologies fully online than it will to bring domestic oil to the market.

In case you missed it, Russia just invaded Georgia and by so doing, threatens to control both the oil and its delivery systems in Europe. If you want to see what happens short term if oil is suddenly cut off, just keep your eye on Europe and especially Eastern Europe.

The bottom line is that "Oil is Power." Right now that power is concentrated in a hostile Middle East and an equally hostile Russia. (Did I mention Venezuela)? So which risk do you want to face while we invent hybrid roller skates? Environmentalist freaks or an empowered Russia and their Middle East sycophants?

Bush and Any Oil Related Bill
I hate to rain on anyone's parade, but George Bush does not have the cajones to follow this advice regarding the leasing of potential oil deposits come Oct. 1. He has shown numerous times in the past that he will cave in at the last moment. Remember, he went to the 6 year mark of his Presidency before vetoing a single bill from Congress. He has threatened vetos, but has caved in at the last moment. That is precisely what he would do regarding the strategy suggested in this column. He has not had the cajones to go to the mat with the Dems over the failure of Congress to confirm his judicial nominations. After all, he was more concerned with seeing the Olympics in China than in staying home and recalling Congress to deal with the oil price issue. He has not even responded publicly to the Dems calls to release oil from the Strategic Petroleum Reserve. Bush does not have the stomach for a down and dirty fight to the end with the Dems.

Audi @ 7:19
I would argue that Alberta's ruling conservative party are CINOs. Have a look at the governmental spending rate over the last 10 years, and at the regulatory regime. Alberta's petrobucks allow a lot of governmental growth, but we're close to the tipping point.

Ironically, this is just as Saskatchewan is tiring of being the socialist poor-boys and starting to open up their resources. Oilsands and uranium, anyone?

Why do you guys keep falling for this???
Our oil/gas prices have NOTHING to do with drilling or supply and demand!!! It's all on the speculators!!!!

Yesterday the IEA announced that oil consumption for the first half of the year dropped by the highest level in 26 years!! Americans used over 800,000 barrels less than what we did last year. At the same time supplies went up by 100,000 barrels.

However, the price still INCREASED by over 30%, irrespective of these basic economic factors. That's exactly why additional supply (drilling) won't be worth a hill of beans until we get rid of the speculators.

These guys are allowed to ignore all of the facts before them and "speculate" the rest of us into a recession.

Why do you guys keep falling for this? Are you not paying attention? Drilling will only work if we follow supply/demand; which isn't the case now. If we get back to supply/demand, drilling will lower the price. Until then, it doesn't matter how much we drill if the speculators control the pricing.

Please wake up. It's costing us our country.

Tick...Tick...Tick
It's only 83 days until the November Election.

I want all possible domestic oil resources opened to free market development until gasoline is at $1.00 per gallon or less.

I can't wait to get into that voting booth and vote against Democrats that oppose increased domestic exploration, drilling, and refining and to vote for the Republicans that are for it.




How the Dems will win on energy
It isn't hard to fathom. Put unlimited exploration in the bill; the bait. Eliminate ethanol subsidies, open the market for Brazilian ethanol, massive subsidies for T. Boone's blowin the the wind extravaganza, and universal health care; the poison.
When the republicans choke the dems can say the repubs really don't want to fix the energy situation.
C'mon folks. This is an old game they always play and always win. Even the repubs know it is going to play out like this. It is their cover, they know it and they look forward to it. It satisfies all the constituencies that all that could be done was done but the other team played dirty so we lost.
Look, even the Senate repubs are trying to sink this ship before it even leaves the dock. It is all electioneering and you folks go for the red meat every time.

COMMON SENSE
Common sense suggests there isn't a valid reason why we should continue to participate in global markets for commondities - stapes of livelihood. There is no reason to allow oil companies to export America's national resources which will continue this process of mimicking the USSR economic destruction of the '80's. I doubt the USA will break apart, but we could lose substantial world influence.

Anyone who believes we should continue down this path enjoys higher and higher inflation and unemployment. To approve more chinese-economic-stimulus packages is asking for more of the same. This white house and congress has sold the American people down the river. This is a return to the time organized crime controlled much of what happens in this country. A vote for democrats or moderate republicans is a stamp of approval for what is happening now. Pork spending and gov't bailout of defunct enterprises has contributed to our plight. I'm actually relieved Iraq want us out now, so when we leave, we should give them a charge that if required to return militarily, Iraq will be rubbled from high above or far away and then the USA is acquire their naturaly resources as reimbursement - some of which to go to every family who have lost someone in these ill-conducted wars.

RAM
Who is falling for what?
The speculators can only bid up the price of a commodity if there are those out there willing to pay that price -and- ALL the speculators insist on the higher price.
If there is just one speculator who will sell at a lower price, all the others stand to lose big time if they insist on keeping their prices high.
So I suppose you think the reason for the recent drop in prices is because all the speculators--like Pelosi et all--shut down operations and went on vacation.

Bush veto
It would be great if it happened. It would really throw the socialists a bomb if on Halloween gas was at $2/gallon or less.

Independent...
The american public is falling for all of the "new drilling" mess and not paying attention to the actual supply/demand figures.

You're right. It takes "two to tangle". I believe they are all in collusion. If they band together, they'll all make out like bandits...and they have.

However, I just believe that they shouldn't be allowed to control such a critical piece of our economy and play their little games in the first place.

They are able to corner the market by buying on foreign exchanges w/o supply limits. Since they control the market, they can charge what they please. They have a monopoly so they'll always have a buyer. The oil companies will pay and relay the increase to us. However, they're very slow to drop gas prices although oil is going down. They make tons of cash when the price goes up.

Manipulators are controling the market. Let's keep this between the user and the seller. That way, supply and demand will determine the price of goods.

The recent drop is only a small measure. They've made most of their money. A new administration is coming. Regardless of who wins, they won't be as friendly as GWB. They know they'd better do something or regulation will be coming.

Again, the pricing doesn't adhere to supply and demand. Demand is WAAAY down. Supplies are steady. They cannot continue to rape us without recourse for much longer.

Don't buy into the marginal decrease in prices. It's all slight of hand. They take prices from $2.20/gal to $4.50/gal then bring it down to $3.75 and we're supposed to cheer them on? Screw that!!!!

R.A.M. and oil usage
The price of oil on the market is determined by WORLD WIDE supply and Demand. So if America cuts consumption as RAM stated in his 11:40 post that decrease in demand was countered by an increase in foreign demand (Mostly China, and India).

Further I agree that oil Speculation is a LARGE component in prices but that is based on oil FUTURES. So the speculators are gambling on many factors such as WAR with Iran. As the talk of bombing Iran went up so did Oil Prices. As the talk of opening up drilling here seemed more likely to happen prices dropped.
There are many factors that influence futures markets and sometimes a rise in the market itself will cause further rises. For example the dot com bubble of the late 90s where stock prices going up triggered other people to buy those stocks. Same with oil, oil price goes up so speculators pile on until the bubble burst.

Regardless of price though, it is in our NATIONAL INTEREST to Tap into our own oil (along with developing alternative energy)and be less dependent on foreign sources.
Tinsldr2@yahoo.com

R.A.M.
The oil is the most open market commodity in the world. There are pockets of control, like within the borders of closed economies like Venezuela, where the government artificially suppresses the price of oil to placate the masses. Also, there are small remote enclaves like Enid, OK, where the cost of transport from OKC insulates the market allowing artificially high prices. But I can assure you that whatever data you are looking at to support your thesis is either skewed, taken out of context or inaccurate. We need to understand that recovering or even the future recovery of this vast reserve of oil will lower the price of fuel and tilt insentive away from alternatives. Good for the wheels of US industry, bad for the other oil producers.

This is the Plan!
Russia is trying to eliminate one of its biggest competitors in Europe for oil production. The answer to Russia has to be firm and our actions should be towards not only being independent from foreign oil, but also in being able to take advantage of supplying oil to other countries. Why not? Where is our enterprising spirit? Let's supply enough energy in all its forms to undermine OPEC, Russia, and Venezuela. Let's stop giving our money away to support terrorism, which is probably exactly what these enemy nations are doing with the multi-billions that we are paying them. And let's not only DRILL NOW, but also develop all other sources including oil shale, nuclear power, hydrogen, solar, wind, natural gas -- everything. Let's turn the table on our enemies by becoming the biggest, meanest, and most powerful supplier of energy in the world! Let's get the do-nothing Democrats out of office and get this done.

Tinsldr2...Not necessarily true
The EIA tracks usage/consumption/supply for the U.S. and the rest of the world. Take a look at the numbers. They may stagger you. They actually pissed me off. It's obvious that supply/demand is not being followed and we're getting screwed.

Yes, the speculators are considering China's and India's usage. But, it's their PROJECTED usage, not current usage. Those countries may actually use that volume in the future. But, they're not using it now. But, we have to pay today for what India/China MAY do in the future. Heck, we may be using different technology by then. But, they don't use that for their "speculation".

Speaking of the futures market; yes, the oil is sold for future delivery. But, we again get screwed in the price. Hear me out. Anyone that's in business and has done their own pricing can see what's going on here.

If oil goes up today, gas will go up today. However, the oil they used to produce today's gas could have been less expensive. But, they'll charge us according to today's market. They simply keep the difference. However, we never see the benefit of this principle in its reverse. If the price for oil went down, we'll still pay the higher price. This method prevents them from ever taking a loss and ensures that we'll always pay the highest price.

They get to operate in ways that is clearly not available for others businesses. If the rest of us did business this way, our competitors would take our customer or we'll be regulated out of business. They're a monopolistic industry with a friendly administration. So, they're not subject to either possibility.

Andy,
My numbers come directly from the Energy Information Association (EIA). I don't think that you can get a more reliable source.

http://tonto.eia.doe.gov/dnav/pet/pet_sum_sndw_dcus_nus_w.h tm

Now, I don't rely on anyone to tell me what those numbers mean. I look at them and make my own determination based on my years in business and my knowledge of basic economic principles.

If you can look at these numbers and still tell me why we are paying record prices even though demand is way down and supplies are steady or increasing, I'd love to hear your explanation.

I'm all for drilling. But, we cannot be naive about the impact it would have unless we get the manipulators out of the market.

Tinsldr2....one more point
I agree that it is in our national interest to regain control over our enery sources. But, this also means removing the speculators. They surely control our energy and therefore our economy.

These oil speculators been very successful in negatively impacting almost every other industry in our country. The airlines and trucking industry has been hammered because of gas prices.

If we still get screwed at the end of the day, what difference does it make who is screwing us?

Does is feel better or worse that an American company is raping us?

R.A.M.
Your ignorance and arrogance about the the futures market is breath taking. Most of our energy problems can be traced to having too many politicians in power with your arrogant attitude in believing they are smarter than the market in determining the “fair” price of oil. What is wrong with knowing the price required to balance the bets that oil will go up in price vs. down? At least when speculators bet wrong, they suffer consequences. You need to wake up and start holding our politicians accountable for their mistakes. The speculators are just being the honest messenger about the real cartel (A.K.A. the U.S. Congress) that is manipulating oil prices higher by depressing the available supply. We don’t need your type of meddling in the markets. If we shoot the messensger, then we will just drive the speculation off shore. The dirty little secret is that the Liberals like the higher oil prices. When Obama had the chance to condemn high gas prices, his response was wishing the increases would have happened more gradually.

Thumper
Why do we need "messengers"? The seller itself will provide the "message" through his price. Why does supply and demand take a back seat to what these folks say?

I've been in sales/business for years. Like every other industry, I believe that the market itself should determine the price, not speculators who profit from our pain through domination of the market and price increases.

The politicians are to blame for allowing additional elements into the market through loopholes in the laws. They are also to blame for not being honest about the fact that they've also brought in record tax revenue because of the high prices.

It's funny that you didn't combat ANY of my points/facts. You never addressed the supply/demand arguments. You just came back with a rhetorical defense of the speculators as "messengers". Yeah, right.

Clearly they're more "profiteers" than "prophets".

$9 billion for a nuke power plant...
...may be accurate(expanding our Vogtle plant is as ridiculously expensive), but it's ridiculous and unnecessary. We could get 3 Nimitz class carriers(6 reactors in 3 90,000+ ton ships that can move at 35 knots) for that, and the Navy cuts no corners on nuke safety. I know there are differences, but they aren't THAT great. Nuke powerplants could be substantially cheaper.


I wonder how much of those billions for nuke powerplants these days ends up in the accounts of lawyers?

RAM and Numbers
RAM thanks for the source data numbers, very interesting and I book marked it.
However, the numbers for our first quarter as reported on your link for US consumption go from an average of 20.70 Million barrels per day avg for 2007 to a 2008 first quarter of 19.88 Mil barrels per day.

But the World wide market shows an INCREASE of usage from a 2007 avg of 85.54 to a first qtr 2008 85.69 Now that is not a significant increase but it shows that other markets are expanding consumption at a greater rate then US markets combined.

Again, there is a lot that goes in to any futures speculation from FLA Orange Juice to OIL.

The end result in my opinion is the same. We need to become energy independent regardless of price. However, to think that the almost doubling of world wide oil availability will have little impact on price is naive.

My opinions. tinsldr2@yahoo.com



Stephen in UT
Are you like me and want to fill out a sexual assault report everytime you fill up? Collusion has now krept in $3.999/gal in 7 out of 8 stations in my town.

A comprehensive energy plan covering everything energy except incentives for food based alternatives. My congressman is in the back pocket of the company trying to import nuclear waste from other countries - I would hope the Utah Republican Party would open their eyes to the fact and cut off his funding! We need a new breed of patriotic, USA first congress members. BHO will be a big step in the WRONG direction if a recovery is wanted. If people cast votes for that narcissistic freak, they will think of it as a step forward, but will receive 8 steps back - into the Carter years.

Tinsldr2
Understood on consumption by other countries. But, does that minimal increase in usage justify the 150% increase that we've seen over the last 3 years?

I agree that future markets are nothing new. I was in the commodity business for a while and used to pay very close attention to weather patterns and other factors.

However, the oil industry charges for usage that's 10-15 years down the line! We're paying the increased cost NOW. That's BS! No other industry does that.

I agree that we have to become independent. But, this also applies to the speculators. We cannot allow outside parties to manipulate our economy to the point where major industries are threatened.

Just follow the money
and see why drilling is being opposed.......

"As reported on dontgomovement.com, Speaker Pelosi bought between $50,000 and $100,000 worth of stock in Pickens' CLNE Corp. in May 2007 on the day of the initial public offering:

"She, and other investors, stand to gain a substantial return on their investment if gasoline prices stay high"

Any questions?

"No free Government can stand without virtue in the people and a lofty spirit of patriotism; and if the sordid feelings of mere selfishness shall usurp the place which ought to be filled by public spirit, the legislation of Congress will soon be converted into a scramble for personal and sectional advantages."
ANDREW JACKSON

Demand and speculation
There has been nothing in demand increase or the fundamentals that drive futures pricing that would rationally support the increase at the pump in the last eight years. Gas was near a buck a gallon then. It's near four now. Who is going to stand there and tell me that today demand has increased four-fold? Who is going to stand there and tell me that supply has dropped four-fold? Or some combination thereof? No one has made such a wild assertion who is in the business. Who is going to stand there and tell me that the unsteadiness of the major oil producing nations is any different today than it was in '00?
Oh, and Andy @ 1:09 you said this, "The oil is the most open market commodity in the world." That is just nuts, man. OPEC, just to name one flies in the face of that statement. Even the United States keeps a tight lid on supplies. China and Venezuela subsidize heavily. I would have picked gold but certainly never oil. You might have meant something like saying oil is heavily traded. Now that I would agree with. But "open market"? Like free market? Not by a longshot.

para_dimz
Here is a good link I heard Newt Gingrich talk about on TV with respect to futures markets

http://www.nber.org/feldstein/wsj07012008.html

When global demand gets too close to or past global supply the price skyrockets.

Shut down the Gov? PLEASE!
I wonder why people thought it was a "fiasco" when "non-essential" Government Employees were told to stay home.

If they are "non-essential", fire their butts! I'm tired of paying for their handsome salaries and generous benefit packages just do they can tell me what I can't do!

ModMark: "just politics", 8:32am
"So now we all blame Pelosi."

No, we applaud her -- for staying out of the way when the moratorium is excluded from bills affecting the next fiscal year.

Drill here. Drill now.

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