SWFLSkins Posted December 28, 2010 Share Posted December 28, 2010 With the economy seemingly stablizing it is time to capitalize and profit for big oil again at the expense of the recovery, as if the recovery is real. ---------------------------------------------- Investment banks including J.P. Morgan and Morgan Stanley see a return to $100-per-barrel oil in 2011. Prices might be down this week, but "the market is really getting limber for a sprint come January," said Tom Kloza, publisher and chief oil analyst at Oil Price Information Service. http://www.nbc-2.com/Global/story.asp?S=13743063 ___________________________________ http://money.cnn.com/2010/12/27/markets/oil_commodities/index.htm NEW YORK (CNNMoney.com) -- The former president of Shell Oil, John Hofmeister, says Americans could be paying $5 for a gallon of gasoline by 2012. In an interview with Platt's Energy Week television, Hofmeister predicted gasoline prices will spike as the global demand for oil increases. 1916Email Print Comment"I'm predicting actually the worst outcome over the next two years which takes us to 2012 with higher gasoline prices," he said. Link to comment Share on other sites More sharing options...
Popeman38 Posted December 28, 2010 Share Posted December 28, 2010 With the economy seemingly stablizing it is time to capitalize and profit for big oil again at the expense of the recovery, as if the recovery is real.And you blame big oil? Why don't you start a thread damning the Chinese and Indians for upping their demand 200% over the last 10 years? Why don't you start a thread blaming the Dems for being in the pocket of big oil? Or does that argument only work when the Reps are in office? The number one priority of business is making money. "Big oil" is a big business. What do you think should happen to prices when demand is continuing to increase while supply is somewhat stagnant/shrinking? Link to comment Share on other sites More sharing options...
SWFLSkins Posted December 28, 2010 Author Share Posted December 28, 2010 And you blame big oil? Why don't you start a thread damning the Chinese and Indians for upping their demand 200% over the last 10 years? Why don't you start a thread blaming the Dems for being in the pocket of big oil? Or does that argument only work when the Reps are in office? The number one priority of business is making money. "Big oil" is a big business. What do you think should happen to prices when demand is continuing to increase while supply is somewhat stagnant/shrinking? Supply is only shrinking as a result of market manipulation by decresing the supply. Do you remember how this recession started? The housing prices reaching levels unaffordable? It started with oil prices affecting all prices, everything from materials to build to groceries to eat. Buddy I don't care what party you prefer, they both suck. They both are run by big businesses of one kind or another. Wake up. The future of America demands it. Link to comment Share on other sites More sharing options...
HighOnHendrix Posted December 28, 2010 Share Posted December 28, 2010 They have been predicting this for so long that it's turned into a boy-who-cried-wolf kind of thing. Dire predictions rarely come true. After all, I'm not underwater yet. Link to comment Share on other sites More sharing options...
HOF44 Posted December 28, 2010 Share Posted December 28, 2010 I don't care what party you prefer, they both suck. They both are run by big businesses of one kind or another. Wake up. The future of America demands it. Pretty much, we're becoming a Corporate Oligarchy. Link to comment Share on other sites More sharing options...
SWFLSkins Posted December 28, 2010 Author Share Posted December 28, 2010 They have been predicting this for so long that it's turned into a boy-who-cried-wolf kind of thing. Dire predictions rarely come true. After all, I'm not underwater yet. Lucky you, and I am with you counting my blessings, but I know plenty of people who are in dire straights. Our area has been destroyed by oil one way or the other, sure it will come back, but some people will never fully or even partially recover. But hey screw them right, I'm all good. pfft. Afterall it is the American way, or is that just what were being told? Link to comment Share on other sites More sharing options...
HighOnHendrix Posted December 28, 2010 Share Posted December 28, 2010 Lucky you, and I am with you counting my blessings, but I know plenty of people who are in dire straights. Our area has been destroyed by oil one way or the other, sure it will come back, but some people will never fully or even partially recover. But hey screw them right, I'm all good. pfft. Afterall it is the American way, or is that just what were being told? That's not what I meant. I was making a global warming end of the world we're all gonna die reference. Some threats are real, some imagined, and some exaggerated. $5 gas is possible, sure. But it has been for years and hasn't happened. I'm numb to it, really. If it happens, it'll suck but we'll all adjust. As for the rest, I'm skeptical but no economist so I guess I don't have an opinion. Link to comment Share on other sites More sharing options...
SWFLSkins Posted December 28, 2010 Author Share Posted December 28, 2010 For every .10c in increase that is 7 million out of the local economy, granted I don't know where they get these numbers, but this can't help us grow a recovery. As for the global warming, I think that the earth will survive us, afterall it's history is a little longer. And yeah some of the estimates are extreme and there is not a thing I could do about it if they are right or wrong. But for Big Oil to again be in profit taking mode is unacceptable, there is no reason for $4. + gas. Keep it higher and keep the usage reasonable and profits level. But what is happening is market speculation at the expense of an already stressed economy. Again, IMO. Link to comment Share on other sites More sharing options...
Prosperity Posted December 28, 2010 Share Posted December 28, 2010 Pretty much, we're becoming a Corporate Oligarchy. becoming? We've been there corporations and unions, no one else has the unity or the money to consistently influence the government I doubt gas prices are a result of that though... time to man up and buy a Prius I suppose Link to comment Share on other sites More sharing options...
Kilmer17 Posted December 28, 2010 Share Posted December 28, 2010 Haliburtonhaliburtonhaliburtonhaliburtonhaliburtonhaliburtonhaliburtonhaliburton!!!!!!!!!!!!!!! Link to comment Share on other sites More sharing options...
SWFLSkins Posted December 28, 2010 Author Share Posted December 28, 2010 Haliburtonhaliburtonhaliburtonhaliburtonhaliburtonhaliburtonhaliburtonhaliburton!!!!!!!!!!!!!!! They are about to pull a JetBlue. Link to comment Share on other sites More sharing options...
ABQCOWBOY Posted December 28, 2010 Share Posted December 28, 2010 Our purchasing power is not as strong as it used to be. Other currencies are more valuable. Because of this, Oil Producing Nations are not as inclined to take and hold our money. Only part of the oil industry is oil. The other part is trading currency. Essentially, because other countries have more value attached to their currency, it is more valuable of OPEC nations to hold those countries currencies. The U.S. Dollar is devalued to some extent. We are no longer preferred, as it were. We don't buy at discounted levels and allocations don't go to the U.S. Now we buy like everybody else and that basically means that we are charged more because we are buying surplus oil that is more in demand on the world market. In the past, we had oil set aside that we bought cheaper. Now, we are competing for that oil with other countries. This is what happens when you have a weak dollar and your economy is not consider among the strongest in the World. Link to comment Share on other sites More sharing options...
SWFLSkins Posted December 28, 2010 Author Share Posted December 28, 2010 Our purchasing power is not as strong as it used to be. Other currencies are more valuable. Because of this, Oil Producing Nations are not as inclined to take and hold our money. Only part of the oil industry is oil. The other part is trading currency. Essentially, because other countries have more value attached to their currency, it is more valuable of OPEC nations to hold those countries currencies. The U.S. Dollar is devalued to some extent. We are no longer preferred, as it were. We don't buy at discounted levels and allocations don't go to the U.S. Now we buy like everybody else and that basically means that we are charged more because we are buying surplus oil that is more in demand on the world market. In the past, we had oil set aside that we bought cheaper. Now, we are competing for that oil with other countries. This is what happens when you have a weak dollar and your economy is not consider among the strongest in the World. And whom do you suppose that benefits the most? OPEC and the Corporations that set the supply reaps the reward again, and without the political complications of the past. Thanks for laying that out though, I fully agree, though I think that was well planned for in advance. Link to comment Share on other sites More sharing options...
ABQCOWBOY Posted December 28, 2010 Share Posted December 28, 2010 And whom do you suppose that benefits the most? OPEC and the Corporations that set the supply reaps the reward again, and without the political complications of the past. Thanks for laying that out though, I fully agree, though I think that was well planned for in advance. It's OPEC. Not really large American Corporations, if that is what you meant by "Corporations", I don't know. American Entities pay what they pay. Wall Street makes money on it but not really the large Oil Corps. Futures holders will make money on it so those who invest in that kind of thing make money. It is what it is. We are no longer preferred customers. We are now one among the many fighting for what is left after the preferred buyers get hold of their oil. We don't buy direct anymore. We now are part of the commodity market buying market and supply and demand absolutely drives prices in that market. It's a bad deal for sure. When the Dollar is strong and our economy is highly rated, this is not an issue. We get price breaks. Unfortunately, we no longer get that. It's like credit ratings. If you have excellent credit and lots of buying power, you pay less. If you have crappy credit and are to extended, you pay more. Link to comment Share on other sites More sharing options...
Hubbs Posted December 28, 2010 Share Posted December 28, 2010 Supply is only shrinking as a result of market manipulation by decresing the supply. Do you remember how this recession started? The housing prices reaching levels unaffordable? It started with oil prices affecting all prices, everything from materials to build to groceries to eat. Buddy I don't care what party you prefer, they both suck. They both are run by big businesses of one kind or another. Wake up. The future of America demands it. That's... really, really not how the recession started. In fact, it's pretty much the exact opposite. The housing bubble fanned the flames of higher oil prices. Link to comment Share on other sites More sharing options...
SWFLSkins Posted December 28, 2010 Author Share Posted December 28, 2010 That's... really, really not how the recession started. In fact, it's pretty much the exact opposite. The housing bubble fanned the flames of higher oil prices. Funny Hubbs, I am in that business and I specifically remember the materials being hit with fuel surcharges and suppliers bumping prices before the bubble actually hit the all time high. So I would have to go ahead and disagree here. ---------- Post added December-28th-2010 at 01:17 PM ---------- It's OPEC. Not really large American Corporations, if that is what you meant by "Corporations", I don't know. American Entities pay what they pay. Wall Street makes money on it but not really the large Oil Corps. Futures holders will make money on it so those who invest in that kind of thing make money. It is what it is. We are no longer preferred customers. We are now one among the many fighting for what is left after the preferred buyers get hold of their oil. We don't buy direct anymore. We now are part of the commodity market buying market and supply and demand absolutely drives prices in that market. It's a bad deal for sure. When the Dollar is strong and our economy is highly rated, this is not an issue. We get price breaks. Unfortunately, we no longer get that. It's like credit ratings. If you have excellent credit and lots of buying power, you pay less. If you have crappy credit and are to extended, you pay more. American Corporations? I don't compute. Global Corporations with Global investment firms with investors working the tables at the market sounds more like it. Link to comment Share on other sites More sharing options...
AsburySkinsFan Posted December 28, 2010 Share Posted December 28, 2010 When you're bent over the barrel it shouldn't come as a surprise when someone takes advantage of your situation. Link to comment Share on other sites More sharing options...
twa Posted December 28, 2010 Share Posted December 28, 2010 I though higher prices for carbon based energy was a good thing? Link to comment Share on other sites More sharing options...
SWFLSkins Posted December 28, 2010 Author Share Posted December 28, 2010 I though higher prices for carbon based energy was a good thing? Yeah but my solar energy car drives slower than I walk. Link to comment Share on other sites More sharing options...
twa Posted December 28, 2010 Share Posted December 28, 2010 Walking is healthier and will reduce the obesity epidemic Link to comment Share on other sites More sharing options...
Hubbs Posted December 28, 2010 Share Posted December 28, 2010 Funny Hubbs, I am in that business and I specifically remember the materials being hit with fuel surcharges and suppliers bumping prices before the bubble actually hit the all time high. So I would have to go ahead and disagree here. Funny SWF, I'm actually in the business of economics and I specifically know that exactly zero economists claim that surging oil prices caused the housing bubble, while exactly 100% of economists recognize that the price of oil collapsed as global demand cratered due to the world's bubblenomics falling apart. Now, exactly why the bubblenomics fell apart can be debated, but you're quite literally the only person I've ever seen try to claim that the recession "started" with oil prices affecting all prices. Link to comment Share on other sites More sharing options...
twa Posted December 28, 2010 Share Posted December 28, 2010 If ya need oil you could try ok-ing drilling and refining it A radical concept that almost all developed nation utilize Link to comment Share on other sites More sharing options...
deejaydana Posted December 28, 2010 Share Posted December 28, 2010 Finite supply + China & India ramping up their market economies + slide in dollar's global power + self-imposed moratorium on domestic drilling + increased independence on foreign petroleum = $5 per gallon. It really is that simple. Hope you didn't buy a Hummer in the past couple years. Link to comment Share on other sites More sharing options...
DieselPwr44 Posted December 28, 2010 Share Posted December 28, 2010 If ya need oil you could try ok-ing drilling and refining itA radical concept that almost all developed nation utilize +1 Everyone wants cheap gas but wants to handcuff the oil industry when it comes to making it. $5 a gallon?? Guess any trips north to the inlaws will becomes a once every three years deal instead of 3 times a year. And forget any chance of an economic recovery. There will be no economy. Link to comment Share on other sites More sharing options...
Kosher Ham Posted December 28, 2010 Share Posted December 28, 2010 To think when I was a kid gas was easily less than a dollar. Now it has gone to 3 and soon to be 5. 5 dollar gas will cripple the economy in it's present state. It is pathetic that we rely on oil so much. Link to comment Share on other sites More sharing options...
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