Bachmanns $2 gas, what if Obama promises $1 gas?

OK..good.. I misunderstood..

Bachman is a socialist at heart..

 

^^^^---This is someone with some thick blinders on. Correction, crude had dropped to $39 a barrel by the time Obama became POTUS, down from $140 a barrel. This was the resualt of Bush saying he was opening up more drilling and the stock market tanking.

Laws of supply and demand, since Obama has been in, he has decreased supply and raised demand.

http://www.forbes.com/2008/05/13/oil-prices-1861-today-real-vs-nominal_flash2.html

January 16, 2009 $36.51

http://www.nyse.tv/crude-oil-price-history.htm

 

A big part of it is unregulated speculation on the market. Oil speculation by multibioon dollar hedgefunds add 40 to 60% to the cost of a barrel of crude.

 

Hahahaha... it had nothing to do with speculators dumping funds into safe havens during the crash like treasuries and such.... YOU calling me blind hahahaha!!!

Any new drilling takes at least 7 years to come fully into production.. and then its sold on the world market.. where it becomes such a miniscule addition to the supply of crude it hardly makes a difference... you fool.. you fell for the "american oil" line like a blind sheep... There is world oil..... What makes you think that Chevron or Exxon will sell their oil to the U.S customers for pennies on the dollar when they could sell it for mega profits on the world market... whata tool lol.

 

Do you know who owns the Oil Companies?


Exploration and production is strictly about ROI.

 

Sorry, I was getting the stats while you were posting.

There is only one reason for it to take 7 years to get the oil out, that is the time it takes to get around all the regulations, regulations that Obama has increased.

 

Ok .. this is how it goes.... speculators are people who bet on future prices of a commodity. through unregulated leveraged derivatives they buy hundreds of billions of dollars of oil future contracts with ten billion dollars. When you have exxon , Goldman Sachs .. citigroup.. Bershire hathaway ETC joining forces to buy future supplies of oil it drives the price of crude up as if there were a shortage of supply. These oil futures are traded bought and sold ten times before the oil ever hits the market driving up the price of oil about 50% before it even leaves the ground.

OPEC countries can get oil out of the ground for about 15 dollars a barrel.. U.S shale oil is about 25 dollars a barrel, .. it is speculated to 80 to 130 dollars a barrel.

 

Yes.. safety regs have been completely reorganized to hold companies accountable.. BP was farming their compliance and audit all over the world... but then they have always been a real sloppy oil company.

 

You post the price of crude without investigating the cause.. If you notice the charts and evidence you posted.. you will see that oil prices skyrocketed in 2000 and have been very volitile ever since.. never dropping signifcantly in price unless there was a severe market anomoly.. like a bubble burst market.. recession.. stock market crash.

Obama cant regulate oil prices.. unless he can force speculation regulation laws to be reenacted.. he wont do that though.. for the same reason Bush administration did away with regulation... they are bought and paid for by big oil.. from congress to the senate.

 

Yes, and since they had over 100x more safety violations then the next person, Obama should have regulations on what he can be able to sign, since he was the last person to renue their lease.

 

Well.. no.. My brother worked on the safety regs back in March.

BP has been poor since the 1960s .. and they farmed out their safety compliance all over the place to muddle accountability.

 

You mean like when it was reported that Obama was releasing 30 billion barrels from our emergency reserve? The prices dropped till everyone realized that 30 billion was for the world and not just the US. Allowing more drilling in oil and more production, which Obama has control over, will get the prices to go down.

 

I wasn't saying they had ever been perfect, or good, I was just saying that everyone else was complying with regulation but BP. Why did everyone else have to stop drilling in the Gulf because Obama allowed BP to keep drilling?

 

Obama can allow all he wants.. for oil majors its still about ROI and market demand.

They cut their own throats if they produce too much.

 

YES!!!!! exactly like that!!! the price went down because it created a very short term disruption in the supply of oil.. it created a supply of oil that wasnt accounted for yet.. making speculation impossible for about 2 hours.

Do you know who immediately bought all that oil up and stored in tankers offshore? Koch Bros.. J.P morgan bank.. Goldman sachs... these guys laughes all the way the bank.. they watched prices tank for about 6 hours bought all the oil futures low and simply wait for the price to go back up. Good point.

 

Exactly.. they can drill and drill.. when the price goes down .. they simply cap wells. The sweet part is that they drill and drill and it costs them next to nothing because exploration is subsized by the government... its a no lose game for them.

 

They didn't stop.. there are 4500 offshore rigs in the Gulf of Mexico..

The only thing that stopped was deep water drilling.. and that moratoreum has been lifted.

The issue at this point is that safety regs will add another $5 a barrel.

 

Thats not true at all..

Open your eyes. You show an interest in protecting your country by showing interest and anger at the results of corruption... dig a bit deeper than the headlines and spin.. find out who the real enemy is. Obama is just a figurehead.. a focal point.

 

Good point.

 

Yes.. oil companies have always capped wells.. A reserve is an economic measurement dependent on flow rates, quality. ease of refining and market demands.

WHO is "subsidizing" exploration?

 

This off wiki.. it is easily fact checked.. I posted it because it is the most concise article I could find on short notice.

 

OK I understand.. I am more familiar with the ME than domestic production.

Thanks... It appears to be an incentive towards domestic production.

Without it .. can you IMAGINE what US lift costs would be?????

 

A relative drop in the bucket for most mega conglomerate oil companies profits. Exxon.. Chevron have already stated that they are not dependant on subsidies anymore.. they are a relic of when oil futures were regulated. Subsidies are now just a bonus from the government.. a handout. Its akin to a person who worked a low paying job still claiming EIC on thier tax return after winning the lotto.

Large oil companies don’t need tax subsidies when oil prices are high, a former CEO of Shell Oil said Thursday.