THE NEW YORK TIMES' OILY MISREPRESENTATIONS

Various ^ | JULY 3, 2008 | GENE LALOR

[Gene Lalor]

THE NEW YORK TIMES AND OIL SUPPLY TRUTH July 3rd, 2008 The New York Times, long a bastion of pessimistic liberalism, which is redundant, was peddling its negative petroleum wares and scares soon after 9/11: http://query.nytimes.com/gst/fullpage.html?res=9401E2DC123FF937A25753C1A9679C8B63&sec=&spon=&pagewanted=4. The Times has never retracted its fearmongering view that the only recourse for America’s oil woes is to curb our insatiable lust for oil, in effect to cut back on our industrial production and lifestyle, to conserve ourselves into Third World status since there just ain’t no more oil to be had because of our limited “proven reserves.” That’s poppycock.

Whether the Commissioner of the U.S. Patent office ever said in 1899 that, “Everything that can be invented has been invented,” the sentiment nevertheless is aptly applied to that NYT article which reflects the narrow point of view of that former “Paper of Record.” It’s tantamount to believing that if you can’t see something then it isn’t there, such as available petroleum resources.

Granted, that story was published before the cost of oil hit the stratosphere on its way to the mesosphere. However, it still ignored the facts of unproven but far from unavailable oil reserves.

In 2006, the grand poobah of the world’s largest oil company, Saudi Aramco, said:

‘We are looking at more than four and a half trillion barrels of potentially recoverable oil. That number translates into 140 years of oil at current rates of consumption, or to put it anther way, the world has only consumed about 18 percent of its conventional oil potential. That fact alone should discredit the argument that peak oil is imminent and put our minds at ease concerning future petrol supplies.’ ” (http://www.radford.edu/~wkovarik/oil/. ) That article concludes with the admonition that...

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[Zevonismymuse]

However, it still ignored the facts of unproven but far from unavailable oil reserves.

My husband is an automation guy for a major energy company. His father retired from Getty Oil. My father was an accountant for Standard Oil. I cannot tell you how frustrating it has been to listen to all the misinformation from the MSM over the past generation.

In one way I am happy about the high gas prices because this is a problem that has long needed fixing. We finally have everyone's attention.

[alloysteel]

My private theory (for what it’s worth) - the runup in the futures prices for oil delivery, for oil that has not been removed from the ground yet, is the work of a large consortium of trading companies, which in fact are all mere shells, a name for a listing as a commodities trader, and which actually exist only on paper, a scheme made notorious by the example of Enron. All this multitude of traders are in fact front companies for Soros International, trying to corner the market by endless frequent trading, each bidding higher and higher. This is a serious dynamic problem, but augmented by the reality that all oil is fungible. Output is roughly equal to consumption, so in a realistic assessment of the market, prices should be about stable.

In the end, the bubble in prices will burst, and huge losses shall be sustained by all these shell companies, but the differences will be made up by the resources of the Soros International organization, which has the advantage over Enron, in that they are better capitalized, and can draw upon more foreign reserves as needed. If nothing else, they can do a little manipulation of currency of some third world country, and get a little short-term cash flow to preserve their positions and liquidity.

The question is in the timing of the bust. If oil prices remain high, reflected in gasoline prices, and the campaign, so far successful, to tie the high prices to the Bush Administration sorks as planned, the Republicans will be perceived as the “cause” of the skyrocketing energy costs. But if the prices break too soon, before the election in November, not only does the Soros International organization get hosed (and rightly so), the precipitious drop in oil prices would HELP the Republican cause, even though not an extra drop of oil would be put in the pipeline by that time.

Since this is being done on a global scale, much of the oversight is beyond the scope of the US Justice Department, and the UN does not have any equivalent agency or authority. Most smaller or less vigorous countries simply do not have the means to either investigate or prosecute the daily fraud that is sustaining these totally unrealistic oil futures.

But there has to be some internal functions by other traders outside the Soros International organization, or their affiliates, that is tracking and documenting these manipulations.

What the Soros organization may do, however, is quietly stick a number of less sophisticated futures traders, those representing pension funds and the like who are attracted to the apparent short-term returns, but end up absorbing the huge losses that are coming.

[Gene Lalor]

I’d believe ANYTHING about Soros!