Get Ready for the Oil-Price Drop

Yep.... that’s where this is ultimately headed. When we threw Saddam out we should have colonized Iraq.

Yes, and the Dems are going to keep it high because it feeds in to their ‘it’s the economy, stupid’ autumn campaign.

I have suspected the same thing. For the Democrats, everything is wrapped up in winning the 2008 election...and I think they will it. But, the current situation (high oil prices, high food prices, and rising unemployment) is getting worse. I have a feeling that the Dems will take over in 2009 and then things will really start to snowball. They will have a hard time balancing a needed increase in oil production with their rabinous enviro-whacko base and will probably fail to turn things around. It could be that 2010 could be a big year for the GOP.

The only problem with that scenario is that the American people will be greatly harmed by the events that will ensue between now and 2010.

I don’t think you can blame, solely , Kyoto. This looks more like margin traders with low interest rate gone wild to me.

Margin traders could be whipsawed if oil producers hit the "Go" button on more oil production. But unfortunately they haven't built that capacity for that additional production...and the traders know that.

True.

It hasn't happened

What hasn't happened?

President Bush has been warning about this for 8 years and they defeated every sensible energy plan he proposed.

Yah think?????

Notice this from just a couple of weeks ago:

Bush administration bars drilling in Arctic wetland

Monday, May 19, 2008 7:21:51 AM · by thackney · 30 replies · 448+ views
Reuters ^ | May 16, 2008 | Yereth Rosen

ANCHORAGE, Alaska (Reuters) - The Bush administration on Friday proposed keeping potentially oil-rich wetlands in Arctic Alaska off-limits to drilling because of their ecological sensitivity, a reversal of its earlier plan. The Bureau of Land Management proposed a 10-year leasing moratorium for 430,000 acres of wetlands north and east of vast Teshekpuk Lake in the National Petroleum Reserve-Alaska. Environmentalists and local groups hailed the decision. "This plan provides a balanced approach to energy development and wildlife protection, and forms a solid basis for the Bureau of Land Management to proceed with an oil and gas lease sale later this year,"...

There are plenty of villains in BOTH parties. The Pubbies controlled the House from 94 to 06, the Senate from 01 to 06 and the White House from 01, and they have done very little. This 'crisis' has been impending since Nixon was president. It wasn't something that just grew overnight.

I noticed that.And then what do you think about it?

Now people are predicting $200 a barrel the Cato institute is saying they are foolish.

I predict $900 a barrel oil. Anybody who disagrees is foolish. Right?

Not one mention of China. It was all focused on the USA.

The rest of the whole Free World has cut back over the last year while China and India have made large increases to keep demand rising sharply.

Of course, it will eventually peak, but the price will remain high. OPEC will simply cut production if World demand lowers as they have repeatedly done in the past.

We also heard in previous price spikes in the 70s and 80s that oil would just keep going up.

Thats not how I read it.

“This looks more like margin traders with low interest rate gone wild to me.”

Bingo. The Fed is loaning record amounts of money to banks at interest rates that are way too low given the risk environment. Since the Fed is now assuming all investment risk, why not keep bidding up oil futures?

It’s the old “double-up” strategy for gambling - if you keep doubling your bets, whether you win or lose, eventually you’ll end up making money (theoretically, and given an unlimited wager limit). This strategy actually does work quite well when you have a stooge (The Federal Reserve) taking the risk (and cost) for the losing bets, and the speculators taking all the profits for the winning bets.

Americans don’t realize that their tax money is indirectly being used to raise the price of oil. Boy, would they be pissed if they knew.

Any links to the analysts prediction of $150/barrel oil?
I’d like to read it.

Elections have consequences.

We can only blame the American people for not paying enough attention to what is really going on. They need a good lesson in just that.

Maybe now they will learn and start to keep an eye on the outcome of their ignorant and lazy tendencies.

Two record jumps just after the obama confirmation.

You noticed that too eh?

Regardless of how high the price of a barrel of oil goes, gasoline consumption in this country is going to go down. People are already opting for automobiles that get better mileage, and alternatives to using the car. I find myself thinking before I go somewhere, “Is this trip really necessary?”

It’s all fuzzy, but I guess it’s safe... I have no idea what you are talking about.

Bush administration bars drilling in Arctic wetland