Posted on 07/15/2008 2:44:18 PM PDT by rob777
In a dramatic move yesterday President Bush removed the executive-branch moratorium on offshore drilling. Today, at a news conference, Bush repeated his new position, and slammed the Democratic Congress for not removing the congressional moratorium on the Outer Continental Shelf and elsewhere. Crude-oil futures for August delivery plunged $9.26, or 6.3 percent, almost immediately as Bush was speaking, bringing the barrel price down to $136.
Now isn’t this interesting?
Democrats keep saying that it will take 10 years or longer to produce oil from the offshore areas. And they say that oil prices won’t decline for at least that long. And they, along with Obama and McCain, bash so-called oil speculators. And today we had a real-world example as to why they are wrong. All of them. Reid, Pelosi, Obama, McCain — all of them.
Traders took a look at a feisty and aggressive George Bush and started selling the market well before a single new drop of oil has been lifted. What does this tell us? Well, if Congress moves to seal the deal, oil prices will probably keep on falling. That’s the way traders work. They discount the future. Psychology and expectations can turn on a dime.
The congressional ban on offshore drilling expires September 30, so that becomes a key date. A new report from Wall Street research house Sanford C. Bernstein says that California actually could start producing new oil within one year if the moratorium were lifted. The California oil is under shallow water and already has been explored. Drilling platforms have been in place since before the moratorium. They’re talking about 10 billion barrels worth off the coast of California.
There’s also a “gang of 10” in the Senate, five Republicans and five Democrats, that is trying to work a compromise deal on lifting the moratorium. So it’s possible a lot of action on this front could occur much sooner than people seem to think.
So I repeat: Drill, drill, drill. Deregulate, decontrol, and unleash the American energy industry. Those hated traders will then keep selling oil as the laws of supply and demand and free markets keep working.
Bravo for Bush. Bravo for the traders.
Drill, you bastards!!
Well, goes to show that world commodity markets and the stock market react to world events. The markets react to statements by leaders urging new policies, because judgements are made about the effects of new policies. Judgements are made about the chances of these new policies going into effect. All of these things affect the futures markets because they are trying to make an investment for the future, taking into account all the information that they have. And one piece of information is the growing movement to move towards more drilling and more production.
A "what he said" bump!
Coincidence? Yeah sure.
Drilling would again show the world that we are still the America they forgot about.
YES WE CAN!
Oil prices drop by $9 a barrel [or more]
The voters might see that there is more than a coincidence.
Let’s be honest here... it was the Fed Chiefs sober economic outlook for the coming year that caused oil to drop. Market players saw diminished demand ahead.
How to sell drilling to a liberal:
“Drilling for our own oil reduces our national security interests in the Middle East and averts these unnecessary wars.”
“Drilling for our own oil reduces the emmissions of all that fuel burned to bring oil to America from the Middle East.”
“Drilling for our own oil brings in more tax dollars and tax paying citizens to the united states to fund Health Care for every warm body in the 57 states of America.”
Go ahead. Give it a shot. It is logic they relate to.
I told the guys at work, “If Bush came out and said that the domestic oil was already being pumped out and was heading to the refineries, we’d be seeing dollar-a-gallon gas within about five minutes.”
They didn’t believe me.
Looks like I won the bet.
You are right, of course. And the MSM will trumpet this all week long!
http://money.cnn.com/2008/07/15/markets/oil/index.htm?postversion=2008071516
Biggest oil price drop in 17 years
Crude falls $6.45 a barrel - 2nd largest price drop in dollar terms - as Fed chief indicates inflation and high fuel prices will cut into U.S. demand for oil.
NEW YORK (CNNMoney.com) — Oil prices plummeted by the second-largest margin on record Tuesday as investors feared a further decline in U.S. demand after hearing comments from Federal Reserve Chairman Ben Bernanke.
Gasoline went up another dime/gal here today.
DRILL OFF SHORE....DRILL NOW!!
One thing the democrats won’t tell you is that it will take 20+ years to develop alternatives. We need to do it all and cut the middle east off. From what I have heard is that our oil is easier to refine and less expensive.
I hope Bush calls a prime time talk with the American people...Yeah, I know the networks will boycott it to shut it down.
But some news will get out and the heat will be turned up.
In a way, I hope the Dems hold on to their no drill position. If they do that and the Republicans grow a pair and pound the message from now until the election...hell, there will be a huge rout of Dems being defeated.
If ever the iron was hot to get the drill ban lifted, it is NOW!!!
Get rid of the obstructionist DemocRATS and oil is back to
$60-70 per barrel.
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