Posted on 03/29/2009 6:06:33 AM PDT by Entrepreneur
How Goldman Sachs was at the center of the oil trading fiasco that bankrupted pipeline giant Semgroup.
When oil prices spiked last summer to $147 a barrel, the biggest corporate casualty was oil pipeline giant Semgroup Holdings, a $14 billion (sales) private firm in Tulsa, Okla. It had racked up $2.4 billion in trading losses betting that oil prices would go down, including $290 million in accounts personally managed by then chief executive Thomas Kivisto. Its short positions amounted to the equivalent of 20% of the nation's crude oil inventories. With the credit crunch eliminating any hope of meeting a $500 million margin call, Semgroup filed for bankruptcy on July 22.
But now some of the people involved in cleaning up the financial mess are suggesting that Semgroup's collapse was more than just bad judgment and worse timing. There is evidence of a malevolent hand at work: oil price manipulation by traders orchestrating a short squeeze to push up the price of West Texas Intermediate crude to the point that it would generate fatal losses in Semgroup's accounts.
"What transpired at Semgroup was no less than a $500 billion fraud on the people of the world," says John Catsimatidis, the billionaire grocer turned oil refiner who is attempting to reorganize Semgroup in bankruptcy court. The $500 billion is how much the world would have overpaid for crude had a successful scam pushed up oil prices by $50 a barrel for 100 days.
(Excerpt) Read more at forbes.com ...
The whole oil futures market smelled funny. there never was justification in the real world for $147. Clearly manipulated. Of course it is all set-up to happen again in the next year - thanks to the “President”. Demand has kept them from pushing this Spring but they scam artists are waiting in the wings.
D'uh, that's what happens when you GAMBLE.
You may win, you may lose. Semgroup lost.
If you can't handle the losses, don't place the bet!
It seems like there should be more dupes than Semgroup, but this sure does fit the pattern of the run up. Gotta love those pieces of anatomy at Goldman.
bookmark for later - thanks for posting.
They've already ripped off Americans for a load and are set to continue ripping us off for years to come if they get their way.
They are the biggest promoters of "carbon credit" trading, because they stand to make a killing trading the fraudulent paper.
They got billions of our money laundered to them through the AIG "bailout" courtesy of ex-CEO Henry Paulson - money that we will never see paid back.
Goldman was one of the biggest pushers of the so-called "toxic assets." Except at the same time they were pushing these now infamous real estate instruments on their clients, they were shorting them on the backend and made billions in the process. Blankfeild alone walked away with around $100 million in 2007.
Goldman Sachs is a nothing more than a legally sanctioned mafia organization run by theives. The only reason why they're not bankrupt now is because they bought our politicians.
I forget the Freeper’s name, but he called out GS for oil manipulation more than 6 months ago here on FR.
It wasn’t just oil, it was everything. Everyone was playing games and most everyone was making a profit.
Also, isn’t 500 billion the same amount that was the devious secret amount that was instrumental in September that changed the tide of the election?
Goldman Sachs is the focus of evil in the modern world.
My father worked on Wall St. for decades (now retired). When the first Paulson plan came out he termed it the "Goldman Sachs Global Domination Bill". He said its clear purpose was to eliminate Lehman, Bear Stearns and the major banks as competitors with GS, leaving only themselves and Morgan Stanley. Looks like my dad was pretty spot on with his 9/18/08 prediction.
Money changers...figuring out how to take money by producing nothing.
So far as I am concerned you can lump in NYMEX with GS. I see no good reason for futures trading. It seems to be only a mechanism for mischief. Does it moderate prices, stabilize prices or provide a necessary transaction clearing house? No, I don’t think so. In 1985 I copied the article from the “Oil and Gas Journal” about trial heating oil futures trading and attached it with a memo to my crew. In that memo I told them to mark this date as it will be the beginning of the end of the energy industry as you know it. Volatility like you have never seen will become the order of the day...we became true price takers and our ability to forecast the investment market disappeared. We became just like farmers.
Almost all of us in the energy business knew prices were too high last year and believe it or not, we didn’t like it. Things got way out of hand. For example, the cost to haul cement to a well was more than the cost of the cement.
FreeRepublic is blessed with some of the most well read and practical people I have ever encountered.
But ... but ... the free traders ASSURED us that oil was a free-market commodity, and that its price fluctuations were simply the results of natural market forces.
Ref: NPA/01-1/SAP/09 From: Engr.Louis Nkulunkulu (NPA) E-mail: louisnkulunkulu484@gmail.com Phone: 00-27-73-808-77-22 Attn: My Dear, My message is to introduce you to this highly prospective crude oil sale venture. What do I mean? I propose that we become partners in a crude oil sales project under the umbrella of the National Petroleum Agency of Sao Tome and Principe, Johannesburg Liaison Office. In this project, we will register either your company or a joint company with the local Corporate Affairs Commission operational board unit of the Petroleum Agency; re-assign an already allocated crude oil sale license to the company and act as representative of the Petroleum Agency in selling of crude oil to the end buyers. With my network in the agency, I have assisted a company base in Oman, Middle East and operated by Mr. Ahmed Syed to secure a crude oil sale license allocation in 2005. This license allocation is for the sale of 120 Million Barrels of Bonny Light Crude Oil [BLCO] for a total period of 5 years. The license allows him to sale a maximum of 2 Million barrels of BLCO per Transaction/shipment. Mr. Ahmed Syed could not actualize his dream in this project as he could not find buyers whom will buy the crude from his allocation on a normal "Free on Board” and did not have the financial strength to sale on a Cost, Insurance & Freight [CIF] sales transaction. In the normal FOB sales transaction, the crude oil buyers arrive normally at the loading port of the seller with their own vessel to buy the crude while the seller has to buy or hire a vessel to deliver the crude to the end buyers in a CIF sales transaction. Mr. Ahmed Syed was unfortunately struck by stroke, which made him to be incapable of involving in active business. My proposal entails packaging you as the crude oil sales license beneficiary to Mr. Ahmed Syed, We would re-assign the sale license earlier given to Mr. Ahmed to your/our company's name. This will give us the mandate of the agency legal authority to act as their crude oil sales agents/representative. The re-assignment of the crude oil sale license allocation to your/our Company will give us the privilege to operate as first lifters/sellers of crude oil from the block. This attracts a US$2.00 discount per barrel. This $2.00 discount per barrel is our commissions from the agency. Example: The prize of the product per barrel is presently $120.00. We will receive the product from the agency at $118.00 per barrel and sell to the end buyers on the normal market prize of $120.00 per barrel thereby making a commission of $2.00 per each barrel of crude sold to the end buyers. Also being able to get final buyers entitles us also to a US$1.00 discount from the discount given to the end buyer as "mandates". As we are going to be selling a maximum of 2 million barrels per month from the block, US$2.00 discount from local petroleum agency sums up to US$4 million per month. And US$1.00 discount from the end buyer comes to US$2 million per month. This totals to US$6 million gross coming to our group per transaction/per month. On equity sharing ration, both of us will be netting in a cool US$6 Million as profits monthly. This proceeds known, as commissions will be shared Equally on equity between the both of us at the end of every sales operation month. This implies that shall both go home with US$3 Million each. As a staff of the agency, I am not officially allowed to operate a crude oil sales license or engage in any personal profit oriented crude oil deal under the same agency were I work. This is why I seek a partner whom I can assist to secure the license and work as a facilitating partner in arranging for all the sales transaction between the agency and the end buyers and also ensure that the commissions from the sales is paid out to my partner in due time. These commissions we will share equally as equity partners. My obligations as the facilitating partner is to work from underground to make sure that the license is transferred to your company's name, make sure that all the 2 million barrels is completely sold to the end buyers and also ensure that our commissions is directed to your/our company's banking co-ordinates as the license holder. This project is highly prospective and presently the most legitimate money making machinery someone can set up. What is so interesting about the project is that our both presence is not much needed, rather after the registration of your/our company and obtaining the crude oil sales license, we would connect buyers to the Petroleum Agency by any means we choose and our commissions will be directed instantly to our nominated company bank co-ordinates. I will gladly appreciate your understanding and keen interest to be part of this moving train called CRUDE OIL SALES VENTURE. Get back urgently. My direct no: 00-27-73-808-77-22 Engr.Louis Nkulunkulu (NPA) Product & Marketing Department ANP-STP, Johannesburg Liaison Office HELP NEEDED PROFITABLE NOBLE BUSINESS TRANSACTION!!
Ref: NPA/01-1/SAP/09
From: Engr.Louis Nkulunkulu (NPA)
E-mail: louisnkulunkulu484@gmail.com
Phone: 00-27-73-808-77-22
Attn: My Dear,
My message is to introduce you to this highly prospective crude oil sale venture. What do I mean? I propose that we become partners in a crude oil sales project under the umbrella of the National Petroleum Agency of Sao Tome and Principe, Johannesburg Liaison Office. In this project, we will register either your company or a joint company with the local Corporate Affairs Commission operational board unit of the Petroleum Agency; re-assign an already allocated crude oil sale license to the company and act as representative of the Petroleum Agency in selling of crude oil to the end buyers. With my network in the agency, I have assisted a company base in Oman, Middle East and operated by Mr. Ahmed Syed to secure a crude oil sale license allocation in 2005. This license allocation is for the sale of 120 Million Barrels of Bonny Light Crude Oil [BLCO] for a total period of 5 years. The license allows him to sale a maximum of 2 Million barrels of BLCO per Transaction/shipment.
Mr. Ahmed Syed could not actualize his dream in this project as he could not find buyers whom will buy the crude from his allocation on a normal "Free on Board” and did not have the financial strength to sale on a Cost, Insurance & Freight [CIF] sales transaction. In the normal FOB sales transaction, the crude oil buyers arrive normally at the loading port of the seller with their own vessel to buy the crude while the seller has to buy or hire a vessel to deliver the crude to the end buyers in a CIF sales transaction. Mr. Ahmed Syed was unfortunately struck by stroke, which made him to be incapable of involving in active business.
My proposal entails packaging you as the crude oil sales license beneficiary to Mr. Ahmed Syed, We would re-assign the sale license earlier given to Mr. Ahmed to your/our company's name. This will give us the mandate of the agency legal authority to act as their crude oil sales agents/representative. The re-assignment of the crude oil sale license allocation to your/our Company will give us the privilege to operate as first lifters/sellers of crude oil from the block. This attracts a US$2.00 discount per barrel. This $2.00 discount per barrel is our commissions from the agency. Example: The prize of the product per barrel is presently $120.00. We will receive the product from the agency at $118.00 per barrel and sell to the end buyers on the normal market prize of $120.00 per barrel thereby making a commission of $2.00 per each barrel of crude sold to the end buyers.
Also being able to get final buyers entitles us also to a US$1.00 discount from the discount given to the end buyer as "mandates". As we are going to be selling a maximum of 2 million barrels per month from the block, US$2.00 discount from local petroleum agency sums up to US$4 million per month. And US$1.00 discount from the end buyer comes to US$2 million per month. This totals to US$6 million gross coming to our group per transaction/per month. On equity sharing ration, both of us will be netting in a cool US$6 Million as profits monthly. This proceeds known, as commissions will be shared
Equally on equity between the both of us at the end of every sales operation month. This implies that shall both go home with US$3 Million each.
As a staff of the agency, I am not officially allowed to operate a crude oil sales license or engage in any personal profit oriented crude oil deal under the same agency were I work. This is why I seek a partner whom I can assist to secure the license and work as a facilitating partner in arranging for all the sales transaction between the agency and the end buyers and also ensure that the commissions from the sales is paid out to my partner in due time. These commissions we will share equally as equity partners. My obligations as the facilitating partner is to work from underground to make sure that the license is transferred to your company's name, make sure that all the 2 million barrels is completely sold to the end buyers and also ensure that our commissions is directed to your/our company's banking co-ordinates as the license holder.
This project is highly prospective and presently the most legitimate money making machinery someone can set up. What is so interesting about the project is that our both presence is not much needed, rather after the registration of your/our company and obtaining the crude oil sales license, we would connect buyers to the Petroleum Agency by any means we choose and our commissions will be directed instantly to our nominated company bank co-ordinates.
I will gladly appreciate your understanding and keen interest to be part of this moving train called CRUDE OIL SALES VENTURE.
Get back urgently. My direct no: 00-27-73-808-77-22
Engr.Louis Nkulunkulu (NPA)
Product & Marketing Department
ANP-STP, Johannesburg Liaison Office
HELP NEEDED PROFITABLE NOBLE BUSINESS TRANSACTION!!
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