Here's a point of edification for the board's (and the nation's) "anti-speculator"/"anti--oil-company" conspiracy theorists: the US isn't the only market in the world. http://www.forbes.com/markets/emerg...recast-markets-econ-cx_lal_0625markets26.html
kind of reminds me of back in 2000 when all these people and books came out about "dow 100,000" and why stocks where going to double everyyear or something. im not saying oil is going to go down, but anytime something starts really going up in price there are a bunch of people who say why its going much higher. as in the 1970's and early 1980's people spoke of demand issues and huberts peak. they would not take you serious if you told them iran and iraq where going to be at war for a long time and then iraq would invade Kwait and a few years later oil would be at $8 a barrel not even adjusted for inflation.
the oil industry has become (in the US, and for some other countries, in their respective countries too) the most profitable business and companies in documented, recognized, legalized history. there will always be examples to the contrary, such as the global slave trade that American, Britian, France, Germany, Holland and others participated in during the formative years of the United States America; also, such as the South American (combined multiple countries) drug trade with the United States America and other target countries. The oil companies are able to purchase, dominate and control and significantly influence the recognized media outlets (business magazines, financial tv shows, financial business channels, business newspapers, business schools, etc.) with these self serving and self justifying conclusions for why they aren't to blame or cause of their phenominal profits (derived through manipulation of the markets), and why these conditions will continue without challenge. Simply put, introduction of non petroleum based fuel sources for basic and advanced transportation will remove a substantial block of demand, almost permanetly and cause their reign to faulter. Battery generated and battery assisted automobiles in addition to combustion engines.... Fuel Cell and Nat Gas operated engines will also add to traditional oil based fuel's demise... Liquified coal conversion plants and fuel cells will help replace diesel combustion engines... Massive arrays of huge solar collector and battery recharge stations (more suited to desert and near desert environments (highest degree of sun collection conditions, least existing human impact)) will relieve the demands of recharge and electric generation, whether through nuclear stations or otherwise (coal, water, etc.)... These are the business plans that are already underway, not being widely touted beyond just wind generated platforms that are and will receive massive volumes of investor and consumer attention and demands... the need to "fund alternative energies" is another falacy of the oil giants, as if one were hostage to their whims and have to ask them to voluntarily give up their stranglehold over entire country's economies. those first to package and go public will reap some of the initial benefits from the investment public, most of these alternatives will have to be advanced through governmental self interest programs.....
What is happening is the worst thing for the oil industry and producing countries. It opens the door for alternatives. 20 dollar oil is no incentive to spend money on finding other forms of energy. 130 dollar oil does give incentives.
why is it 1) that the oil companies, domestic US and others abroad, have and sell and pocket the massive profit spread? 2) and it not be rigged this way, which leads to the simple notion that 3) the oil companies are responsible? perhaps its just too simplistic logic or not logic at all, just what has happened... but if the costs of oil to sell were high, then the profit margins would have indexed along with the costs at the pump... instead the cost of oil to sell has remained, pretty much where it was pre-Bush-II and the oil companies have pocketed the difference in record amounts, while jacking up the prices at the pump with all kinds of excuses and news stories.... something continues to be foul about this scenario...
I think the Saudi's and all the other producers are getting upset. Yes, short term they love the money, but if they crush the western economies, they won't have many friends. And, there will be alternatives coming along in the not to distant future. Besides battery power, the Japanese recently came up with a WATER powered car, that pulls hydrogen right from the water. Sure, it may be 20 years before they are commercially available, but OPEC better be careful, because if they help crush us now, maybe we wont sell them any food 20 years from now. I think if oil stays up at these levels for a few more months, or goes higher you will see alot more capacity coming on line. OPEC wants oil below $100 imo.
Let congress read your note.......if oil was not at $130....no hearings $130 is the end for oil business, In 10 years at this price they will lose 30-50% of their market to Nuclear, electric, bio-mass. But, if you believe in the cartel of oil, you need to watch this price drop to help Mccain in November. The way Obama is promising a retreat from the middle east it scares all the oil kingdoms. they need us to stop Iran. Buy Nov CL puts.......