8/31: P(oil)itics
Misc. Discussion: What will be the impact of Bush's announcement that we are now tapping oil in the strategic reserve?
D.L.: It's highly suspicous when only the right-wing economists and Exxon execs claim high oil prices are soley determined by the market. This $70 / barrel is based on a speculative price 6 months from now. No one is really paying $70 / barrel now.
N.H.: But the speculative price is part of the market.
D.L.: But this isn't a supply problem. W's decision to release the oil from the strategic reserve could reduce prices if it was a supply problem. But prices will continue to rise. Why?
N.H.: There are four areas of oil that impact prices: pumping, refining, transporting and distribution.
• Hurricane Katrina did not have significant impact on the pumping of oil/supply. (Less damage than the market expected.)
• Before the hurricane we were refining at 97% capicity. (The actual damage has yet to be determined but this could be a serious problem if the damage is significant.)
• Transportation and distribution could be seriously hampered due to damage to the Port of New Orleans. This could result in some price increase but only for a short term.
Thus...when Bush anounces that we're releasing oil from the strategic reserve it will have little impact on the price. He's offering help for oil prices in the least affected area (pumping).
A.C.: So this is a purley political decision to try to show he's doing something to help.
N.H.: Exactly.. call it "poilitics."
D.L.: But the spinning of these numbers is a ruse...economic trickery. The historic profits by oil companies at a time when gas is so expensive is inexcusable. It's obscene.
N.H.: They're in business to make money. The reason that they can make so much money when oil is expensive is because they have enough flexiblity to adjust gas prices to their advantage. It would be hard to explain lower profits to shareholders.
A.C.: Disagrees with N.H. claiming that gas will be above $3 gallon for quite some time. At least until the auto market responds. The major car manufacturers have to respond to high gas prices because Hummer sales just won't be the same this year--hence the H3. But these auto market changes won't impact gas prices for years.
E.T.: Having everybody ride their bikes to work would help change the market in a hurry.
D.L.: Oil executives are still too slick for me. It just rubs me the wrong way when you see the deep connections between Bush/Cheney and big oil, then see the policy decisions that seem to benefit the profits of big oil.
Misc. Discussion: Other example of possible collusion/the role of Michael Moore in revealing collusion.
A.C.: Props to N.H. for predicting the demise of the Cindy Sheehan story (8/25: The Crawford Bunch) when Michael Moore and other publicity hounds started hanging out in Crawford. See Kathleen Parker's 8/31 column: http://www.townhall.com/columnists/kathleenparker/
posted by CitizenU @ 2:00 PM
7 comments
7 Comments:
I will make this brief due to time contraints. Without trying to be insensitive, I really feel for Cindy's loss even though her son volunteered for a dangerous mission that had major risks of death. She needs to go back to what ever it was she did. I really think that she has taken it far enough, she got her meeting and can't have another. She herself needs to look at this: why is she feeding the media off her son's death. She was protesting to George W. Bush, not the American Media. She should see that her getting on the news day after day (assuming that the Hurricane hadn't come she'd still be on) isn't what she first intended. I will commend her if she goes home and speaks to organizations for mothers that lost children to war as long as it isn't a protest. It was his choice, along with the rest of the men and women in the armed forces. To you Cindy Sheehan, peace out until you realize your idiocy.
Hmm...I just received some gas-related emails that I'd love to share with you, but it might be best if I just posted the contents here. The first is an email that's circulating like a chain letter. I apologize in advance for the capitalization. I'm suspicious as to how much effect the email will have, and, even assuming everyone followed it to the letter, how much effect it *would* have. The second one is just funny link. Here they are:
It's worth a try..
IT HAS BEEN CALCULATED THAT IF EVERYONE IN THE UNITED STATES AND
CANADA DID NOT PURCHASE A DROP OF GASOLINE FOR ONE DAY AND ALL AT THE SAME
TIME, THE OIL COMPANIES WOULD CHOKE ON THEIR STOCKPILES.
AT THE SAME TIME IT WOULD HIT THE ENTIRE INDUSTRY WITH A NET LOSS OF OVER
4.6 BILLION DOLLARS WHICH AFFECTS THE BOTTOM LINES OF THE OIL COMPANIES.
THEREFORE SEPTEMBER 1st HAS BEEN FORMALLY DECLARED "STICK IT UP THEIR
BEHIND " DAY AND THE PEOPLE OF THESE TWO NATIONS SHOULD NOT BUY A SINGLE
DROP OF GASOLINE THAT DAY.
THE ONLY WAY THIS CAN BE DONE IS IF YOU FORWARD THIS E-MAIL TO AS MANY
PEOPLE AS YOU CAN AND AS QUICKLY AS YOU CAN TO GET THE WORD OUT.
WAITING ON THE GOVERNMENT TO STEP IN AND CONTROL THE PRICES IS NOT GOING TO
HAPPEN. WHAT HAPPENED TO THE REDUCTION AND CONTROL IN PRICES THAT THE ARAB
NATIONS PROMISED TWO WEEKS AGO?
REMEMBER ONE THING, NOT ONLY IS THE PRICE OF GASOLINE GOING UP BUT AT THE
SAME TIME AIRLINES ARE FORCED TO RAISE THEIR PRICES, TRUCKING COMPANIES ARE
FORCED TO RAISE THEIR PRICES WHICH EFFECTS PRICES ON EVERYTHING THAT IS
SHIPPED. THINGS LIKE FOOD, CLOTHING, BUILDING MATERIALS, MEDICAL SUPPLIES
ETC. WHO PAYS IN THE END? WE DO!
WE CAN MAKE A DIFFERENCE. IF THEY DON'T GET THE MESSAGE AFTER ONE DAY, WE
WILL DO IT AGAIN AND AGAIN.
SO DO YOUR PART AND SPREAD THE WORD. FORWARD THIS EMAIL TO EVERYONE YOU
KNOW. MARK YOUR CALENDARS AND MAKE SEPTEMBER 1ST A DAY THAT THE CITIZENS
OF THE UNITED STATES AND CANADA SAY "ENOUGH IS ENOUGH"
----------------------
Gas Too Much
Make sure you've got sound for that.
The gas prices will remain high and continue this trend not only because of Katrina but other developing countries such as India and China. Within a time span of five years China went from exporting 300,000 barrels of oil to importing 500,000 barrels of oil. This demand by developing countries of Asia will not diminsih but increase causing oil to become even more scarce in the near future.
W
Someone decided to have an international survey.
This was the only question in the sruvey:
"Honestly, what is your opinion about the deficit of food in other countries?" The survey failed miserably and this is why.
In Africa they didn't know what food meant, in China - what an opinion was, in western Europe - what's a deficit, in Eastern Europe - what is honestly, in South America they didn't know what a survey is, and in US - what's "other countries"?
I think the idea of tapping into the oil reserves is completely ridiculous. It is obviously just a scheme for Bush to get back on the good side of people. Clearly, several people are not in favor of his actions and so he's playing the "sympathy" role and supposedly helping people out. Although it is necessary that food and supplies are delivered to help the cause from the hurricane, the fact that he's tapping into our oil reserves is just unnecessary and could hurt us (heaven forbid) in the future.
I think that as long as oil prices continue to rise, which they will for the time being at least, Bush's announcement will be of little impact...especially if it's just "politics" and no significant effect will be felt anyways. Gas prices are bound to remain high, a big consumer shift can't occur very quickly.
Anyways, just wanted to say thanks for "putting the social into social studies" :-P, props!
-Ellina
According to NPR as of 7 pm, oil prices are dropping, but will we see that at the pump? I like the "poilitics" idea. See you tomorrow AC
- J.G.
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