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Everlong204
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http://www.marketwatch.com/news/story/gas-...dist=TNMostRead

 

 

It's called the "Enron Loophole". In 2000 congress passed legislation that allowed certain trading of commodities on overseas electronic exchanges, which are primarily unregulated and unmonitored. These exchanges are referred to as "dark markets" because there is no transparency. Such markets can lead to trading practices that allow certain funds or individuals to "corner the market" on related commodities--practices that lead to the 1929 crash of the stock market.

 

Traders will still be able to trade on foreign exchanges, they just won't be able to do it unseen and hoard all of the contracts.

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Ugh. Speculation has little to nothing to do with the increase of oil prices. So stupid. What happened to the free market? Start drilling offshore!

 

Edit: I watched that youtube video and it is spot on. We need to drilling in America. We have the oil here to support us, and I hate the AHoles who say "omg it will takes 10 years before we even get a barrel of oil if we start today"

 

So WHAT?!?!?!

 

Start now, that's a day sooner we will get oil AND the day we announce that we are going to drill offshore for oil, the market for oil will plummet, thanks to supply and demand - which is what this is all about.

 

All markets trade based on futures, and in the future there is not enough oil for the demand, its simple. Add in more oil, maybe we will have enough and oil goes down. Viola! Why is that so hard to comprehend?

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We just don't have enough oil domestically to make a dent in the global supply.

 

Speculation is the only reason that gas prices have gone up so much. Even the Saudis have acknowledged this fact, as they have reported that there has not been a decrease in supply, and demand has actually decreased because of the high prices. There is no other reason for the explosion in gas prices over a little more than a month besides speculators pulling the EXACT SAME CRAP that they did in 2001 in California, where Enron especially was withholding electricity to customers or selling it outside of the state, in order to create an artificial energy crisis in the middle of the summer. I'm sure most have heard tapes of Enron employees joking about raising 'Grandma Millie's' bill over the phone during the same time period.

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Ugh. Speculation has little to nothing to do with the increase of oil prices. So stupid. What happened to the free market? Start drilling offshore!

 

Edit: I watched that youtube video and it is spot on. We need to drilling in America. We have the oil here to support us, and I hate the AHoles who say "omg it will takes 10 years before we even get a barrel of oil if we start today"

 

So WHAT?!?!?!

 

Start now, that's a day sooner we will get oil AND the day we announce that we are going to drill offshore for oil, the market for oil will plummet, thanks to supply and demand - which is what this is all about.

 

All markets trade based on futures, and in the future there is not enough oil for the demand, its simple. Add in more oil, maybe we will have enough and oil goes down. Viola! Why is that so hard to comprehend?

 

 

 

ummm...

 

 

que paso?

 

 

we wouldnt be able to get the oil for a good 10 years, how will that affect squat today or tomorrow in terms of price controls when looking at supply and demand. It's not like the supply is going to be added to today. Now this statement could be true for 10 years down the road, but for today....

 

 

thats laughable, and also just you simply contradicting yourself.

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Ugh. Speculation has little to nothing to do with the increase of oil prices. So stupid. What happened to the free market? Start drilling offshore!

 

Edit: I watched that youtube video and it is spot on. We need to drilling in America. We have the oil here to support us, and I hate the AHoles who say "omg it will takes 10 years before we even get a barrel of oil if we start today"

 

So WHAT?!?!?!

 

Start now, that's a day sooner we will get oil AND the day we announce that we are going to drill offshore for oil, the market for oil will plummet, thanks to supply and demand - which is what this is all about.

 

All markets trade based on futures, and in the future there is not enough oil for the demand, its simple. Add in more oil, maybe we will have enough and oil goes down. Viola! Why is that so hard to comprehend?

 

 

 

ummm...

 

 

que paso?

 

 

we wouldnt be able to get the oil for a good 10 years, how will that affect squat today or tomorrow in terms of price controls when looking at supply and demand. It's not like the supply is going to be added to today. Now this statement could be true for 10 years down the road, but for today....

 

 

thats laughable, and also just you simply contradicting yourself.

 

No. Markets always trade based on expected future results. It is why a google trades at 37 times how much they actually make. Because the market expects them to bring in 37 times what they are currently making in the future.

 

If we announce that we are going to drill offshore, it will one day increase the supply and the futures market will discount oil appropriately.

 

And who cares if it takes 10 years to get the oil? If Clinton had the foresight to lift an idiotic ban that is there for no reason, we wouldn't be paying over two dollars a gallon for gas.

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  • 2 weeks later...

I'm in favor of drilling, with the thought that it would at some point reduce the amount of dollars that need to be created and transferred overseas to pay for the gas we import(currently around 60% of what we use. This creation of dollars devalues the currency, so any less creating than we can do, we should. Up to a point of course. You need some money creation to sustain a healthy economy. You don't ever want to have a money contraction. But, in the long run, reducing the money supply created that we transfer overseas to pay for oil would help the value of the dollar, which would work to lower prices, as long as oil is pegged against the dollar.

.

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But, I don't see more drilling as necessarilly leading to lower prices. We already get 40% of our oil from domestic sources. The current hometown discount that we're receiving from Exxon-Mobil and Co. is zero. The domestic oil drillers are charging us the same price as the Saudis. This when they control 40% of what we use. What makes one think that we'd get a hometown discount if that 40% figure rose to say 70%?

.

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The present price is a function of long-term supply and demand, not speculators. We're fighting with China, India, etc., for a dwindling supply, and demand is rising. The speculators in the commodity market play a vital role and should not be regulated. Let the market remain a free market. Not all speculators are long. An equal number are short. They're needed to maintain an orderly efficient market.

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Let me give you 1 example that will hit home. When the Marlins stadium contract is signed...the construction company, and/or the insurance company that takes on the risk of cost over-runs.....looks at all the costs involved, one being the price of raw materials. In order to take on the risk of insuring cost-overruns, they need to lock in the price of the raw materials. The way that they do this is by BUYING LONG on the commodity market. It's the speculator that takes on the opposite SHORT position. Now, if you regulate the markets, by say preventing anyone from opening a new long position(this is the precedent, set in 1980 with the silver market speculators), you don't allow Hartford Life, or Hunt Construction, from hedging the risk. And if they can't do that, there's not going to be a stadium contract signed. There's a car company now, Dodge I believe, that's using the guarantee of $2.99/gallon for 5 years on a new car. How can they do this? Again, by going long and locking in the cost. They can't afford to take on the risk that gas could go to 8.99/gallon. The future market allows them to hedge their risk.

.

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The whole "blame the speculator" thing is a political smokescreen. The evil speculator makes a convenient scapegoat for years of mismanagement in our energy and financial policy.

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Besides being an environmental disaster, drilling more will not reduce oil prices.

 

Instead, to me, this is backwards thinking. We are already so dependent on oil, and for the worst, on foreign oil. Oil supplies are dwindling all across the world, and it is absolutely certain that prices will just continue to increase over the years, no matter how much oil we drill off our shores. We should get ahead of the game and start seeking alternatives.

 

We start finding alternative energy sources and finally get the Saudis off our back. The technology is present to exploit other alternative fuel sources, and the technology is also present to build electrical vehicles for the common user (http://www.teslamotors.com). The only thing holding us back is oil.

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Besides being an environmental disaster, drilling more will not reduce oil prices.

 

Instead, to me, this is backwards thinking. We are already so dependent on oil, and for the worst, on foreign oil. Oil supplies are dwindling all across the world, and it is absolutely certain that prices will just continue to increase over the years, no matter how much oil we drill off our shores. We should get ahead of the game and start seeking alternatives.

 

We should start finding alternative energy sources and finally get the Saudis off our back. The technology is present to exploit other alternative fuel sources, and the technology is also present to build electrical vehicles for the common user (http://www.teslamotors.com). The only thing holding us back is oil.

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America is a long term investment. It doesn't matter if we won't get the oil for 10 or more years, we're going to need it then anyway unless somebody comes up with a miracle invention. Hopefully, the oil we drill will NOT go into the global market, but as far as that goes, I guess it depends on the companies who end up drilling.

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President Bush just made the right move and lifted the oil ban. Hopefully congress does the right thing and follows through. But being that they do the opposite of whatever Bush wants, I don't see it.

 

 

And Marlinsguru: With the technology we have today, drilling offshore is incredibly safe, in fact, much, much safer than transporting oil over sea in tankers. 99.99% fail proof technology, saying it is an environmental hazard is simply false. Other countries are doing it and have not had any problems.

 

I agree that we need to look into alternate energy, but the two are not counter productive. We need to do both. We are on the verge of a depression, and if we don't increase the supply of oil, American people will suffer. Increasing the supply in the future will make a difference in price now, and in the future. Buys us time while we continue to explore alternate fuels and energy sources.

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President Bush just made the right move and lifted the oil ban. Hopefully congress does the right thing and follows through. But being that they do the opposite of whatever Bush wants, I don't see it.

 

 

And Marlinsguru: With the technology we have today, drilling offshore is incredibly safe, in fact, much, much safer than transporting oil over sea in tankers. 99.99% fail proof technology, saying it is an environmental hazard is simply false. Other countries are doing it and have not had any problems.

 

I agree that we need to look into alternate energy, but the two are not counter productive. We need to do both. We are on the verge of a depression, and if we don't increase the supply of oil, American people will suffer. Increasing the supply in the future will make a difference in price now, and in the future. Buys us time while we continue to explore alternate fuels and energy sources.

Environmentally safe countries such as Sweden, Norway, Denmark all drill off their coasts. These countries are deemed some of the 'most' environmentally sound countries in the world. We allow Cuba to drill miles off the Florida coasts yet we wont allow ourselves? Look at a country like Venezuela, who drills their own oil. Their cost per liter of gas is less than .25 cents. It is very hard for any democrat to convince me that drilling and increasing the supply of oil is not a good thing.

 

The fact that this country has drilled any new lines in over 35 years and havent built a new refinery in over 35 years is the biggest reason why this country is paying $4.00 a gallon at the pump. Our demand keeps going up yet our supply has not met up with our demand. This is pretty simple economics. This isnt some 'big oil' conspiracy to me its more of a Sierra club conspiracy.

 

Drill the oil. Get the oil. Supply the oil. Tell the rest of the oil selling world to find new buyers.

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BTW: at my office I always have CNBC on and oil has already gone from being up early today to already being slightly down. It will continue to go down. :-)

It wound up UP for the day.

As I said, IMO, though I'm in favor of drilling, it will not affect the price.

The markets seem to agree.

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President Bush just made the right move and lifted the oil ban. Hopefully congress does the right thing and follows through. But being that they do the opposite of whatever Bush wants, I don't see it.

 

 

And Marlinsguru: With the technology we have today, drilling offshore is incredibly safe, in fact, much, much safer than transporting oil over sea in tankers. 99.99% fail proof technology, saying it is an environmental hazard is simply false. Other countries are doing it and have not had any problems.

 

I agree that we need to look into alternate energy, but the two are not counter productive. We need to do both. We are on the verge of a depression, and if we don't increase the supply of oil, American people will suffer. Increasing the supply in the future will make a difference in price now, and in the future. Buys us time while we continue to explore alternate fuels and energy sources.

Environmentally safe countries such as Sweden, Norway, Denmark all drill off their coasts. These countries are deemed some of the 'most' environmentally sound countries in the world. We allow Cuba to drill miles off the Florida coasts yet we wont allow ourselves? Look at a country like Venezuela, who drills their own oil. Their cost per liter of gas is less than .25 cents. It is very hard for any democrat to convince me that drilling and increasing the supply of oil is not a good thing.

 

The fact that this country has drilled any new lines in over 35 years and havent built a new refinery in over 35 years is the biggest reason why this country is paying $4.00 a gallon at the pump. Our demand keeps going up yet our supply has not met up with our demand. This is pretty simple economics. This isnt some 'big oil' conspiracy to me its more of a Sierra club conspiracy.

 

Drill the oil. Get the oil. Supply the oil. Tell the rest of the oil selling world to find new buyers.

 

 

I could be wrong because I haven't looked into the history of oil spills too much but all the incidents I can think of concerning oil accidentally getting dumped onto the environment and killing ecosystems all come from oil tanker incidents like the one in Alaska...all a by product of not drilling our own oil and importing from elsewhere..

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President Bush just made the right move and lifted the oil ban. Hopefully congress does the right thing and follows through. But being that they do the opposite of whatever Bush wants, I don't see it.

 

 

And Marlinsguru: With the technology we have today, drilling offshore is incredibly safe, in fact, much, much safer than transporting oil over sea in tankers. 99.99% fail proof technology, saying it is an environmental hazard is simply false. Other countries are doing it and have not had any problems.

 

I agree that we need to look into alternate energy, but the two are not counter productive. We need to do both. We are on the verge of a depression, and if we don't increase the supply of oil, American people will suffer. Increasing the supply in the future will make a difference in price now, and in the future. Buys us time while we continue to explore alternate fuels and energy sources.

Environmentally safe countries such as Sweden, Norway, Denmark all drill off their coasts. These countries are deemed some of the 'most' environmentally sound countries in the world. We allow Cuba to drill miles off the Florida coasts yet we wont allow ourselves? Look at a country like Venezuela, who drills their own oil. Their cost per liter of gas is less than .25 cents. It is very hard for any democrat to convince me that drilling and increasing the supply of oil is not a good thing.

 

The fact that this country has drilled any new lines in over 35 years and havent built a new refinery in over 35 years is the biggest reason why this country is paying $4.00 a gallon at the pump. Our demand keeps going up yet our supply has not met up with our demand. This is pretty simple economics. This isnt some 'big oil' conspiracy to me its more of a Sierra club conspiracy.

 

Drill the oil. Get the oil. Supply the oil. Tell the rest of the oil selling world to find new buyers.

Aren't the oil companies nationalized in Venezuela? We don't want that here, but that's the reason the oil price is cheaper.

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Please explain why the current hometown discount that we are getting from good ol' made in the USA oil, 8 million barrels a day, drilled by Exxon Mobil and Co.........the discount is ZERO. Why expect that we'll get a discount if we raise our domestic supply from 8 million barrels a day to 12 million barrels a day? This drilling thing, while I am in favor of it, is simply another gift to the oil companies.

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