Tag: oil prices

Gas prices, the ppb of oil, and the future

I filled up my car today and paid $2.11 a gallon here in The People’s Republic of Connecticut. In some other parts of the nation that don’t have ridiculously high government imposed gas taxes – taxes that they claim they will use to fix the crumbling infrastructure and ill maintained infrastructure they have held tenure over, but somehow always end up in the general fund where they then get spent on vote buying social pet projects – this number is now below $2 a gallon. The last time I remember oil under $2 a gallon was a decade ago. But why is this happening? There are a ton of varying opinions about cause and effect out there. Let’s explore.

First off, the obligatory democrats are always talking out of their ass reference. They knew they were full of shit, we knew it, and because despite every and all efforts by the Obama administration failing to hinder the expansion of US oil recovery, we got more drilling, we now have definite proof. Collectivist Keynesian shitbags can pretend that the economic laws of supply and demand don’t matter – like they do with the reality of human nature and a lot of other natural laws – but reality has a way of bitch-slapping stupid people. You fuckers knew you were lying when you were pretending more oil on the market would not reduce prices, and we now have proven it. The opposition to any more drilling and recovery was primarily because these Marxists fucks want to destroy the brown energy industry to favor their friends, and coincidentally another one of their special interest big donor blocks, in the proven failed green industry.

Back to business now that we have gotten that out of the way. This precipitous price drop, even though I believe it will not remain that low forever (more about that later), is bound to jump start our economy and help a lot of us that now will have extra pocket change. And it doesn’t come without the profiteers trying to screw over the tax payers yet again. The leftists, under the guise of getting more money to fix the very infrastructure they have been neglecting for decades, precisely because they were diverting gas tax dollars to social pet projects, are putting pressure on everyone to get more money from people that are finally getting a much needed and deserved break in the though economic times the leftists have given us.

As if this time the bulk of this extra revenue wouldn’t actually also be diverted to vote buying projects they depend on. Yeah, and pigs will fly too. These assholes count on people’s stupidity and envy. Think about how these will impact us all once prices climb again – and they will. Let us also note that this money grab is not limited to the feds. Many state governments, especially the ones run by democrats that do the same as the feds (like mine), are all hoping to follow that example and do the same. Can’t have people keeping more of their money when they need to buy votes in these desperate times that their base consists of so many of the non-productive. It is almost as if these people’s decision making is based on what can do the most economic harm possible. Of course, when you already believe the money doesn’t belong to the people earning it in the first place, you tend to not bother with these stupid details anyway.

Now that we have gotten that nasty business out of the way, let’s discuss why the prices are dropping as precipitously and fast as they are. The general consensus is that the Saudis are doing this, and it is on purpose. The Saudis, OPEC’s biggest producers, have decided not to cut their output to regulate prices, and are counting on their over $800 billion in reserves to ride out this shorting of the market. The move to let the oil prices plummet is basically driven by their calculated belief that if the price goes too low it will force fledgling the US oil industry, especially the fracking industry that the Russians had been directly targeting without much success so far, I add, to collapse.

The Saudis, like most of the other OPEC nations and Russia, all need oil to be at between $90 and $100 a barrel to keep their current economic plans viable. The supply produced by the US has basically made that impossible, because the extra oil was sooner than later going to force a correction that would drop prices and keep them between $65 to $75 per barrel. And while that drop is something that would be an economic boon to most of the world that depends on oil for energy, it would spell a slow economic death for the oil producing nations that need/want the higher prices. Have no doubt that this move is a calculated attack on the US oil industry. The Saudis are counting that if they keep the prices below $50 a barrel for a while that they can drive the US out of the oil producing. Even more important is their belief that the greens will then prevent that oil producing industry from coming back for decades. This gamble that the greens will prevent the oil production from starting right back up again is based on their observation of how things played out in the 70s, and while many believe that this time it will not work, I think that their gamble isn’t all that crazy. The greens, after all, want to destroy the brown energy sector and don’t give two flying fucks how costly and destructive their agenda is, because in the end it is about them lining their pockets above all else. Most of the big actors have become stinking rich fucking us all over.

The fact is that this economic boon they will usher in and the low gas prices themselves can’t last as the demand and supply curve correct themselves eventually. But then again, we can make some economic moves that will preposition us to come out of this attack against our economy and economic interests, as the winners. The fact is that anything that keeps the price of oil lower than the $90 to $100 per barrel that the actors behind this attack want is a good thing. Lower prices would be a huge hit that forces some of the world’s shittiest nations to change their ways, for lack of funds to cause trouble with, to at a minimum do less harmful things. That would be a big bonus for the world in general. Of course I doubt this administration and the collectivists that are in league with the greens have any desire to do so, and they will actually do things that will undermine that possibility. We need to make sure we push back and prevent them from doing that. Cheap energy is exactly what the world needs right now, just like it needs a lot less big intrusive Keynesian nanny-state government.

In the mean time enjoy this gift for as long as it is allowed to last by the people that want to control us serfs.

It’s Bush’s fault!

In typical fashion the Obama administration has again chosen to do something that costs jobs and hurts the economy of America, and then laid the blame on others for the impact of their decisions. The geniuses that brought us such successes as Solyndra and numerous other questionable renewable energy investments which benefit them and their friends, but not the consumers, whom they have been very clear they believe should have to pay far more for energy of the kind they approve of, have decided that the Canadian oil pipeline is not good. And they blame congressional republicans for codifying law that prevented Obama from killing the project by delaying the approval for so long that the Canadians would choose to go elsewhere.

In a decision sure to re-ignite a fierce energy debate, the Obama administration was announcing on Wednesday its rejection of the controversial Keystone XL pipeline because the 60-day deadline imposed by Republicans did not allow adequate time to review an alternate route through critical wetlands in the Midwest.

Deputy Secretary of State William Burns was to make the announcement on the project that would carry oil from Canada’s carbon-heavy tar sands to refineries on the Gulf Coast and would indicate that TransCanada, the company seeking to build the $7 billion, 1,700-mile pipeline, will be able to reapply with a new route avoiding an ecologically sensitive area of Nebraska, sources told National Journal.

Put more simply, the Obama administration is hitting Republicans back by saying no because of their forcing him to decide on the project in just 60 days. Republicans in Congress and on the campaign trail promptly painted the decision as a rejection of thousands of American jobs purely for political reasons.

So instead of blaming the Canadians for not wanting to wait forever for the “environmental impact studies” – that is code for I am going to drag this out until you give up or the cost forces you to go elsewhere – that Team Obama wanted to use to kill the project, now they blame republicans for trying to prevent them from playing that card. Don’t be fooled. Team Obama never, ever, intended to let this project go through. Now the Canadians whom despite their embrace of socialism are not insane will sell this valuable resource to the Chinese, and we will not only get to pay more for our energy, but lose out on the benefit of getting a valuable resource from our neighbor to the North and further breaking any possible dependency on countries that are hostile to us.

Yeah, sure. Bush was worse than this moron and his circus, and it is his fault this went bad too. And Obama really meant to improve the economy from the start, but he got handed a shit sandwich. It’s not the policies and other decisions, like this one, that are hammering our economy hard. In the mean time we can all cheer up at the fact that our gas & heating oil prices will now go up as this valuable source of energy goes to power China and the Chinese economy. Evil market speculators will all profit from the rise in prices too. We should dump them all these watermelons without any technology in a tropical jungle, preferably one with the highest number of natural predators, and let them fend for themselves. That might give us a little bit of justice for the disservice this movement is doing people. Especially those poor people they pretend to so care about.

You know your policies are hurting the poor when

Wal-Mart starts pointing out they are not spending as much as they used to on purchases as they used to:

NEW YORK (CNNMoney) — Wal-Mart’s core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried, CEO Mike Duke said Wednesday. “We’re seeing core consumers under a lot of pressure,” Duke said at an event in New York. “There’s no doubt that rising fuel prices are having an impact.” Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in. Lately, they’re “running out of money” at a faster clip, he said. “Purchases are really dropping off by the end of the month even more than last year,” Duke said. “This end-of-month [purchases] cycle is growing to be a concern.

Gasoline prices are up, inflation has reared its ugly head, and the poor are going to be socked the hardest by these things. Bet you the democrats, the party of the little people, will blame evil oil companies, evil capitalist Wal-Mart, and in general everyone else, but their policies for this. Despite whatever bullshit they say, oil prices are up because of two reasons: the dollar has plummeted in value, and the new Obama Admin policy of blocking oil exploration and extraction is making speculators basically believe oil supplies are going to be negatively impacted sooner than later.

As the dollar loses value and energy prices continue to rise, because of the lack of any real and viable strategy from the left other than to steer billions to their friends pretending this green energy shit is a sound investment, the cost of everything that needs to be moved, refrigerated, and uses plastics, is going to go up. Drastically. Obama is hell bent on beating the malaise of the Carter years it seems. The poor should remember that.