[Cashmere]

LINKY

I guess we're solidly in the denial phase now.

This is getting very scary - to have people come out and say you can cut the price of gas in 1/2 in 30 days. Holy shite. I mean, how large of a short position do these idiots have?

The price of retail gasoline could fall by half, to around $2 a gallon, within 30 days of passage of a law to limit speculation in energy-futures markets, four energy analysts told Congress on Monday.

Talk about idiots calling in idiots to have idiotic idiocies spouted into the record.

Wow.

We're a lot closer to nationalization than I thought.

First they'll try this.

Next, they'll try to price fix.

Then they'll take over the refineries.

Then it's a fight for your daily bread.

[MD]

Fabulous idea! Let's cut the price and make sure no one invests in additional production or alternatives! Shortages will me much more fun!

[vision-master]

Fabulous idea! Let's cut the price and make sure no one invests in additional production or alternatives! Shortages will me much more fun!

an happen even quicker. Bring it on!

[Peleg]

Except for the fact it would be disingenuous I'd say why don't we get everyone here to write a letter to their Senator asking them to take that advice. Yeah, we can create a form letter that says

1) tax windfall profits

2) cap speculation so that oil price can only rise or fall by a maximum of 1% per day

3) open up drilling in ANWR, and anywhere else they want to

4) fine any gas station that charges more than 1% above the average rate within a 50 mile radius

Because you know what, all of that stuff is just smoke and mirrors. What a joke!

Cowards! Brazen greedy cowards! You know who you are!

[emersonbiggins]

[DantesPeak]

I heard a congressperson today say that he was for a windfall profits tax on oil. I don't suppose he knew that there already is a windfall tax on oil inventory profits.

Anyway the tax on oil inventory profits probably has contributed to oil companies in the US keeping inventories low during a time of rising energy prices. As with the unintended consequences of using ethanol for vehicle fuel, this tax may lead oil companies to eventually have insufficient supplies for refinery operations.

Those that predicted a breakdown of our complex system was worse than actual physical events (less oil) were dead on.

On another issue, how do they know that OPEC, the Fed, or some other financial institution is on the short side of futures contracts - and will now have to scramble to buy back futures contracts that it can't deliver on?

[Fishman]

Now what idiot party would believe this and actually act upon it? Oh, sorry, self explanatory.

[abelardlindsay]

Long story short... You can use your dollars to buy anything you want. Except for something that might actually serve as an inflation hedge -- such as oil futures.

[DantesPeak]

Long story short... You can use your dollars to buy anything you want. Except for something that might actually serve as an inflation hedge -- such as oil futures.

And oil.

Previously oil companies were even taxed on windfall profits on oil held outside the US, now its limited just to within the US - for now.

Apparently they want to discourage anyone from possibly thinking ahead and obtaining oil before it becomes in short supply.

If I was in OPEC, I couldn't be happier about this windfall profits tax idea.

[FoxV]

Long story short... You can use your dollars to buy anything you want. Except for something that might actually serve as an inflation hedge -- such as oil futures.

I wonder what effect this will have on gold as its not included in the controls they want to implement

On one hand it could send gold through the roof as the last viable inflation hedge around
On the other, I find it hard to believe that gold will rise while oil falls by 50% (then again, I'd never thought I'd see gold fall by 20% while oil rose by 30%).

In the end, it'll be funny to see these asshats have their heads handed to them as every dollar that drops in the price of oil turns another tanker away from the US. Enjoy your $2gln for those of you that can find it.

[Wren]

Hey, I know I'm fairly new here, but what does that mean, Cashmere? That we're closer to Nationalization?
I admit, I don't know what "nationalization" means. I'm going to go look it up, but can you fill me in on what you meant, maybe?

[DantesPeak]

Nationalization means complete government control over the oil industry, and its products.

One only has to look at today's news to see nearly everyone is calling for government intervention to solve the energy crisis. Most in charge have no concept of what's really happening, and those that do are playing along.

I don't agree with the concept at all but I've been saying for more than two years eventually the government will close down all free oil markets and take complete control of oil imports, exports, and products (like gasoline) distribution.

[Ludi]

And many people will be just fine with that because they want the government to "do something."

[DantesPeak]

And many people will be just fine with that because they want the government to "do something."

I thought there was collosal mismanagement of the energy industry in the 1970s oil crisis. But it appears that the US is on the verge of outdoing itself in energy mismanagement.

We could actually see some gasoline and/or diesel shortages without a hurricane as early as August. It doesn't look like we will be much more PO aware by then as a country to grasp the depth of the problem.

[smallpoxgirl]

I love this explanation: link The IMF maintains that gold and oil moving together is proof that it's all speculation. You know, because the only thing that drives gold price is speculation.

[Wren]

Thanks everyone. Before I got out the dictonary, I was confussed. I thought he meant Nationalism. I do know what nationalism is. I did not know Nationalization was, until now.
Yep. I can see why he said that. A lot to think about.

[TheDude]

I love this explanation: link The IMF maintains that gold and oil moving together is proof that it's all speculation. You know, because the only thing that drives gold price is speculation.

Don't forget Bush's approval rating. You've seen that graph, right? Correlation, causation? Just shut up and gimmee $2/gallon!

[NoWorries]

{thread merged by emersonbiggins}

...If only Congress will pass legislation to curb speculation in oil futures trading:

http://www.marketwatch.com/news/story/g ... aspx?guid={2673C102-68E0-41D9-9C9A-10EE2E723948}&dist=msr_13


Gee, that sounds wonderful.

I've stopped trying to figure it all out. It's too confusing for me.

I'm going to take a break from all the oil analysts, and then I'll check back and see where we are in 6 months' time. If the price is down by December 24th, 2008, I'll know it was a bubble.

If it's not a bubble, and we surpass $175/ $200/barrel by that time, then posting on this board will be the least of my worries. And there may not be reliable Internet service any more.

PS--Is peakoil.com available on Short Wave?

[aahala2]

Previously oil companies were even taxed on windfall profits on oil held outside the US, now its limited just to within the US - for now.

What tax provision are you referring to? I doubt your statement
is accurate.

The government may tax you on something you own, like your
house, but they can hardly tax your "profits" on something you
haven't actually made a profit on yet.

Of course we can say we made a profit on a stock which later
rose in market value, but there's no profit to be taxed until
we have sold the stock.