Louie Gohmert: Best caribou wingman ever

robert l. bentham said:
http://www.washingtonpost.com/blogs...-wingman-ever/2012/02/07/gIQAIj2dwQ_blog.html

bet you thought it was gonna be another onion article. nope. just more of that washington brilliance.
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It makes sense the oil has to be above a specific temperature to flow properly. Which means a significant amount of heat is being transferred to the surrounding areas as the oil is pumped along which will have a localized effect increasing the amount of grass grown nearby as it effects it's growing season which increases the Caribou's food supply. Caribou herds have increased since the pipeline, which is not what the greenies were screaming which would happen.

I paid $4.089 @ gallon last night, and I'm not happy that the idiot in charge screwed up the Keystone pipeline which would have lowered the price of gas that I am buying today.
 
keystone would have done nothing to lower the price of gas.... sorry... doesnt work that way...
 
robert l. bentham said:
keystone would have done nothing to lower the price of gas.... sorry... doesnt work that way...
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So you are saying the commodities market has no baring on prices we pay at the pump? So if we have less oil production, it's not going to effect the price we pay at the pump? If Obama shut down every single well and refiner in America, the price would be unchanged? Please.
 
Dammy said:
So you are saying the commodities market has no baring on prices we pay at the pump?
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It has some baring, but remember that a lot of speculators moved into the oil market when real estate and real estate derivatives started looking like a bad bet. Speculation is a big part of the oil price and has decoupled the price from production to a large extent. The prices are now manipulated up - Wall St. makes gas more expensive.
 
Dammy said:
So you are saying the commodities market has no baring on prices we pay at the pump? So if we have less oil production, it's not going to effect the price we pay at the pump? If Obama shut down every single well and refiner in America, the price would be unchanged? Please.
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nope. im saying no such thing. please read last link i posted. then when i get done working i will come back and explain this to you.
 
hey dammy i want you to google earth the oilfield that sits in the area of 300th avenue and hopewell road... should be in ellis or russell county. look how many rigs are out there. hundreds if not thousands....
 
There were a total of 148 operable petroleum refineries in the United States as of January 1, 2011.
The "newest" refinery in the United States began operating in 2008 in Douglas, Wyoming. But the newest significant (or sophisticated) refinery began operating in 1977 in Garyville, Louisiana.
just another nuggy of knowledge one will need....
 
Are Speculators Responsible for Today's Higher Oil Prices?

+ Comment now​
This week, Barack Obama joined much of the progressive Left in blaming recent increases in oil prices on nebulous and nefarious “speculators.” It’s a charge that has been leveled, and investigated, numerous times since the early 1970′s. And its a charge that is as empty of truth as it has been frequent.
There’s very little that’s new in politics. In 301AD, the Roman Emporer Diocletian issued the edict of maximum prices, which set prices on a bewilderingly large array of goods. It was backed up by the death penalty on speculators, who were decried by Diocletian as a scourge worse than the barbarian hordes. As could be expected by our modern understanding of economics, the edicts mainly resulted in painful shortages of critical commodities. In fact, the original price increases that led to the edict were caused not by speculators, but by profligate government spending and a debasement of the currency (any of that sound familiar?)
In fact, it is almost impossible to find examples of private action sustaining an artificially high price floor. Only with the cooperation of an interventionist government are such sustained price floors possible — that’s why at one point or another in history we have had minimum prices set by the government for taxis, airline fares, rail freight rates, farm products and government-enforced limits on supply that have driven up prices of everything from attorneys to real estate agents to funeral homes to interior design.
The argument du jour is that speculators are driving up oil futures prices, and these higher futures prices in turn drive up prices of oil for current delivery. The first half of this argument has a ring of truth. It is much easier for bubbles to emerge in buy-and-hold type investment assets. Stocks, bonds, futures, and even houses can experience speculative bubbles. But do these bubbles spill over into current commodity prices?
There are two checks on current commodity values that make sustained speculative bubbles much less likely. First, physical commodities are really expensive to inventory. I can hold futures contracts on a million barrels of oil in my desk drawer; a million barrels of physical oil requires a container the size of 63 Olympic swimming pools. Second, the demand curve for oil futures is based on expectations and predictions and hope and fear. The demand curve for physical oil is grounded in the real economics of electricity generation and powering factories and driving trucks.
So lets consider speculation in this context. We start from a market in oil for current delivery that is in balance, where the price is such that supply and demand are roughly equal. Now, enter speculators. They supposedly drive the price up above this “natural” price. As the price rises, we know producers will seek ways to bring more oil to market, and consumers will reduce their consumption. The result is a glut – an excess of supply over demand. Here is the real question to ask if one suspects that speculators are driving the price of oil for current delivery above and beyond the market clearing price: Where is all the extra oil going?
Let’s consider the example of when the Hunt’s tried to corner the silver market in the late 1970s. Over six months, they managed to drive the price from $11 to almost $50 an ounce. Leverage in futures markets allowed them to control a huge chunk of the available world supply. But just driving the price up temporarily did not get them anywhere — to make the fortune they wanted, the prices had to go up and stay up. As prices rose, no one but the Hunt’s were buying, while new supplies flowed onto the market. The only way the Hunt’s could keep the price up was to pour hundreds of millions of dollars in to buy up this excess supply. Eventually, of course, they went bankrupt. They only could maintain the artificially higher commodity price as long as they kept buying and storing excess capacity, a leveraged Ponzi game that eventually collapsed.
So how do oil traders’ supposedly pull off this feat of keeping oil prices elevated above the market clearing price? Well, there is only one way: Excess supply created by the artificially high price has to be stored, either in tanks or in the ground.
rest at:
http://www.forbes.com/sites/warrenm...ors-responsible-for-todays-higher-oil-prices/​
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FluffyMcDeath said:
It has some baring, but remember that a lot of speculators moved into the oil market when real estate and real estate derivatives started looking like a bad bet. Speculation is a big part of the oil price and has decoupled the price from production to a large extent. The prices are now manipulated up - Wall St. makes gas more expensive.
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The complete Obama/Bernanke destruction of the US Dollar also factors heavily. We will wake up one day to $10/gal gas, that day will be soon. Chances are one day after that we will wake up reminiscing about that "cheap" $10 gas.
 
By the way, follow the money trail. Obama axed the pipeline so his crony Warren Buffet could get even richer. Absolutely disgusting! :finger:
 
robert l. bentham said:
Are Speculators Responsible for Today's Higher Oil Prices?​
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Warren "Climate Skeptic" Meyer - maybe he just likes taking a principled stand on "controversial" subjects. Unfortunately his "supply and demand" model is broken. The futures trade on a limited number of markets and the amount of money available to speculate in those futures has exploded (partly because it has moved out of collapsing assets like housing, and partly because the government has given an awful lot of money to the financial sector and they can make more money on speculating than on making loans).

The speculators don't hold. They just happen to make up the majority of the buyers of futures contracts. Someone else takes delivery so the speculators don't have to store the oil - there is always someone who needs the stuff, but 30% of the oil is out of speculators hands, it's just that 30% is simply not enough to keep the price in line with reality. That 30% gets used up very quickly and everyone else has to get their oil from the 70% held by the speculators. The speculators can jack the price up and oil is mostly a just in time business. Users have almost no cushion and need to have constant supply.

On the producer side, there is no incentive to produce more because a) there is no real shortage, b) the producers don't realize the increased price - the speculators do. The producers get the price the speculators are willing to pay for the futures - not the price the end user is willing to pay.

The end users typically do not have the luxury of not buying the oil and thus making the speculators eat the cost of taking delivery. The producers could TRY to get together to pump enough to break the speculators but a) the producers, as noted, are not a homogeneous, monolithic bunch and b) the financiers have trillions of dollars to play with.
 
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