Tag Archives: oil prices
In February 2012 New York Democratic Senator Charles Schumer called upon Secretary of State Hillary Clinton to request Saudi Arabia increase their oil production to make up for potential disruptions in the world’s oil supply resulting from Iranian saber-rattling. Schumer’s unhidden rationale was that such a pledge from the Saudis would drive down gasoline prices in America
This ill-advised strategy was clearly politically driven. While the idea of higher gasoline prices, and the accompanying increase in the price of gas dependent goods and services is consistently rejected by average Americans, this is a blatantly partisan call for a short-term fix. This temporary, non-solution, suggested in order to perpetuate the false narrative that America’s economy is improving thanks to “progressive” policy decisions does absolutely nothing to reduce America’s dependency on foreign oil. Quite to the contrary, it exacerbates it.
On March 15, 2012 Reuters reported that during British Prime Minister David Cameron’s recent trip to the U.S. the current White House occupant proposed releasing emergency oil reserves as a way to reduce world oil prices.
Were the White House to make such a decision, it would be yet another desperate attempt to lower gas prices by whatever means possible. Tapping into the emergency oil reserves is a bad idea. Those reserves are there for use during a pressing national emergency. Tapping in to them every time there’s an increase in the price of a barrel of oil is both gross mismanagement and a misguided misapplication of the stockpile. Not only will the reserves need to be replenished with what might well turn out to be more expensive oil, tapping into them now does nothing to address the long-term problem.
“progressives” continue to grasp at short-term straws frantically trying to make themselves look good in the eyes of low information, sound bite voters. They’re willing to do whatever it takes to win the 2012 election, even if decisions made to make themselves look good in the short term are not sound long term solutions. As radical “progressive” political strategist and leftist hero Saul Alinsky dictated: the ends justify the means.
In the interest of national security and job creation, the United States should put Americans back to work delivering American energy to Americans. This is the best way for America to become energy independent while boosting the economy. Trying to force “green energy” on America’s economy overnight will only contribute to the collapse of that economy. Evidence: Spain’s troubled financial situation and extremely high unemployment.
America doesn’t need a broken economy. America doesn’t need short-term price fixes driven by partisan political decisions. America needs and deserves sound, long term solutions that will result in energy independence.
Drill here. Drill now.
IRVING, Texas, June 14, 2011 — Breitling Oil and Gas Corporation, an independent exploration and production company based in Irving, Texas, announced that it has spud the Breitling-Sandy Run #1 prospect in St. Helena Parish, Louisiana on June 12, 2011.
The Breitling-Sandy Run #1 is a 3800′ well and is targeting Miocene Sands which showed seismic amplitude anomalies on a recently acquired 3D data set.
The Sandy Run Prospect is regionally located on the Gulf Coastal Plain with structural dip predominantly in a south to southwest direction. Sandy Run is on strike with numerous Frio gas fields found to the northwest in Amite Co., Mississippi. These Frio fields were found using seismic that identified the reservoirs by a similar amplitude anomaly.
Breitling Oil and Gas expects to recover reserves of 6 to 9 BCF of natural gas.
Management anticipates the well will reach total depth in about 7 days. Well completion and testing should begin during the first week of July.
Breitling Oil and Gas CEO Chris Faulkner stated, “I am pretty bullish on natural gas pricing over the next 18 months so it’s the perfect time to drill the Breitling Sandy Run.” Faulkner added, “We have great well control and 3D over the prospect and the reserves could be sizeable.”
An additional 3 wells can be drilled if commercial production is found in the initial test well. Breitling has current oil and gas exploration projects all over the United States.
For more information on this and other activities of the Company, see the Breitling Oil and Gas website at http://www.breitlingoilandgas.com.
Breitling has current oil and gas exploration projects all over the United States.
FORT LEE, N.J., April 28, 2011 /PRNewswire/ — Federal Reserve Chairman Ben Bernanke on Wednesday held his first press conference in history. The press conference took place shortly after the Fed announced its decision to leave the Fed Funds Rate at a record low of 0% to 0.25%, where it has been for an unprecedented 28 months. The U.S. economy is flooded with U.S. dollars and is close to overdosing on excess liquidity. The fact that our financial markets are not falling on the possibility of the Fed not unleashing QE3 immediately at the end of QE2 shows that we could be on the verge of hyperinflation with or without QE3.
The Federal Reserve currently has a mandate of both maintaining price stability and facilitating job creation. However, central banks don’t have the ability to create real employment. If any jobs happen to be created as a result of a central bank’s policies, they are only temporary jobs created due to the errors and distortions of phony asset bubbles. All phony asset bubbles that are fueled by monetary inflation eventually burst, sending unemployment through the roof.
Almost every major central bank besides the Federal Reserve understands the truth about job creation, and has a mandate that focuses solely on keeping price inflation low. The Bank of Japan, Swiss National Bank, Bank of Canada, and Bank of New Zealand, all have mandates that are entirely about low inflation and don’t even mention the creation of jobs or the rate of employment. Bernanke said on Wednesday that, “while it is very, very important for us to try to help the economy create jobs and to support the recovery, I think every central banker understands that keeping inflation low and stable is absolutely essential to a successful economy.”
Bernanke has decided to go down a route that no central banker has ever gone before. Bernanke has literally invented countless ways to create inflation that nobody else has ever thought of. If keeping inflation low was ever Bernanke’s slightest concern, the Fed Funds Rate would currently be north of 5% and the U.S. economy would be in a steep recession. Bernanke has never once thought about keeping inflation low. He has literally implemented every measure he could possibly think of to create as much inflation as possible, while outright lying to the American public and saying that he isn’t printing money and that inflation is under control.
Bernanke would like the public to believe that his policies of expanding the money supply through cheap and easy money will cause the U.S. economy to recover and unemployment to decline back to pre-crisis levels, and that right before price inflation spirals out of control, he can raise interest rates and prevent massive price inflation without disrupting the recovery. Unfortunately, this is impossible because the recovery isn’t real and massive price inflation is already here. Bernanke’s policies may have created 1 million artificial jobs since December of 2009, after 8.75 million jobs were lost in the previous two years, but he did this at the expense of 310 million Americans already seeing double-digit percentage increases in food and energy prices.
Since after the Real Estate bubble burst in late-2008, the primary economic concern of Americans has been finding a stable job in order to make mortgage payments and put food on the table. Under the pressure of Congress, the Fed printed enough money to prevent a much needed recession that would be healthy for the long-term U.S. economy. In its attempt to reinflate the Real Estate bubble, the Fed has been destroying the free market and creating new economic distortions, which caused an artificial bounce in the rate of employment. Unfortunately, when you add together the money the Fed has either printed or committed for bailouts and stimulus programs, over $4 million has been spent for each job created. The Fed would have been better off just crediting the bank accounts of unemployed Americans with the average U.S. income.
When asked about rising gas prices, NIA is very happy that Chairman Bernanke acknowledged that gas prices “have risen quite significantly” and are “creating a great deal of financial hardship for a lot of people”. Bernanke admitted that gas is a “necessity” as “people need to drive to work” for the artificial jobs Bernanke created at a cost of $4 million per job. However, Bernanke seemed to be confused when he said “higher gas prices add to inflation”. The truth is, Bernanke’s zero percent interest rates and quantitative easing are the inflation, and inflation leads to higher gas prices.
Bernanke is directly responsible for gas prices rising back to $3.87 per gallon, yet refuses to admit it. Bernanke placed the blame on the growing global and emerging market economies, and their strong demand for oil. He said that America’s demand for oil is going down, which NIA believes is actually due to the U.S. dollar losing its purchasing power and Americans seeing their standard of living decline. Bernanke said there is nothing that he can do about rising oil and gas prices “without derailing growth entirely”. The truth is, Bernanke already derailed growth entirely when he derailed the free market. It is impossible to see real economic growth when a government and central bank is interfering in every aspect of the economy and impeding the free market in every possible way. All nominal GDP growth in the U.S., along with growth in retail sales, is solely due to inflation. Even when the government adjusts GDP and retail sales growth to the rate of inflation, it is based off of the consumer price index, which NIA believes is currently understating price inflation by approximately 4%.
Although Bernanke denies he has the ability to reduce gas prices, he claims he can prevent “gas prices from passing into other prices and wages throughout the economy and creating a broader inflation which will be much more difficult to extinguish.” Bernanke obviously doesn’t want Americans to see higher wages because he believes it could lead to broader inflation, but NIA believes rising wages would be a good thing. Inflation hurts Americans most when the rate of inflation is far outpacing wage increases. The fact is, the U.S. is already experiencing broad inflation even without wage increases.
Bernanke’s brand new favorite word as of late seems to be “transitory”, which he used about a dozen times during his press conference. Despite what Bernanke says, NIA strongly believes that rising food and gas prices are not transitory. Bernanke likes the word “transitory” because he can use it to try and pretend that rising food and gas prices are only just a temporary phenomenon and that their current high levels aren’t here to stay. Many Americans can remember the day 40 years ago when a can of Coca-Cola cost a dime and a Hershey chocolate bar cost a nickel, with a gallon of gas back then costing only thirty-five cents. Have rising food and gas prices over the past four decades been transitory?
NIA first predicted two years ago in its documentary ‘Hyperinflation Nation’, that rising food and gas prices would soon become the primary concern of all American citizens as a result of the Fed’s dangerous and destructive monetary policies. Bernanke back then claimed that inflation would not be a problem and said that the U.S. risked deflation. If Bernanke has been so wrong about the inflation that Americans are faced with today, NIA doesn’t see how anybody can possibly believe that Bernanke will be right and that current high food and gas prices aren’t here to stay. In our opinion, the food and gas price inflation that Americans have experienced over the past 40 years, is likely to occur all over again during the next 4 years. NIA believes that 4 years from now, Americans will look back at the good old days of having cheap $4 a gallon gas.
The last thing the U.S. government wants is for the American public to realize that Bernanke is responsible for rising food and gas prices. If the public demanded to end the Federal Reserve, the government will no longer be able to spend recklessly knowing that the Fed will be there to monetize their deficit spending. In an attempt to make up excuses for rising gas prices and deflect attention away from the Fed, Congress has been pressuring the U.S. Attorney General to investigate the matter. Attorney General Eric Holder just announced the formation of the Oil & Gas Price Fraud Working Group. The stated purpose of this working group is to monitor the oil and gas markets for potential violations of criminal or civil laws to safeguard against unlawful consumer harm.
NIA considers this to be complete insanity. Any government interference in the oil markets will only drive oil prices up even higher. Oil prices are rising solely do to supply and demand. Demand is going through the roof because the Federal Reserve is creating a lot of inflation, and inflation always gravitates to the goods that Americans need the most to live and survive. Oil supplies are falling because President Obama has ordered U.S. troops to occupy Libya. In the past we at least made up excuses to invade countries like Iraq over oil by claiming they had weapons of mass destruction. Today, the U.S. government doesn’t even bother. Obama campaigned as an anti-war President, saying he would bring our troops home from the middle-east. Instead, he has increased our middle-east troop levels, and the sheep who voted for him are showing absolutely no signs of outrage.
visit: http://inflation.us for more information
While many economists predicted four-dollar-a-gallon gasoline by this summer, anyone filling up their tank this past week has already experienced the pain of four dollar gas pretty much across the nation. Now we dreadfully await the five-dollar-a-gallon-gasoline that many predict is on the way this summer. I watched on TV as a lady in Baltimore was shown pumping $100 worth of gasoline into the gas tank of her Honda Accord. She went on to explain that while it is good to have her tank filled up to go somewhere, she will be left with very little spending money when she gets to her destination. This is a direct reflection on how our economy will suffer under the crushing weight of high gas prices. Not too long ago she could have filled up that very same car for $50.00 and had an extra $50.00 to spend shopping for life’s little extras, such as new curtains, furniture, clothes, cooking utensils, etc.
Pic courtesy of digitaljournal.com.
Today, due to the high price of gasoline, all the merchants selling those items will be hurt indirectly. The customer is left with less money to spend in the merchants stores due to high gasoline prices, period. This is often referred to as trickle down economics. High fuel prices also drive up the cost of every single item we need to purchase on a daily basis, such as food, electricity, and anything that has to be transported from point A to point B to be available for purchase. When it costs the transportation companies double the amount of money to fuel up their trucks, ships, airplanes and boats, they simply have to raise their shipping and transportation costs so they can stay in business. That makes the price of every item we purchase increase, which then makes your paycheck able to buy less’ as an end result. This is the double whammy that is now hitting every single American, whether they realise it yet or not. So what is causing the soaring gasoline prices that we see today? In trying to answer that question, I will try a more common sense approach to exploring the possible causes of rising gas prices, as we have already heard from all the self-appointed experts about their theories on it.
First of all, like it or not, politics plays a huge part in gasoline prices. From over-regulation by our government, to the moratorium on the drilling for oil in the Gulf of Mexico and other huge oil deposits in the U.S., to OPEC’s manipulation of oil reserve numbers, to the upcoming 2012 elections, they all play a part in increasing oil prices. When it comes to the politics of skyrocketing gasoline prices in America, I see another possible reason for why this problem is not being addressed. The current President is a disciple of the Alinsky model of creating a crisis, then using it to further empower themselves over the people . Obama is pushing for a green energy plan that has been proven to be a huge failure across the globe, yet continues to hamper our very own domestic oil production. That puts us at the mercy of OPEC, along with the big oil-producing nations of the middle east that basically hate America. This also creates a crisis of high gasoline prices that the Alinsky-student Obama could step up and offer a “solution” for. We probably wouldn’t have four-dollar-a-gallon gasoline today if there hadn’t been a moratoriam on drilling in the Gulf of Mexico, coupled with the expanded denial of permitting in our midwest for the past two years. It takes years to find the oil deposits and extract them from the ground, and I feel we are just now seeing the beginning of the damage the Gulf drilling moritoriam has done in interrupting our demestic oil production in the near future. This could explain why many experts are predicting five, and even six dollar a gallon gasoline by the end of this year.
I would imagine it would be a huge plus for Obama’s reelection chances if he could continue to allow the jacking up of the price of gasoline to over five dollars a gallon this year, let everyone feel that pain at the pump, and then come up with a savior-like lowering of gasoline prices by the summer of 2012, just in time to sway public opinion of him. The manipulation of our economy for political gains has been done before, many times. Super high gasoline prices would also help Obama sway people to accept his currently dysfunctional green energy plan, and also continue his wealth redistribution agenda through green energy companies, many of which have already proven to be a huge failure here in America. We have pumped billions of tax dollars into green energy companies with very little to show for it today. Super high gas prices will also allow Obama to continue the theft of tax dollars for his favored redistribution of wealth to unproven, dysfunctional green energy companies, further driving up our massive debt problem. This follows the pattern of continued government spending with nothing to show for it in return that we have seen from the Obama regime since day one in office. Understanding the politics behind the current gasoline prices, and possible motives behind continued high gasoline prices is crucial to the 2012 elections, in helping people to understand just what four more years of proven dysfunctional Obamanomics will mean to America and her economy.
Another reason behind high oil prices can be found in the connection between the big oil companies, wall street and Opec. With the current economy still struggling along at a snails pace, why in the world is the stock market still rocking and rolling at record high levels ? I found a pretty good explanation over at investorplace.com :
Big Oil Needs Expensive Gas to Survive: According to industry experts, the “easy” oil in the Middle East and Africa can be pumped for as little as $5 a barrel from simple surface well. Costs vary greatly for unconventional projects such as deepwater drilling and tar sands, but can easily be $40 a barrel or higher for tough to access supplies of oil. With fierce global competiton and state-run monopolies in Venezuela and China squeezing out Western energy giants, the bottom line is that cheap oil – and subsequently cheap gasoline – just doesn’t work out on the balance sheets of big oil. Call me a conspiracy theorist, but considering that Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), BP plc (NYSE: BP), ConocoPhillips (NYSE: COP) and Royal Dutch Shell (NYSE: RDS.A) have a collective market value well over $1 trillion, it’s hard to imagine all that financial clout simply sitting by and letting oil slump back to $50 or $60 bucks a barrel where high-tech, high-cost extraction leaves them little or no profit margin.
OPEC Wants Expensive Oil: The Organization of the Petroleum Exporting Countries, or OPEC, has made it clear that $100 oil isn’t a sign of alarm but rather a decent equilibrium. The group has gone on the record saying oil prices above $100 a barrel are no reason for an emergency session. “If oil prices increase to $100 or more, it is not worrying and does not justify holding an extraordinary meeting by OPEC,” Iranian oil minister Masoud Mirkazemi was quoted as saying by the ministry’s news agency Shana. Is not worrying to whom, Mr. Mirkazemi? I think motorists and crude-dependent industries would have a different point of view.
In the first paragraph there we see the mention of the state-run monopolies in Venezuela and China, I feel that another state-run monopoly deserves mention here in the name of Brazil, where Obama currently met with the new president, who also happens to be a former leftist, Marxist guerrilla revolutionary who did time in prison. Obama also handed Brazil’s state-run oil company, Petrobras, a permit to for oil storage and to drill for oil in the deepest part of OUR Gulf waters recently. I find this to be a glaring example of Obama’s hypocrisy working against America and her own oil production. Recently, many Congressmen and Senators have demanded an explanation for this action from the President, but to no avail. So much for the most honest and open administration in U.S. history that Obama promised in 2008. Are these the actions that the American people will be duped into voting for again in 2012 ?
As a final note, we now see former big oil tycoon- turned green energy investor, T. Boone Pickens smiling all the way to the bank once again due to his ” predicted ” skyrocketing oil prices. He has been calling on legislators to mandate the switch to wind energy for the past several years, and in which he is now heavily invested. For all the green energy believers and common sense deniers out there , I will leave you with a great example of how green energy could not even give 87 people on a small island off the coast of Scotland enough power to heat a teakettle here. That’s right, a small island of 87 citizens have windmills, solar panels, and hydro-electric turbines, yet had to rely on their own noisy gas fired generators to function on a daily basis. Remember Mr. Obama’s famous words uttered in 2008. ” Under my plan electricity rates will necessarily skyrocket. ” That is no different then my thoughts when filling up the gas tank this week, ” After two years of Obama rule, we are now paying almost $100.00 to fill up the gas tank on a Honda Civic. Can hard working Americans afford another four years of Obama’s ” fundamental transformation of America” ?
The last few weeks have been ripe with claims that the U.S. economy is recovering. Pointing primarily at consumer sentiment and holiday spending, analysts expected that the outlook for America could only improve from here.
Unfortunately, the numbers don’t add up:
- Gallup’s economic confidence index is at -31, well below its 52 week low
- February orders for U.S. durable goods dropped almost a full percentage point just after having risen an adjusted 3.6% in January
- February existing home sales dropped to the lowest rate in decades which drove housing prices even lower.
- Oil is still on the rise. Crude for May delivery was touching $106.00 per barrel and going up.
While the most recent report on first time unemployment filings dropped to 382,000, it is unknown how much of this is due to actual increases in hiring or job seekers just giving up.
So while the Federal Reserve may be talking up an improving economy, take it with a grain of salt – Bernanke was saying even rosier things all the way back in 2009.
“Consumer spending, which dropped sharply in the second half of last year, grew in the first quarter,” Bernanke said in congressional testimony May 5. “In coming months, households’ spending power will be boosted by the fiscal stimulus program, and we have seen some improvement in consumer sentiment.”
Who would have thought that by “months” he meant like 26 or 30 of them?