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Juice
This article is for anyone who honestly believes that the current price of oil is a result of supply and demand fundamentals. It's not a short read, but it's a must read. It identifies the perpetrators of crude oil price escalation and explains how they're profiting from it in the futures markets and hedge funds. It also explains why America blames China, Iran, India, and a litany of 3rd world countries for the price of gasoline when they are not responsible.

In short, the global energy markets are being manipulated for excessive profits while at the same time advancing the agenda of militarist policies in the Middle East. Probably as realistic an explanation of what's actually driving the escalation in energy prices as you'll ever find. Here's the link:

http://aljazeera.com/news/newsfull.php?newid=131649

It's long, so here's some quotables:

QUOTE
The fact that the skyrocketing oil prices of late have been accompanied by a surplus in global oil markets was also brought to the attention of President George W Bush by Saudi officials when he asked them during a recent trip to the kingdom to increase production in order to stem the rising prices. Saudi officials reminded the president that "there is plenty of oil on the market. Iran has put some 30 million barrels of oil that it can't sell into floating storage. 'If we produced more oil, it wouldn't find buyers,' says the Saudi source. 'It wouldn't affect the price at all.'"

And why would producing more oil not "affect the price at all"? Because what is driving the soaring oil prices is not shortage but speculation: "with so much investment money sloshing around in the commodities markets, the Saudis calculate they have no hope of controlling short-term price fluctuations. They blame the recent price run-ups on speculation and fear of shortages [not real shortages], factors they say are beyond their control.


QUOTE
As much as 60% of todayís crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. . . . Since the advent of oil futures trading and the two major London and New York oil futures contracts, control of oil prices has left OPEC and gone to Wall Street. It is a classic case of the Ďtail that wags the dog.í
QUOTE
By purchasing large numbers of futures contracts, and thereby pushing up futures prices to even higher levels than current prices, speculators have provided a financial incentive for oil companies to buy even more oil and place it in storage. A refiner will purchase extra oil today, even if it costs $115 per barrel, if the futures price is even higher.


QUOTE
Let us assume for a moment that the neoconservative militarists are sincere in their alleged desire to bring about democratic rule and representational government in the Middle East. Let us further assume that they succeed in realizing this purported objective. Would, then, the thus-emerging democratic governments, representing the wishes of the majority of their citizens, be as accommodating to US economic and geopolitical objectives, including its oil needs, as are its currently friendly rulers in the region? Most probably not.
QUOTE
Contrary to the claims of the proponents of Peak Oil and champions of war and militarism, the current oil price shocks are a direct consequence of the destabilizing wars and geopolitical insecurity in the Middle East, not oil shortages. These include not only the wars in Iraq and Afghanistan, but also the threat of a looming war against Iran. The record of soaring oil prices shows that anytime there is a renewed US military threat against Iran, fuel prices move up several notches.


QUOTE
The Peak Oil thesis serves as a powerful trap and a clever manipulation in that it lets the real forces of war and militarism (the military-industrial complex and the pro-Israel lobby) "off the hook; it is a fabulous redirection. All evils are blamed on a commodity upon which we are all utterly dependent".
QUOTE
Big Oil interests also know that not only is war no longer the way to gain access to oil - it is an obstacle to gaining that access. Exclusion of US oil companies from vast oil resources in countries such as Russia, Iran, Venezuela, and a number of central Asian countries due to militaristic US foreign policy is a clear testament to this fact. Many of these countries (including, yes, Iran) would be glad to have major US oil companies invest, explore and extract oil from their rich reserves. Needless to say, US oil companies would be delighted to have access to those oil resources. But US champions of war and militarism have successfully torpedoed such opportunities through their unilateral wars of aggression and their penchant for a Cold War-like international atmosphere.


QUOTE
No matter how crucial oil is to the world economy, the fact remains that it is, after all, a commodity. As such, international trade in oil is as important to its importers as it is to its exporters. There is absolutely no reason that, in a world free of the influence of the beneficiaries of war and militarism and their powerful lobbies (the armaments and the pro-Israel lobbies), the flow of oil could not be guaranteed by international trade conventions and commercial treaties.
Seeen
Ride a bike.
Hardcore Ottoman
I knew that most of gas and oil is priced purely based on speculation already. Thanks though.
Severus Snape
I put forth these questions in an attempt not to get the answers, but in an attempt to open peoples' eyes about the larger picture:

1. Why are all hybrids (with the exception of Saturn as they aren't true hybrids) still not getting anything better than 45 mpg? All hybrids are still reliant on an oil-based petroleum as the primary fuel source. Why?

2. Why hasn't any company (oil, automotive, or other) tried to build the infrastructure in the US (or elsewhere) to support hydrogen fuel cells?

3. Why does nobody talk about the fact that corn-based fuels actually get WORSE gas mileage than oil?

4. The internal combustion engine has been outdated since the 1950s. Why hasn't some other form of propulsion system been designed? I am talking about using magnetics, ion thrust (yes, virginia, it's possible), etc.? When the steam engine became outdated, it was dropped from existence. Why hasn't the same been done to the internal combustion engine?

5. Why did the state of California allow the major automotive manufacturers to destroy all of the electric cars?

6. On that note, why aren't there more electric cars on the roads in other states?

I could go on about the automotive industry, but there is so much more to this than just cars. Nobody talks about the effects oil has on heating, or food prices, or education, or anything else for that matter. Before we can begin to solve the problem, we need to understand the whole problem first.
PabloHoneyOle
Q: Why Is The Price of Oil so High?

A: Sand Nigg-noggs.
psychÝ
Of course most of the problem is speculation and at this point it has cause a positive spiralling effect, however I rather doubt there isn't a supply issue due to the subsidisation of fuel in China and India which are a large consumer of it.

Plus that article has just as much of an agenda as CNN, I mean really who actually believes that if Iran and the US because tolerant of each other that Iran would let US oil companies pump their oil without major taxation in place, Iran wouldn't let the oil go out of its hands that is all it has, maybe they could strike some deals for cheaper prices but that is about it.

QUOTE(Ashley Graham @ Jul 7 2008, 02:01 PM) [snapback]1453176[/snapback]
I put forth these questions in an attempt not to get the answers, but in an attempt to open peoples' eyes about the larger picture:

1. Why are all hybrids (with the exception of Saturn as they aren't true hybrids) still not getting anything better than 45 mpg? All hybrids are still reliant on an oil-based petroleum as the primary fuel source. Why?
Because no one wants to plug a cable into their car when it is sitting on the road, that and the american oil industry suppresses innovation so they are still making big bucks, ever noticed how all the original hybrid cars come out of japan, and what does japan not car about, selling oil.
QUOTE

2. Why hasn't any company (oil, automotive, or other) tried to build the infrastructure in the US (or elsewhere) to support hydrogen fuel cells?
Lol, duh, why change something when they make a fuck load of money out of it, you really think they give a shit about the people don't you....
QUOTE

3. Why does nobody talk about the fact that corn-based fuels actually get WORSE gas mileage than oil?
Because it is just logical due to the hydrocarbon chain and that is vastly beside the point of why bio-fuels are shit.
QUOTE

4. The internal combustion engine has been outdated since the 1950s. Why hasn't some other form of propulsion system been designed?
Why would the oil companies allow that?
QUOTE

5. Why did the state of California allow the major automotive manufacturers to destroy all of the electric cars?
Because the oil companies who I might add before you say this is a big conspiracy literally brought the white house with bush, who do you think paid for his campaign, he is from texas...
QUOTE

6. On that note, why aren't there more electric cars on the roads in other states?
Cause they are shit because the innovation in the industry has been suppressed for so long.

You want more fun facts, hybrid cars already have the equivalent emissions of 100,000 miles before they have even moved due to the energy usage that goes into making the batteries.

Also biofuels are destroying the rainforest as well as increasing starvation and decreasing the potential food supply causing further people to starve.
Skinny†
QUOTE(Stoic Person Eater @ Jul 7 2008, 11:30 PM) [snapback]1453182[/snapback]
Q: Why Is The Price of Oil so High?

A: Sand Nigg-noggs.

Actaully, it's the chinese that are trying to buy up as much oil as they can because they think prices are about to sky rocket..
bOnEs
oil is high because oil companies are trying to make a huge profit off of the consumer... they remind me a lot of mosquitoes... only instead of sucking blood, they suck money... it's as simple as that...

and they talk about these fuel-efficient cars... how is that in 20 years, cars still get roughly the same amount of MPG as they did 20 years ago? it might be a little better, like say, 5 more MPG's... but come on... the way technology has taken off in the last 20 years, you'd think the car manufacturers would of discovered something by now that gets 60 MPG... and even with these "hybrid" cars, how is the consumer saving money? they cost almost twice the amount of a regular car... i'm tempted to buy a mo-ped since i only live 3 miles from work... they get like 80 MPG...

i think electric cars could make a comeback if they didn't look so ugly... i think the car manufacturers were forced to make them ugly by the oil companies... or something...

however you look at it, the world is heading into one hell of a huge oil war... every major country consumes lots of oil, and if the prices keep heading up, your gonna see a lot of oil hording by countries... countries will do exactly what america did... invade and take over an oil-rich country... we made the first move... i wonder who is gonna make the next...?
Hardcore Ottoman
QUOTE(psychÝ @ Jul 7 2008, 11:37 AM) [snapback]1453217[/snapback]
words
QUOTE(Ashley Graham @ Jul 7 2008, 02:01 PM) [snapback]1453176[/snapback]
words


I believe Graham was being sarcastic when he put those questions in a manner that they are not to be answered, but to open your mind if in case you don't know the situation of things with oil and its grasp on the global economies.
asthenia
lol @ banging on about hybrids. Look up how the Toyota Prius is made, the process of getting together the materials, the engines, etc etc blah blah blah.

Not so fuckin eco friendly anymore.
Qdeathstar
Well, Opec determines the supply of most of our oil.. so i guess you could say that it's not really a true demand push increase in prices. Secondly, globally, markets have been opening at an ever increasing rate as more governments began to see the benefit of opening their markets, making the trading of oil and other commodities more common.

While the paradigm is that open markets result in lower prices, the problem is that oil is a special case. Even though we can produce more now to meet supply at a lower cost, oil is finite, and after it is used up governments in the middle east are not diversified enough to continue to grow their economies and have no interest in keep global oil prices low.

The reason they have no interest in keeping global oil prices low is even at the supply they are giving, there is enough demand for oil. Even if all the speculators and evil terrorists worked hand in hand together to increase the price of oil, if their wasn't demand in the united states, china, and india, then there would be no one to purchase the oil these so-call-speculators have manipulated.

Many of the countries supply oil in the middle east also have no incentive to produce more oil because their marginal cost to produce more oil is greater than their marginal income. When a oil producing country increases supply, it costs them money to produce that supply, and at the same time the price drops. Even if they sell more oil they are still loosing money marginally.

I don't see how its a terroristic issue at all.. its more mere economics of an oligopoly.

QUOTE
lol @ banging on about hybrids. Look up how the Toyota Prius is made, the process of getting together the materials, the engines, etc etc blah blah blah.

Not so fuckin eco friendly anymore.


All cars have those same problems. :-/
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