By Peter Zeihan (from Stratfor.com)
Oil prices have now dipped — albeit only briefly — below US$40 a barrel, a precipitous plunge from their highs of more than US$147 a barrel in July. Just as high oil prices reworked the international economic order, low oil prices are now doing the same. Such a sudden onset of low prices impacts the international system just as severely as recent record highs.
But before we dive into the short-term (that is, up to 12 months) impact of the new price environment, we must state our position in the oil price debate. We have long been perplexed about the onward and upward movement of the oil markets from 2005 to 2008. Certainly, global demand was strong, but a variety of factors such as production figures and growing inventories of crude oil seemed to argue against ever-increasing prices. Some of our friends pointed to the complex world of derivatives and futures trading, which they said had created artificial demand. That may well have been true, but the bottom line is that, based on the fundamentals, the oil numbers did not make a great deal of sense.
RUSH: Larry told me I have five minutes. [Laughter] Thank you all very much. This receiving an award like this is beyond my comprehension. [Laughter] You always check yourself when there’s a camera around. Please bear with me, folks. I’ve got a case of bronchitis and a little fever, and I’m going to try to suppress my coughing spasms. But I see Fred Thompson. I don’t know how it’s possible. Let me tell you. I was in the air flying up here from Florida at about 4:30 and I’m over Raleigh, North Carolina, well right between Raleigh and Durham. And I’m — well, I want to be fair with the nondiscrimination stuff, so — [Laughter] ead and listent to the full speech HERE
And I’ve got Fox News on. And there’s the Cavuto show and Fred Thompson is on Cavuto show and he was in New York, right? So he’s in New York at 4:30. He’s not dressed like he is now. And I just recently got here. I landed at Dulles about 5:50. It took an hour and 35 or 40 minutes to get in here because the tree lighting ceremony and my temporary security guy, who is an order of fries short of a Happy Meal, got the route all wrong. [Laughter]
He had to get all the way to LaGuardia. And I assume you shoveled it to National? And you didn’t hit traffic, it’s amazing. Somebody told me you were going to be here and I said,”He can’t be, he’s in New York.” I was in this hotel one time prior to this. It was in 1987. And I was working in Sacramento at the time. And I had never, you know, I did not do guests. I had constantly sworn off on doing guests on the radio, because everybody else did. And the, excuse me, local management was so insistent that I do guests that they sent me here for a week if I would do guests. And the ABC Studios are right across the street on Desales Street, and that’s where we did the radio show for a week. And so I lined up a bunch of guests. I lined up George Will. I lined up Sam Donaldson, Judge Bork, a number of other people. And one of them that I lined up was Vitaly Churkin. Now, back in 1987, Vitaly Churkin was a regular. He was almost a cohost of Nightline. And he was at the Soviet Embassy. And he was one of these KGB guys that spoke perfect English, looked as American as anybody at Hillsdale College. [Laughter] R
Oil prices plunged as much as $10 a barrel Monday as a U.S. financial bailout plan failed to win legislative approval, increasing fears a prolonged economic downturn that could sharply curtail energy demand.
Light, sweet crude for November delivery at one point sank $10.06 to $96.83 before paring some losses to trade at $98.26, down $8.63. It was crude’s lowest trading level since prices edged back below $100 earlier this month; crude previously hadn’t traded that low since February.
Crude has now fallen 34% since surging to an all-time record of $147.27 on July 11. More from FoxBusiness
Speaker of the House Nancy Pelosi wants to “save the planet,” and therefore will not allow an up or down vote in the House to open up offshore oil drilling. Apparently, Madame Speaker agrees with Crazy Harry Reid that “we’re hurting the planet” by using oil, and we ought to “stop using fossil fuels.”
How do we “stop using” antifreeze, anesthetics, anything plastic, bandages, basketballs and candles? Detergents, dice or epoxy glue? Paint, guitar strings or insect repellent? Lipstick, life jackets or roofing? Shaving cream, shower curtains or toilet seats? These and hundreds of other common everyday items in our lives are made, in whole or part, with oil.
If they mean “stop using gasoline,” that’s only 19.5 gallons in a 42 gallon barrel. The rest of that barrel is spun into nearly everything you see around you from medicine to furniture to clothing – everything that makes our standard of living possible. “Stop using” oil makes no sense. This is shrieking madness. Read more by Roger Hedgecock at WorldNetDaily
by JR Dieckmann
Ridiculous, you say? Is it really any more ridiculous than the statement “We need to end our oil addiction?” Just look at the hazards being created by telephones today; avoidable auto accidents, filling our landfills with non-biodegradable plastics and electronics from disposable phones, polluting our air with radiation from cellphones and cellphone towers, loss of productivity due to excessive phone babble, and disruption of peace and quiet by people walking around in public places talking loudly into these tiny boxes.
So you see, if you want to make a case for the need to end our addiction to telephones, you can do that. But the truth is – we are not addicted to phones anymore than we are addicted to oil. Both provide us with the means to maintain our comfortable standard of living and productive economy. We depend on them in our daily lives – we are not “addicted” to them.
NEW YORK (CNN) — Call our politicians and tell them to stay on vacation. Call the caribou roaming in Alaska and tell them they’re safe. Call the Saudi king and tell him what you really think of his oil.
I, Glenn Beck, a recovering alcoholic rodeo clown, have come up with a solution to America’s energy crisis…and you’re wearing it.
Look at yourself right now. You’ve probably got on a shirt, socks, shoes, jewelry, maybe even some pants. Do you have any idea how much all of that weighs?
If people really loved America, they would strip down, leave their clothes at home, and drive around buck naked. That would decrease the weight of our cars, which would increase our gas mileage so dramatically that we probably wouldn’t have to drill for any new oil! More from CNN.com
Bill Becker, in his May 24 Voices letter claims, “Ethanol is a significant step in the right direction for the U.S. to gain fuel independence.” He couldn’t be more wrong. The 6 billion gallons of ethanol produced in 2007 barely generated a 15-day supply of fuel. And it took 25 percent of total U.S. corn production and a cost to taxpayers of $6 billion in federal and state subsidies, tax credits and tax exemptions to do it.
If the entire U.S. grain harvest were used to make ethanol, it would provide scarcely 18 percent of our automotive fuel needs each year; today ethanol barely supplies 3 percent.
Becker brought up the five top U.S. oil company profits of $123 billion in 2007, but what he fails to mention is that $87 billion went to pay U.S. income tax; $24 billion was paid to U.S. shareholders in dividends, and $8 billion was for participating in the drilling of 17,000 new oil wells in 2007.
Speaking of profits, Archer Daniels Midland produces one-fourth of U.S. ethanol annually. Its profit in 2006 was $10.8 billion only made possible by subsidies, tax credits and exemptions. ADM has been costing the U.S. economy billions for years. More from the Springfield, Missouri, News Leader
A good explanation of ethanol and why it is not a viable alternative to oil. Nancy “Lights Out” Pelosi is still on her “vacation”, as are other Democrats as Republicans continue in Washington, demanding they return to work on a real solution to high fuel costs.
By JR Dieckmann
What if oil prices continue to rise with no end in sight? Even now with gas at $4.50 a gallon on the west coast, it’s becoming difficult for many people to fill up their gas tanks. What’s going to happen when it goes to $5.00, $6.00, $7.00 a gallon, or even higher? This will have an effect on all levels of society – from the poor, all the way to the White House. The entire economy of the country and the free world may be at stake. It could lead to war.
I’m not saying this is going to happen, but it could. It is just as likely that gas prices will start to decline by the end of the year. We are already seeing a small drop in consumption and demand, but no drop in prices as the price of a barrel of oil continues to climb. Some investment professionals are calling it an “oil bubble” that is soon to burst. I don’t see it that way at all. Continue reading
After paying $65.00 to put 14 gallons of gas in my car the other day, I came home and sat down to watch “The O’Reilly Factor” on Fox News. I no longer watch the arrogant Bill O’Reilly now; that was the last straw.
First out on his program was his “Talking Points” in which he discussed the reason for the high cost of gas today. It has become painfully apparent that O’Reilly’s understanding of the issues behind the cost of gas is as pathetic as his understanding of the reasons for our invasion of Iraq. It’s not about oil company greed, Bill, and it wasn’t solely about Saddam’s WMDs. O’Reilly has been hanging around with too many leftists in the media.