There is no gas shortage...

[Sgt Beavis]

If you haven't noticed that gas prices are sorta high, you're either dead or live the life of a hermit..

But have you noticed that you never really have to wait in line to get your gas? Seems to be plenty of gas around.

So read this.. The mainstream media is finally starting to touch on this subject but Ed Wallace, writing for Businessweek started hitting on this subject a long time ago...

"They see speculation in the market, I see decline in global inventories. I don't think this is a big surprise, that we've had a jump in price when there has been a decrease in crude inventories."— Energy Secretary Sam Bodman, Bloomberg News, Mar. 5, 2008

"It should be obvious to you all that the [gasoline] demand is outstripping supply, which causes prices to go up." — President George W. Bush, Associated Press, Mar. 5, 2008

One wonders if verifiable facts ever get in the way of this administration's statements on issues that are critical to the average American's wellbeing. After all, last time I checked, when politicians are elected to public office, or appointed, as is Energy Secretary Samuel W. Bodman, they must take an oath to the American people before assuming their new positions. How can they forget a sacred oath so quickly? Were they daydreaming when they took it, so it never meant anything to begin with? Maybe it's just another promise you have to make to get into office: When you're securely incumbent you can ignore even solemn oaths you took.

Obviously, the two quotes that led this article came from discussions concerning the current high price for oil on the futures market. Bodman appears to be protecting the speculators in oil, as opposed to looking after the interests of all Americans. President Bush, apparently, has never talked to the Energy Dept.'s Energy Information Agency to see whether gasoline demand is actually up. More troubling, the writer of that particular Associated Press article obviously didn't look up the EIA's numbers to verify the President's assertions. They weren't accurate.

Read the rest here:
http://www.businessweek.com/lifestyl...e+with+readers

BTW, Ed Wallace has created a news aggregator on his website. I've found it to be pretty damn good, especially when it comes to economic and energy related news.

http://insideautomotive.com

[BigAls87Z28]

Awesome read man...awesome read.

I will allow this on the fact that its educational based on a current propped up crisis here in America. Leave politics out of this, and talk about the article,the facts int he article, and your opinion.

[member12]

I knew that.

There is no shortage...the last time I've had to wait in line for gas was 2005.

Prices are being driven up because of increased demand (why not make more money out of the deal), increased investment into drilling (about 50 mil to drill an well and many are dry)....

There are reasons for prices to be higher, but there is something else going on. Many thing some commodities are being bought up at a higher price because it's an election year and for "turmoil" in the mid east.

[autofan]

That was a terrific piece. Beyond the issue at hand (supposed fuel shortage), I think pieces like this popping up and getting more attention will slowly educate the public about the mass deception were are fed by our government. There are people and companies getting very rich off of this entire fuel/oil scam and it's all courtesy of largely clueless Americans.

[member12]

Originally Posted by autofan

That was a terrific piece. Beyond the issue at hand (supposed fuel shortage), I think pieces like this popping up and getting more attention will slowly educate the public about the mass deception were are fed by our government. There are people and companies getting very rich off of this entire fuel/oil scam and it's all courtesy of largely clueless Americans.

It's more deception by big oil....and I am starting to think that Exxon and Mobil should be split up.

I think it was a bad idea to let them merge.

The problem is that oil treated like a commodity so there is less competition. The system isn't set up in a way that promotes competition.

[vsd]

The other day on the news they reported that several refineries in California were actually cutting back on production because there is actually an excess of supply. The gas prices are artificially high, it's no secret, and I've said it before and I'll say it again, gas companies are dinosaurs, and all dinosaurs will die.

[tholland]

Like all speculative bubbles, this one will eventually pop and prices will came back in line with fundamentals... For now, the oil casino is still open for business.

[autofan]

Originally Posted by member12

It's more deception by big oil....

The article speaks at length of the deception from the Energy Secretary and president. And, as we know, big corporations and government have a very interwoven relationship. The deception and mismanagement is coming from them both yet much of the public (and the government) puts blame almost solely on the big bad oil companies.

[wescoent]

Well, just because an oil tax isn't collected the NORMAL way...

[Sgt Beavis]

Originally Posted by vsd

The other day on the news they reported that several refineries in California were actually cutting back on production because there is actually an excess of supply. The gas prices are artificially high, it's no secret, and I've said it before and I'll say it again, gas companies are dinosaurs, and all dinosaurs will die.

That is correct but it doesn't give the whole picture.

Refinery capacity is running around 85% nationwide. They started cutting back production a few months ago so this is not due to the change to summer gasoline blends.

They cutting back because their profit margins started shrinking drastically as oil prices jumped. Their sole reason for cutting back is to intentionally raise prices at the wholesale level so they can increase those margins.

Even when we start switching to summer gasoline blends refinery production usually doesn't drop below 90%.

[Sgt Beavis]

Originally Posted by tholland

Like all speculative bubbles, this one will eventually pop and prices will came back in line with fundamentals... For now, the oil casino is still open for business.

I totally agree, but then we're going to have another problem....

That speculation is being driven by hedge funds. The same kind of hedge funds that created the subprime lending bubble. When that bubble popped you saw how many banks nearly folded. Well, the same is going to happen when the oil bubble pops but its only going to be worse.

You see, these hedge funds only supply about 10% of their own cash for speculative buying. The rest is borrowed from banks. When the oil bubble pops and those banks call in the loans,..... well, the excrement is going to hit the fan and WE are going to be left holding the bag..

[CJ Thunder]

Originally Posted by Sgt Beavis

to the change to summer gasoline blends.

Thats BS a cars computer cant regulate between E10 all the way to E85 but we have to switch blends because it gets too cold overnight. Where is the advancement in that tech?

[Sgt Beavis]

Originally Posted by CJ Thunder

Thats BS a cars computer cant regulate between E10 all the way to E85 but we have to switch blends because it gets too cold overnight. Where is the advancement in that tech?

Umm, I'm not talking about switching between E10 and E85. Hell there are barely any stations that carry E85 to begin with. If that were the case we would be blowing up a lot of engines in this country since most cars can't handle anything beyond E10.

MOST gas is now E10 period. Summer blends involve changing the refining process and the additives put into gas.

Many E10 formulations are created with splash blending (which sucks) which doesn't need a refinery to take place. It is basically just mixing the two together...

[Michael_S]

Originally Posted by member12

It's more deception by big oil...

Please re-read the article. The ExxonMobil CEO said that oil prices are high because of speculation, not costs. It was President Bush and Energy Secretary Sam Bodman who lied, not the oil tycoons.

I'm sure the oil industry executives are quite happy with the situation. But they aren't the ones deceiving us right now.

On the other hand, there's an old saying. "If you aren't liberal when you're a young adult, you have no heart. If you aren't conservative when you're middle aged, you have no brain." Mostly I'm kicking myself for not buying oil futures in 2002.

[Sgt Beavis]

Originally Posted by Michael_S

Please re-read the article. The ExxonMobil CEO said that oil prices are high because of speculation, not costs. It was President Bush and Energy Secretary Sam Bodman who lied, not the oil tycoons.

I'm sure the oil industry executives are quite happy with the situation. But they aren't the ones deceiving us right now.

Well, personally I'm not 100% ready to go that far. I would personally like to know if Exxon/Mobile or another oil company is or isn't vested in the hedge funds that are bidding up those oil contracts. IMO one of the real problems here is that hedge funds are pretty much unregulated. Another problem is that the oil futures market is pretty much closed to outside observers. You can buy all the oil contracts you want but no one will tell you who else is buying those contracts.

But then that is just part of the problem. Another is the consolidation of refinery ownership. Another is our own government regulation (too much on one area, too little in another) Then of course there is greed. Don't get me wrong, greed isn't a totally bad thing when it comes to business but some people just want it all and don't care who they screw to get it.