From Stark
As gasoline prices continue to sop up your disposable income and mine, some of our nation’s leaders are focusing on speculators and price manipulators. Deja vu all over again: Every time gasoline prices spike, investigations are launched.
Personally, I’ve always wondered why we should expect the people who own the gasoline to sell it to us at a price we find acceptable. If they charge $4 a gallon and we pay it, why should we expect them to charge less? When you sell something, do you set the price as low as possible, out of tender concern for the purchaser?
Maybe I’m missing something.
Let’s hear from our congressman, U.S. Rep. Rick Larsen, who released a statement on the the announcement that the Department of Justice has established the Oil and Gas Price Fraud Working Group. In his statement, he notes that he voted in favor of a similar investigation the last time gas prices hit these levels. (How did that investigation turn out? I’m asking Larsen’s office to report back. Watch for an update.)
UPDATE–from Larsen spokeswoman Emily Halnon. She reports that Larsen twice voted in favor of price relief legislation that passed the House but never cleared the Senate:
“H.R. 6074, the Gas Price Relief for Consumers Act of 2008. It passed the House on May 20, 2008, by a vote of 324-84, was sent to the Senate but was never taken up for a vote before the 110th Congress ended.
Additionally, he voted in favor of H.R. 1252, the Federal Price Gouging Prevention Act, which passed the House May 23, 2007 by a vote of 284-141. Again, the Senate did not take up the bill.”
Here is Larsen’s earlier emailed comment. Among other things, he observes that the U.S. needs “long-term investments and policy changes” to get off the gasoline price roller coaster:
“Last week the President’s announced the formation of an Oil and Gas Price Fraud Working Group. This group must take a hard look at the manipulation of gas prices – determining where and when any fraud of prices took place. We must make sure that every effort is being taken to identify and halt speculation.
“All across Washington, families and small businesses are once again struggling to meet the demanding budget strain caused by skyrocketing gas prices. When gas prices hit record highs three years ago, I voted in favor of the creation of a task force similar to the one now being formed. I expect this group to present a complete picture to the President and hope any findings of manipulation will be swiftly addressed by the Administration and by Congress.
“There is no simple fix or solution for rising gas prices. We must crack down on speculators, but ultimately long-term investments and policy changes are the only way to stabilize our energy future. I will continue to listen and work with my constituents to address their needs. This situation affects all of us and we must take the necessary steps to end the cycle.”
On August 21st, the President and Attorney General Eric Holder announced the formation of the Oil and Gas Price Fraud Working Group. In his memo outlining the group (http://www.justice.gov/ag/AG_Memo_to_FFETF-Gas_Prices.pdf) Mr. Holder called for the exploration of “whether there is any evidence of manipulation of oil and gas prices, collusion, fraud or misinterpretations at the retail or wholesale levels that would violate state or federal laws and that has harmed consumers…” and the evaluation of “the role of speculators and index traders in oil futures markets.”
The Energy Information Administration reports that the average price of unleaded regular fuel in Washington last week was $3.94 per gallon, 88 cents higher than it was one year ago and ten cents higher than the national average.
What the professional politicians keep forgetting is oil is an international commodity, how can a US politicians believe that they can dictate to the international community oil prices? Obama goes to Brazil, gives them billions of dollars to come to the Gulf of Mexico and drill for oil, telling them that the US will be their biggest customer, sametime he’s telling the American people we need to get away from foriegn oil, then turns around and continues to block drilling for oil on American soil even the Gulf of Mexico. Why isn’t the media reporting this? Why isn’t the media questioning Obama on his actions or lack of action? The media is the lapdog for Obama’s admin, so people you need to go elsewhere to do your own research, you’ll never get the truth the mainstream media. Wake up Obama is lying to you.
Of course LapDog Larsen praises this, he praises anything he’s told to by the admin.
Shell Oil Company has announced it must scrap efforts to drill for oil this summer in the Arctic Ocean off the northern coast of Alaska. The decision comes following a ruling by the EPA’s Environmental Appeals Board to withhold critical air permits. The move has angered some in Congress and triggered a flurry of legislation aimed at stripping the EPA of its oil drilling oversight.
Shell has spent five years and nearly $4 billion dollars on plans to explore for oil in the Beaufort and Chukchi Seas. The leases alone cost $2.2 billion….
http://www.foxnews.com/us/2011/04/25/energy-america-oil-drilling-denial/
Surely our government policies have little effect on gas prices.
AFY!!theheelotsheepdog!!!
Oh gawd … here come the oil addicts complaining about the cost of a fix. For decades we’ve subsidized this stuff, and spent the national treasure to control its sources world wide.
If we’d just let the market work (ya get that AFY) the price would have been $5 bucks in the ’60s and we’d live in a different society all together.
Now we’ll all be goin “cold turkey” soon.
“Five Ways the Government Could Make Oil Prices Fall
1. Random Releases From the Strategic Petroleum Reserve
2. Double Margin Requirements for Oil Speculators
3. Temporary Moratorium on Federal and State Gas Taxes
4. Temporarily Suspend Winter/Summer Gasoline Formula Laws
5. Strictly Enforce 55-MPH Speed Limit
If All Five Steps Are Taken: Total savings of $1.52 to $1.89 per gallon.
See full article from DailyFinance: http://srph.it/h50Xzu
AFY!!theheelotsheepdog!!!
FactCheck.org recently tackled some of the political spin concerning gas and oil prices, which makes for some fine reading. Interestingly, they concluded that the temporary moratorium on deep water drilling in the Gulf has had zero impact on gas/oil prices, and they also debunked claims made by Sarah Palin that Obama is “allowing America to remain increasingly dependent on imports” from unstable countries.
Unfortunately, FactCheck did not really get to the bottom of what is causing high gas/oil prices. Instead, they quote Fadel Gheit, former Mobil Oil executive and senior energy analyst, who said,
And, there’s the rub. As g.h.kirsch suggests, factors other than competitive mechanisms of supply and demand in local/regional or national markets drive the price of oil on international speculative markets.
As I’ve said elsewhere on this blog, the price of oil is divorced from the normal pricing mechanisms one would expect to find in a free market, such as supply and demand. Consumers pay high prices that greatly exceed the actual costs of production/distribution, and big oil oligopolies reap excessive “windfall” profits.
Incidentally, don’t expect any government panels, commissions, or investigations to prompt congress to actually solve this problem for consumers, by dramatically decreasing our dependence on oil or allowing competitive forces in markets, because the ruling class who control the mighty oil companies and their partners on Wall Street are also calling the shots on Capitol Hill.
http://factcheck.org/2011/03/is-obama-to-blame-for-4-gasoline/
Let’s see.
Finite planet? Check.
Finite amount of oil reserves? Check
Infinite growth model of American business? Check
Growth rate of 7-9% in China? Check
Over 1 billion people in China? Check
Worldwide growth fueled by oil? Check
Increasing demand for oil? Check
Spin doctors keeping the public confused by focusing on speculators? Check
Walter, You’ve done it again.
Although this time I think you’ve skirted the problem a tad.
Only about 3 million Chinese can even afford a car,
and that’s from their extraordinary savings account stashes and not their disposable income.
Growing demand is only a part of the price equation,
since like the host advances,
the market bears whatever we’ll pay.
That means all those developing nations too.
That’s why demand is down,
Why does oil ‘belong’ to the corporation what digs it up?
Why are speculators even allowed to gamble in vital commodity markets like foods and energy in the first place?
Hedgers smooth-out the markets through buying future stability,
speculators only pervert that purpose by artificially ‘buying’ futures they will not use.
The price of oil is pegged to the dollar, our Fed policies are devaluing our dollar (i.e. QE2, etc.), could there be a relationship to the increase in oil prices (and just about everything else, gold, milk, corn, etc) and the value of our dollar?
AFY!!theheelotsheepdog!!!
Because Kevin oil is a natural resource that belongs to all of us and it’s mining and pricing is somewhat regulated because, not only do we taxpayers subsidize oil companies, as Greg notes, we have been drawn down the path by all the transportation companies we subsidize and bail out, from oil companies to car manufacturers.
Which is the good argument for oil company nationalization when they conveniently forget the welfare they take while they reap huge profits and their executives laugh all the way to the bank—as if they are somehow geniuses for drilling holes in the ground, taking our resources, and duping us while conspiring with others to insure the strangle hood they have on our
economy and the delivery of goods and
services remains.
And John, because oil is a natural and vital resource to our economy and our security, we can’t just let them go hog wild with whatever price they think the market will bear because we know they are a glutinous lot and have no self restraint.
They and their allies have monopolized the resource, tied our success as a culture to their product and then when they, as BP has done in the Gulf or Exxon in Alaska, destroy other industries and livelihoods and food chains and wreak havoc on the planet they never want and never do pay for the damage or actually clean up behind themselves. Like spoiled children they soil the diaper of the planet, and then toss it in our laps while their decision makers take huge bonuses, profits and treasure from the country.
Sorry for the garble at the end but you get the gist.
This little screen is harder to view fully and edit and since Disqus has no re-edit feature, like story comments, it slipped by me….but again you get the gist that they never want to pay to clean up their mess, like spoiled children tossing food from a high chair….
The answer my friend or oil fiends is blowing in the wind. Get a Nissan Leaf and save some oil for the future.
Mr. Larsen should insure that B.P.A. gets their smart electrical grid built.
“For decades, the democrats have blocked one effort after another to responsibly develop the energy resources our country possesses, transforming vast areas of opportunity into “The No Zone.”
http://gatewaypundit.rightnetwork.com/wp-content/uploads/2010/12/no-zones.jpg
Because of current U.S. policy, U.S. companies are prohibited from developing oil fields that lie in Cuban waters and come within 50 miles of Florida. However, Cuba is exploring and developing these oil fields, estimated by the U.S. Geological Survey to possess more oil than the Alaska National Wildlife Refuge, and Cuba is partnering with China and other countries, such as Spain, France, and Canada….
Meanwhile Obama says he sees no “magic bullet” to bring down gas prices.
How about drilling?
http://gatewaypundit.rightnetwork.com/2011/04/as-gas-prices-reach-4-per-gallon-the-obama-epa-forces-shell-to-stop-drilling/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+gatewaypundit2+%28Gateway+Pundit%29
AFY!!theheelotsheepdog!!!
“Found: the speculator who is driving up the price of gasoline…
It would be very, very expensive to try to raise the price of oil by manipulating the market, even to try and fail, because you have to buy it and store it. The Hunts tried it with silver in the late 1970s and failed. Warren Meyer Coyote Den blog explains:
… 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 only real option for raising prices is to store the oil in the ground — in other words, don’t allow it to get produced in the first place…..
It would cost $80 billion to buy enough oil – four million-barrel tankers full – every day just for six months, plus the cost of storing it. Who is buying oil just to store it? Where is it stored?
The answer: The oil is not being bought and stored; the oil is in the ground. The Interior Department is preventing ramping up oil production in the Gulf of Mexico. US Energy Info Administration shows it declining. The EPA is preventing Shell Oil from producing in the Beaufort Sea and Chukchi Sea north of Alaska. The Obama administration is keeping production down. We found the speculator: President Obama. He is not buying and storing oil, but keeping it in the ground: less supply causes higher prices: President Barack Hussein Obama.
http://soundpolitics.com/archives/014795.html
AFY!!theheelotsheepdog!!!
citizen,
“Only about 3 million Chinese can even afford a car,…”
In terms of unit sales, the Chinese car market is now larger than the US market.
Everybody here knows that I think that the US government’s deficits are completely out of control, and the the Fed’s responses to this problem are only exacerbating it.
The rising price of gasoline is like the canary in the coal mine.
Without real change in Washington, you are now being introduced to the future.
I hope you enjoy!
And the 1st covert CIA action, British Petrols finest hour?
The CIA, that’s PAC shorthand, for no intellegence whatsoever.
http://www.cbsnews.com/stories/2010/06/30/opinion/main6633235.shtml
Known best as “divine Providence,” in the Sherman Act of July 4th 1776.
http://antiantiunderground.com/wp-content/uploads/2011/04/2011_04_26_HOLDUP.jpg
AFY!!theheelotsheepdog!!!