The Big Oil Scam !
July 5th, 2008, 12:58 pm. Posted under Market Commentary by AppleOption.
The Congressional Committee on Natural Resources in June 2008 published “The Truth About America’s Energy: Big Oil Stockpiles Supplies and Pocket Profits.”
Key Points
- Increased Domestic Drilling Activity Has Not Led To Lower Gasoline Prices
- Energy Companies Not Using Federal Lands Already Open to Energy Development
- Vast Majority of Federal Oil and Gas Resources Already Available for Development
- Page 5, Graph of # of Drilling Permits vs the # Wells Drilled in relation to the price of gasoline.
The Committee’s Conclusion: Drilling for more Oil does not lower Gas prices!
Watching CNBC and Fox over the 4th of July weekend, one can see how the “media” is supporting the propoganda and are pushing Oil. Every hour has a segment about Oil! Each try to justify why prices are this high, warning they will go higher, that the alternative is drilling for more oil, and that the government needs to give away more land for drilling…
What about conservation? Increasing the average vehicle MPG requirement to the global standard of 35+ mpg or “actually” persuing alternative forms of energy (see the Tesla Roadster).
What about the Strategic Patroleum Reserve (SPR)? Wikipedia states it is the largest emergency supply in the world holding up to 727 million barrels of crude oil. Bush had been pumping barrel after barrel (at total of 3.2 million barrels) into it despite record high prices! Congress put a stop to that on May 17. Here is an interesting article, the Department of Energy published about the perceived effect of filling the SPR. In times of record high gas prices, Clinton released barrels form this reserve.
What about the NYMEX Oil Speculation? Goldman Sach has been leading the charge to pump oil to $200 per barrel. Meanwhile, CNBC his fueling the fire on a “super spike” premise both online and every hour in TV segments. The option trading on Crude Oil is rediculous! No one is buying contracts in 2009/2010 for more than $70. People know the scam is being run. However as recent as May 20, the U.S. commodities regulator, the Commodity Futures Trading Commission (CFTC), insisted at a Senate hearing that speculation was not causing the rapid spike in energy prices. This was after Oil had surged $16 in two-weeks. The price of Crude Oil is now $20 higher. During which, OPEC has increased production and US consumers have decreased consumption.
Speculators now account for about 70 per cent of all benchmark crude-oil trading on the New York Mercantile Exchange, up from 37 per cent in 2000, MarketWatch.com.
Welcome to the BIG OIL SCAM !
Even Russia’s biggest Oil producer is trying to sucker money out of people as Alexei Miller the CEO of Gazprom predicted that oil would jump to $250 a barrel. This is ridiculous! Why would the media give any credibility to this out rageous predicition by someone with such a bias? The reason is simple… it is exactly what happens at a “top” when the big boys try to dump their stock to the sucker next door before the buble pops!
Read our article on Gas & Crude Ready to Explode!
Know your exposure to Crude! Don’t get caught in the Bubble!
The every day investor should be aware of this… It is the next “tech bubble.” Companies like MyGallons.com and many others are trying to profit on the general consumer panic. Oil will crash, don’t give away your hard earned cash!
Take time now to check your portfolio, to identify stock that have strongly benefit from the Oil speculation and take gains or at least buy put protection.