I have a question. I would like to know what everyone honestly thinks about oil in the news of late. Sam Donaldson interviewed George Bush on one of the Sunday AM shows, and he hit him pretty hard about this issue, but I only caught the tail end of it.

I would like to get some opinions without "flaming" of anyone,let's try to keep a thread based on the subject matter. It's a good topic, and there are many knowledgeable people who come to this forum, either to lurk or post. I would like to hear from everyone. Thought we could have kind of a "round table" discussion about this: What do you think is pushing up the price of oil per barrel?

TIA for your posts. =)

-- Dee (T1Colt556@aol.com), January 23, 2000

Answers

Dee - check out my latest posts, plus the Gordon gecko one from a day or so ago.

I would really like to know what Bush had to say -

did anyone else see the interview? TIA!

-- Andy (2000EOD@prodigy.net), January 24, 2000.

"hit him pretty hard" about what issue? Oil? Could you elaborate?

-- JoseMiami (caris@prodigy.net), January 24, 2000.

Jose,

He was asking him some very direct questions about the price of oil, and if you ever watch Sam Donalson...you know he can play hard ball, to say the least (depending upon the topic). When I say "hit him hard"...I mean, he kept pressing him for an answer about the price of oil being up so high from last year.

I did not catch much of what Bush said because I was in the middle of cooking when it was on...then before I knew it, they were onto the next topic. I don't want to misquote Bush or have something taken out of context...so I will ask the forum if anyone else saw the interview.

-- Dee (T1Colt556@aol.com), January 24, 2000.

Dee,

My Travel Air doesn't need any oil.

As I said in response to your earlier post, the Greys also revoked my pilot's license recently, but that's another mutant topic.

But seriously...

Still too early to tell, but I think many of the glitches in the oil industry that we've seen may certainly have something to do with it.

Let's say I trade in oil. I see that there have been unusual problems, and I expect more problems on down the line(Y2K related, supply of replacement parts related, economic downturns in key countries related, whatever). Production may certainly go down in the coming months to about a year off. Time to stockpile cash for the lean times...jack up the prices now. Then when production is off, I won't starve. If production goes back up and into full swing; fine. Lower the prices. If not, continue to raise 'em, live off of my stockpiled lucre, and maybe get into another line of work if it looks like oil won't be shipped any more.

Horribly oversimplistic, but the gist of it is how I see it. Looks like many folks are thinking oil may be scarce in the next few months; the price at the pump will garner close scrutiny at least until October, methinks.

"Everything in this book may be wrong."

Peace and Love,

Don

-- Shimoda (enlighten@me.com), January 24, 2000.

Shimoda

"Everything in this book may be wrong."

I take it you are a Bob Frissel fan :o)

-- Andy (2000EOD@prodigy.net), January 24, 2000.

Don,

Nothing wrong with the simplistic approach...I submit to the K I S S Principle whenever I can.

Makes sense how you put it. The "old supply and demand" will set the price. We don't have any increase in gasoline here in eastern NC, and everything seems pretty normal...well as normal as it can be considering the interesting life we have.

Thanks much for your post. Happy travels Don.

=)

-- Dee (T1Colt556@aol.com), January 24, 2000.

Andy,

Nah; not really. Let's just say I'll be happy to get my license back. I'm tired of taking defensive flying courses at night...

Thanks Dee. Same to ya!

Time for bed.

Peace, y'all.

Don

-- Shimoda (enlighten@me.com), January 24, 2000.

The AP wire noted that crude prices are up about 9 cents a gallon because of production cuts by the Organization of Petroleum Exporting Countries along with a suddenly colder winter in some states.

Why the production cuts?...this is my question. Where is the explantion for this?

-- Dee (T1Colt556@aol.com), January 24, 2000.

typo - explanation

-- Dee (T1Colt556@aol.com), January 24, 2000.

Dee-- I certainly don't believe that the increases have much(if any) to do with the weather in the east. All in all, it sounds like pretty typical winter weather to me across the country. sure, maybe a big storm hits here and there, but not a prolonged cold spell that has been known to happen in past winters. So i think it's either y2k or manipulation(i know, i know, big news flash!) anyway, i also have some crude options, so am very interested in what developes. Only wish there wouldn't have to be hardships on people for my options to come in.

-- dory (crtwheel@eburg.com), January 24, 2000.

It was much more interesting watching Shrub's FACE while Sam the Scam was demanding an answer to his question of why crude price per barrel had risen so starkly recently. There was that ever so slight, tense tightening along the jawline. The hard flat REPTILEAN deadness that suddenly seemed to glitter. Did his pupils dilate and catch the set lighting? It was almost imperceptible and yet... You could see this man was terrified. He knows that it will be a pivotal factor come next Feb in New Hampshire. The gravitas of the heating oil issue for middle class conservative homeowners was quite palpable for the mere splittest of seconds. Then it evaporated in his good ol boy Tex-a$$ style dismissal. Quickly after this one feeble attempt digressed into a lukewarm rehash about the rebel flag and the fetus. Weak, I tell ya

-- homecanner (tomatoes@mygarden.com), January 24, 2000.

Remember, the Bushes are an oil money family. Every time it goes up, Dubya's trust fund gets a boost.

-- Forrest Covington (theforrest@mindspring.com), January 24, 2000.

I will just ahead and say it: The crude oil market is awash in the smell of money! There are technical indicators that are being triggered that point to a possible historic high for crude oil futures. Just like the Hunt Brothers, there are the well-heeled snapping up those futures and options in bulk, bidding up the price.

What do they care that the American public has to pay $1.50+ per gallon this summer? Who cares if oil-induced inflation figures come out, reducing the average Joe's buying power when inflation begins to rise along with interest rates?

The people with the MONEY and the POWER will come out just fine, thank you, at the expense of you an me. They will gladly pay an extra quarter for a gallon of gas for the millions they gross on the trades.

Scuse me, time to saddle up my horse and get to work!

-- I AM (Trying@2B.Reasonable), January 24, 2000.

Dee,

Calm down, this isn't a new thingy.

The AP wire noted that crude prices are up about 9 cents a gallon because of production cuts by the Organization of Petroleum Exporting Countries along with a suddenly colder winter in some states.

Why the production cuts?...this is my question. Where is the explantion for this?

The production cuts are old news. OPEC agreed -- a year ago -- to cut production of crude oil. A year ago the world was awash in oil. OPEC has held (relatively well) to this agreement. The result is that the world's surplus has dwindled.

These production cuts put each OPEC producer on a quota; they are allowed to export only so much oil under this self-imposed system. This has worked as OPEC hoped it would.......they get more per barrel for their oil.

Oil is an expendable item. If they can double the price, but export half as much, their oil lasts twice as long.

This is the simple explanation. There are a number of spins off of this (since oil is vital to the industrialized world, you can bet that politics enters the equation), but this is the publically held position.

-- rocky (rknolls@no.spam), January 24, 2000.

Self aggrandizing perspective on a good previous thread here on the relationship between Prez Bush and the price of oil...One must ask why the Saudis always resisted oil price moves up in this upper $20s area in the past by increasing production and vetoing OPEC deals. Why are they not doing it now?

Good previous thread here>

-- Downstreamer (downstream@bigfoot.com), January 24, 2000.

Rocky,

Thank you for your post, but please don't tell me to calm down. I am not "worked up" sir, I am simply asking for a round table forum on this topic. I do not want my post to be perceived as alarmist in any way, shape, or form.

I am simply saying, if OPEC agreed on these production cuts, then WHY IS THIS IN THE NEWS?????? Why are top Anchor men and women posing this question if there was a simple answer?

I want to hear from people like yourself about this topic, and your input is much appreciated. You have made a good point. Just don't appreciate the "calm down" reference.... I am simply collecting information. There is a lot of conflicting information out there right now. Folks "out in the field" so to speak, can bring a lot of insight to this issue and we can all benefit from it.

Now...calm down Rocky...LOL

~Dee =)

-- Dee (T1Colt556@aol.com), January 24, 2000.

Downstreamer,

Thank you for the link. =)

-- Dee (T1Colt556@aol.com), January 24, 2000.

===>I did some research about production cuts and found this old article about OPEC from "1998". Very interesting....

OPEC hopes production cuts will reduce oil markets

http://www.thonline.com/News/062298/Business/112099.htm

-- Dee (T1Colt556@aol.com), January 24, 2000.

Back when oil skyrocketed in price in the mid '70s due to *an embargo* or so we were led to believe...if it were simply the result of an embargo, then why didn't the price drop back to pre-embargo levels after the embargo was lifted???

Should this *critical oil shortage* be simply that, then when production is back to normal levels, the price should stabilize back to pre-shortage levels. A few reports are suggesting this will happen in February. If it doesn't, then you know the reasons given for this critical shortage were not the truth. I think we will have our answer soon enough.

-- OR (orwelliator@biosys.net), January 25, 2000.