Bush Says Drill, Drill, Drill — and Oil Drops $9!

[tocco05]

Bush Says Drill, Drill, Drill — and Oil Drops $9! [Larry Kudlow]

In a dramatic move yesterday President Bush removed the executive-branch moratorium on offshore drilling. Today, at a news conference, Bush repeated his new position, and slammed the Democratic Congress for not removing the congressional moratorium on the Outer Continental Shelf and elsewhere. Crude-oil futures for August delivery plunged $9.26, or 6.3 percent, almost immediately as Bush was speaking, bringing the barrel price down to $136.

Now isn’t this interesting?

Democrats keep saying that it will take 10 years or longer to produce oil from the offshore areas. And they say that oil prices won’t decline for at least that long. And they, along with Obama and McCain, bash so-called oil speculators. And today we had a real-world example as to why they are wrong. All of them. Reid, Pelosi, Obama, McCain — all of them.

Traders took a look at a feisty and aggressive George Bush and started selling the market well before a single new drop of oil has been lifted. What does this tell us? Well, if Congress moves to seal the deal, oil prices will probably keep on falling. That’s the way traders work. They discount the future. Psychology and expectations can turn on a dime.

The congressional ban on offshore drilling expires September 30, so that becomes a key date. A new report from Wall Street research house Sanford C. Bernstein says that California actually could start producing new oil within one year if the moratorium were lifted. The California oil is under shallow water and already has been explored. Drilling platforms have been in place since before the moratorium. They’re talking about 10 billion barrels worth off the coast of California.

There’s also a “gang of 10” in the Senate, five Republicans and five Democrats, that is trying to work a compromise deal on lifting the moratorium. So it’s possible a lot of action on this front could occur much sooner than people seem to think.

So I repeat: Drill, drill, drill. Deregulate, decontrol, and unleash the American energy industry. Those hated traders will then keep selling oil as the laws of supply and demand and free markets keep working.

Bravo for Bush. Bravo for the traders.

 

[jambolaya1]

Not suprising..Another right wing looney posting bogus information that he manufactured in his head and wants to pass off as fact.

NOte:Bush announcement on lifting the ban actually came out yesterday while the markets were still open. Oil fell a mere 70 cents or i think even less.

This guy is trying to pass himself off as some well informed individual, well infact he is a looney trying to pass off nonsense as fact.
Want to know why oil prices dropped? (hint it has nothing to do with drilling)

here are the facts straight from the only man with the the power to move the markets. Bush couldnt move dog shit if his life depended on it and not a single soul in the markets listens to that bozo.

Oil tumbles on bleak Federal Reserve outlook

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<!-- // .article-tools --><!-- End Story Toolbar-->Gregory Meyer, Dow Jones Newswires | July 16, 2008

<!-- // .module-subheader -->OIL sank more than $US6 a barrel after a bleak Federal Reserve outlook on the US economy and world supplies loosened up a little.
Light, sweet crude for August delivery settled down $US6.44, or 4.4 per cent, at $US138.74 a barrel on the New York Mercantile Exchange, dropping the most in dollar terms since January 17, 1991, when the US opened its Strategic Petroleum Reserve at the onset of the first Gulf War.

Brent crude on the ICE futures exchange settled $US5.17 lower at $US138.75 a barrel.

Nymex crude traded in a range of more than $US10, and at one point was as low as $US135.92 a barrel, down $US9.26.

Crude's steep decline followed Senate testimony by Federal Reserve chairman Ben Bernanke.

While taking pains to highlight tightness in world oil markets, Mr Bernanke also described a more persistent weakness in the economy than officials have indicated in the past. He said the US is unlikely to recover until the housing market stabilises - by the end of 2008 at the earliest.

Oil watchers interpreted Mr Bernanke's comments as a sign oil demand, which is down 2.6 per cent year to date in the US, may continue to sputter amid record high prices and economic woes.

"There are times in the market when a speech can help crystallise a shift in perception of oil or economic fundamentals," said Antoine Halff, deputy head of research at futures brokerage Newedge USA in New York, "and help participants take stock of changes in dynamics that may not yet be fully captured" in demand statistics.

The Organisation of Petroleum Exporting Countries issued a report indicating that world demand over the next year will be lower than expected. The International Energy Agency, the energy watchdog for the world's industrialised nations, and US Energy Information Administration have also lowered their 2008 demand forecasts several times this year.

"Market fundamentals have clearly been softening," OPEC said. "This trend in fundamentals is expected to continue - and even gather pace - into the coming year."

Supply problems that have recently shaken markets began to ease. In Nigeria, Chevron restarted a pipeline that militants had attacked in June, potentially restoring about 120,000 barrels a day in light crude output from the West African country. Separately, Royal Dutch Shell has lifted a force majeure on its Nigerian Bonny oil production. The clause that freed Shell from supply obligations was invoked in late May following an attack on a pipeline.

Brazil's state oil company, Petroleo Brasileiro, said production in its Campos Basin region was normal despite a labour strike organisers had threatened would cut several hundred thousand barrels a day in supply.

linky


Got tell your lies some where else!!!

 

[ScottL]

Tocco, tell him, "Stay Out Of My Threads!"
:missingte

 

[tocco05]

Tocco, tell him, "Stay Out Of My Threads!"
:missingte

Fuck that moron. I don't pay attention to anything that fuckin dumbass says.


Thats two weeks, Tucco05, wilheim

 

[texansfan]

I'll list below the Dem's plans for alternative energy or for coming up with a solution to the oil crisis.













Hope you enjoyed them.

 

[jambolaya1]

Fuck that moron. I don't pay attention to anything that fuckin dumbass says.

Off course you dont. The truth has a very bad habit of making you out into a liar and the misinformed twit you are!%^_%^_

 

[ScottL]

Fuck that moron. I don't pay attention to anything that fuckin dumbass says.

He hasn't posted in 3 minutes. Probably e-mailing Wil again.
Publicly calls out people as crybabies when they publicly bitch about his personal insults. Then runs to the mods via e-mail when they fight back. Hypocrite.

 

[tocco05]

He hasn't posted in 3 minutes. Probably e-mailing Wil again.
Publicly calls out people as crybabies when they publicly bitch about his personal insults. Then runs to the mods via e-mail when they fight back. Hypocrite.

The guy is a fucking moron. I give a fuck what he says or what he posts. Put the miserbale mother ****** on ignore.

 

[Railbird]

Why should California share oil with the rest of USA. Bush could die and America could die before we drill of the california coast. I dont care which dies first.

We could nuke Midland and Wash DC first thing in the morning for all I care.

 

[ScottL]

Who's "We," Nutjob?

 

[JoeContrarian]

The guy is a fucking moron. I give a fuck what he says or what he posts. Put the miserbale mother ****** on ignore.

"jambolaya1" is a ghost of heatohio (banned poster)

 

[jambolaya1]

He hasn't posted in 3 minutes. Probably e-mailing Wil again.
Publicly calls out people as crybabies when they publicly bitch about his personal insults. Then runs to the mods via e-mail when they fight back. Hypocrite.

OOOHHHHHHHHH shit....This man has big balls!!!

you are the same cry baby who posted this thread...

poor scottl crying to the mods


:missingte:missingte:missingte:missingte:missingte


what a hypocrite...

But i understand what "defending" yourself in the ife of a wimpy looney whacko means...(Go cry up a river to mommeee!!!)

 

[ScottL]

But heatohio was a vegetarian. And Jambolaya has Mad Cow Disease. It doesn't fit!

 

[RobFunk]

Actually jam is right on this one.

Oil prices plummet more than $6 amid economic fear

By ADAM SCHRECK, AP Business Writer [/SIZE]
2 hours, 35 minutes ago



NEW YORK - Oil prices fell harder than they have in 17 years Tuesday, as fears that record fuel prices are spreading broad economic pain exacerbated the third big sell-off in just over a week.

ADVERTISEMENT

Light, sweet crude plunged $6.44, or 4.4 percent, to settle at $138.74 a barrel in an extremely volatile session. Prices at one point plummeted more than $10 from the day's high.

Mounting concerns about the risks inflation poses to the United States, the world's biggest oil consumer, helped spark the declines. Analysts also attributed the sell-off to Thursday's expiration of options contracts, which tend to increase volatility, and to computers programed to automatically sell once prices reach certain thresholds.

"There was this big ... selling pressure when prices dipped below $140 a barrel. It got a lot of bulls very nervous," said Tom Kloza, chief oil analyst at the Oil Price Information Service. "If it was a fire, you'd call it an accelerant."

The drop, which eclipsed last Tuesday's slide of $5.33, marked the biggest decline in dollar terms since the Gulf War. Even so, prices remain no lower than they were a week ago.

Longtime market observers cautioned that the turnaround may not signal a lasting shift in sentiment — prices have swung violently in recent days as they flirted with record highs. But it does underscore investor uncertainty about the sustainability of sky-high prices and their potentially long-lasting effects on the broader economy.

Over the course of the day, the contract rose as high as $146.73 and fell as low as $135.92. Prices hit a record $147.27 Friday.

Concerns about the economy were high on traders' minds Tuesday.

Federal Reserve Chairman Ben Bernanke told Congress that "numerous difficulties" are racking the U.S. economy, and warned that rising prices for energy and food are elevating the risks of inflation.

At the same time, the Labor Department reported that wholesale inflation jumped by 1.8 percent last month, a larger-than-expected gain. Over the past year, wholesale prices have risen 9.2 percent, the most since 1981.

"Traders get spooked and simply sell positions," said Jim Ritterbusch, president of energy consultancy Ritterbusch and Associates. "The threat of recession, at some point the market's going to plug that in."

Lingering concerns about the health of the financial sector continued to weigh on banking stocks, reminding energy traders that oil prices are not immune to troubles elsewhere in the market.

"Since investment banks have been increasing their ... exposure to commodities, their current distress can have (a) significant impact on oil prices if they are forced to liquidate commodity positions in a run for cash," Olivier Jakob, an analyst at Petromatrix in Switzerland, said in a research note.

The latest monthly market report from the Organization of Petroleum Exporting Countries gave traders further reason to unload oil.

The cartel predicted world oil demand will rise by 900,000 barrels a day in 2009, or 100,000 barrels per day less than this year. OPEC blamed the slowdown on a slumping economy and high pump prices in richer industrialized countries.

Meanwhile, a five-day strike by Brazilian oil workers that began early Monday had less effect on output than feared.

The dollar fell to a new low against the euro, but that did little to halt oil's decline. The weaker dollar has driven prices sharply higher in recent months, enticing investors to pump money into oil as a hedge against inflation and making crude cheaper for overseas buyers.

In Washington, President Bush continued to press the Democratic-run Congress to open up new areas to offshore oil drilling. The president lifted a ban on Continental Shelf drilling Monday, but a Congressional prohibition remains.

"I readily concede it won't produce a barrel of oil tomorrow, but it will reverse the psychology," Bush said at his first White House news conference since April.

At the fuel pump, retail gas prices in the U.S. remained at a record near $4.11 a gallon, according to auto club AAA, the Oil Price Information Service and Wright Express. Diesel rose six-tenths of a penny to its own high of $4.83 a gallon.

Tuesday's sell-off alone is unlikely to bring drivers much relief.

"People shouldn't expect to see their pump prices drop," Kloza said. "By the end of the week, we may be talking about $4 (a gallon), we may be talking about $4.20. That's the nature of the beast."

General Motors Corp., the leading U.S. automaker, said it is assuming oil prices will hover between $130 to $150 a barrel next year. The company made the prediction as it laid out plans to slash jobs and truck production, suspend its dividend and borrow up to $3 billion as it grapples with an ailing U.S. economy and record high fuel prices.

In other Nymex trading, heating oil futures fell 14.59 cents to settle at $3.919 a gallon, while gasoline futures tumbled 17.29 cents to settle at $3.3848 a gallon. Natural gas dropped 48.2 cents to settle at $11.477 per 1,000 cubic feet.

In London, August Brent crude fell $5.17 to settle at $138.75 a barrel on the ICE Futures exchange.

 

[ScottL]

Maybe so Rob. But as a MOD you are missing the point!

 

[RobFunk]

Maybe so Rob. But as a MOD you are missing the point!

I'm not a mod in the politics forum.

But yes, it's true the drop had nothing to do with Bush announcement although it's something we can all be happy about.

 

[ScottL]

I thought you were Rob. Sorry. How's the ELO CD?
You DL it?

 

[jambolaya1]

:lolBIG:


I feel a river of tears coming on!!!! "Hey mods, ban this guy because he posts the truth"

Yes fella...the truth is besides the point...I guess people like me and Robfunk who get it are completely confused!!

:missingte:missingte:missingte:missingte:missingte

 

[texansfan]

Why should California share oil with the rest of USA. Bush could die and America could die before we drill of the california coast. I dont care which dies first.

We could nuke Midland and Wash DC first thing in the morning for all I care.

Screw that shitty state. We lose the West coast this country automatically improves 100%.

 

[texansfan]

jambolya1 is dumber than Doc and angrier than heatohio. He does sound like heatohio though, all talk. He's aiming for internet tough guy. What a tool.