Saudi Arabia and Oil’s Future

Saudi Arabia does not fear the current drop in oil prices, matter of fact it tells them that the business needs to be reevaluated with intense scrutiny. 60 Minutes with Lesley Stahl did a great piece on what the Kingdom of Saudi Arabia is doing to hedge their bets for the future of oil. According to the report, Saudi Arabia would like the price per barrel to be at $55 in order to support all of its production costs and government obligations.

They are bringing online two oil fields that will be able to supply close to three million barrels a day alone in 2009 with new technology that can find every last drop of oil in a field that would supply oil for the next fifty years. According to the piece, that is more oil per day than most Middle East countries can supply per day today. Lesley was able to get the gentleman in charge of the oil fields to admit that the cost to produce one barrel of oil all across the kingdom is less than $2 per barrel and yet the two fields they are opening up in 2009 they paid cash for at the richly sum of $60 Billion dollars.

Trust me, I am having no pity for the Saudi Oil Kingdom that sat back at the pool while the cost of a barrel of oil hit $147 per barrel. $147 dollars per barrel minus $2 production cost, then subtract say another $10 bucks per barrel for overhead and paying the kingdom heirs off for sucking the go go juice out leaves $135 per barrel pure profit! Multiply that profit by the number of barrels of oil they supply a day to the world and you have a disgusting amount of expendable cash. Or dare I say a savings account to pay for any new technology that serves their purpose and nations future.

I don’t begrudge them the mega gross profit they have received; I frankly admire them for repeating the P.T. Barnum business plan. If there was an American business that could earn that type of profit margin on any product and legally, I say legally for a reason, then all the power to them. What really scares me is the fact that Saudi Arabia is not being stupid with its profits and just spending away like drunken sailors on their first shore leave in six months. No offense to sailors, it was just an expression. Saudi Arabia is looking at wind power and solar power for its future offset when oil declines in use across the world. Saudi Arabia is looking at engineering the greenest fossil fuel engine the world has ever seen. Saudi Arabia is doing now what America should have done immediately after the oil embargo of the 1970’s and I have to applaud them for seeing the future need where most American industries do not.

Oil and gas prices are going to tank for the next few years and that cheap oil will pave the way for the decline in American and world research on expanding solar power technology, wind power technology, and every other alternative source to oil but the Saudi government is still going to toss hundreds of billions of dollars at these technologies every single year. From the spoils of this past energy crisis will go the investment and ability to continue the research that in a couple of decades will pay off enormously for the kingdom. Saudi Arabia in thirty years will be the largest exporter of green energy in the world simply because they invested in the technology today. That is the business plan that they are following and it is a damn good one! Maybe we in America should look at their plan and try to beat them to the moon so to speak.

When the cost of a gallon of gas is just $1.00 then where is the market for an alternative fuel that cost $3 for the same vehicle? When oil fed electric plants can produce a megawatt of power at two thirds the cost of a wind turbine then where is the market for wind power? Same goes for solar power and the list goes on for all the alternative energy initiatives when it comes right down to the cost of energy for the average consumer. It is a little disheartening but it is reality. Or am I wrong?

Papamoka

Gasoline Price Tanks With Bush

Kick me in the butt but I saw a gas price in Missouri today at $1.35! Now tell me why it was over $4.00 per gallon just a few short months ago? It wasn’t a supply problem. It wasn’t a demand problem. Could the high price of gasoline just been political greed and pandering to close friends in the oil industry by George Bush? You bet it was!

Bush and company gave the green light to the oil markets to feel free to rape and pillage the masses. In doing so he gave the oil industries billions in gross profits per quarter and you can bet the farm who will be paying for the George W. Bush Presidential Library, his retirement, his book deals, and his monosyllabic world speaking tours.

You read it here first, George Bush is going to make Bill Clinton look like a cheap date when he pulls down more than a million dollars per speaking engagement. Don’t try and buy tickets for any of the speeches, oil executive board rooms only hold so many people and they need room to stretch. I’m thinking that his boardroom world tour will be sponsored by Exxon Mobil and of course security for the events will be sponsored by Haliburton.

Anywho, it’s nice to throw twenty bucks in the cars gas tank and it nearly fills it from empty. What the hell am I going to do with the other $40 dollars or more per week? Then I’m stuck with all this other cash because it won’t cost me $3,000 dollars to heat my home this winter too. What about all the money we are going to save at the grocery store now? Damn it this list is going to go on forever and ever! Maybe I’ll just toss all of the over inflated prices and cost reductions in the old savings account and call that my Bush Legacy retirement plan.

I won’t be crying for any of the oil companies when the price of gasoline breaks through the $1.00 per gallon mark. Not one damn tear.

Papamoka

Energy Breakthroughs

Many people will look at this post and the attached video and call it voodoo science or just pure bunk. I’m beginning to think the time for the new Henry Ford’s, Thomas Edison‘s, and Albert Einstein’s has arrived and it is just in time. Thinking outside of conventional wisdom and even academic pretense is what it takes to be a true inventor and I’m finding that my research into new energy breakthroughs is simply amazing.

If the average homeowner wanted to take their home off of the electric grid the price can be a bit intimidating. Then there is the problem of location if the peak wind or sun just does not jive with the area you live in.

With the cost for a barrel of oil hovering at $140 per barrel today then I’m sure that backyard and garage inventors that are pissed off are very busy. Nothing spurs invention more than someone telling you that you will pay what they tell you the price is, you have no choice in the matter! New energy breakthroughs are coming fast and furious and many of them will in fact bust the oil market down to a whimpering whipped dog. No bull, no bear, just a whining, cowering oil market speculator dog.



John Christie and Lou Brits started this little project on their own some years back and it looks like they have a winner but as in all new inventions the road to marketing and production is not paved with gold. If you have any questions about the device, its availability you can check out the link at RexResearch.com or check out the Lutec company website that has a ton of info on the machine.

Amazing… Freaking me out because this machine they invented could take every single home in America or the world off of the energy dependence grid with further research. What the reality of it will end up being is that it will be bought up by some oil rich nation or company and mandated to the scrap bin forever for a very fat check!

Supply and demand my foot! I’ll let President Bush put his own foot where the solar panels aren’t working.

My thoughts are that Bill Gates and Warren Buffet should be placing a call to these guys and offer the cash investment to get the scales of justice in the oil markets balanced once more. While Obama and McCain are whacking one another upside the head on who has a better energy plan to reign in the out of control oil markets there is a machine sitting in Australia that actually is the answer to all of the worlds energy independence.

Papamoka

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People vs. OPEC

I’m sure that all across corporate America in the executive offices of the CEO’s of all the big oil companies could be heard one phrase today.

“Ut Ohhhhh!”

Congress today passed legislation allowing the creation of banks of lawyers to sue the pants off of OPEC members and investigate price gouging by any company. Of course the Commander in Chief is against this kind of legislation. Who’d of thought that? Over at the New York Times they have this on the subject…

WASHINGTON (Reuters) - The House of Representatives overwhelmingly approved legislation on Tuesday allowing the Justice Department to sue OPEC members for limiting oil supplies and working together to set crude prices, but the White House threatened to veto the measure.

The bill would subject OPEC oil producers, including Saudi Arabia, Iran and Venezuela, to the same antitrust laws that U.S. companies must follow.

The measure passed in a 324-84 vote, a big enough margin to override a presidential veto.
The legislation also creates a Justice Department task force to aggressively investigate gasoline price gouging and energy market manipulation.

"This bill guarantees that oil prices will reflect supply and demand economic rules -- instead of wildly speculative and perhaps illegal activities," said Democratic Rep. Steve Kagen of Wisconsin, who sponsored the legislation. - New York Times

When it comes to the scales of justice here in the States it is basically a foregone conclusion that big oil interest have heavily tipped the scales against consumers. It looks to me like we finally will get a break and the powers that be on the exchange markets that set the market price for oil should start investing in shredders.

I’d be willing to pick up a few document threshers if they would be willing to drop the price of oil down to around fifty or sixty bucks a barrel. If they loan me a hundred bucks to fill my tank then I’ll even deliver the shredders.

Papamoka

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Bush Feels Your Pain at the Pump?

President Bush today let the American people know that he is right on top of things with the rising gas prices. Then again, no, he really didn’t. But he did acknowledge that it’s a problem for the working class of America. Then again, no, he really didn’t. I’m pretty sure he is really feeling the pain that we are all suffering but I’m also pretty sure that President Bush had his fingers crossed through the whole interview.

Over at MSNBC they had this to say on our distinguished “Deciderer” on the gouging at the pumps…

Bush: No quick fix for gas prices
President troubled by 'tax on working people'; to take look at proposals

WASHINGTON - President Bush said Monday that he's troubled by rising gas prices and will take a look at proposals to relieve the crisis but warned that there is no quick fix.

"It's been a while in the making and it's going to be a while that we solve the problem," Bush said in an interview on ABC's "Good Morning America." "We're too dependent on foreign oil and we need to be exploring more at home."

Bush said the rising cost of gas "troubles me a lot" because it is "like a tax on the working people."

Snippet…. Wait for the key phase!

He said he understands the pinch for working families and that some people will cut back on summertime travel. The federal tax rebate on the way to taxpayers will help, he said.

"One way to help solve it, of course, is by sending some of the money back. That's what's happening now as we speak. There's a rebate going back to the American people, which should help," Bush said. He reiterated his call for Congress to make permanent the tax cuts enacted during his administration. - MSNBC

This was classic Bush and his shiny object over here while I’m doing something else over here. Does the man think that the entire nation suffers from some form of attention deficit disorder?

Basically, his whole speech or interview could be translated into the following. Blah, blah, blah, gas prices, blah, blah, rebate checks, blah, blah, blah, but leave my tax cuts for the top two percent of income earners alone!

Maybe somebody should explain to the Nit Wit in Chief that the gas crisis is market driven and not a supply problem. Then while they are explaining that they could tell the deciderer that some of that market problem is directly linked to some little scuffle in the Middle East called the Iraq War that he started to settle a personal grudge! 4,000 plus U.S. Military dead but at least the crayon pusher at the White House got the guy that threatened to kill his daddy.

George Bush could care less if you can not afford to fill up your Chevy or Ford to get back and forth to work and why should he? He could care less if your family is about to have the lights shut off because the money is so tight these days that food just might be more important than paying the electric bill. All you people that are on fixed incomes are totally screwed if this sad excuse for an American President has any say in a pay raise of one or two percent in your Social Security check. You folks might as well sell your cars and think about canceling next winters idea about having heat in your home. In his mind your winter heating problem could be fixed by moving your sorry asses south where you don’t need heat in the winter! He is about as compassionate as a freaking rock! You might want to duck because the CEO of XYZ oil has this puppet boy President’s permission to smash all your windows and take all that they want from you.

I’ll be very clear that this President is on the take and his pockets are lined with the tears of the poorest American’s and those tears are not enough for him or his corporate buddies in the oil industry. Ten Billion in profits every three months isn’t enough for the number crunchers, they feed on greed and want more of what you no longer have. By the oil industry I’m also talking about all those fast talking salesman on Wall Street that are riding the fatted calf of oil with no care for their fellow man. Bush and company is all about full speed ahead till the Democrat’s derail the Republican business machine that takes no prisoners.

One has to give the Liar in Chief Bush credit, he has never wavered on the services he could provide to his business friends that put him in the White House. George Bush and Dick Cheney are very loyal to their friends, that is till the special prosecutors come looking. Bye Alberto, bye Scooter, bye…

Papamoka

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Inflation Revolution

Speaking with a very close friend today I was reminded how cruel and absurd the cost of living in America is today. It’s getting to the point of no return and the government just does not see it. Whether you agree or not we have become a nation constantly screwing over the middle and lower class for the betterment of the upper classes. Dropping your change from the store in the Salvation Army Kettle no longer works to help the lower classes.

Most Americans drive hundreds of miles commuting back and forth from work each week and that cost is not offset by pay increases. The pass on of cost increases all across the board of every good we need or buy is reflected in the economics of oil and our dependence on it. No other product in this world has been so effective in its ability to destroy even the best of economic engines than the simple product pumped out of the ground at a cost of $2 per barrel. How it gets to $115 per barrel is an argument we could go over and over again on what the profiteers of the industry are doing with all of the ill gotten gains?

No matter how you look at it, Oil is the cause of our nations out of control inflation. Throw out the numbers from any main stream media outlet and government source. Look at your grocery cart and see three bags of groceries that cost three times what they did just a few years ago.

There is no better way to laugh about it than Victor Borge and his Inflationary Language routine…


Inflation is a funny topic when you think about it. It’s supply and demand but it is also greed. When it comes to the world oil markets it never looks pretty. When it comes to making the American economy move it is a vital statistic that proves out across the board.

It will take no more than an American uprising to end this madness where the cost of living is out of reach for all Americans. With the housing crisis, the cost of food, the cost of everything in order to simply live is beyond the point of regulatory justification. This nation is on the verge of revolution no matter how you look at it. Healthcare, housing, vehicles, tobacco, everything we do is taxed beyond acceptance and we the people had no say!

When our society regulates and justifies our protection from ourselves then we have lost the sight of freedom. We have lost what it is to be an American. That is a huge mistake.

American’s need to speak up and be angry with our government representatives. If you are reading this post then you can Google search your representative in the congress. Do you want to wait for gas to hit $5.00 per gallon before you say enough is enough or is that okay with you?

Maybe we the people need to mass on Washington D.C. and let them know we can’t take any more. We the people are the nation and we should never forget that fact. Then again, we could just bitch and moan about the insanity of the ever increasing cost of living.

At what point do the people say enough is enough? They say enough when they can’t feed their families simply because they are taxed or legislated out of existence. That is coming when the numbers of them verse us overwhelms the folks making all the rules.

Just something to think about. Write and email your Senator, Congressman and even the President. Tell them you can’t afford to live anymore. Tell them that you are fed up! Otherwise, grab your pitch fork and head for Washington D.C. and poke the bastards where they work.

Papamoka

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W "Let Them Eat Cake"

Maybe President Bush is right, the world is a far safer place today. Terrorist attacks on America are down, terrorist attacks in England are somewhat down, terrorism is on the run simply because they just can’t afford to eat. W has saved us from the terrorists by stealing the vitality of the global economy off of our dinner tables. Way to go W! I think?

One of the things that most U.S. Presidents prior to W knew was that there is no solution to the Middle East quagmire. It’s been going on for thousands of years and it will still be going on thousands of years from now. In our nations quest for being safe we have opened the gates of hell when it comes to economics. Those that we thought were out to protect and defend our nations history and heritage masqueraded around in sheep’s clothing while they robbed the world of the innocent little Red Riding Hood. Adding the Constitution to it helped. It’s just a piece of paper that some drunken Deity believing King haters dreamed up so what is the big deal?

We are not alone in the world. The butterfly effect is in full force except now the butterfly is the size of Saudi Arabia and it fears not to beat its wings regardless of the consequences on the masses. That is how the world economy collapses. More on this over at Reuters…

By Alistair Lyon, Special Correspondent

BEIRUT (Reuters) - While Gulf Arab oil producers reap windfall earnings, their poorer cousins elsewhere in the Arab world are struggling with soaring energy and food bills.
Inflation has surged in Gulf countries, fuelled partly by lavish spending of record oil and gas revenues. This is also spurring demand for everything from housing to power and water.

Gulf states with currencies pegged to the dollar have also been hit by the global weakness of the U.S. currency, which is driving inflation by making some imports more expensive.
But wrestling with rising prices is a grimmer business in Arab capitals not cushioned by oil wealth. From Cairo in Egypt to Sanaa in Yemen, mostly authoritarian governments have to weigh the fiscal costs of subsidizing fuel and food against the explosive political risks of social discontent.

"Nothing's inexpensive any more," griped Jihad al-Amin, who owns a dry-cleaning store in Damascus, Syria. "Even parsley, which has been dirt cheap for as long as I can remember, has tripled."

Food price rises hit the poor hardest in the Middle East, as in other food-importing developing countries around the world, but any instability here could ripple far beyond the region. - Reuters

Maybe we should face the facts that Bush is right? If you give enough free rain on the market and trust the mega capitalist to trickle down the wealth then maybe those of us down on the bottom might get something. The key word in that last sentence was something. Exhaust fumes from a passing motorcade is something so stop your gripping.

It isn’t wrong to think that America may be on the verge of a coming revolution. Just as in the time period prior to the first American Revolution there was a King that imposed one tax after another that people stood up to and had said taxes repealed. Although we no longer have a King we have a President ignorant of his peoples needs, wishes and dreams. That is not acceptable.

If given the choice of thought processes I don’t think it is a far reach that the current President is no longer in charge of his nation. He has deregulated his authority as President to the brokers of business on Wall Street and sold out the office he swore to uphold. While he sat idle while millions lost there homes he staid the course. While his nations food prices erupted out of control, he staid the course. While our nations military begged for better equipment to defend themselves and fight with he staid the course. While his people went under he sipped his drink and looked the other way because those that lead him detracted him from his people.

George Bush is guilty of ignoring his people and God help anyone that dares to follow in his footsteps. That path is laid with madness and betrayal of your people. Patriotism and starvation are something that American’s are not afraid of but they will fight and vote for one or the other, not both. George Bush has played his game out and divided his people so much that they are against one another fighting over being a patriot or starving. Meanwhile the record Billion Dollar profits are being talked about as if it is business as usual. That is how Revolutions start! You don’t flash mega bonuses to a man that’s family is broken, busted, down and out and can barely afford the weeks food bill. It all comes down to the masses and providing for their families. That is what W will never understand.

One thing is certain in the next President of the United States of America. You will have a broken nation to mend and that process does not start out thousands of miles from our shores. It starts out here at home. Americans do not just eat cake!

Papamoka

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A WALTZ DOWN MEMORY LANE IN 2009

BY MICHAEL LINN JONES

I've grown weary of the constant schoolyard buzz whirling about presidential candidates. It has become tedious. And boring. I don't think I can take much more of reading tea leaves to predict who is going to win Iowa, or New Hampshire, etc. It has become so predictable that I've decided to just leap ahead a couple of years.

What my crystal ball tells me is no less accurate than professional pontificators, or any less honest. Well, I'll concede on the honesty part because with this crop of hopefuls outright lying is not beyond the realm of possibility.

But I digress from my digression. Assume for a moment that the year 2008 has come and gone, and we find ourselves a few months into 2009. Here I offer a small collection of what-might-as-well-be's:

President-elect Hillary Clinton stunned experts by naming her husband, former President Bill Clinton, as American Ambassador to Monaco. Relations with several European countries were strained upon learning that Bill Clinton "got to know" a number of female members of European royalty as well as the wives of prominent politicians. Republicans in Congress were also outraged that a special Presidential aircraft was permanently assigned to the "First Bubba" for his exclusive use. Demanding an all-female flight crew was the cherry on top for the opponents of the Clinton(s) administration.

By February 2009 it became fashionable (and required of White House reporters) to refer to the new president as "Hillary The Great." By March, President Hillary had issued more signing statements than former President George W. Bush had in his entire eight years of tenure. Some of the over 900 Presidential edicts are listed below:

Tax on cigarettes to be $150 per pack.
Possession of cigarettes to be a federal felony offense.
Frowning prohibited in public.
Any woman with a better physique than the president barred from federal employment (this resulted in a severe shortage of employees, solved only by a then-illegal data-mining of the Lane Bryant customer base.)

Tom Brady stunned the sporting world by simultaneously dating both Britney Spears and Paris Hilton. This might explain New England's 2-14 record after their Superbowl win the previous January.

Former President Bush was named as honorary President of Baylor University in recognition of his extraordinary grasp of economics. The university subsequently filed for bankruptcy. President Bush finally fulfilled his promise to sit on the porch of Trent Lott's Katrina-damaged chalet in Mississippi. The FEMA-financed cottage had somehow expanded into a 14,000 square foot monstrosity with a final cost of $18.7 million. Former President Bush observed that if it hadn't been for that Kelo decision the costs would have been much higher in running off all those poor folks whose land Trent needed.

Many were surprised that two hours after her inauguration, Hillary The Great ordered the arrest of Karl Rove and had him placed in Gitmo as an "enemy noncombatant." In a special signing statement, HTG announced that "enemy noncomatant" was anyone she didn't like, calling Rove a "fat slob" who needed "to be taught a lesson." Rove was released after 7 weeks, in large part due to the efforts of his supporters, who had purchased and established THE KARL ROVE PRESIDENTIAL ASSISTANT LIBARY (not a mis-spelling, that's the way they say library) in Tickturd, Texas. The library is a simple structure built in the middle of 40 acres of bull manure-infested pasture. "Seems kinda right to me," quipped one of the site workers.

With the total collapse of the home mortgage market in 2008, along with a number of large banks and corporations, the administration decided to take immediate action by using government funds in the oil commodities market. Citing the president's luck in cattle futures in Arkansas, the thought was that funds could thus be raised to bail out destitute speculators on the government's dime. This was known as "No Greedy Pig Left Behind."

It was not forseen (except by about 298 million Americans) that the price of oil would skyrocket. By March 2009 a barrel of oil peaked at $275 . President Clinton Her Ladyship pointed to the positive effects: with so few people actually having jobs or the money to get to work, the number of traffic deaths and injuries had plummeted. Al Gore was enthusiastic, noting that the atmosphere now looked a lot cleaner from the cabin of his private jet.

62 bridges collapsed in 2008, primarily caused by overloaded Mexican trucks. A Dept. of Transportation official said that a weight limit of 34 tons was being ignored, with many Mexican trucks topping 50 to 60 tons. However, this was cited as another example of the success of NAFTA. (???)

The Clinton adminstration blamed the infrastructure shortcomings on the Bush adminstration, who immediately placed the blame on the Clinton administration (no, the first one I mean), who immediately blamed it on the Bush administration (the first one, again), who immediately blamed it on Jimmy Carter. The Houses of Bush and Clinton finally agreed to blame everything on Jimmy Carter.

As we all look forward to 2010, we can thank our lucky stars that our leaders are looking out for us almost as much as they look after themselves.

Well, it's nice to think so, anyway.

Happy New Year!!!!
**********************
Cross-posted at Michaellinnjones.com