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U.S. Energy Boss: Not Speculators, Shortages the Blame for Oil Prices
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by Barry ORegan | June 22, 2008 at 05:59 am
521 views | 15 Recommendations | 15 comments
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U.S. Energy Boss: Not Speculators, Shortages the Blame for Oil Prices
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Barry Artiste, Now Public Contributor
The U.S. Energy Boss blaming shortages and not speculators driving up oil prices certainly must be the same slick oil salesmen who has Prime Swamp land in Florida for sale
.
Blaming India and China for increasing demand leaves many to believe if these two countries are paying $4.00 a gallon US for gas, $6.00 a gallon Canadian for gas, or $11.00 for a gallon of gas in Europe? M-M-M Don't friggin think so! The reason why we pay so much is Oil companies have us by the short and curlies as rich nations, they feel we should put up or shut up.
Shortage blamed for steep oil prices U.S. energy boss denies speculation driving climb
By THE ASSOCIATED PRESS
JIDDA, SAUDI ARABIA -- The U.S. energy secretary said yesterday that insufficient oil production, not financial speculation, was driving soaring crude prices.
Samuel Bodman's comments on the eve of an energy summit in the Saudi port city of Jidda set the stage for a showdown between the United States and conference host Saudi Arabia, which has largely blamed speculation in the oil markets for record prices.
The U.S. and many other western countries have put pressure on Saudi Arabia, the world's top oil exporter, to increase production. Saudi officials have been hesitant to do so, arguing that the market is not suffering a shortage.
Bodman disputed that assertion yesterday, saying oil production has not kept pace with growing demand, especially from developing countries like China and India.
"Market fundamentals show us that production has not kept pace with growing demand for oil, resulting in increasing prices and increasingly volatile prices," Bodman told reporters. "There is no evidence that we can find that speculators are driving future prices" for oil.
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Barry ORegan
Burnaby, British Columbia, Canada
Most RecentMost Recommended Comments (15)
at 06:08 on June 22nd, 2008
Barry Artiste, I like this story. It's good stuff.
at 06:10 on June 22nd, 2008
Thanks Rhonda, this guy must think we are complete morons to swallow his lies
at 06:21 on June 22nd, 2008
Barry, :) You are very welcome!
at 07:22 on June 22nd, 2008
If you are going to blame oil companies (for which I have no love), shouldn't you offer some evidence and not just mush?
at 07:50 on June 22nd, 2008
m-m-m let's see bond companies and hedge funds are heavily invested in oil futures, holy crap, now they are saying the saudis own most of these investment companies, Land O Goshen, Joellerose, ya gotta research before commenting, perhaps take in a 60 minutes segment, read a financial paper, look around you. Supermarket tabloids don't cover world events, so change subscriptions.
Oh yeah, one more thing Bodman's previous careers were as President of FIdelity Investment, Venture Capital Firms overseas, Cabot Corporation, and a slew of other interests, so certainly Bodman knows which side his bread is buttered on upon retirement as a Consultant once again when and if he decides Daddy needs a new set of golf clubs. Now that you know, go check how much these firms are invested in the Oil futures and energy markets. Cause ya know, you can't learn any of this watching Springer!
at 07:16 on June 23rd, 2008
Instead of all these juvenile conspiracy theories, perhaps you should look at the research and data maintained by the International Energy Agency. After many years of predicting that supply would always exceed demand, last year they switched and predicted that supply would fall short in 2009. It is their prediction, which is on track to come true, that, along with the fall in the value of the dollar (oil is priced in dollars), that is driving up the price of oil. Barry, your articles are usually much better than this. We need much more domestic drilling.
See
at 08:10 on June 23rd, 2008
ABC News this morning and other news outlets just quoted the Saudis saying Oil Speculators are again rushing to hedge bets on how much oil the Saudis will be pumping, you can't be more clear than that~~!!! You know, what more proof do you need Joellerose? I cannot continue a pissing match with you, as I have other stories to report on. If you cannot face facts, perhaps you should not visit my column, cause clearly you are in denial.
at 09:00 on June 23rd, 2008
A. I don't know why the link I supplied and the rest of my previous comment got lost, but here it is again
http://www.energyandcapital.com/articles/oil+demand-iea-peak+oil/470
It gives the IEA's assessment of the oil supply-demand equation, and is prbably the best source for this information. This international agency predicts that demand will exceed supplies sometime this year, and that there will be serious shortages starting in 2009.
B. Of course there is greater speculation given the expectation that supply is starting to fall short of demand. Woolen companies speculate in wool to assure future supplies and a known price. Butter manufacturers buy futures, bread makers buy futures, lots of industries buy futures just as people dependent on future oil supplies are buying futures as well as financial people just trying to make a buck. In most commodities the speculators are considered to provide a necessary service that stabilizes markets.
C. I'm surprised that you believe the Saudis. I'll bet it's the first time you have believed them about anything.
D. We need to drill for more oil in the USA. If we do not, growth and jobs will soon suffer, and then things will really get rough.
E. When I can, I will comment on any story that is designed to mislead American voters.
at 14:53 on June 23rd, 2008
I have to agree with you Jollerose. But the International Energy Agency is comprised of Oil Producers, so I cannot fault you for your info. I apologise for that.
What you need to realise, analysts and some oil producers who have nothing to gain as the IEA, state matter of factly that speculators are driving the price. You have to see my side, I only report what is said by others, and mark my opinion as such. Just about every media outlet states Speculation, funny that media do not report IEA's assessment. So you see, if it quacks like a duck, .,........ I am pretty sure everyone else in the know are correct and perhaps IEA is flawed, but then look with side their bread is buttered on versus those detractors who do not believe a word from IEA.
Canada as a fact will not run out of oil anytime soon, as many new oil fields have been discovered whereby the midwest of Canada is being called the New Saudi Arabia, and will eclipse the saudi's oil wealth.
As for me believing the Saudi's? I only report what is said, and then I take it with a grain of salt and research to find if it is true, hence why I only do opinion pieces based on my background research. The reason I believed this Saudi, is because he agreed with every other analyst who stated it was speculators not demand.
You state we need to drill for more oil here at home here and in Canada, Drilling is not the problem Joellrose, having refineries to process that drilled oil is, we need to build more oil refineries to turn that oil into gas. Hell we could drill till the cows come home and have oodles of oil, but we need a place to refine it.
As for me misleading anyone, never, I pride myself in always stating the facts from reliable sources, or from personal experience, in which I am always am ready to back up.
Anyways, again I apologise for slandering your viewpoint, as you now have provided a link to a story which tries to disprove mine, which is okay, it is just I have more facts than the IEA have.
Thanks for your comments Joellrose, they are very appreciated. Gotta go now, Springer is on,
at 15:00 on June 23rd, 2008
I have always enjoyed and respected your articles. I do not agree that the U.S. does not need to expand drilling to a major degree. Enough said about this subject for a while.
at 15:09 on June 23rd, 2008
I like your stuff too, so we shall agree to disagree okay?
Besides, I thought you only paid for a $5.00 argument?(Monty Python) :0P
at 11:06 on June 22nd, 2008
There may be a fuel crisis at the moment, but it's not due to a shortage.
at 13:00 on June 22nd, 2008
Thanks to you both for confirming my assessment
at 02:40 on June 23rd, 2008
Whatever it is that the U.S. Government says it is I believe it is not. Therefor, I believe is the opposite of what they say it is. And as soon as I find out what they say I will happily comment on what Barry said.
at 05:20 on June 23rd, 2008
Thanks Mikasi, pretty much you said it all, believe what they DON'T say. hahah Thanks