Comments on Michael Levy's articles RSS Syndication from SeekingAlpha.com http://seekingalpha.com/author/michael-levy/articles http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-601876 601876 Sat, 25 Jul 2009 12:17:29 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-594268 594268 Sun, 19 Jul 2009 18:16:05 -0400
It's all about incentives to produce. Price controls haven't worked in the past and I'm not sure they would work in this case.

Where I can see your argument going is to nationalize oil companies, which has seen limited success (Stat-oil in Norway seems to be working). Although I don't agree with this either, it makes more sense than putting a ceiling on oil prices.]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-586462 586462 Mon, 13 Jul 2009 17:24:57 -0400
Though I agree generally with making basic services not-for-profit, at least for private consumers, we need ridiculously high oil prices. If speculators and market fundamentals don't take care of it, government should with VERY HIGH taxes on fossil fuels. The day that we can't afford gas is the day we start seriously looking elsewhere. And that day needs to come sooner than later, before there really isn't any left and modern life grinds to a halt.]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-586048 586048 Mon, 13 Jul 2009 13:42:16 -0400
When, in the history of history, has a government controlled program produced a better result than the laws of economics?

Wasn't it price controls in the seventies that had us sitting long lines to buy a few gallons of gasoline? At the time, I was in the Coast Guard and had to make a long move; we didn't dare let out gas tank get below half lest we could not find another filling station that even had gasoline.

If $30/barrel oil would be good, wouldn't $10/barrel be even better?

Simple economics will not let the price of oil go below the cost of production, plus profit, for very long periods. A government forcing a lower price, below the cost of production, plus profit would simply shut down exploration . . . and even production from wells (or oil sands) with a higher cost, PLUS PROFIT.

I think you need to drive over to UBC (Univ. of British Columbia) and see if you can audit their Economic 101 class next semester. I am not educated in political science, but it looks to me like you could use a few courses in political science as well, considering your statements on the Middle East.



]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-585510 585510 Mon, 13 Jul 2009 09:10:06 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-585365 585365 Mon, 13 Jul 2009 07:16:27 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-585241 585241 Mon, 13 Jul 2009 01:34:14 -0400
What I can say, is if commodities crashed and oil went to 30 the government would be free to do a 3rd stimulus, float more bonds and engage in yet more QE; which, as far as I can tell, doesn't do much aside from slow down the economic collapse (thereby attenuating the down cycle and making it worse), deny the economy the benefit of a strong dollar and low prices (which helps supply and demand strike a new equilibrium and encorage prudence and savings), and dig the US into an even deeper deficit. ]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-585143 585143 Sun, 12 Jul 2009 22:53:13 -0400 For some good reading on this subject check out this site.
Global Research.
www.globalresearch.ca/...

Also read more about it at this site:
losangeles.injuryboard...

In 1933, a few years following the stock market crash, Congress passes the Glass-Steagall Act, in hopes that regulating banks will help prevent market instability, particularly amongst Wall Street banks. The purpose of the act is to separate commercial banks that focus on consumers from investment banks, which deal with speculative trading and mergers.
]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-585067 585067 Sun, 12 Jul 2009 21:17:38 -0400
This statement alone shows how ignorant you are. ]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-585048 585048 Sun, 12 Jul 2009 20:47:24 -0400
The Gates-Rockefeller Myth
mises.org/story/388]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584982 584982 Sun, 12 Jul 2009 19:56:04 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584971 584971 Sun, 12 Jul 2009 19:35:37 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584894 584894 Sun, 12 Jul 2009 18:24:21 -0400
At the moment the recession/depression is destroying demand faster than the decline rate, so the effect is invisible. But exploration and development of new fields is at a stand still. This supply destruction won't be felt until we try to reverse the economic decline, when we'll find we don't have enough oil to grow our economy AT ANY PRICE.

The entire global economy is based on cheap crude oil, which is very close to gone. What is left is lower quality, more expensive to produce and runs out faster. Our economy can only run at the rate we can pump oil, which is quietly going down.

I'm not saying we won't have oil, but the world of 60 Mbdp looks VERY different from the 74 Mbpd world we live in today
.
In the end this is good, because this is the only way we'll ever switch away from oil is to make it abundantly clear to everyone on the planet, we need to switch, and $200 oil is the only way to do that.

BTW: $200 oil is still cheap!
]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584788 584788 Sun, 12 Jul 2009 16:44:34 -0400 What the hell you are talking about? Get the pill and relax. These are not connected subjects or very little correlated. Stop fantasizing about something non existent. Stop looking for a foes abroad, look for then inside the border.
]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584678 584678 Sun, 12 Jul 2009 14:50:27 -0400 Another example of the effects of speculators in the crude oil commodities market was the “ Rogue Trader” who with a 16 million barrel order of crude, pushed up the price of crude oil $4 in the blink of an eye. (that’s just twice the amount of oil Saudi Arabia’s daily production) So one can keep believing in the supply and demand theory, or take off the blinders.
]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584671 584671 Sun, 12 Jul 2009 14:46:59 -0400 opensecrets.com)
A de-facto tax cut for American motorists. Each $1 per barrel drop in oil increases U.S. GDP by $100 billion per year and every 1 cent decline in gasoline increases U.S. consumer disposable income by $600 million per year.
Just a little FYI:
]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584593 584593 Sun, 12 Jul 2009 13:55:11 -0400
He has abandoned the policies he stated he stood for while running for election at every chance when faced with industry pressure. He has allowed wall street to manipulate the markets increasing borrowing costs, driving up the price of oil , delaying recovery.

He has knowingly talked about green shoots when there were none, creating false expectations. If we wanted a president we knew would lie to use we would have kept bush.

He has spent trillions bailing out wall street to keep credit flowing while American's need help to reduce debts.

He has staffed the White house with wall street insiders.

If you believe, like I do, that Mr. Obama needs to change course and has had enough time I urge you to write the white house explaining why he has had enough time, and why he doesn't deserve more. Below is the link:

whitehouse.gov/con.../ ]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584590 584590 Sun, 12 Jul 2009 13:53:21 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584533 584533 How about $10 oil? No one was buying oil at $73.50 because they plan > to burn it, use it to drive more miles, make asphalt or plastics, > or rub it all over their bodies. They are buying Texas tea because > they hate the dollar and there is no other surrogate reserve currency. > Some of the biggest buyers of crude now are the oil producers, desperate > for any appreciating asset they can park their revenues in size. > This is why you can now walk across the Caribbean and not get your > feet wet, jumping from one storage tanker to the next. The world > is choking on surplus crude. Does anyone see anything wrong with > this picture? Even perma bull Boone Pickens has a target of only > $75. I hope he remembers to sell this time (sorry for the cheap shot > Boone). The problem is that when you have so many hedge funds, financial > players, and non consumers bunching up in a trade, the turns can > be particularly vicious. All it would take is a little more evidence > of a double dip economy, or even just an innocently strong dollar. > Watch those green shoots with a magnifying glass.]]> Sun, 12 Jul 2009 13:13:47 -0400 Any general ideas appreciated.



On Jul 12 12:28 PM Mad Hedge Fund Trader wrote:

> How about $10 oil? No one was buying oil at $73.50 because they plan
> to burn it, use it to drive more miles, make asphalt or plastics,
> or rub it all over their bodies. They are buying Texas tea because
> they hate the dollar and there is no other surrogate reserve currency.
> Some of the biggest buyers of crude now are the oil producers, desperate
> for any appreciating asset they can park their revenues in size.
> This is why you can now walk across the Caribbean and not get your
> feet wet, jumping from one storage tanker to the next. The world
> is choking on surplus crude. Does anyone see anything wrong with
> this picture? Even perma bull Boone Pickens has a target of only
> $75. I hope he remembers to sell this time (sorry for the cheap shot
> Boone). The problem is that when you have so many hedge funds, financial
> players, and non consumers bunching up in a trade, the turns can
> be particularly vicious. All it would take is a little more evidence
> of a double dip economy, or even just an innocently strong dollar.
> Watch those green shoots with a magnifying glass.]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584478 584478 Sun, 12 Jul 2009 12:28:11 -0400 ]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584414 584414 Sun, 12 Jul 2009 11:47:24 -0400
Even assuming Mr. Levy's suggestions could be implemented it would be a blessing.....for China and the rest of the world, who would be happy to bid $35 to $75 a bbl to assure supply. The U.S. market is no longer the principal driver of demand as these markets explode.

]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584405 584405 Sun, 12 Jul 2009 11:43:10 -0400
Unfortunately, the Chinese and Indians will have to reduce their oil consumption, too, if there is to be real impact on the flow of cash to bad actors. The Chinese, at least, for all their efforts to acquire oil, are moving forward on alternative energy as well. But it's such a big country with so many people emerging from poverty, that it's hard to say that the oil export business will ever wane.
]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584375 584375 Sun, 12 Jul 2009 11:17:11 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584373 584373 Sun, 12 Jul 2009 11:16:56 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584369 584369 Sun, 12 Jul 2009 11:14:39 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584364 584364 Sun, 12 Jul 2009 11:13:43 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584340 584340 Sun, 12 Jul 2009 10:53:33 -0400 Does that solve:
- 16-20% unemployment
- erase not just our huge national debt, but Japan's, most of Europe, etc.
- will that magically reflate home values to the level of insanity they are tumbling from
- will that pay off underwater mortgages, fill empty malls, pay of crushing credit card debt
- will that keep our idiot government from going ever closer to statism, crushing private enterprise]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584298 584298 Sun, 12 Jul 2009 10:26:07 -0400 seekingalpha.com/artic...

This one is much better]]> http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584290 584290 Sun, 12 Jul 2009 10:21:36 -0400 http://seekingalpha.com/article/148234-how-30-barrel-oil-could-save-the-world?source=feed#comment-584273 584273 Sun, 12 Jul 2009 10:09:30 -0400