Investor612

Offshore Drilling Isn't the Answer - Supply and Demand Is

Apparantly any uninformed idiot can write a column on SA. "Dave" writes:

" Mr. McCain, for example, wishes to suspend the tax on petrol and open up the artice wildlife refuge for drilling."

Earth to "Dave": John McCain (wrongly IMO) has opposed drilling in ANWR and continues to oppose drilling in ANWR.

Next time take the time to learn the facts before inserting your size 10 shoe in your mouth.

Wonder if "Dave" will have the scruples to publish a correction?

The Quest for Marcellus Shale Exposure

I see no mention of Southwestern. According to their website they are drilling three wells in Marcellus.

Time To Buy Oil Yet? Maybe Not

Will someone please tell Michael Levy that we accept he's Karl Marx Jr. and tell him to stop spamming every article with his manifesto? Please.

Petrohawk: A Play on Appreciating Natural Gas Prices

This train left the station 3 months ago and is closing in on its destination and now you're telling investors to get on board?

Corn, Ethanol and Water

A reality check for captbob and the Brazil myth.

1. Brazilians, with all that sucar cane ethanol, drive less than 10% as many miles as Americans.
2. Brazil has a surplus of desperate labor willing to work 60 hours of back breaking and dangerous work a week for $50 a week to grow and harvest sugar cane.

To pretend that Brazil is an example of what's possible for The US utilizing sugar cane ethanol is total nonsense.

Even Democrats Should Support Offshore Drilling

Mmarrkk, I disagree. Obama is glib or rather he can deliver a canned speech flawlessly in his melodious modulated voice. Smart? perhaps, but he's quite ignorant of economics and history as his repeated gaffes on both subjects reveal.
Like Mr.Kingsdale, I'm also disgusted by the Republicans, though apparantly he prefers expansive legislation from the bench as opposed to following The Constitution when it comes to judges, judicial appointments being one of the things the Bush administration has gotten right.

But as bad as the Republicans are and currently they're terrible, the Democrats are even worse making Mr. Kingsdale's position of voting against those Republicans he likes nonsensical:
The Republicans have spent money like drunken sailors-apologies to the sailors for the comparison. The Democrats want to spend even more money. The Republicans screwed up the occupation of Iraq. The Democrats want to salvage defeat from victory after the Republicans finally got it right. McCain is against ANWR, but at least wants to open up coastal drilling. The Democrats oppose it all and on it goes.
As for Obama's supposed great intellect and judgement, Mr. Kingsdale seems to be doing what voters in my former state did when they elected Jesse Ventura: He's projecting onto a relatively unknown candidate all the qualities he'd like him to have.
One of my favorite Obama virtual reality history moments came when he pronounced that we must talk to our enemies the way Roosevelt did. I've searched and searched and still can't find a single discussion between FDR and either Hitler,Mussolini, or Tojo. And the official communications with Japan that did take place? They served as a diversion from the preparations for the attack on Pearl Harbor.
Apparantly Obama's role model is Neville Chamberlain. He'd be better served by reading Will Rogers:

"Diplomacy is the art of saying "nice doggie" until you find a rock."

or better yet, Clauswitz:

"Those who would avoid war at all costs ensure that they will have it."

Investing in Oil Prices, Not Companies

No doubt Mr. Levy realizes that the same argument he makes for regulating oil prices could be made to a number of commodities and products, from corn to wheat to steel to copper and so on. The problem with taking over markets by the self-anointed "enlightened" is that history has proven such socialism to be inferior to free markets when it comes to producing more of desired products at lower prices. Yet some continue to embrace the notion that government control really can do it better. Go figure.

Barron's Banks on $100 Oil

A quote from the Barrons' article:

"In the next decade, oil indeed may hit $200 a barrel. But prices could fall to $100 a barrel by the end of this year if Saudi Arabia makes good on its pledge to increase production; global demand eases; the Federal Reserve begins lifting short-term interest rates; the dollar rallies, and investors stop pouring money into the oil market. China raised prices on retail gasoline and diesel fuel by 18% Thursday, in a move that is expected to curb demand."

Hmmm.

IF Saudi Arabia increases production.
IF global demand eases
IF the FED raises rates
IF the dollar rallies
IF investor bullishness on oil cools

That's a lot of "IF's" to making predictions on.

Bye, Bye Oil Bubble?

Comparing energy prices to the tech bubble isn't even "apples vs. oranges." It's "apples vs. rocks." One is a necessity, the other a luxury. One sector has stocks selling at mostly under 20 PE's. The other had a majority of stocks with no earnings whatsoever.

Chistletoe makes a good point. The other day I heard a woman complain that she was astounded that a gallon of gas now cost as much as a Grande Latte at Starbucks. Shouldn't she be perplexed that a cup of coffee costs as much as a gallon of gas?

Energy Demand: China vs. the World

Exactly aquabiker. But when you're dealing with someone who actually thinks there is such a thing as a "world community" capable of concerted action you're wasting your breath

The 'Peak Oil' Myth: New Oil Is Plentiful

A very superficial and frankly silly analysis. Yes, lots of new reserves have been found. Reserves have actually grown. The flaw in making a simplistic conclusion on that increase is the different nature of the reserves. The recent finds are deeper and/or require more complex and costly measures to exploit. This increases the time it takes to produce from the new found reserves and decreases the rate of production once they come online.

Ethanol Is No Field of Dreams

Of all the specious arguments regarding energy substitutes, the use of Brazil as an example belongs near the top of the list. Some facts to puncture the illusion ethanol from sugar cane is some kind of a solution:
1. Brazil uses 10 times as much oil as ethanol
2. Brazil has less than one tenth as many vehicles as the US
3. Brazil has a surplus of cheap labor willing to work 60 hours a week of back breaking labor for $200 a month.

The real Brazilian energy miracle is all the oil they're finding.

Fairfax Financial: Anatomy of a Hatchet Job

The NYT prints misleading, innuendo filled and inaccurate stories?
I'm shocked.

Cap-and-Trade Vs. Fuel Efficiency Requirements

Cap and trade or fuel efficiency requirements?

And the correct answer is:

None of the above.

The choices consumers faced with higher energy prices will make on their own will be sufficient. We have the free market. We don;t need the self-anointed enlightened imposing standards that they only apply to others.

Agricultural Commodities: High Prices Here To Stay?

Long term the liklihood of high ag commodity prices is good. As BMO's Don Coxe recently said, "The growth in the midsection of the US comes from growth in the midsections of consumers in China and India," or something close to that.

Short term if Amereican taxpayers and consumers ever wake up and decide to end the ethanol fiasco prices of ag commodities and stocks could drop. Then buy the dip.