FeverBuster

Gas Lines Coming This Fall

Bill,

In one of the pictures on your site(bottom left), there is a canopy covered with what looks like solar panels. Have you done any calculations to see if it could be self powered during the day by solar alone? I would imagine with hundreds and hundreds of miles of solar panels it could be self powered and even add to the power grid at times.

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

18 billion barrels is close to 3 years worth of oil consumption by the US at 20 million barrels a day. I am not sure why that is not enough to go after and drill for.

Gas Lines Coming This Fall

I like the JPod Idea. Imagine how much less stress it would be to not have to worry about driving and at the same time have a personal space that you do not share. JPods could be customized to a personal taste(as long as they met requirements) just as there are so many different type and style of cars. Americans do have a love affair with automobiles, and in reality both modes of transportation could co-exist. The auto could then become the hobby or leisure drive and eliminate it as a necessity for just getting from point a to point b.

Energy and Metals Charts

Regarding $7 drop:

"Investors hope that lower energy prices could help revive the flagging economy". Source: Yahoo

Oil is going to have to drop down below $100 to have any impact on the economy. But every bit helps. It will not last though, Iran will just launch another missile, or someone in Nigeria that has a gun will get mad, or maybe someone will spill a barrel of oil somewhere. You know that these type of things can really cause disruption of oil flow that will have devastating effects on the supply.

Energy and Metals Charts

I do not understand how a futures market of commodities can be charted in a way that provides overbought or oversold ranges since it is a complete different way of trading in relation to common stock buying and selling. To me your tying to fit a square peg into a round hole.

What We Can Do To Reverse the Oil Crisis

I support Bush in opening up drilling. However, it will not fix current problem of oil prices. Releasing oil out of the SPR as Phil has suggested would disrupt the insane trading going on. Add to that, increasing the interest rate by a .25% and you have a mix bag of weapons to counter balance the insanity of the market.

Gas Lines Coming This Fall

"If demand falls very quickly, exporters like Mexico, will like cut production to protect their current revenues. They are as addicted to their oil income as we are to using oil. Then again, price would go up, further stressing inventory levels."

You are 100% correct. Oil producers are doing this already, that is why inventory is low. That is why the fundamentals of supply and demand are not at work. The high price is out of range from balance causing the stress as you mentioned.

I just pray that we do not have any Hurricanes this year that hit the Gulf. Although, I am sure that oil future investors are hoping for one so they can make money off of a disaster.

This is just another reason I think both an interest rate increase and the SPR should be used now. This would bring the price down and to regulate the market back to a balanced state.

Gas Lines Coming This Fall

I agree with both comments above. The high price of oil is keeping inventories low. The last thing oil companies would want to do is keep a large amount of inventory and then all of sudden the price falls dramatically.

There is no mention of the fact that Gasoline inventories are high side. This would explain that the buffer is in the Gasoline and not in oil.

There is no shortage of Oil. If there was, then OPEC would increase production. As of now, they have indicated several times that an increase is not necessary.

You also do not mention the fact that if you are correct about the gas shortage based on low oil inventories that SPR could release oil as they did back after Katrina hit. This would change your figures quite a bit.