Hmm?!

The Global Oil Scam: 50 Times Bigger than Madoff

Actually IMHO, there is always over reaction in this situation.

First Point: Commodity futures can only be manipulated, but the effect on the actual commodity is limited. The spot price is always for delivery between the buyer and seller. The ulitmate price for oil is determined by supply and demand.

Second Point: Price spikes in oil are going to occur because of inelastic supply and demand. Oil was the inelasticity example used in almost every economics textbook on the planet. About 15 yrs of low oil prices meant NO drilling for oil. Lets a look awhile kids, before saying there is none left in the house.

When oil prices spike, every dry well on the planet gets something pumped into to it, to force more oil out. There's Sassoil that can turn coal into oil for as low as $35 a barrel. There is the Canadian Tar Sands at $35 to $70 with more oil than Saudia Arabia. I heard all this in the 70's and the 80's...........and yet we went back to a glut of oil both times?

Contango and Inventory: Clues to Oil's Trend

All very interesting but there is one factor that is consistnelty left out.

No one really drilled too much for over a decade. The oil price was too low to justify drilling. There is a lot of driling now and therefore some finds. I have never seen the amount of drilling factored into any peak oil data. It would not be a saviour but it would certainkly remove some of the volatility that always happens with peak oil numbers.

Why Is Oil Trading at $53 When Supply and Demand Is So Bearish?

Some factors that were not fully flushed out.

>> Oil will become less expensive to developing countries as the US dollar crashes. At $150 a barrel to us.....but the dollar was 35% lower just last year....which means $97.50 a barrel to them.

>> India and China will not be sadled by the CO2 cap and trade bullshit! If any enviro-idiot wants to speak at this point, please post a link to relevant data that shows an increase in global temperature. I have been waiting to see that since 1990!!!

>> Since AC power can not be stored like DC power, what are we supposed to with our solar panels and windmills when it is cloudy or calm outside?? We might as well build a moonbase.