Social Largess Speeds Rise in Oil Prices

http://green.blogs.nytimes.com/2011/04/ ... &seid=auto


There’s no mystery in why all the unrest in North Africa and the Middle East would cause oil and gasoline prices to soar. Libya’s high quality sweet crude is almost off the market entirely, and it’s anyone’s guess when the next oil producer is going to suffer a revolution that could cripple production.

But PFC Energy, a leading strategy advisory firm, has come up with another reason why political developments in several OPEC countries are driving prices higher, despite Saudi Arabia’s assurances that the kingdom will boost production to make up for any gaps. In a report this week, PFC calculated that populist spending policies are contributing to the need for higher revenues from oil sales.

“Saudi Arabia and the U.A.E. (i.e. Abu Dhabi) are now seeing a rising share of total expenditures accounted for by higher government salaries, subsidies and housing allowances, and payoffs to the religious establishment,” a private report offered to the firm’s clients says. “Today’s high oil prices facilitate the financing of the expansive spending packages that [Saudi] King Abdullah has recently announced to prevent outbreaks of popular unrest within the country.”

Is that why Exon made over 10 Billion$$$$ the first quarter of this year, much more that the first first quarter of last year. Money out of your pockets to feed the greedy.

SAM1 wrote: Is that why Exon made over 10 Billion$$$$ the first quarter of this year, much more that the first first quarter of last year. Money out of your pockets to feed the greedy.

No, they made that because they are greedy racists who want to turn this country into Somalia. :faint:

Why don't you go play in the ring where you belong.

Why would you sell a commodity that will eventually run out and is destined to only rise in price for next to nothing for the convenience of the American consumer? Any country would be wise to hang on to what they have now. As for the Saudi's-they fear the spread of democracy in the ME and hope to bribe their citizens into complacency.

The Russians recent move will only increase the price of this commodity. Who will follow next?

I think you should get the soot out of your brains first, then maybe you would make sense

chickaree wrote: Why would you sell a commodity that will eventually run out and is destined to only rise in price for next to nothing for the convenience of the American consumer? Any country would be wise to hang on to what they have now. As for the Saudi's-they fear the spread of democracy in the ME and hope to bribe their citizens into complacency.

The Russians recent move will only increase the price of this commodity. Who will follow next?

What are you talking about? How do you "hold on" to oil without completely crushing your economy? You must think there's only a few years of oil left...I just can't figure out if you're joking or just a little nutty.

Every country needs oil and it's not going to run out anytime in the near future.

What a post.

Martini anyone.

That's why you aren't real conservatives. You don't even understand what it means. All you can think of is satisfying your own greed in the short term. You seem incapable of seeing the big picture. You don't care about the legacy you leave the next generation, much less the many to come. You are worse than liberals. They at least seek to help others no matter how ineffectively. You seek only your own gain.

?? You are saying that conservatives don't drink martinis. Is that a rule?

Oil prices are not set by oil companies. They profit from the political unrest of oil producing countries and the speculation regarding their impact on supply and demand. Much speculation is unreasonable.

How much oil is left. A few years ago, many proposed we reached peak oil and that the oil volumes would continuously decline. Horizontal drilling technology applied to oil shales has dramatically changed the oil volume equation. Strata previously thought usproducable now yield highly profitable wells. As with all oil exploration, many geologic variables come into play and not all of the poil shale is capable of commercial oil production. If you listen to the USGS (who never drills for oil) we have a bounty of oil available in oil shales located in every major basin throughout the country. While this is true, the geologic variables and inaccessibility in cultural areas and sensitive environmental regions will dent their numbers significantly. Even so, the US can help itself significantly by being proactive in exploring production in these frontier areas.

Middle East countries can not hoard their oil as they have huge expenses in running their countries. Unlike most non-oil exporting countries, the ME nations do not have viable alternatives to produce income. Saudi once was the second largest exporter of wheat thanks to massive irrigation efforts. This process lowered their water table at an alarming rate and the kingdom has taken heed of warnings that it was impossible to sustain crop irrigation for export. So, now they are back to selling oil to keep alive. When you have fundamental needs that must be met with cash and the only thing you have to offer for sale is oil, it is easy to understand that hoarding it is out of the question.