Tag: oil

Next Big Oil Spill Disaster Set for the Arctic

Shell Oil is on its way right now to a location less than 15 miles from the Arctic National Wildlife Refuge in Alaska. “Shell has proposed drilling up to four shallow water exploration wells in Alaska’s Beaufort Sea this summer, beginning on July 1,” Subsea World News reported last month.

The potential harm from a BP-scale spill is almost beyond comprehension,” David Yarnold, president of the National Audubon Society wrote at the Huffington Post.

If there is a spot on Earth as sacred or as critical to the future of our wild birds as the Gulf of Mexico, it is probably the unspoiled Arctic. Here, hundreds of bird species arrive every spring from all four North American flyways — the superhighways in the sky that birds use to travel up and down the Americas. Here, they mate, lay eggs and raise their young. Here also, many of America’s remaining polar bears make their winter dens along the coasts.

Siri wrote earlier today on Daily Kos on how the BP-spill in 2010 has caused unprecedented mutations and deformities in ocean life in Gulf of Mexico. Today, I’ll look at how our government and Big Oil are setting the stage in the Arctic for the sequel to Deepwater Horizon disaster. The script is already written and the leading actors are already on their way to the set.  

The Price at the Pump: It’s All About Speculators and Profits

Cross posted from The Stars Hollow Gazette

The price of gas at the pump has risen sharply since the beginning of the year and is expected to continue to rise through the summer. The demand for oil and refined products has fallen over the last year, there is a surplus of oil on the market and the United States is exporting more gasoline than it’s importing. In the absence of supply and demands, the main factor is speculation on the world market that has been driven by the latest threat of military action in the Middle East and other smaller factors like the growth of emerging countries such as China and India.

Since oil prices are the biggest component in the price of gasoline, pump prices are soaring. AAA said Tuesday that the nationwide average price for a gallon of gasoline stood at $3.57, compared with $3.38 a month ago and $3.17 a year ago. It takes about $6 more to fill up the tank than it did this time last year – and last year’s gasoline-price surge helped take the steam out of the economic recovery.

Defining what percentage of today’s high oil and gasoline prices is due to excessive speculation, driven by Iran fears, is something of a guessing game.

“I put the Iran security premium at about $8 to $10 (a barrel) at this point, which still puts crude at about $90 or $95,” said John Kilduff, a veteran energy analyst at AgainCapital in New York.

The fear premium is the froth above what prices would be absent fears of a supply disruption – somewhere in the $80 to $85 range for a barrel of crude oil. It means that even with the extra cost put on oil from Iran fears, prices are at least another $10 higher than what demand fundamentals would dictate.

Why? Financial speculators.

What should the price of oil be if left to conventional supply and demand market fundamentals? Canada’s the largest supplier of imported oil to the United States, which now actually produces more than half of the oil it consumes. Production and delivery costs for a barrel of oil from Canada are about $75 a barrel. The market-fundamentals cost for a barrel of oil is in that ballpark; above that, speculation sets the prices.

“It’s as simple as that,” said Gheit, who has testified before Congress and called for regulatory limits on speculation in commodities markets.

Historically, financial speculators accounted for about 30 percent of oil trading in commodity markets, while producers and end users made up about 70 percent. Today it’s almost the reverse.

President Obama barely mentioned this in his energy speech this week and his energy policy offered no solutions to controlling the speculators.

One of the possible solutions that has been mentioned is to reduce the amount of refined product that the US is exporting. There are arguments that both support and discredit this as a solution:

Most of the ongoing increases in gas prices can be traced to geopolitical concerns and rampant financial speculation that have run up the cost of crude oil. And yet, if U.S. refiners limited themselves to domestic sales, there would be a glut on the market, and diesel and gasoline prices would inevitably drop.

“The other countries are willing to pay more than we would,” said James Hamilton, an economics professor and blogger at the University of California, San Diego. “And that’s the price we pay, too, what they’re willing to pay.”

Hamilton said that’s how things work in a global market. “If you are a refiner and you’ve got gasoline to sell, you want to sell it where you can get the highest price,” he said. “If Mexico is willing to pay a higher price to Americans, you’re going to want to sell it to them instead of Americans.” [..]

“I do not support an outright ban of exports,” said Tyson Slocum, director of the energy program for the consumer watchdog group Public Citizen. “And I don’t want to see the government regulating retail prices. But I don’t think that it is in our best interests to be exporting at the rate at which we are.”

Slocum suggests that exports of petroleum products “should go through a regulatory barrier to assure that they aren’t resulting in higher prices for Americans, or otherwise hurting the economy.”

That’s what happens now with U.S.-produced crude oil. Oil companies aren’t allowed to export crude without permission from the Department of Commerce, which, by law, checks to make sure “that the proposed export is consistent with the national interest”. [..]

Any attempt to limit exports would, of course, be met by ferocious resistance from the refiners. Their profit margins would drop, and refiners would inevitably warn that with less money to reinvest, there could be shortages in the future.

But the many refineries owned by large, vertically integrated oil companies that own the oil production facilities as well are hardly hurting for money. In fact, when oil prices go up, as they are now, their profits go up as well; it doesn’t cost them any more to get the oil out of the ground — somewhere around $30 a barrel — but they get to charge as much as the market will bear.

No politician, not even the President, wants to stop the flow and profits to these “oil-garchs” and the flow of cash to their campaign coffers. That said, another solution that can be done is to temper the war mongering in the Middle East. Instead of threats of military intervention with Iran which even our military and national security advisers agree would be disastrous, a more reasoned diplomatic approach could go a long way to curbing the speculators. When President Obama meets with Israeli Prime Minister Benjamin Netenyahu at the White house next month, he needs to stress the need to temper the saber rattling.

Libya: I Knew The Bride When She Used To Rock & Roll

This was written by Ellen Brown back on April 14. We shall see a few years from now whether Libyans will still be cheering and throwing flowers like Iraqis and Afghanis and Bahraini’s are now…

Several writers have noted the odd fact that the Libyan rebels took time out from their rebellion in March to create their own central bank – this before they even had a government. Robert Wenzel wrote in the Economic Policy Journal:

I have never before heard of a central bank being created in just a matter of weeks out of a popular uprising. This suggests we have a bit more than a rag tag bunch of rebels running around and that there are some pretty sophisticated influences.

Alex Newman wrote in the New American:

In a statement released last week, the rebels reported on the results of a meeting held on March 19. Among other things, the supposed rag-tag revolutionaries announced the “[d]esignation of the Central Bank of Benghazi as a monetary authority competent in monetary policies in Libya and appointment of a Governor to the Central Bank of Libya, with a temporary headquarters in Benghazi.”

Obama Misses the Point, Caves to Drill, Baby, Drill

Cross posted from The Stars Hollow Gazette

President Obama in his Saturday address to the nation, announced another cave to the right

. . the administration would begin to hold annual auctions for oil and gas leases in the Alaska National Petroleum Reserve, a 23-million-acre tract on the North Slope of Alaska.

. . accelerate a review of the potential environmental impact of drilling off the southern and central Atlantic coast and will consider making some areas available for exploration. The move is a change from current policy, which puts the entire Atlantic Seaboard off limits to drilling until at least 2018.

. . provide incentives for oil companies to more quickly exploit leases they already hold. Tens of millions of acres onshore and offshore are under lease but have not been developed.

Not one of these actions will lower the price of gas at the pump or create jobs or cure our dependency on foreign oil, most of which comes from our northern neighbor, Canada. The cost of gas at the pumps is under direct control of the oil companies that are still being subsidized by tax payers even as they rake in billions in profits and use tax loop holes to pay no US taxes, instead they are receiving refunds. Crude oil prices are manipulated by speculation on the open market with little regulatory control by the government or the SEC. That so-called “revolutionary” Financial Regulation Bill is a sham. Just look at rising banking fees and your credit card bill, look at your shrinking pay check and the rise in cost of food, clothing and health care. I suggest you have a bucket handy.

Yes, tax payers are angry about the price of gas but we are also opposed to more drilling for limited resources that will not solve the immediate problem. Long term, we need to be investing in green energy, renewable solutions not investing in the oil companies. Short term, rein in the oil companies and speculators.

Americans are angry at the President for not regulating the speculators and oil companies. Americans are angry at for gouging at the pump.

Asked who is to blame, most Americans point to speculators and oil companies for the recent increase in gas prices, and three-quarters say that oil companies profits are too high.

Sixty-one percent of respondents say oil companies deserve a great deal of blame for prices, while 27% say they deserve some blame. Oil speculators also figure prominently in the blame game, with 59% saying they deserve a great deal of blame, while 31% say they deserve some blame.

Americans are angry with President Obama because again caves to the right and corporatists while ignoring what the American people are telling him and congress. Ignore us at your peril.

Well, well, well….Iraq=Invasion=Oil Deals

Can’t say nobody didn’t tell them so.

How much of this do you think will be reported on our 24/7 media outlets, especially in detail!!

Secret memos expose link between oil firms and invasion of Iraq

Started talking about a year before the Brits gave approval for the blair to embrace the bush!


19 April 2011 – Plans to exploit Iraq’s oil reserves were discussed by government ministers and the world’s largest oil companies the year before Britain took a leading role in invading Iraq, government documents show.

The papers, revealed here for the first time, raise new questions over Britain’s involvement in the war, which had divided Tony Blair’s cabinet and was voted through only after his claims that Saddam Hussein had weapons of mass destruction.

Yep them there WMD’s, weapons of mass destruction, were all over the place along with those many other changing excuses for justification!

The minutes of a series of meetings between ministers and senior oil executives are at odds with the public denials of self-interest from oil companies and Western governments at the time.

The documents were not offered as evidence in the ongoing Chilcot Inquiry into the UK’s involvement in the Iraq war. In March 2003, just before Britain went to war, Shell denounced reports that it had held talks with Downing Street about Iraqi oil as “highly inaccurate”. BP denied that it had any “strategic interest” in Iraq, while Tony Blair described “the oil conspiracy theory” as “the most absurd”.

Nobody turned these over to Chilcot, wonder what else is well hidden only to come trickling out over the coming decades. And oh my, a shock, Shell oil Lied and the pols went along with it, surprise, surprise, surprise!

But documents from October and November the previous year paint a very different picture.

Five months before the March 2003 invasion, Baroness Symons, then the Trade Minister, told BP that the Government believed British energy firms should be given a share of Iraq’s enormous oil and gas reserves as a reward for Tony Blair’s military commitment to US plans for regime change.

The papers show that Lady Symons agreed to lobby the Bush administration on BP’s behalf because the oil giant feared it was being “locked out” of deals that Washington was quietly striking with US, French and Russian governments and their energy firms.

And even More Shocking reveal, the cheney/bush were dealin with other coutries and oil firms behind the Brits back, oh my and in Secret!!

Mr Muttitt, whose book “Fuel on the Fire: Oil and Politics in Occupied Iraq” is published next week, said: “Before the war, the Government went to great lengths to insist it had no interest in Iraq’s oil. These documents provide the evidence that give the lie to those claims.

“We see that oil was in fact one of the Government’s most important strategic considerations, and it secretly colluded with oil companies to give them access to that huge prize.”

Lady Symons, 59, later took up an advisory post with a UK merchant bank that cashed in on post-war Iraq reconstruction contracts. Last month she severed links as an unpaid adviser to Libya’s National Economic Development Board after Colonel Gaddafi started firing on protesters. Last night, BP and Shell declined to comment. {continued with some small cuts from the docs}

I’ll tell I’m Shocked, Shocked I say, oh wait a minute, I and hundreds of thousands, Millions, were saying almost exactly what this is reporting!!

Oh and Iraq’s output is up, yet so are oil prices rising, as the glut continues and nobody else stopped pumping!

MSNBC’s Rachel Maddow lines up behind Obama’s attack on Libya

http://wsws.org/articles/2011/…

The ‘progressive’ darling lines up behind another imperialist adventure.

Arab League Condemns “Bombardment of Civilians”, Amid Suggestions Obama Could Be Impeached

Crossposted from Antemedius

Rep. Dennis Kucinich (D-OH) says President Barack Obama did not have the constitutional authority to order U.S. forces to participate in an attack on Libya, reports David Edwards writing at RawStory this morning:

The Week in Editorial Cartoons – Unprincipled Zealots and March Madness

Crossposted at Daily Kos and The Stars Hollow Gazette

Clay Bennett

Moammar Gadhafi by Clay Bennett, Comics.com, see reader comments in the Chattanooga Times Free Press

The Week in Editorial Cartoons, Part I – Union Busting in Wisconsin

Crossposted at Daily Kos and The Stars Hollow Gazette

John Sherffius

John Sherffius, Comics.com (Boulder Daily Camera)

‘Advanced’ Civilization: The Long Party is Over

Crossposted from Antemedius

Our current way of life is unsustainable. We are the first species that will have to self-consciously impose limits on ourselves if we are to survive.” — Robert Jensen

In 2010 we watched, aghast, as British Petroleum’ s Macondo Well in the Gulf of Mexico blew it’s top and leaked umpteen millions of gallons of raw crude oil into the Gulf, poisoning and killing much of the sealife, ruining gulf coast ecosystems, and destroying a way of life for millions of south coast people.

We watched, as business and political leaders and mainstream media went into paroxysms of delusional denial to cover up the sheer unabashed criminality of the event, and tried to create a reality built of smoke and mirrors in which something approaching “normalcy” would once again reign and we could all just jump into our cars and drive off into the sunset as if nothing important or even noteworthy had happened,  while those business and political “leaders” operate in the delusion that military might, invasions and occupations, and wholesale oppression and killing of millions of people in “other” parts of the world – as if there is more than “one” world – all done using a military that paradoxically is the single largest consumer of energy in the world – will somehow secure a never ending supply of the energy required to keep our “advanced civilization” operating forever.

Remind you of a hampster wheel? Faster and faster to nowhere.

Obama sacks cabinet, pledges not to run in 2012.

AP:

In a bid to pre-empt popular uprisings from far-flung regions of the imploding empire over which he presides, President Barack Obama has fired his entire cabinet and promised not to run again for President in 2012.  

Srsly!

In reality, the Nobel Peace Prize-winning President Care Bear has decided to test the Ghandi-an peace dividends of Egyptian blood-letting, in order to, as usual, preserve the status quo.  Gomer Pyle was reported as saying, “Surprise, surprise, surprise!”  I suppose Cairo is the New Gaza Annex.

Fuck the U.S., Israeli, and Egyptian governments.  May they get in their asses what they give.  God bless the inevitability of history, and amen.

In related news, today’s quote of the day comes from monsieur IOZ:

Growing up Is Hard to Do

Obviously, Islam needs to make its peace with modernity and democracy.

-Robert Kagan, quoted by Maureen Dowd

This is a standard variant on a common observation in the West, that Islam is effectively unmodern, that it is mired in a sort of pre-Reformation dark age, as opposed to what used to be called Christendom, which through religious reformation paved the way for modern nations and Enlightenment and democracy and all that. Leaving aside the weirdness of this characterization of Islam, as a normative history of the Christian West, it is totally crackpot, an attention-deficient skipping stone leaping from the Henry’s first divorce to the Peace of Westphalia to Jean Monet and leaving out everything else in between. In this history, the wars of religion never occurred, there was no Terror, no Napoleon, no Somme, and no Holocaust. The modern western mind is mostly notable in civilizational history for its colossal contribution of violence and destruction. I mean, I guess it’s true that the occasional stoning-to-death of an adulterer is indicative of a somewhat atavistic mind, but by that light, the principal characteristic of modernity is its commitment to the slaughter of millions through the advent of mechanized warfare. Wait, oh, uh, whut? Hang on guys, there’s a transmission coming through. It’s a little fuzzy. You say . . . you say that is the principal characteristic of modernity. Oh, shit. Europe “made peace with democracy” by slaughtering two generations its youth.

Senate’s Conrad Cashes Out

North Dakota “Democratic” Senator Kent Conrad, 62, has announced he is not going to run for re election in 2012. He is the current majority Chairman of the Senate Budget Committee.   He is also on Agriculture Nutrition Forestry, Finance, and Indian Affairs committees.  Kent Conrad


Conrad said he would serve out his term.

“Although I will not seek re-election, my work is not done,” Conrad said in his statement. “I will continue to do my level best for both North Dakota and the nation.”

http://www.huffingtonpost.com/…

He says he’s going to spend his remaining time and energy trying to reduce the national debt and dependence on foreign oil.  And working on a Farm Bill.  http://www.valleynewslive.com/…

Senator Kent Conrad’s legacy will include recommending former OMB head Peter Orszag for his White House position early in the Obama administration (Orszag sharing Conrad’s curious blind spot on what drives the deficit, see more of that here: https://www.docudharma.com/diar…    ) , being a phony “deficit hawk,”  who couldn’t see anything wrong with increased military budgets and decreasing domestic needs being met, and opposing the Public Option during the Health Care reform legislative battle. Voting for reducing the payroll tax that funds Social Security, and for continuing the Bush Tax Cuts for the wealthiest in Dec of 2010 during the Lame Duck Session.  http://www.thestate.com/2010/1…    Oh, and being part of that Democratic Senate Supermajority of 2009 That Didn’t Do Any Energy Policy, Global Climate Change,  or Tax Code Changes.  Other than a lot of stimulus money got earmarked for “research.”

Kent Conrad was also on the President Obama Deficit (“Catfood Commision”) Committee of 2010, which called for cuts in Medicare and Social Security.


“You know, a certain amount of this is shock therapy,” Conrad said. “There are different options and, of course, what everybody has fastened on is the most extreme of the options. But, look, the important thing for people to know is that we are borrowing 40 cents of every dollar we spend. That’s utterly unsustainable. It can’t continue much longer, so it’s got to be dealt with.”



“Fundamentally, if we’re going to raise revenue, I don’t think the way to do it is to raise rates. I think the way to do it is to eliminate some of the loopholes that exist in the system,” the senator said.  

November 14, 2010.  Kent Conrad in an interview with Christiane Amanpour on “This Week” about the Deficit Commission

http://abcnews.go.com/ThisWeek…

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