Clever fraud that Obama and his "community organizers" are perpetrating upon the American public. Right out of Saul Alinsky's Rules for Radicals.
Blame the release of oil from our Strategic Petroleum Reserve on disruption from Libya, knowing that Libya oil imports last year were less than 8/10th of 1% of our foreign oil imports, the proverbial drop in the bucket.
"The oil price" drops immediately, fooling the public, even before any Strategic Petroleum Reserve oil flows down a pipeline. Apparently, this does not seem strange to our liberal media which eagerly reports the decrease in "the oil price."
But, Obama and his "community organizers" know that "the oil price," the ONLY oil price reported by the media, is the Wall Street gamblers' guess of the commodity oil price six (6) months in the future. They also know that the ACTUAL oil prices reported by the Department of Energy have been increasing for five (5) straight weeks and the ACTUAL OPEC oil price last week was $114.15 a barrel.
Our liberal media hides the ACTUAL oil prices. The media does not want anyone to know that US oil is always cheaper than OPEC foreign oil.
A very clever fraud. With the help of the media, it will probably work.
Seldon B. Graham, Jr.
Author of Why Your Gasoline Prices Are High
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4 comments:
Judge your president/admin by the current oil price. Real fucking smart bright spark. More boobs and guns.
I'd like to agree with this, but I can't. The prices at the DOE link do show quite a number of OPEC oils selling for less than US oil. And US oil is not specified as WTI, nor is it's API gravity given. While there are many different kinds of oil, generally crude with a specific gravity of about 37-40 is optimum for making gasoline, heating oil, and diesel. So with dozens of suppliers and kinds of oil, the "one" price MUST be a weighted average, based on the usability of each oil and the quantity of that put out on the market.
That being said, the DOE numbers at the link are a week behind, but they do show a slow but steady increase in almost all markets. US oil is essentially flat, going a little up, a little down, but still a buck under where it was 6 weeks ago.
I do agree that We The Consumers need a little bit better education about the industry before reacting to "the price of oil", whether that price is a futures average or an actual market average.
And yeah, Obama tapped the strategic reserve to up his poll numbers. We all knew that. When he really tanks he'll pretend to authorize some more drilling permits.
Oops. API 38-45 is best for making gas from. See http://www.gcmwenergy.com/crude-oil-basics/
I'm a newbie at this oil stuff, but I'm seeing news articles everywhere saying that the drawdown is to compensate for the loss of Libyan oil. Not so true unless we plan to export our strategic reserves?
When I looked into Libyan oil imports to the US some months back, my calculations were very close to Graham's. We use a little less than 60 million barrels of theirs per year, which is 30 VLCC ships full. Call it half a boatload per week. The US uses 10 ships full of crude per day (2 million barrels per ship). So Obama's 30mB drawdown is 6 months worth of Libyan oil for us. Not sure why he bothered. 15mB would have been plenty.
Obama is also protecting the big investors who purchased entire tankers full of both crude and refined fuels in one of the largest oil speculation schemes. If you or I go the wrong way on a commodity we take the hit but if the big boys guess wrong the taxpayer picks up the burden.
Dave
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