The standard excuses for rising oil prices are all lies. They have been institutionalized on an unaware U.S. public as fact for years. The real explanations are enuf to piss off motorists everywhere.
The world is being led to believe and by the nose, that the sole explanation for the rocketing oil prices are a rise in demand and a dearth of adequate black crude due to insufficient supplies that is feeding a supposed ghastly addiction for oil. However, according to Raymond Learsy a longtime commodities trader, regular writer on HuffingtonPost and author of the extremely illuminating, Over a Barrel-Breaking Oil's Grip on our Future, the answer is very simple:
The truth is much simpler. OPEC is manipulating the global oil supply just to keep prices high. It does it by taking oil off the market. What is known is that the cartel pulled back 1.7 million barrels a day of supply early last year after the Bush administration gave producers its implicit blessing to push prices up from their then languishing $49.90 a barrel.
http://www.huffingtonpost.com/...
The complications continue. Congress's attempt at dealing with the Saudi's new cojones,with Congress's NOPEC legislation recently, was not to be at all tolerated by the Commander and thief. Writes Learsy:
All was further exacerbated by President Bush's stated opposition to the NOPEC legislation, Congress' attempt to remove the sovereign immunity exemption which placed OPEC's collusionary tactics outside the reach of American law, the Justice Department and the Federal Trade Commision. He made it clear to one and all that he would veto such legislation
if it came to his desk. Reasons? You would probably have to go to a pretzel maker to untangle the twists and turns sorting out the reasons why. Perhaps it has much to do with a predilection to being helpful to his oil patch comrades in arms.
In continuation:
Furthermore based on updated information from those certainly in the know, namely senior Saudi Aramco officialdom, reserves may be as much as three to four times the generally recognized 260 billion barrels (please see "Oil Innovations Pump New Life Into Old Wells" NYTimes 03.05.07).
Current Saudi pumping capacity is understood to be at least 11 million barrels, perhaps a great deal more depending on whom you ask, or achievable in relatively short order were there a willingness to do so. Yet no help has been forthcoming from our dear old friends. Actually the market is being supplied with some 200,000 barrels less a day than was pumped and shipped in January.
http://www.huffingtonpost.com/...
The Arabs have associated the rise in prices to all manner of natural catastrophes, political upheavals and even a faulty valve switched off by some lackey at a Nigerian pipeline. Anything else but to question Arab
duplicity for the egregious spiking in prices.Indeed, the NYTimes buys this malarkey despite all the evidence to the contrary. In the Business section of the NYTIMES for 9/11 2006, this little ditty comes to light:
"Members of the Organization of Petroleum Exporting Countries account for 40 percent of the world's oil exports and they have been pumping at maximum capacity over the last year in an effort to drive down prices"
.
Oh, really? Because the sheiks have told you so? Again, by Learsy:
And this in the face of OPEC's actions these past years that have led to the incessant increase in crude oil prices by cutting production quotas again and again, punching up prices to over $70/a barrel just a few days ago.
Some major lying is going on here......
On May 12, 2008, Paul Krugman extolls the problem as a supply issue but never mentions the punch up in prices seemingly at will by the Arabs as well as the known bounty of oil reserves and supplies that can flow by the multi millions of barrels whenever the sheiks want them to. Again the NYTimes via Krugman gets it wrong. Dead wrong.
.........But it hasn’t happened this time: all through the period of the alleged bubble, inventories have remained at more or less normal levels. This tells us that the rise in oil prices isn’t the result of runaway speculation; it’s the result of fundamental factors, mainly the growing difficulty of finding oil and the rapid growth of emerging economies like China. The rise in oil prices these past few years had to happen to keep demand growth from exceeding supply growth.
Again, here is the repetition of the fiction of dwindling oil supplies and that demand is outstripping supply. Of course this is fantasy. The supply can easily be raised to whatever the market will bear but the Saudis will not raise oil pump output further. In Learsy's book, he mentions the unknown but enormous oil reserves deep within Iraqi territory that even international geologists can't put a number to. Most likely it is much greater than all of the Saudi output. In fact, these virgin territories don't even have a spigot in them. One can read Learsy's book and familiarize themselves with the machinations by even the Russians and their manipulations of crude around the globe. It is rather unusual that Krugman would anoint the standard excuses of dwindling supplies as legitimate explanations. For someone who has exposed the crimes of Bush Co., throughout the past 8 years while others played along, and who has illuminated the economic morass of the U.S. as only he can, and then to miss the central truths about Saudi duplicity is something of a peculiarity. One would certainly think otherwise with the available facts about Middle East realities regarding our Saudi friends. If the real truth is crystal clear why isn't it for the New York Times and Paul Krugman?
In another example of Saudi capability and culpability, in June 2004 with oil prices hovering at 35$ a barrel, Ali-Al-Naimi head of the Arab cartel, increased output another 500,000 barrels per day which unfortunately had little effect to stem rising prices. His response: "I believe the current prices are fair. There is no reason to take any measures to either increase or decrease production". So much for not being able to turn up the spigots while adding a little bit of, "I tried my best but it hasn't worked". Give the illusion you are doing your garsh darned best to facilitate adequate supplies but actually doing nothing. Increase production just enuf to claim your doing something but not enuf to lower your profit margin. Bush said and did nothing as prices ratcheted up to 40$ per barrel while EXXON made a 17.5 percent increase in profits over 2003 to a whopping $25.3 billion per year.
(see pg. 198, Over a Barrel)
A not so recent excuse is to blame the Chinese-for 50 dollar a barrel spiking in prices!! We can't all be dolts, can we? Even with Chinese demand, which has certainly added to oil demand, the Saudis could still fuel the whole world on black crude for 100 years. As for the price hikes,the sheiks can't raise it all the time. They have to have an adjusted truth conjured up thats somewhat believable as well as ample time in between to raise prices. You have to make it look good. It must appear justifiable. Quadrupling the price of crude takes a few years to impliment. Its a supply problem, its a demand problem, Laura Bush has turned lesbian, a wrong spigot was turned, an earthquake on Mars.....anything else but to point the finger at the turbans.
So , lets see what we have here. Unheard of oil in reserves ready to be tapped but not used. Skyrocketing oil prices due to the fiction of natural catastrophes and political events which have nothing to do with a quadrupling in oil prices. An intransigent WH that will do nothing about it. Thieving Saudis protected by the sovereign immunity of U.S. law. A media that filters and feeds the lies of the oil rich nations to a docile and believing public. A situation that abundantly subsidizes a terrorist state that creates terrorist cells and a new generation of Jihad haters of the U.S., not to mention the dominance and subjugation of their own Arab citizens-lower classes- who don't belong to their greedy sheik society. Add to all this the deliberate reduction in available world wide crude, even though you have millions of barrels in reserve that you could use to lower prices, and you have one helluva conflagration on your hands.
The spike in prices is a completely fabricated and artificial one. The Saudis are laughing their collective asses off. What a perfect scam. The international diversion of money to low life, 9/11 provacateurs and terrorists. Perhaps they know that electric hybrids, hydrogen propelled vehicles and greenification are on their way and they want to gorge themselves on our money as much and as quickly as possible especially with an oil man lackey in the White House who is more than willing do nothing about it that also helps line the pockets of his oil rich cronies down in Texas. The NYTimes has been a more than willing supplier of dis-information as well as able lackeys for the Arabs; public relations specialists the sheiks will always count on. And the Times has been doing this for years now.
To top things off, there are the protections afforded American oil companies that shield them from divulging exactly what their oil supplies amount to. They too are hoarding considerable crude as well. Even US oil companies have their own legal insurance against divulging their true oil reserves, written into law by the way. Learsy's book is an eye opening whopper and it is good to see that he is a regular on Huffington who is continuing to keep an eye open on the criminalities in the oil world.