Oil Slick Stuff

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Buster said:
You sound as if you would really like to see that Happen Jim...I don't get it:confused:

Gas up to $2.39
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No- not that I'd like to see it. Just that I know it's about to happen.

Take a look at what's going on- you won't hear a lot about this ... but.....
http://www.reuters.com/article/idUSN1413131520091214


The oil companies are now quietly buying up the ethanol production around the country, and shutting it down.

Looks like ethanol production scared them a little, so they purposefully ran the price up on oil, made sure the ethanol plants all entered into large contracts at unsustainable prices, then blew the bottom out of oil prices, and drove ethanol into bankruptcy.

It's an age old story- when competition starts sneaking up on you, blow it out of the water, then pick up the assets at pennies on the dollar.

This is what I see ahead:

1. BIG Oil buys up a vast majority of ethanol production.
2. They fiddle with the prices on both to make sure gasoline is the better deal.
3. Their political arm continues it's practices, pointing to the manipulated prices.
4. The idle the plants, then sell the land, one by one.

Eventually there aren't any plants left- except the ones THEY own, to fulfill their own needs to meet government mandates. And we are all back to burning gasoline. They control the energy. Period.

The little guy continues to take it in the shorts- as gasoline prices climb back up to $4 a gallon next year.

You'll see.
 
At the current price of oil, gasoline SHOULD be costing around $3.50 a gallon right now. Oil companies are manipulating the marketplace.
ch.gaschart

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It seems that the Oil companies are manipulating the market for all of their profitable reasons. If they keep gas prices down, they avoid strangling the consumer in a fragile economy. They also insure their own future, because they know that competition from alternative fuels is here to stay and to grow. During the oil crisis in 1073-74, OPEC became a threat, but thereafter we lost interest in developing alternative sources independent from the oil cartels. We were lazy, or perhaps they convinced us not to take action by playing with the price of oil and making it readily available at lower prices at their convenience.
 
There is NO SHORTGAGE of Oil, and nothing happens by accident!:notrust:
 
Oil extends gains above $78 in Asia

Oil extends gains above $78 a barrel in Asia, may end year on stronger note



By Eileen Ng, Associated Press Writer ,
Monday December 28, 2009, 12:26 am

KUALA LUMPUR, Malaysia (AP) -- Oil prices extended gains above $78 a barrel Monday in Asia ahead of inventory figures later in the week that could send it through the $80 mark.

Benchmark crude for February delivery rose 48 cents to $78.53 at midday Singapore time in electronic trading on the New York Mercantile Exchange. Trading was thin due to the holiday season.

The contract rose $1.38 to settle at $78.05 on Thursday, the first time in more than a month that it closed above $78. Oil markets were closed on Friday for Christmas.

(P.S.- Japan stock market now up +1.33% on the news.)
 
James48843 said:
No- not that I'd like to see it. Just that I know it's about to happen.

Take a look at what's going on- you won't hear a lot about this ... but.....
http://www.reuters.com/article/idUSN1413131520091214


The oil companies are now quietly buying up the ethanol production around the country, and shutting it down.

Looks like ethanol production scared them a little, so they purposefully ran the price up on oil, made sure the ethanol plants all entered into large contracts at unsustainable prices, then blew the bottom out of oil prices, and drove ethanol into bankruptcy.

It's an age old story- when competition starts sneaking up on you, blow it out of the water, then pick up the assets at pennies on the dollar.

This is what I see ahead:

1. BIG Oil buys up a vast majority of ethanol production.
2. They fiddle with the prices on both to make sure gasoline is the better deal.
3. Their political arm continues it's practices, pointing to the manipulated prices.
4. The idle the plants, then sell the land, one by one.

Eventually there aren't any plants left- except the ones THEY own, to fulfill their own needs to meet government mandates. And we are all back to burning gasoline. They control the energy. Period.

The little guy continues to take it in the shorts- as gasoline prices climb back up to $4 a gallon next year.

You'll see.
Click to expand...

James,

If this scenario develops as you surmise, is there any place for independent ethanol plants, or is the alternative energy and clean fuels out of the question as a small business alternative? Is the effort made by Federal and State Governments to gain independence and to develop clean sources of energy doomed for the small investor or in private hands? Tia
 
12/28/2009 - Updated 9:48 AM ET
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Oil rises for fourth day on economic optimism, higher stocks
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By Moming Zhou, MarketWatch

NEW YORK (MarketWatch) -- Crude-oil futures rose Monday for a fourth straight session, their winning streak now the longest since October, on expectations that economic reports this week will show an improvement in consumer confidence.
Also helping crude, the dollar stayed lower against most major currencies, boosting dollar-denominated commodities prices as the dollar index [DXY] fell 0.4% to 77.556, and U.S. stocks rose broadly.
http://markets.usatoday.com/custom/...S&guid={19BC1C2A-C24D-4311-89BD-74F5C3389372}
 
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airlift said:
James,

If this scenario develops as you surmise, is there any place for independent ethanol plants, or is the alternative energy and clean fuels out of the question as a small business alternative? Is the effort made by Federal and State Governments to gain independence and to develop clean sources of energy doomed for the small investor or in private hands? Tia
Click to expand...
No change to my previous statement- opportunity knocks just fine for those who will work to put a new distribution network in place.

The struggles will only be to ensure a sure supply into the future. that's why those relationships have to be built now. A year from now, gasoline will be higher. Two years from now, gasoline will be MUCH higher. Ten years from now, gasoline will be MUCH, MUCH higher. The one who is positioned for those times will thrive.
 
James48843 said:
No change to my previous statement- opportunity knocks just fine for those who will work to put a new distribution network in place.

The struggles will only be to ensure a sure supply into the future. that's why those relationships have to be built now. A year from now, gasoline will be higher. Two years from now, gasoline will be MUCH higher. Ten years from now, gasoline will be MUCH, MUCH higher. The one who is positioned for those times will thrive.
Click to expand...

Worse case scenario- the oil companies come in a bid to take YOU over. $ $ $ $ $ $ $
 
12/28/2009 - Updated 1:04 PM ET
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Oil rises near $79 mark on economic optimism, dollarNatural gas stands out as futures rally 5%
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By Moming Zhou, MarketWatch

NEW YORK (MarketWatch) -- Crude-oil futures rose Monday for a fourth straight session, their winning streak now the longest since October, as an upbeat report on U.S. holiday sales lifted views of the economy and energy demand.
Crude for February delivery rose 89 cents, or 1.1%, to $78.94 a barrel on the New York Mercantile Exchange. Futures ended last week's trading up nearly 5%.
http://markets.usatoday.com/custom/...S&guid={19BC1C2A-C24D-4311-89BD-74F5C3389372}
 
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Oil hits 5-week high, nears $80

By Hibah Yousuf, staff reporterDecember 28, 2009: 3:12 PM ET

NEW YORK (CNNMoney.com) -- Oil prices gained for a fourth straight session, climbing to their highest level in more than five weeks as cold weather swept across the country and the dollar weakened.
Crude oil for February delivery rose 72 cents, or nearly 1%, to settle at $78.77 a barrel -- the highest since Nov. 18, when prices settled at $79.58 a barrel.



http://money.cnn.com/2009/12/28/markets/oil/index.htm
 
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In part due to ethanol displacement of demand;

http://www.nytimes.com/2009/12/24/business/energy-environment/24refining.html?_r=1

This month, Valero Energy, the nation's largest refiner, shut down its plant in Delaware City, Del., which could process 210,000 barrels of oil a day.

Chilly Climate for Oil Refiners

By JAD MOUAWAD
Published: December 23, 2009

Only a few years ago, a cry went up that the United States needed more oil refineries. The perceived shortage was so acute that George W. Bush, president at the time, even offered disused military bases as sites for building them.

Not only did that never come to pass, but the reverse is now happening. The business of oil refining is mired in a deep crisis, with five refineries having shut down this year, including plants in Delaware, New Jersey, California and New Mexico.
 
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James,

Your take yesterday was on spot in regard to the trend of alternative fuels and the control of the energy markets by oil companies. The article you posted yesterday indicated that Valero had purchased 2 or 3 Ethanol plants, as part of an effort by the oil industry to control the ownership, construction, development, and the price of ethanol and oil.

In paraphrasing your post, I understood that oil companies would idle the plants, then sell the land, one by one; fiddle with the prices on both to make sure gasoline is the better deal; they would keep only the plants they own, to fulfill their own needs to meet government mandates; and bring the consumer back to burning gasoline. In any event this would assure their control of the energy market-- including alternative fuels.

This N.Y. Times article confirms your viewpoint. The one observation that I want to make is that in order to control the energy market, oil companies do not have to bring us back to burning gasoline. Yes, we will still be burning gasoline and using fossil fuels; but, in keeping with the government mandate for ethanol, they seem to be in the process of guaranteeing their profitable investments, while embarking on a definitive transition into the ethanol and other improved technologies. In doing so, they would attempt to do a seamless transition. IMO, they would avoid causing havoc, extreme hardship or displacements on the existing fuel delivery structure and/or the consumer outlets.

To be successful in preserving the ownership of the energy markets, the rest of the industrial components, including the automotive industry, and the consumer, must be on board by understanding the benefits of coordinated change. The Federal mandates seem to be the catalyst to keep the industry on the path of achieving national independence from oil, while maintaining a rational transition into cleaner fuels.

Will the small entrepeneur be obliterated in the process? Not necessarily. I hope that I am right in this. I believe, that the small investor might be allowed to survive, in the name of a free market society and a mixed economy; provided that big energy companies can make sure that they control most of the industry. I dare not define the meaning of the phrase "most of the industry". Perhaps leaving 10% of the energy market to the small investor...? We will see!
 
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Russia opens oil export terminal in Pacific Ocean

Russia has opened a new oil export terminal on the Pacific Ocean that will serve as a key gateway for Russian energy exports to Asian markets.
Kozmino is the destination point of a new pipeline that will eventually pump crude directly from oilfields in eastern Siberia.
VIDEO!!!
http://news.bbc.co.uk/2/hi/business/8432925.stm
 
12/29/2009 - Updated 9:25 AM ET
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Oil higher on expectation data will show drop in inventories
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By Moming Zhou, MarketWatch

NEW YORK (MarketWatch) -- Crude futures edged higher Tuesday on expectations that weekly petroleum data will show U.S. crude inventories fell last week, raising hopes that fuel demand is recovering.
Crude for February delivery was last up 0.7% at $79.31 a barrel. It ended Monday's trading at the highest level in more than five weeks.
Industry group American Petroleum Institute will report its weekly petroleum data later Tuesday, while the Energy Information Administration will release its data Wednesday.
http://markets.usatoday.com/custom/...S&guid={E6230B3B-8802-4CF9-95ED-8BE15493CC32}
 
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12/29/2009 - Updated 11:27 AM ET
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Oil turns lower on stronger dollar after upbeat data
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By Moming Zhou, MarketWatch

NEW YORK (MarketWatch) -- Crude futures erased earlier gains Tuesday, edging lower as mostly positive data on home prices and consumer confidence boosted the U.S. dollar, weighing on dollar-denominated commodities prices such as oil and gold.
Limiting oil's losses, analysts expect that weekly petroleum data will show U.S. crude inventories fell last week, raising hopes that fuel demand is recovering. [more]
http://markets.usatoday.com/custom/usatoday-com/html-story.asp?markets=COMMODITIES&guid=%7BE6230B3B%2D8802%2D4CF9%2D95ED%2D8BE15493CC32%7D
 
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