BEYOND ECONOMICS 101: High oil prices have nothing to do with supply and demand.‏‏‏

[riviera1992]

Lindsey Williams is a true patriot who speaks the truth about the evil International Banksters and how they've been manipulating global economies for years.

First documentary was done over a decade ago: 'Syndrome of Control' will blow your mind......
1/7 http://www.youtube.com/watch?v=A3loi...eature=related

2/7 http://www.youtube.com/watch?v=rrek7...eature=related

3/7 http://www.youtube.com/watch?v=Sveia...eature=related

4/7 http://www.youtube.com/watch?v=I5Ayn...eature=related

5/7 http://www.youtube.com/watch?v=mfTQw...eature=related

6/7 http://www.youtube.com/watch?v=mO43T...eature=related

7/7 http://www.youtube.com/watch?v=aEUuS...eature=related


One of the most enlightening documentary of all time:

THE ENERGY NON-CRISIS is still top 10 at Google videos and another must see.
http://video.google.com/videoplay?do...74697167011147

Read the E-book here: http://www.reformation.org/energy-non-crisis.html

[fatjohn]

Just wondering, if oil is the way they chosed to have a grip on the people. Then why are they stimulating nations to develop a low-oil consuming society? And if it's true that prudhoe bay has so much oil, should we assume that it's coincidence that only the US is flooded with oil? He's saying Iran is also threathening to flood the market with cheap oil. Why isn't russia doing that? If there's so much oil in the world, why isn't there in russia. Heck they could flooded the world with cheap oil in the cold war thus flatten the US economy. Because middle east would in that case have to lower the price and wouldn't be able to buy off US debt. It seems strange to me that only US and Iran has tremendous amounts of oil that could bring back the price to 1,50 while the rest of the world combined at full capacity can't hold it under 4.

[liberteebell]

...

[sratiug]

Thanks for posting these...

[riviera1992]

Heh! fatjohn, don't try to make sense of insanity. Dysfunctional people are hard to understand.

Now, check out this jerk. It'll make you very "proud to be an Americaaaannnnn"

http://www.youtube.com/watch?v=yTbdnNgqfs8
http://www.youtube.com/watch?v=29GhX...eature=related

Happy Independence day!

[shaunish]

if people will buy almost as much oil for $140 barrel as they would for $70 - then why not sell it for $140?... sounds like supply and demand to me (with the additional factor of a weak currency)

[Dr.3D]

An interesting article on reuters.

http://www.reuters.com/article/reute...080626?sp=true

Asked what the main factor behind the rise in prices had been, he replied: "I think it's the devaluation of the dollar."

[Deborah K]

I saw this about a year ago (Daneen Peterson sent it to me http://www.stopthenorthamericanunion.com/ ). After watching I told everyone I knew about him. I told them that gas was predicted to go up to $5.00 a gallon soon. They all laughed at my husband and me. A few months later I read Peter Schiff's book: Crash Proof. I told everyone that we were heading for an economic depression worse than the great depression. A lot of people began to avoid us. We became tin foil hat wearers to them.

Now they all think we're prophets!! LOL!

[Deborah K]

An interesting article on reuters.

http://www.reuters.com/article/reute...080626?sp=true

And to think, oil was around $30.00 a barrel when we invaded Iraq.

[Paulitician]

Lindsey Williams is just spreading hearsay. I can't say I'm very convinced at all. But I'll have to give it to him if prices do plummet after hitting 150 dollars and stay low for a long time. A short-term correction won't do it. Paul van Eeden has shown that the price of oil has gone up over the decades and especially now because of monetary inflation/devaluation of the dollar, but he has also shown that the real value of oil has doubled over the past few years because of increased demand and supply not keeping up. Now, is it because supply is being purposely suppressed? That has yet to be seen. Bill Moyers did a great piece at the end of his program about the Iraq war being for oil. He mentioned the no-bid contracts, and how Rupert Murdoch said that soon after we invaded Iraq we can expect 20 dollars a barrel for oil. Moyers brushed this off as being obviously wrong, but maybe Murdoch meant after the war was all said and done we can expect those prices. However, we have to remember that oil takes about a decade to produce. I just don't see Williams' scenario panning out, but if it does, goddamnit, that tin foil hat wearing nut was right.

[jon_perez]

On a related note from http://www.bloomberg.com/apps/news?p...7Co&refer=home

"In the Middle East you might have 300 barrels of oil per cubic acre, but in the Los Angeles Basin you might have 4,000 barrels per cubic acre,'' says Mike Edwards, vice president of Denver-based Venoco Inc., which has 24 active wells in the Beverly Hills area"

[rapidtrends]

Oil prices have everything to do with monetary inflation.

http://www.rapidtrends.com/blog/2008...s-devaluation/

[rockandrollsouls]

Lindsey Williams is a true patriot who speaks the truth about the evil International Banksters and how they've been manipulating global economies for years.

First documentary was done over a decade ago: 'Syndrome of Control' will blow your mind......
1/7 http://www.youtube.com/watch?v=A3loi...eature=related

2/7 http://www.youtube.com/watch?v=rrek7...eature=related

3/7 http://www.youtube.com/watch?v=Sveia...eature=related

4/7 http://www.youtube.com/watch?v=I5Ayn...eature=related

5/7 http://www.youtube.com/watch?v=mfTQw...eature=related

6/7 http://www.youtube.com/watch?v=mO43T...eature=related

7/7 http://www.youtube.com/watch?v=aEUuS...eature=related


One of the most enlightening documentary of all time:

THE ENERGY NON-CRISIS is still top 10 at Google videos and another must see.
http://video.google.com/videoplay?do...74697167011147

Read the E-book here: http://www.reformation.org/energy-non-crisis.html

It does have to do with supply and demand and the devaluation of our currency.

Maybe the host should consider economics 101...

[riviera1992]

I don't think Williams is spreading hearsay as someone said. He was there. Plus this Economic Hit man says something similar.

http://www.youtube.com/watch?v=yTbdnNgqfs8

Who knows what kind of backroom deals were made.

[Zippyjuan]

WIlliams says there is enough oil in Alaska to take care of our needs for 200 years. The US consumes 7 billion barrels a year so 200 years worth would be 1.4 trillion barrels. The current proven reserves of oil in the ENTIRE WORLD are 1.2 trillion. Just on that fact alone Williams is completely wrong. World production has gone down since 2006. World demand has gone up. Countries which used to be net exporters are becoming net importers- the UK joined that list in 2006 and in about six years Mexico and Venezuela are expected to join it. Iran and Russia may hit that in the next decade. That causes the price of oil to go up. The decline in the value of the dollar has also had an impact as has the greatly increased investment in commodities futures by investors. These are all economic reasons for increases in the price of oil.

[rockandrollsouls]

WIlliams says there is enough oil in Alaska to take care of our needs for 200 years. The US consumes 7 billion barrels a year so 200 years worth would be 1.4 trillion barrels. The current proven reserves of oil in the ENTIRE WORLD are 1.2 trillion. Just on that fact alone Williams is completely wrong. World production has gone down since 2006. World demand has gone up. Countries which used to be net exporters are becoming net importers- the UK joined that list in 2006 and in about six years Mexico and Venezuela are expected to join it. Iran and Russia may hit that in the next decade. That causes the price of oil to go up. The decline in the value of the dollar has also had an impact as has the greatly increased investment in commodities futures by investors. These are all economic reasons for increases in the price of oil.

The sad thing is rather than research or learn, people will believe whatever this quack or many others have to say. People, you gotta go and research for yourself! Zippyjuan is on it!

[riviera1992]

You can find any info you want on oil until you're blue in the face.
From the link that rapidtrends posted above you can read that OPEC doesn't really believe that the price of oil is up because of less oil. <"right now I put my oil on the market and I don’t find buyers,” Khelil, who is also Algeria’s energy minister said.">

I don't call that supply and demand, it's just plain old market manipulation and price fixings for the enrichement of the corporatocracy.
That's my story and I'm sticking with it!

Yes, I don't remember much from Economics 101 about 35 years ago not even the name of my teacher but one thing he said that stuck with me was: "kids, no matter what you learn here, the one thing you need to remember is OIL (since it's been discovered) has always rule the world and always will".

Thank you everyone for all your info.

[rockandrollsouls]

You can find any info you want on oil until you're blue in the face.
From the link that rapidtrends posted above you can read that OPEC doesn't really believe that the price of oil is up because of less oil. <"right now I put my oil on the market and I don’t find buyers,” Khelil, who is also Algeria’s energy minister said.">

I don't call that supply and demand, it's just plain old market manipulation and price fixings for the enrichement of the corporatocracy.
That's my story and I'm sticking with it!

Yes, I don't remember much from Economics 101 about 35 years ago not even the name of my teacher but one thing he said that stuck with me was: "kids, no matter what you learn here, the one thing you need to remember is OIL (since it's been discovered) has always rule the world and always will".

Thank you everyone for all your info.

Are you serious? With all due respect, Of course it's supply and demand in conjunction with a weak currency. I mean, I suppose the large increase in the use of oil has nothing to do, at all, with its rising price . More entities use it, and there's not exactly more of it, so it's going to go up and price. It's a small generalized example but supply and demand is definitely evident.

[foofighter20x]

if people will buy almost as much oil for $140 barrel as they would for $70 - then why not sell it for $140?... sounds like supply and demand to me (with the additional factor of a weak currency)

no, it's not supply and demand. it's called the price inelasticity of demand. take a econ 101 course.

[sidster]

Very interesting. All of it. Mr Williams is 100% correct when he said
invasion of Iraq had nothing to do with WMD, but everything to do with
Saddam accepting Euros for Iraqi oil.

And now you have the same situation with Iran and its Oil Bourse.
This piece explains thing a bit more if you are interested
in learning a bit more on why it is important for US to maintain
the Oil in US Dollars only policy. How the US dollar is used with
to tax the world, but only if it is the only currency accepted
to buy oil. Those countries that try to shift away from US dollar
in selling their oil are a direct thread to the US currency: The
Proposed Iranian Oil Bourse by Krassimir Petrov.

[riviera1992]

excerpt from article:

http://aljazeera.com/news/newsfull.php?newid=131649

<"As much as 60% of today’s crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. . . . Since the advent of oil futures trading and the two major London and New York oil futures contracts, control of oil prices has left OPEC and gone to Wall Street. It is a classic case of the ‘tail that wags the dog.’[8]

Wall Street financial giants that created the Third World debt crisis in the late 1970s and early 1980s, the tech bubble in the 1990s, and the housing bubble in the 2000s are now hard at work creating the oil bubble. By purchasing large numbers of futures contracts, and thereby pushing up futures prices to even higher levels than current prices, speculators have provided a financial incentive for oil companies to buy even more oil and place it in storage. A refiner will purchase extra oil today, even if it costs $115 per barrel, if the futures price is even higher.[9]

This has led to a steady rise in crude oil inventories over the last two years, “resulting in U.S. crude oil inventories that are now higher than at any time in the previous eight years. The large influx of speculative investment into oil futures has led to a situation where we have both high supplies of crude oil and high crude oil prices. . . . In fact, during this period global supplies have exceeded demand, according to the U.S. Department of Energy.”[10]

The fact that the skyrocketing oil prices of late have been accompanied by a surplus in global oil markets was also brought to the attention of President George W. Bush by Saudi officials when he asked them during a recent trip to the kingdom to increase production in order to stem the rising prices. Saudi officials reminded the President that “there is plenty of oil on the market. Iran has put some 30 million barrels of oil that it can't sell into floating storage. ‘If we produced more oil, it wouldn't find buyers,’ says the Saudi source. It wouldn't affect the price at all."[11]

And why producing more oil “wouldn’t affect the price at all”? Well, because what is driving the soaring oil prices is not shortage but speculation: “with so much investment money sloshing around in the commodities markets, the Saudis calculate they have no hope of controlling short-term price fluctuations. They blame the recent price run-ups on speculation and fear of shortages [not real shortages], factors they say are beyond their control.”[12]>

I rest my case. Moving on.

[driller80545]

Some people just can't get beyond supply-demand thinking. The speculation in oil futures is a hedge against dollar values and means that traders have no confidence that the value of the dollar is stable. Especially with the Iran oil borse creating alternatives for the world. It just means to me that the speculators are sure that it will take more of their dollars to buy the same amount of oil in the future and they are willing to bet on it. Could it be the world is beginning to not want dollars? No value.
I also want to say that all this talk of taking ten years to produce oil is nonsense. I have seen fields that were drilled, produced, and depleted in ten years. More propoganda, I don't know for what purpose, although I have some ideas and they all have to do with invading Iran. Regardless, to say it takes ten years to develop an oil field, no matter how remote, is a lie for people who have never been involved with the 24 hours a day hurry up we are losing money oil field.

[Mongoose470]

If one claims supply and demand has zero effect on prices, then you certainly cannot agree with any free market theories. I think it's a bit ignorant to say supply and demand has absolutely nothing to do with it. It most certainly HAS affected prices, especially the import markets when China declared its national production peak and that it would be entering the import market. Furthermore China and India's demand is increasing at alarming rates as they become more industrialized.

However there is also no denying the effects of speculation premiums (thanks in no small part to the instability our foreign policy creates) AND our floundering dollar, the latter of which hardly a soul will discuss. Our dollar has really jacked up oil prices. The cost of oil in gold has stayed flat! I can accept expanding our thinking beyond supply and demand as opposed to completely discounting fundamental principles of markets.

Our price per barrel should be near $65.00

[DriftWood]

excerpt from article:

http://aljazeera.com/news/newsfull.php?newid=131649

<"As much as 60% of today’s crude oil price is pure speculation driven by large trader banks and hedge funds. It has nothing to do with the convenient myths of Peak Oil. It has to do with control of oil and its price. . . . Since the advent of oil futures trading and the two major London and New York oil futures contracts, control of oil prices has left OPEC and gone to Wall Street. It is a classic case of the ‘tail that wags the dog.’[8]

Wall Street financial giants that created the Third World debt crisis in the late 1970s and early 1980s, the tech bubble in the 1990s, and the housing bubble in the 2000s are now hard at work creating the oil bubble. By purchasing large numbers of futures contracts, and thereby pushing up futures prices to even higher levels than current prices, speculators have provided a financial incentive for oil companies to buy even more oil and place it in storage. A refiner will purchase extra oil today, even if it costs $115 per barrel, if the futures price is even higher.[9]

This has led to a steady rise in crude oil inventories over the last two years, “resulting in U.S. crude oil inventories that are now higher than at any time in the previous eight years. The large influx of speculative investment into oil futures has led to a situation where we have both high supplies of crude oil and high crude oil prices. . . . In fact, during this period global supplies have exceeded demand, according to the U.S. Department of Energy.”[10]

The fact that the skyrocketing oil prices of late have been accompanied by a surplus in global oil markets was also brought to the attention of President George W. Bush by Saudi officials when he asked them during a recent trip to the kingdom to increase production in order to stem the rising prices. Saudi officials reminded the President that “there is plenty of oil on the market. Iran has put some 30 million barrels of oil that it can't sell into floating storage. ‘If we produced more oil, it wouldn't find buyers,’ says the Saudi source. It wouldn't affect the price at all."[11]

And why producing more oil “wouldn’t affect the price at all”? Well, because what is driving the soaring oil prices is not shortage but speculation: “with so much investment money sloshing around in the commodities markets, the Saudis calculate they have no hope of controlling short-term price fluctuations. They blame the recent price run-ups on speculation and fear of shortages [not real shortages], factors they say are beyond their control.”[12]>

I rest my case. Moving on.

Nope, all speculators can do is drive up the price of paper oil, not the real thing. All they can do is drive up the price of futures contracts. A speculator would "rather be dead" than to actually own any real barrels of oil. So they always sell the futures contract before the time comes when they would have to pick the barrel up at the specified location. Speculators dont have ware houses or own refineries.. so they will sell the barrel of oil at any price to people who do. Speculators dont keep any supply off the market and they dont have any demand for real barrels of oil. Therefore they do not affect the price of real barrels of oil. All they are doing is betting on future price of oil. If they are good at predicting supply and demand changes of real oil barrels in the future they will be able to sell the futures contract for more than they bought it, if they are bad and get it wrong thet will have to sell the futures contract at a loss.

Just like betting on a sports game does not change the outcome.. neither does speculation on futures contracts, or buying commodity index funds (because they are just a bunch of futures contracts)

(Also buying futures contracts to cover short lossses.. will only drive up the price of futures contracts temporarily, as it does not represent a growth in long term demand.)

Cheers

[Dr.3D]

Nope, all speculators can do is drive up the price of paper oil, not the real thing. All they can do is drive up the price of futures contracts. A speculator would "rather be dead" than to actually own any real barrels of oil. So they always sell the futures contract before the time comes when they would have to pick the barrel up at the specified location. Speculators dont have ware houses or own refineries.. so they will sell the barrel of oil at any price to people who do. Speculators dont keep any supply off the market and they dont have any demand for real barrels of oil. Therefore they do not affect the price of real barrels of oil. All they are doing is betting on future price of oil. If they are good at predicting supply and demand changes of real oil barrels in the future they will be able to sell the futures contract for more than they bought it, if they are bad and get it wrong thet will have to sell the futures contract at a loss.

Just like betting on a sports game does not change the outcome.. neither does speculation on futures contracts, or buying commodity index funds (because they are just a bunch of futures contracts)

(Also buying futures contracts to cover short lossses.. will only drive up the price of futures contracts temporarily, as it does not represent a growth in long term demand.)

Cheers

So essentially, what you are saying is those futures don't have any backing in real oil?

[acptulsa]

Just like betting on a sports game does not change the outcome.. neither does speculation on futures contracts

Depends on if you bribe the referee. Do you really doubt that they're bribing the so-called referees?

Sure supply and demand have most or all to do with it. Both can be manipulated, people. In direct terms, when was the last time you heard of a new refinery opening in this nation? Refining capacity is absolutely at its limit and no effort whatever is being made to increase it. Why? So the oil companies can ensure demand outstrips supply enough to raise prices without regard to whether or not we can pump more than enough crude to meet our needs.

As for futures, they are motivated by supply and demand as well. And it's silly to say that future prices don't affect the commodity price at all--and not just because of crooked referees, either. Fuel retailers sell gasoline and diesel at the replacement price, not the price they paid for it. And that major factor is just for starters.

Supply and demand still have quite a lot to do with it. Perceptions of future supply and demand do, too. And both supply and demand can be manipulated. Don't want to provide the wall of text that would chronicle all the ways...

[Matt Collins]

This book dispells Peak Oil Theory and is an EXCELLENT read!!!
I HIGHLY recommend it!




http://www.amazon.com/Black-Gold-Str...2527846&sr=8-2



Experts estimate that Americans consume more than 25 percent of the world's oil but have control over less than 3 percent of its proven oil supply. This unbalanced pattern of consumption makes it possible for foreign governments, corrupt political leaders, terrorist organizations, and oil conglomerates to hold the economy and the citizens of the United States in a virtual stranglehold. There is no greater proof of this than the direct relationship between skyrocketing gas prices and the explosion of wealth among those who control the world's supply of oil.

In Black Gold Stranglehold, Jerome Corsi and Craig Smith expose the fraudulent science that has made America so vulnerable: the belief that oil is a fossil fuel and that it is a finite resource. This book reveals the conclusions reached by Dr. Thomas Gold, a professor at Cornell University, in his seminal book The Deep Hot Biosphere: The Myth of Fossil Fuels (Copernicus Books, 1998) and accepted by many in the scientific community that oil is not a product of fossils and prehistoric forests but rather the bio-product of a continuing biochemical reaction below the earth's surface that is brought to attainable depths by the centrifugal forces of the earth's rotation.
Jerome Corsi explores the international and domestic politics of oil production and consumption, including the wealth and power of major oil conglomerates, the manipulation of world economies by oil-producing nations and rogue terrorist regimes, and the shortsightedness of those who endorse expensive conservation efforts while rejecting the use of the oil reserves currently controlled by the U.S. government.


As an expert in tangible assets, Craig Smith provides an understanding of the history of America's dangerous dissociation of the dollar with precious—and truly scarce—metals such as gold and the devastation that would be inflicted on the U.S. economy if Middle Eastern countries are able to follow through with current plans to make the euro the standard currency for oil instead of U.S. dollars.
Black Gold Stranglehold is a thoughtful work that is certain to dramatically change the debate on oil consumption, oil dependence, and oil availability.

[CUnknown]

It's silly to say that anything 'disproves' peak oil. Oil is a finite resource (well, okay, it's renewable on a geologic time scale, lol). We are consuming oil at an astounding pace, an ever-increasing pace. Finite resources, when continuously consumed, will eventually peak and then run out. It's just a matter of timing.

You can say, "I don't think oil production has peaked yet." but, you can't say "I don't think oil production will ever peak."

I agree that the current insane run-up in oil prices does not have anything to do with supply. There is plenty of supply. It does, however, have a lot to do with demand, in that, global oil demand is at or near an all-time high. If we were consuming oil at 1950s rates, the price of oil would clearly be much, much lower.

But, the major causes are a weak dollar and speculation, imo.

[driller80545]

The reason speculators are driving the price of oil up is because they believe that inflation will outgrow the increases they have created. In other words, by the time their purchase is delivered, the inflated price of the market will be higher than what they have paid. Not a good sign of things to come.
Also, refineries are not operating at full capacity. Last quarter they were operating at 89% capacity. I can tell you from experience, when there is a shortage of gasoline, it will be no secret. You will see it everyday as we did back in the late 70's on tv and at the stations. Everyday a mad scramble to get gas before the stations ran out. And rationing on top of that. Lines that were blocks long.

[Matt Collins]

(well, okay, it's renewable on a geologic time scale, lol).

Yes, but we don't know at what rate the Earth produces petroleum. Thus we don't know if we are consuming more than it generates. Plus if the Earth can do it then we can replicate it in a lab. In fact we already have!

See this:
http://discovermagazine.com/acl_user...l/article_view