OPEC says it's lost control of oil prices

[True_Blue]

With world oil prices north of $50 a barrel and rising, OPEC ministers meeting in Iran Wednesday will be grappling with a problem they haven’t confronted in the cartel’s 45-year history. In the past, OPEC tried to cool overheated prices by pumping more when supplies got too tight. But most OPEC producers say they’re already pumping as fast as they can. And despite the high cost of a barrel of crude, world demand shows no signs of slowing.

As a result, some OPEC ministers say, they’ve run out of options in trying to rein in the price of crude. Global oil demand has taken up most of the slack in extra OPEC capacity. Consumption is now believed by many analysts to be pressing up against the limits of what the world can produce. Saudi Arabia is the only country believed to have any surplus production left, and even then the Saudis are pumping close to 90 percent of capacity, according to the U.S. Department of Energy.

"There is not much we can do,” Algerian Oil Minister Chakib Khelil told reporters Tuesday in Isfahan, Iran, the site of Wednesday’s meeting.

"OPEC has done all it can do.” Qatar Oil Minister Abdullah al-Attiyah said. “This is out of the control of OPEC."

more....
http://msnbc.msn.com/id/7190109/

[Bok_Tukalo]

1. Good thing we invaded and occupied Iraq, then.

<eom>

[saigon68]

31. The OPEC THUGS are still laughing all the way to the Bank

They won't catch any hell for the high prices anymore.

BUT

They sure as HELL like all the extra income to spend on Yachts Private 747s etc.

Another thing for sure none of this Largess will "TRICKLE DOWN" to the millions of impoverished masses living in their stinking slums in cardboard boxes.

[arcos]

2. PEAK OIL IS A HOAX, PEAK OIL IS A HOAX!!

;)

[Up2Late]

13. It's not a Hoax, but it is being Hyped all of a sudden

It is a looming problem, but it IS all of a sudden becoming the latest BOOGIEMAN!?! :scared:

It might just be here (at DU) too, because I noticed most of these recent articles are coming from Oil industry Rags.

I'm wondering if they are hyping it now, so they can discredit it and US in BlogWorld, later?:shrug:

Or maybe just to Drive up the price, and act like they are powerless to stop it.

[sandnsea]

19. ANWR ANWR ANWR

Once that falls, it'll be harder than hell to stop them from drilling any place they want to. And with oil prices so high, they will be making even more billions. Unadulterated greed is not a moral value.

[earth mom]

32. Ah, now there's the reason...

for reading PEAK OIL into the Congressional record. Greedy Bastards ALL! They would rather screw up the environment for their billions in profits rather than find alternative fuel sources and solve the f-in problem! :mad:

[Catt03]

58. Next is Yosemite,all the Sierras, Black Hills

Where else is there oil in the US?

[aneerkoinos]

26. Boogieman

It truly is a boogieman, very real boogieman, and I've been hyping about it for three years.

The truth is getting slowly out, but much too slowly, it should be leaders of nations talking about it openly and human society talking about what to do, because we should have started doing something decades ago.

[bemildred]

3. Oh, help me, I don't want all this money ... nt

[mermaid]

4. Yeah, And I'm SURE OPEC Is Just Crying In Thier Beer Over This...

I'm SURE that OPEC is real unhappy about the high oil prices, and their supposed lack of ability to control them...why wouldn't ANY cartel want to make less money for their product??

***sarcasm off***

[happyslug]

10. No, OPEC is upset, for Monopolies do NOT like to high a price

When Economists study Monopolies what they find is the Monopoly wants the price just a little more than what the market would be. If you push the price to far, people will stop buying. Maximum total profit is when you sell the MAXIMUM NUMBER OF UNITS AT THE MAXIMUM PRICE not just at the Maximum price.

Yes, these the OPEC Countries are profiting from the High Price of Oil, so are Americans who own the oil fields in the US, the problem is NOT these profits but that sooner or later people will STOP buying oil.

The big issue is at what point will people STOP buying? What is the tipping point (i.e. the point when a large group of people STOP buying oil). In 1997 during the Asian Monetary crisis, the price of oil dropped and dropped do to the fall in demand from Indonesia and the Rest of the Far East. As the Economies of the Far East fell, so did their demand for oil and with it total world wide demand. You ended up with the biggest glut of oil in the 1990s and prices went through the Floor (Remember 90 Cents a gallon Gasoline of the time period, no one complained then even through the oil owners were getting less than 20 cents a gallon, my home state was collecting 27 cents a gallon in taxes, the Feds were collecting 18.4 cents per gallon and the cost of refining and distributing was still around 24 cents per gallon, thus leaving just 20 cents for the oil producers).

OPEC for years through $30 a barrel was the "Ideal" Price, but started to raise it in early 2004 do to the fall of the Dollar compared to the Euro (The price increase in the first 1/2 of 2004 seems to be tied in with the drop in the Dollar, it is only with the Second half that it seems Peak oil came into play).

Given the raise of the Euro compared to the Dollar, most of the price increase we in the US have seem has NOT been seen in Europe. Gasoline Prices has risen in Europe (Almost all in the Second half of 2004) but no where near what it has in the US. Japan and China has kept their currencies tied closely to the US Dollar for trade purposes and apparently turned a lot of their Dollars into Oil (Both in a Strategic Reserve like the US has, but also in buying oil fields). Thus the price of oil for both Countries (and the rest of the Far East) has gone up in 2004, they have excess Dollars to deal with the increase (Through I see both countries dropping the Dollar is the Dollar takes a sudden dive OR the price of Oil goes through the roof i.e. Exceeds $100 to the Barrel). Remember there are 42 Gallons to a Barrel of Oil so the production costs of a gallon of gasoline at $100 a Barrel of oil is $2.38 a gallon plus State tax (27cents for Pa), the Federal Gasoline Tax (18.4) and the Cost of refining and distribution (24 cents a gallon, total non-barrel add on to a gallon of gasoline is $.694 per gallon. Thus the total price of Gasoline per barrel is $3.074 Dollars per Gallon at the pump).

My point here is if the Price of Gasoline goes up much higher people will stop buying it, bring about a situation like what happen in 1997 (i.e. a HUGE drop in demand which than lead to a huge glut of oil and a huge drop in price). OPEC fears such a situation for with the drop in price will come drop in profit and all of the Rulers of the major OPEC countries need almost all of their money from their oil to stay in power (Venezuela's Chavez is probably the only popular elected ruler' of any OPEC nation). OPEC can NOT afford such a drop and such a drop will occur if the price gets to high, thus OPEC's attempts to lower the price to something that will NOT encourage people NOT to buy oil.

A secondary reason is that most OPEC nations have extensive investment s in Europe and the United States and a to high a price of Oil, will force the US and Europe into a Recession and these investments may go bad, thus many of the leaders of OPEC would suffer if the price of oil gets to high and their investments in Europe and the US could go bad.

All told OPEC wants the price high but no so high to discourage real use and at $2-3 a gallon you are almost at such a point.

[cliss]

14. I've posted essentially the same thing.

If the price of gas goes up too much, people start looking for alternatives. This would be elasticity of demand. The higher the price, the more people will start riding their bicycles, cutting back on their driving, use public transportation (where it's available).

Also, some old decrepit oil wells will be dusted off and start pumping again.

So when the price goes up, all kinds of things happen to drive the price down again. = conservation, new sources will be found because they are now profitable.

:smoke: Nice to see you again! One of my favorite writers on the DU. I enjoyed reading what you wrote about the Saudi royal family a few months ago. I still think about that, and how true it is.

[happyslug]

18. As to the Saudis...

The Knives are coming out, if the Saudis suffer from a drop in Income (either a rapid drop in price or oil OR a drop in Production) you will see a revolution. Now you must understand that Revolution do not occur as the economy declines but after the decline had bottomed out and things start to improve (For example France suffered its worse years in 1786-1787 during its great famine, its revolution took place in 1789, the same with Russia, Russia worse year in WWI was 1916, its revolution occurred in 1917 after the situation had improved).

Historians have debated why this is so for decades, it appears that while people are trying to survive as the economy declines they have no time to think of changing the situation that caused the decline. On the other hand once things start to change they have the time now to think and do something to prevent the great disaster they had just suffered through.

Thus the issue is when will the decline start? How long will it last? It is only after the decline will you see a revolution. Given what is happening in Saudi Arabia decline may already be in place (the increase in Revenue has NOT increased at the same pace as the Growth in the Population of Arabia NOR the the spending the the Saudi Princes. Thus decline has set in even as oil goes through the roof.
When will the decline end? i.e. when will spending PER PERSON in Arabia go up? That is when you will see a Revolution.

[crispini]

43. WOW.

i didn't know that about Revolutions. thank you, I learned something today! :thumbsup: Very interesting.

[Eloriel]

48. Interesting and useful

No use anticipating anything of the sort in the U.S. just yet, eh?

[crispini]

50. Well, some do say the economy is getting a mite better...

still looking kinda waffly though IMO.

[happyslug]

51. That was Karl Marx's great find in History

Marx was the first that I know of that made the connection between the Revolutions and economics AND that revolutions occur only after the economy has bottomed out.

Now Marx as a economist has been attacked and many of his economic theories have NOT withstood the test of time, but his historical research including connection Revolution and the economy has been shown to be true over and over again.

[aneerkoinos]

27. Yes

Lot's of see-saw action to be seen, volatility will keep increasing.

Demand will go up and down with prices a bit, but one thing is sure: after the peak, the production will keep declining steadily along the gaussian curve, and there is no replacement, age of economic growth will be over.

No new significant sources to be found, however "profitable", because you can't find what does not exist no matter how much money you pour into it. Believing you could is called flat-Earth economics.

[phantom power]

45. the successful parasite never kills it's host

[Flammable Materials]

5. "Thank you for financing global terror."

http://www.subvert.us/thankyou

[Gabi Hayes]

8. is that picture real?

I tried going to your site,

http://www.flammablematerials.com/images

but it won't let me access the images part

got any more good ones like that?

fab u luss

just went to your regular site....cool!

don't be shy about this....I remember seeing it before...great!

[UpInArms]

6. thank the BFEE and their lousy

foreign policies.

We broke it, now we get to pay for it.

Spreading democracy is not like spreading butter and jelly - remember Rummy the Dummy saying - democracy is messy.

Well this mess is going to be very expensive and we, the people, are getting to pick up the tab.

I remember being so optimistic about the Gore presidency - he was going to get into office and really work out how to get new technologies into the picture - working on fuel efficiency and getting the environment involved in saving the planet.

but no - December 12, 2000 came and the felonious five stepped in front of the rights of democracy and the votes of the citizens of this country and appointed and annointed this jackass of all times to f*** up the world - not just our country.

end of rant - 'cause I just can't stand to think about it any more.

[glitch]

21. My heart breaks again every time I remember. We could've been great.

Now we're just a lesson: don't let this happen to you.

I haven't given up on humanity yet, but I've pretty much given up on Americans.

[Eloriel]

49. We were great, including a great monster.

I've pretty much come to the conclusion that the approaching demise of the U.S. as a great superpower is what's required for the benefit of the whole rest of the planet.

Think about it.

[glitch]

52. The only greatness of the USA was in it's potential. And it looks like

that has been squandered.

Even our atrocities aren't "great", they've been well-matched by other empires and totalitarian regimes throughout history. We're just another failed state among many, yet another tragic example for the aware.

But our country was based on spectacular ideals that have been improved upon over the past 200 years. I am talking about the Iroquois system of government, ideas which help form part of the basis for the U.S. Constitution.

Our demise is only good for the rest of the planet if they learn from our failure and another, even worse new world order doesn't fill the void in the meantime.

I don't believe we've ever been a perfect model, but a lot of people had high hopes for this experiment, and put a lot of effort into making it work.

Hopefully the progressive nations have taken what we did right, and we did do quite a bit right before it started being dismantled, (public education, environmental law, social security, welfare, medicare, equal opportunity, head start, fairness doctrine, public libraries, food programs) and improve upon the model. And discard the things we did wrong (genocide, slavery, IMF, WTO, FTAs, resource exploitation, reliance on cancerous economic growth, systemic racism, walmart).

I do believe that what comes after our failed attempt at democracy will be worse if we don't work very hard and remain very aware. The post-american model holds a lot of promise. Human rights, sustainable resource economies, environmental regulation. Freely available family planning. These are all STILL minority ideals. The post-american model might very well be full-bore fascism, extreme capitalism, desertification and, back by elite demand, nuclear annihilation.

[dweller]

7. aaaarrrgghhhhhhhhh....don't tell me

BFEE and the Greedy Oil Party are lying to me,

must be the librul media making this up...

dp

[agincourt]

9. Well whats the Bush administration got on the table this week?

More faith based initiatives? More tax cuts for executive pay? Will they bust Tommy Chong for something new? Oh, another RW marketing campaign! Telling us that a sinful life causes heart disease.

[lonestarnot]

11. Screw them! I'm buy'n a donkey

:dem:

[IndianaGreen]

12. I feel for all those SUV owners...

I lied!

:bounce:

[NickB79]

23. The SUV owners won't take a hit like the poor will

I know it's nice to think that those who have squandered limited resources will finally get what they deserve, but they won't feel it first. First all the working poor, who have to drive inefficient beater cars to work will really be hit hard. When you make $7/hr, $3/gal gas is insane.

Once again, the poor are hurt first.

[SKKY]

30. You know, I felt sorry for them for a minute or two...

...I was talking to this lady at the gas station a while ago in San Diego. She was saying how much she envied me for being able to fill up my take for $24.00 (I drive a Mazda Protege5). I told her, "You know, you don't really need a Ford Excursion do you? I mean, wouldn't a Volvo Station Wagon do just as well?" She replied, "No, I guess I don't, but it's just not cool to pick up the kids from the Mall in a station wagon, now is it," as the total on her pump ran past $50.00. I now have successfully squashed any potential sympathy I may have had for people who drive an SUV.

[w4rma]

15. Oil distributors are price gouging us. The prices should be lower.

Also, there is alot of oil speculation going on among the ultra-wealthy who play that market.

[aneerkoinos]

28. Speculators

Of cause it's their fault, wellcome to capitalism, that's how it works.

Speculators can speculate only when market is tight and getting tighter and OPEC can't controll prices because it's producing at full throttle.

But are you ready for the allternative, what it takes to end speculattion? Nationalizing oil companies, price controll and rationing. I am.

[Blue to the bone]

40. Actually, prices in the US are some of the lowest in the industrialized...

...world. Travel around in Europe and see what they're paying.

If lower gasoline prices are what you guys really want, why not all move to Venezuela. A gallon of 95 octane costs us $0.15 at the pump!!!!

[aneerkoinos]

46. True

Here in Europe those with cars pay double or triple for their gas compared to US. I don't, cause I don't have even driving license, I use the metro, trams, and trains.

It is very much because the fuel has been so heavily taxed here, that we have functioning public transport and are far less addictec to oil than US.

What you guys in USA should be paying is six bucks or more, if you really wan't to be on par with Europe and cut that demand...

[catzies]

16. Peak Oil acknowledged in Congress

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x1315202

[shraby]

17. What about that super huge pool under the Caspian

google Azerbaijan Chamber of Commerce and read up.

[loritooker]

20. Big disappointment. And what there is is high sulfur crap oil.

[nadinbrzezinski]

22. This may be an admision of peak oil folks

we are there....

Anyhow I feel so sorry for them SUV drivers, really... and as for me, I have already modified my driving habits

Hubby takes the Hybrid, I use the truck for near by trips, and drive as little as possible...

[cthrumatrix]

25. EXACTLY, when demand outstrips supply ....OPEC loses the price control

capability...they can only produce less...we'll have to see what Saudia Arabia can do

[Teaser]

59. Your gestures are good things..

but when we hit peak oil, I'm not sure they'll help. God help us if the worst about peak oil comes to pass. God help us.

[The_Casual_Observer]

24. Don't you just love the unintended consequences of globalization?

All those third world Walmart factories and factory towns that have sprung up in the last 10 years don't run on cow dung now, do they?

[radfringe]

29. according to a talking head on the radio

oil prices are not being controlled by availability (shortages/surpluses) - but rather by the stock-marketeers who have discovered that pumping up prices makes more money for them

ran a google search - but can't find any articles/links

[MadisonProgressive]

33. OPEC says it has lost control of oil prices

http://www.msnbc.msn.com/id/7190109/

[MadisonProgressive]

34. Peak Oil is here!!! The world is about to crash and burn.

[BlueEyedSon]

35. Yes, verrrrryyyy slowly. War in Iraq and a broken US economy are just

the beginning.

[clem_c_rock]

56. The PNAC forsaw ALL this - PERPETUAL WAR was their answer

So what did they do to gain public support to go after diminishing global resources?

1. Steal 2000 elections - PNAC "crazies" finally gain power.

2. Fly planes into buildings - blame folks who live in oil countries.
Now the public support, impossible by any other means, is achieved
to do whatever they deem necessary. Massive military buildup,
preemptive invasion for any country, take away citizen's rights,
programs for the weaponization of space-None of this would have
been possible w/out their Pearl Harbor.

3. Invade a oil country #1 where a failed pipeline deal to the
massive Caspian oil fields (one of the untapped frontiers).

4. Invade oil country #2 w/ massive oil potential and strategic
importance.

5. Steal election # 2. Political capital to install 4th Reich powers
indefinitely.

6. Plans to invade #3 coming up soon.

7. Stupid, psychotic plan (proved through history to ALWAYS fail)
fails leading to bankrupted rednecked superpower.

With all the money they have spent on these military adventures, we could be well on our way to a renewable resource driven economy but, these Oil/MIC/shape shifters chose perpetual, multi-front wars.

[whistle]

36. Oh, in that case prices should be falling since OPEC has since...

...1973 set world prices and supply of oil articially high. Yes?

[Mithras61]

37. Looks like the projected $2.50 is a wish for low prices...

Despite a pledge by OPEC ministers to increase oil production, don't expect much of a break on oil prices. With crude oil prices hitting a record $56 a barrel Wednesday, OPEC ministers meeting in Iran have been grappling with a problem they haven’t confronted in the cartel’s 45-year history. In the past, OPEC tried to cool overheated prices by pumping more when supplies got too tight. But most OPEC producers say they’re already pumping as fast as they can. And despite the high cost of a barrel of crude, world demand shows no signs of slowing.

Looks to me like we'll be going well above the $2.50 mark before summer's out...

[dubyaD40web]

38. I can't wait for alternative fuel

Let OPEC and all these f*ckers who are rich eat their oil.

[underthedome]

39. Finding Alternative Energy = National Security Issue

The amount of resources thrown at this problem should rival the military.

[cthrumatrix]

41. the military ...under commander bunnypants.... is "his" solution

[underthedome]

42. Such shortsightedness

Controlling oil fields does not stop China or India's demand for it. The research, development, and equipping the nation for alternative fuel source(s) should have started in the 70's and become more of a priority each year.
Too much money to be made I suppose to do that.

[Mithras61]

44. Check out BioWillie fuels...

You can run a standard diesel engine with them, and they are vegetable oil based (processed to remove the glycerin). They are pushing diesel stations to start carrying it as an alternative to petrochemicals, and diesels can run it with NO modifications!

[loudsue]

53. I also understand that Hemp is a good alternative sourse

In fact, Hemp is a great source for a whole host of things (paper, etc.) that otherwise use too many of our natural resources. And Hemp could be a cash crop for zillions of Americans, helping the economy in many ways.

:kick::kick::kick:

[NickB79]

61. Even with extensive biofuel production, we simply don't have enough land

At least, not to maintain our current car-dominated culture. To produce enough fuel for our current fleet of gas-guzzlers being driven 50 miles per day commuting to work, we would have to replace virtually ALL of our farmland with crops for biofuels. We need that cropland to grow our food.

Biofuels can help if we stop driving gas-guzzlers, live close to work so we don't have to commute, and in general live much, much more energy-efficient lives. However, it can't fully replace oil even with widespread adoption.

[mhr]

62. Apollo Alliance - Here Is The Initiative

www.apolloalliance.org

The Apollo Alliance is a broad coalition within the labor, environmental, business, urban, and faith communities in support of good jobs and energy independence. It has been endorsed by the AFL-CIO and 23 international labor unions as well as a majority of national environmental organizations. The Alliance is developing public education campaigns and communications strategies to link allies and build a new national constituency for a bold, broad based, and immediate program of public policy to achieve energy independence.

In 1961, President John F. Kennedy inspired Americans to pursue a goal that seemed beyond our reach: to land a man on the moon within the decade. Eight years later, Apollo 11 commander Neil Armstrong set foot on the lunar surface – proof we can succeed when we apply our expertise, innovation and can-do spirit to a single national endeavor.

Now America has an Apollo Project for the 21st century. Our challenge is to achieve energy independence in one generation. This new Apollo Project, a ten-point plan for energy independence, will bring our country together to rethink and reshape our energy future, to create a stronger economy, a safer world and cleaner environment. The plan calls for diversifying our energy sources, making America less dependent on imported oil and making energy less polluting. It will invest in new technology and expand markets for American durable goods. And, it will increase construction of high performance energy efficient buildings and drive new spending on transportation and public infrastructure.

The new Apollo Project will pay huge dividends: Millions of high value added jobs, lower utility bills, increased productivity and competitiveness, cleaner air and water, and improved public health. It will produce substantial energy cost savings across the economy, and dramatically reduce our oil imports.

Apollo will go beyond reducing our dependence on oil. It will also rejuvenate America's economy.

[Media_Lies_Daily]

47. It's called "stocking up for the next big war"....I know the US is....

...building up the National Reserve, how many other countries are doing the same thing? My guess would include China.

[robertpaulsen]

54. The last four paragraphs are scary.

Though data on OPEC’s oil production capacity have always been hard to come by, there’s little disagreement on the rapid growth of global consumption -- especially in China and India. With worldwide demand this year rising by roughly 2 million barrels per day, whatever excess capacity is out there will be gone soon, according to Marshal Adkins, an oil industry analyst at Raymond James

“Maybe this year, but certainly in ‘06 there won’t be any excess capacity,” he said. “We haven’t been in that kind of market in our lifetime. You’ve always have more capacity than demand.”

That’s little solace to energy consumers, who are watching rising crude oil prices push pump prices to record levels. Though U.S. economy has yet to show signs of slowing and inflation remains low, a continued rise in oil prices will eventually slow growth, analysts say.

“We will find the price level that will slow demand,” said Adkins. “It may be $60; it may be $100. I think it’s fair to say its going to be in that price band.”




Am I reading this right? $100 a barrel by 2006? Fasten your seatbelts!

[happyslug]

55. Price per gallon at $100 per barrel is a $3.17/gal in PA and $3.41 in CA.

Remember there are 42 gallons per barrel of oil. Thus the New York Harbor price PER GALLON at $100 per Barrel is $2.38 per gallon (100/42). If you add in your 18.4 cents per gallon Federal Tax the price per gallon is $2.66 per gallon. Add in your State Tax of 27 cents per gallon (Pa Rate) you are up to $2.93 per gallon. In my area the cost from port to my local gas station appears to be about 24 cents so your are looking at $3.17 per gallon.

Your state tax rate here: http://www.lmoga.com/taxrates.htm

Distribution costs reflect the cost to refine and Deliver the Gasoline to your door. A rough calculation can be done by first taking the barrel price for oil and divide it by 42 (The number of Gallons per Barrel). You than subtract that price per gallon from your local price for Gasoline. You than subtract from the local price both your local state rate per gallon and the Federal price per gallon. What is left is generally the cost to refine and distribute the gasoline to your local station. In my Home state of Pennsylvania that rate appears to be about 24 cents per gallon (local Gas price of $1.99 per gallon less the Cost of the Gasoline ($1.31) and Pa and Federal Taxes (45.7 Cents per gallon, 27.3 for the state 18.4 for the feds). Total non-distribution costs is thus 1.31 plus $.457 in taxes or $1.767 per gallon (Leaving 24 cents from the price of $1.99 per gallon for refining and distribution costs).

In California you start with the same number as in Pa (Todays price at $55 per barrel divided by 42 producing a $1.31 price per gallon delivered in New York harbor, New York Harbor is just the standard people use, most oil is shipped to Texas to be refined). Unlike Pennsylvania, California only charges 18 cents per gallon gasoline tax (Total of 36 cents per gallon if you include the Federal Gasoline Tax). Thus taxes and the oil itself costs $1.67 per gallon ($1.31 plus $.364 or a total of 1.674 per gallon). Given the price of a $2.39 that means refining and distribution costs in California appears to be about 65 cents per gallon (Thus over and above the price per barrel in New York Harbor, Californians will pay an additional 36.4 cents in Taxes and 65 cents in refining and distribution costs or a total of $1.04 per gallon).

Thus if gasoline does get to $80 a barrel this summer California will be paying $1.90 for the basic oil, plus $1.04 to refine it and delver it to their local Gasoline Station (Total Price $2.94 per gallon). If the price of Gasoline jumps to $100 a barrel (or $2.38 per gallon) the total price per gallon at your local gasoline station will be $3.42.

Now the above is not exact, the price of refining and distributing the gasoline will go up as the price of oil goes up (The gasoline must get to your local gas station by Diesel truck for example) but I will ignore that error for ease of calculation. Can California afford Gasoline at $3.42 cent per gallon? Only time will tell.

[hatrack]

57. OPEC admits: sun rises in east, sets in west

And the other shoe finally dropped.

[clem_c_rock]

60. The PNAC forsaw ALL this - PERPETUAL WAR was their answer

So what did they do to gain public support to go after diminishing global resources?

1. Steal 2000 elections - PNAC "crazies" finally gain power.

2. Fly planes into buildings - blame folks who live in oil countries.
Now the public support, impossible by any other means, is achieved
to do whatever they deem necessary. Massive military buildup,
preemptive invasion for any country, take away citizen's rights,
programs for the weaponization of space-None of this would have
been possible w/out their Pearl Harbor.

3. Invade a oil country #1 where a failed pipeline deal to the
massive Caspian oil fields (one of the untapped frontiers).

4. Invade oil country #2 w/ massive oil potential and strategic
importance.

5. Steal election # 2. Political capital to install 4th Reich powers
indefinitely.

6. Plans to invade #3 coming up soon.

7. Stupid, psychotic plan (proved through history to ALWAYS fail)
fails leading to bankrupted rednecked superpower.

With all the money they have spent on these military adventures, we could be well on our way to a renewable resource driven economy but, these Oil/MIC/shape shifters chose perpetual, multi-front wars.

[burrowowl]

63. Especially since

increase is very much due to the decrease in the value of the U$ dollar.