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Jobless America Can't Survive $90 Oil

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Re: Jobless America Can't Survive $90 Oil

Unread postby Questionmark » Mon 06 Dec 2010, 23:34:28

$this->bbcode_second_pass_quote('Xenophobe', '')$this->bbcode_second_pass_quote('Questionmark', 'I') don't expect the U.S. to outright steal it, just to strong arm Iraq into giving it first dibs on it when it reaches it's maximum potential in a few years and we begin to see demand outstripping supply.


Oh. So even though we could easily have taken control over all the oil we'd ever need...on multiple occasions....the US decided to pick up its Army and leave...on multiple occasions...all because it could strong arm someone else, later, if it wanted to? Is there a favorite theory as to why we just didn't do it the easy way, on ANY of those OTHER times?


1. There's still plenty of U.S. forces left in Iraq.
2. The U.S. can still purchase all the oil it needs on the open market.

Why force them into being our supplier before we actually need it?
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Re: Jobless America Can't Survive $90 Oil

Unread postby Xenophobe » Mon 06 Dec 2010, 23:51:57

$this->bbcode_second_pass_quote('Questionmark', '
')1. There's still plenty of U.S. forces left in Iraq.
2. The U.S. can still purchase all the oil it needs on the open market.

Why force them into being our supplier before we actually need it?


Don't ask me, I don't know where these people dream this stuff up. Of course we'll purchase all we need, we didn't even invade back in the Jimmy days when we were really short of the stuff, we just paid more for it.

This entire "Invade the ME for the oil!" is just a farce. Just like the topic to this thread. Of course jobless America can afford $90, they are about doing it right NOW, and they still will have more unemployment benefits tomorrow because of the "lets keep spending more money!" game that our elected representatives just agreed to.
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Re: Jobless America Can't Survive $90 Oil

Unread postby Questionmark » Tue 07 Dec 2010, 00:01:54

$this->bbcode_second_pass_quote('Xenophobe', '')$this->bbcode_second_pass_quote('Questionmark', '
')1. There's still plenty of U.S. forces left in Iraq.
2. The U.S. can still purchase all the oil it needs on the open market.

Why force them into being our supplier before we actually need it?


Don't ask me, I don't know where these people dream this stuff up. Of course we'll purchase all we need, we didn't even invade back in the Jimmy days when we were really short of the stuff, we just paid more for it.

This entire "Invade the ME for the oil!" is just a farce. Just like the topic to this thread. Of course jobless America can afford $90, they are about doing it right NOW, and they still will have more unemployment benefits tomorrow because of the "lets keep spending more money!" game that our elected representatives just agreed to.


The fear is that oil exporting nations will begin hoarding what they have left as production declines. Meaning that they'll forgo selling to us at any price in order to maintain their own supplies. At that point the only thing that will ensure a steady supply of oil for any nation will be trade agreements and military force.
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Re: Jobless America Can't Survive $90 Oil

Unread postby Xenophobe » Tue 07 Dec 2010, 00:07:18

$this->bbcode_second_pass_quote('Questionmark', '
')The fear is that oil exporting nations will begin hoarding what they have left as production declines.


Maybe your fear. They stop selling, they stop collecting hard currency with which to buy neat stuff....like food. Real catch 20/20.

$this->bbcode_second_pass_quote('QuestionMark', '
')Meaning that they'll forgo selling to us at any price in order to maintain their own supplies.


And starve? Kind of hard to believe that one...wanna bet we can do without their oil longer than they can NOT feed their people...even if they have FREE gasoline to power their Suburbans with?

$this->bbcode_second_pass_quote('QuestionMark', '
') At that point the only thing that will ensure a steady supply of oil for any nation will be trade agreements and military force.


Sure...after the ME starves, we'll move in and own the joint. Certainly the SPR will have enough in it for that, it isn't like we haven't been rolling over Middle Eastern armies, repeatedly, more than a couple times now.
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Re: Jobless America Can't Survive $90 Oil

Unread postby Questionmark » Tue 07 Dec 2010, 00:45:17

Saudi Arabia and other ME nations have been buying up arable land in Africa and South America for years. We need their oil more than they need our corn.
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Re: Jobless America Can't Survive $90 Oil

Unread postby Blacksmith » Tue 07 Dec 2010, 02:49:51

I have been saying to all my friends that for the past few years oil has been really cheap, and even at $90 Oil is cheap. :twisted:
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Re: Jobless America Can't Survive $90 Oil

Unread postby mos6507 » Tue 07 Dec 2010, 10:15:03

$this->bbcode_second_pass_quote('Blacksmith', 'I') have been saying to all my friends that for the past few years oil has been really cheap, and even at $90 Oil is cheap. :twisted:


That was the one thing Matt Simmons got right, his "10c a cup" mantra. For what oil does (as an energy source, not the externalized cost of the pollution), it will be a bargain even at $300/bbl.
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Re: Jobless America Can't Survive $90 Oil

Unread postby dohboi » Tue 07 Dec 2010, 10:37:12

Well, it looks like the market is about to test the claim that is the title of this thread. Oil busted through $90 this morning, then zoomed through $90.50, before falling back a bit, but still above $90.

Is that ceiling about to become the new floor? Will this price rise trigger the next step down in the global recession? Or will this be the final scene?

At the rate the price has been rising, we could hit $100 in another week or so. With acceleration in the rate of increase maybe we could hit Simmons' $200 before the end of the year after all?
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Re: Jobless America Can't Survive $90 Oil

Unread postby Homesteader » Tue 07 Dec 2010, 10:37:52

I thinking the price is going significantly higher before it goes lower:

OPEC crude oil production drops 70,000 barrels per day

snip: According to the Platts’ survey, OPEC cut its output just as demand is showing significant signs of growth around the world, pumping out 29.1 million b/d in November, That’s down 70,000 b/d from a month earlier, during the quarter where demand is the heaviest and the inventory draw the most significant.

Link: http://www.platts.com/PressReleases/2010/120610
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Re: Jobless America Can't Survive $90 Oil

Unread postby dohboi » Tue 07 Dec 2010, 10:42:29

Can non-OPEC pick up the slack? Aren't they pretty much all in decline? Is this the cliff we've been waiting for?
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Re: Jobless America Can't Survive $90 Oil

Unread postby deMolay » Tue 07 Dec 2010, 11:40:47

Oil breaks $90/barrel, gold and silver break records. http://www.reuters.com/article/idUSN0732290620101207
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Re: Jobless America Can't Survive $90 Oil

Unread postby Xenophobe » Tue 07 Dec 2010, 19:36:12

$this->bbcode_second_pass_quote('dohboi', 'C')an non-OPEC pick up the slack? Aren't they pretty much all in decline? Is this the cliff we've been waiting for?


No. Peak oil happened 5 years ago now, these days its just a matter of whether or not we've used up the 5 million barrels of day of spare capacity that TOD says we're still carrying on the books.
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