SwiftVets.com

[GenrXr]

During the dot com boom 90’s there was a great neighborhood bar in downtown Houston I frequently visited. It always had an eclectic crowd which during the weekdays from 6pm to 12pm often had captains of industry, politicians, professional athletes (sad that I would even mention these people, but they are held in high regard by many in our society), rice professors, as well as Joe blows such as me. With such a mix of people the topic of discussion and debates which followed was interesting. Of particular remembrance were the debates started between a Harvard educated Enron executive and a Rice economics professor. The topic of debate that night was geo-politics in regards to our energy policies. Oil was the heated debate trigger and the Rice professor argued the 91’ gulf war was all about American imperialistic greed and our insatiable appetite for cheap oil. The Enron exec argued if that were the case we would have invaded Iraq and opened the spigot. He elaborated that Iraqi oil is the cheapest in the world to bring to market at $1.50 per barrel cost. He said in comparison Saudi oil costs twice as much to bring to market. He further pointed out that there was corporate desire for access to the Kuwaiti fields, yet little interest in Iraq. He explained that our policy of no support for Saddam excludes American companies from doing business there and only if Iraq were to be democratized would we have access, yet if this were to occur the Iraqi people are unique in their education within the Middle East. He said given democracy the Iraqis would be less dependant on foreign exploratory and drilling expertise then any other country in that region of the world. I made the argument that possibly America depending upon its leadership does take a moral standing as defined by Judeo-Christian values and Conservative as defined by Burkes good men standing up to evil when its seen. I argued Clinton was evil for not stopping the Rwandan massacre and George Bush had taken a righteous and morally just position in the liberation of Kuwait. This of course caused the communist professor to spout a moral relevance screed. I remarked the effects of action historically speaking can be viewed as just or unjust. Good or evil.

This debate came to mind this morning upon looking at the Drudge Report and seeing oil at 56.10 a barrel. Oil Price Hits High reads the caption. The Enron exec mentioned during the debate Iraqi oil fields had 10 million per day oil capabilities. Currently Iraq is producing 2mill per day and with their low costs of production coupled with their new found democratization they have great incentive to get to that max production level as soon as possible. Once Iraq is able to ramp up production the oil price will definitely fall, but this price is in my opinion irrationally exuberant at current production. During the go-go 90’s we had an irrationally exuberant economy based on greed which stemmed from character is not an issue only performance. An administration which stood for evil policies such as the inaction in Rwanda and the accounting changes which led to Arthur Anderson and cooked books of many once strong companies. This economy burst as Bush was taking office and the current administration is a stark contrast to the prior one. Bush stands for moral clarity and action around the world guided by the principles of defeating evil where it lay. The stock market has adjusted and companies are trading at reasonable PE ratios, yet there is oil climbing skyward. Just like the stock market crash oil will soon meet its fate and drop drastically. That both the Clinton and Bush administrations had irrationally exuberant market sectors is interesting to note. The difference is Clinton’s market exuberance was based on corruption and a lack of character, whereas Bush administrations moral action throughout the world has caused an irrational reaction within the oil markets. Soon the policies of Bush will be seen as working and oil will fall and the stock market will bounce back. Bush’s policies will pan out as sound and just as opposed to Clinton’s failures and their effect.
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"An activist is the person who cleans up the water, not the one claiming its dirty."
"All that is necessary for evil to triumph is for good men to stand by and do nothing." Edmund Burke (1729-1797), Founder of Conservative Philosophy

[canman]

The current high oil prices have nothing to do with the availability of oil, as you just stated. There is no shortage of oil, yet the price seems to keep going up. Personally, it smells fishy to me. I would not put it past Soros to manipulate the oil futures market as he manipulated currencies to earn his Billionaire status.

Or perhaps, it is just irrational fear.

Either way I am impressed that the economy of the USA has fought through high oil prices to continue it's growth.

[GenrXr]

[Sailor in the Desert]

Greater domestic supply and some serious research into alternative energy sources would do a lot to bring down oil prices.
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People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

[GenrXr]

Posts at 666 eeep. So posting on nothing. 667 much better
_________________
"An activist is the person who cleans up the water, not the one claiming its dirty."
"All that is necessary for evil to triumph is for good men to stand by and do nothing." Edmund Burke (1729-1797), Founder of Conservative Philosophy

[PhantomSgt]

Of course OPEC will increase output to participate in this inflated oil market. Profits are up and they can make a killing until the price moves down. The Saudis are jumping on the bandwagon and the rest of Opec will soon follow their lead.

We had better watch our largest oil supplier from South America. Chavez is a real socialist nut case and a growing threat to regional stability. The recent movement of Chavez towards Cuba and China is an emerging threat in our hemisphere.




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Retired AF E-8

Independent that leans right of center.

[shawa]

Random thoughts.
Chavez in Venezuala is worrisome. He is a committed Communist and
definitely anti-American. Thank you Jimmy Carter!

I heard a report that Saudia Arabia is now pumping at max capacity but
the problem is not enough refineries.

Another report that developing nations are increasing the demand for oil,
especially China. A little anecdotal note: My sister travelled to China
seven years ago to adopt a baby. She spent two weeks there and came
back with stories of all she had observed. Most of the people rode bicycles
everywhere, not a lot of automobiles. Last summer, she returned to
adopt a second child, and said she was surprised at so many more
automobiles than last time she was there. Such a change in a relatively
short time.
It makes sense that as economic development grows there is more NEW
demands on the oil supplies of the world.
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“I love the man that can smile in trouble, that can gather strength from distress, and grow brave by reflection. ‘Tis the business of little minds to shrink; but he whose heart is firm, and whose conscience approves his conduct, will pursue his principles unto death.” (Thomas Paine, 1776)

[GenrXr]