Drilling now will not give us more oil now but it will effect the speculators, that will lower prices.?

So why do so many people/politicians dont want to stop the speculators?Drilling now will not give us more oil now but it will effect the speculators, that will lower prices.?
';Those who do not know history are doomed to repeat it.';





In the 70's, oil prices went down very quickly after we decided to drill. It was not speculators, it was OPEC lowering prices in order not to lose their largest customer. The same would happen today.Drilling now will not give us more oil now but it will effect the speculators, that will lower prices.?
The problem isn't ';the speculators'; - it's the Fed.





Speculators perform a valuable function in the market. They enable producers and consumers to hedge their exposure to volatile prices. Commodity speculators look for arbitrage opportunties - a disconnect between their cost of funds and the future value of the commodity. When you cut the cost of funds, that opens up more such disconnects. Speculators take long positions. This bids the commodity price up. All of the trading is done on margin but the speculators' margined positions are long and the price keeps increasing so margin is never called. As the prices go up, and the Fed increases the supply of money and credit to meet the low target rate, the disconnect actually widens, which entices more long positions, which widens the gap as long as the Fed maintains the low rate, etc... - it builds on itself - call it a ';positive feedback'; if you must.





When the Fed finally raises rates, that pricks the bubble, and the prices start to tumble.





And there is no such thing as a soft landing. Fed Chairmen have tried to engineer them but it doesn't work - it's like filling a tire with a hole in it. At best traders just allocate the liquidity to another asset and you just create another bubble.





We saw this with technology, with housing....... now we're seeing it with oil.





Oh, the asset was originally undervalued, the supply and demand fundamentals did support a price increase, just like it's a fact that ';they aren't making any more land'; - the speculators aren't STUPID, they DO pick assets that initially are undervalued. That's their job - and that increase in the value of the asset in turn influences people to conserve more, which any good environmentalist should want.





But the Fed factor multiplies the supply-demand factor by up to several orders of magnitude. The ';noise is far louder than the signal,'; if you must.





Now, they had asset bubbles before the Fed - many of them. The tulip bulb craze was fed by trade credit. But the Fed concentrated and thus magnified the problem.
Drilling where the government says the oil companies can drill won't give us more oil now or in the future. Drilling in North America where there are large fields, will give us all we need in the very near future. T. Boone Pickens has it right, wind power, propane autos and keep drilling. He claims that combination will get us out of the Mid-East strangle hold by 2020. I think it would be sooner since we know OPEC isn't stupid, I would think they would start dumping oil on the world if they know there second largest buyer is going away. And, speculators are a part of the problem, just not the whole problem..... Remember; we buy the stuff even when the price is high. I'll be going on my regular vacation this year.
Yes, allowing oil companies to drill will lower the price of oil, even if it takes years for the oil to flow. It's the idiot Dimocrats who refuse to allow drilling in ANWR and off the US coasts. How insane is it not to allow drilling for oil when their is a global shortage of oil? Only a Dimocrat could support such an insane policy. They are owned by the econuts.





Drill Now or Die


Posted on July 17, 2008 at 20:00 EST by Benyamin B.


http://www.atcoalition.com/articles/10.p鈥?/a>





http://capwiz.com/gopusa/issues/alert/?a鈥?/a>
It's hard to trust the judgement of somebody who doesn't even know the difference between the words ';effect'; and ';affect'; and who doesn't even understand basic punctuation and sentence structure.





I would focus on grammar, vocabulary, and take some ';English as a second language'; type of courses if I were you.
Burning oil fields in Nigeria, the top exporter of oil in the world, tensions with Iran that controls the waterway, the falling dollar, oil speculators, and US oil companies refusing to drill on lands they already have leases to are only a few of the reasons that oil prices are so high.
You are right.. If we took a very aggressive approach to producing energy, the price would drop now.. You can't really call it speculating when they know as long as the libs are in control of our country, there will be no drilling. It's a ';sure thing'; that the price will go up.
Check this site. I think it might help a lot to know the truth:


http://globalresearch.ca/index.php?context=va%26amp;aid=8878
And just how will it effect the speculators?


And how long will it take to effect the speculators, it it does in fact effect them?
Oil and Gas at record prices (and profits) *and* they get to use it to talk the US populous into further environmental destruction. Wow, who benefits most from this scenario?