Enabling denial
Last week, the idiocy surrounding the debate over offshore oil drilling convinced me that Matt Simmons's prediction about Peak Oil issues dominating the 2008 campaign had not yet come to pass. This week, the hype surrounding "speculators" convinces me that his prediction may not come to pass at all.
In "speculators," everyone from members of Congress to the king of Saudi Arabia has found an excuse to ignore the supply-demand imbalance that's at the heart of $138 oil. It enables denial.
We'll begin on Capitol Hill, where hedge fund honcho Michael Masters told Congresscritters of every stripe exactly what they want to hear: That if President Bush signs legislation curbing "speculation" in the oil markets, oil would fall to $70 a barrel, and gasoline to $2 a gallon — within 30 days.
Isn't that just great? Republicans can enjoy what they see as Americans' God-given right to cheap fuel, and Democrats can say they've put the big bad speculators in their place (never mind that lower prices trash their ideals of encouraging conservation and limiting greenhouse gases). And everyone can go on denying that world supply is about 85 million/bbl. a day, while demand is 87 million/bbl. a day, and that kind of situation can't be sustained indefinitely. (It's also a handy diversion from the fact these "speculators" are seeking refuge in oil from a falling dollar. Can't talk about the value of the dollar.)
Blaming the speculators also plays into the agenda of Saudi Arabia's King Abdullah. Recapping a summit he hosted last weekend, the New York Times reports, "The king spoke of the 'selfish interests' of speculators as a primary reason, and urged the gathered ministers to 'rule out biased rumors' and to 'reach the real causes for the increase in price.'" Rest assured that in King Abdullah's world, the declining output of his country's elephant fields — and the difficulties in bringing his newer fields online — has nothing, absolutely nothing, to do with the fact oil is $138 a barrel. Move along, nothing to see here.
Everyone with a stake in denying Peak Oil, or the fundamental supply-demand imbalance, or whatever you want to call it, gains by trashing "speculators."
And while you and I pay heed to the real issues, and people who watch establishment media are diverted by talk of "speculators," the American booboisie who watch Bill O'Reilly learn that the answer to our energy woes are 100-year oil leases for U.S. companies in Iraq and more investment in ethanol. We are so screwed.
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No matter who you vote for in November, you are going to be made a fool of.
Comment on June 25, 2008 @ 10:47 am
What this government is…..is a Kinder Gentler Robert Mugabe.
What the people are…….is more cheerful Zimbabweans.
But, fear not, there is progress, the increasing percentage of extra large lard-butts in the general population was causing difficulties for the “It’s a Small World” ride at Disneyland. They have shut it down temporarily and are renovating it for our more ample size.
Comment on June 25, 2008 @ 1:53 pm
“Seeking refuge from the falling dollar…”
Good. The sooner they scare these goobers into gold and silver where they belong, the better. Using oil as “money” is a bad idea & reeks of desperation, much like, baby’s skulls, uranium, coal, or toilet paper.
Comment on June 25, 2008 @ 3:25 pm
Republicans just want to trash the enviroment. OBama will take care of them. If Whitey steals the election from us this time there will be hell to pay. La riots will look like a tee party.
Comment on June 26, 2008 @ 9:57 pm
justabrother
It’s not going to be Hispanics with some Blacks rioting and looting like in Los Angeles, it’s going to be White people setting up local governments and putting establishment types on trial. LA wasn’t a teaparty, it wasn’t even a coffee break, for what would be coming if they steal the election again.
The difference is between some pachucos throwing stones through windows like Los Angeles on the one hand, and the cops refusing to join the coup and arresting bankers.
The last time that things got that bad was in the thirties, when the unions took over the factories (that what a sitdown strike is) and when the factory owners asked the governors to call out the National Guard, the governors said they could call them out, but they weren’t entirely certain they could call them back…
Comment on June 26, 2008 @ 11:31 pm
[...] Fingers of blame are pointing with more frequency and animation. And still, the game of denial goes [...]
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