Jul

10

Yes, we need to look to long term solution to reduce our dependency on oil and foreign oil. Duh! But today we can seriously and significantly minimize the problem today.

Go to Stop Oil Speculation website and fill out their form to email to your congressman. Url, http://capwiz.com/sosnow/issues/alert/?alertid=11571321 . Do not let them asking for your phone number deter you. I you don’t want to supply one just make one up. This is too important an issue to sit on the side lines for.

Also, please pass this information to others!

If you want more scoop airline customers received a letter with very solid information on the subject. I have excepted below…

“Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.”

Jun

30

In 2004 the Iraq was was costing us around $134.5 million a day according to many reliable new sources. Today that figure is $275 million. In the face of a slumping economy. In the face of all of the other problems we face have we lost our minds? Vote smart this November.

Jun

25

I am quite fed up with all the right and left wing spin demonizing each presidential candidate. The latest rift started by James Dobson (whom usually is sane) is just a load of crap.

If James pulls out his Bible he might note that the “religious right” of the day tried to trap Jesus into a similar church and state argument. Jesus response was to take a Roman coin and respond by saying “Render unto Ceasar the things which are Ceasar’s, and unto God the things that are God’s”. Jimbo, I suggest you do the same.

But this is not the point… To all you dillweeds out there…

Here is the point…

-The housing market is on the brink of collapse

-Our healthcare system is an out of control nightmare still unavailable to many

-Dependency on oil and current prices are going to put us over the edge and require both long and short term solutions

-Climate change is an issue we need to address NOW! The science exists, is valid, and conservative media Bozo’s need to pull their heads out of their ass and get enagaged in reporting how we solve this problem.

-Oh, and by the way, there are jihad zealots who are willing to sacrifice their lives to kill us and our way of living…

Given the above most of us could give a crap who Barack or John’s pasters are or who is or is not endorsing them this week. We could care less about most of the sniping that is going on between the left and the right and the polarization that occurs as a result. Maybe we all could pull our collective heads out of our rear ends and focus on what we are going to do short term and long term to solve these problems.

As someone that tends to be conservative in my political views I would suggest that the conservatives start listening to folks like Newt Gingrich. The Republican party and the right are so out of touch with reality these days it is hard to even listen to word most of you are saying. Y’all need a huge look in the mirror. You have become inflexible, intolerant and disconnected with reality. This November conservatives will be in for the political shock of your lives. And by the way, the church seats are well populated with Christians like myself that hold similar points of view.

As for you liberal weenies, to quote a Navy term, you will soon have the “Deck and the Con”. Make the most of it and start leading us in digging out of this mess we are in. Some words of wisdom. Listen to some of the ideas of the right and do not dismiss them because they come from the right.

It is time we start working together. I do realize for most of you this is too much to ask.

Jun

22

According to a story by the Washington Post in May (http://www.washingtonpost.com/wp-dyn/content/article/2008/05/01/AR2008050103773.html) GM truck and SUV sales have fallen 27% overall sales down 16%). Ford reported SUV sales down 36% for April (12% overall decline). These numbers are HUGE!!! What is just as significant to me is that it means in May 73% were still out buying gas guzzling Chevy trucks and SUV’s, and 64% were buying gas guzzling Ford SUV’s.

Granted some of these sales may have been for legitimate business reasons (like a landscaper needing a new truck for his business). But I am guessing that the vast majority were by people that have the income to afford gas at $4.00+ a gallon that have their head buried far in the sand.

I would tell these people to wake-up but think this would be a waste of breath. Fortunately the sharp decline in sales has caused the auto manufacturers to begin re-tooling and working on making more energy efficient vehicles. This of course will not happen overnight but will happen over the next 3-5 years. In the meantime if you need a car buy a Prius.

Jun

22

Accoring to the Natural Reources Defense Council (http://www.nrdc.org/air/transportation/aoilpolicy2.asp) America spends
$13 million per hour on foreign oil. This represents about 60% of the oli America uses.

“In Twilight in the Desert: The Coming Saudi Oil Shock and the World Economy” by Matt Simmons has created a compelling case that Saudi Arabia production will soon reach an apex, after which its production will decline and the world will be confronted with an immense and potentially catastrophic oil shortage. If this happens and the globe does not have an alternate plan we could face times that are unprecedented in the history of modern civilization.

It is time to start looking at alternate forms of energy. We NEED a national energy policy that outlines both a short term and long term strategy on solving this problem. We need to solve this problem in a sane and safe way looking for a solution that considers future generations!!!

But if you think this is solely the job of the government you need to rethink your position. With gas prices over $4.00 and even at $4.50 for regular this is also an economic issue. The days of $2.50 a gallon gas are gone, and left us so quickly my head is still spinning. This is a problem unprecendented in modern times, one that will require consumers, business, and government to solve.

It is also a problem whose solution is directly tied to our climate change problem.

Jun

7

Oil and energy prices skyrocketing. Food prices soaring. Home prices tanking. Jobs shrinking. Things are looking pretty bleak. Living through these times can be a real roller coaster ride.

For those of you not saddled with debt there are some potential long and short term opportunities out there.

Energy prices are heading upward. They will likely level out at some time in the future (who knows when), but it is highly unlikely that we will ever see gasoline under 3$, even 4$ again in the good ‘ol USA. It is already over 8$ in many parts of Europe. As I said in a previous post, the answer is to build cars that increase MPG. What is the most popular vehicle? The Prius. Gas hog vehicles sales are plummeting, fuel efficient vehicle sales are on the rise.

US auto dealers are being tight lipped. While their management can be a bit stodgy and slow to react they too can read the tea lives. In fact, it may very well be the energy crisis that cause both GM and Ford to get busy and to emerge again and compete with the likes of Honda and Toyota.

Rising gas prices are going to create a demand in the market (it already is) for fuel efficient cars. In two years time we have gone from an average price of $2.25 to $4.50 a gallon and still climbing. At $5.00 a gallon (not far away) it is going to cost you $3600 a year to drive your 20mpg car 12,000 miles. Compare this with $1350 just two years ago! At $8.00 a gallon the cost will be $4800.00 a year.

Ford is allegedly working on a technology called hydraulic hybrid which could lead the way. There are rumors of an F-150 that can get 60mpg. GM is working on hybrid technology as well. Both stocks are currently in the tank (Ford has been for years).

If you have some patience, and are willing to take some risk this might be a good time to start buying auto stocks. This is bit of a contrarian view. And, there is no guarantee that US Automakers will see the writing on the wall.

 

 

May

31

This ain’t the late seventies.

Remember the seventies? Gas prices hit .90 cents a gallon in 1979. How about the oil embargo in 1973? The average price of gas in 1973 was .65 cents, up from .52 cents in 1972. Of course this change was not a linear .13 cent increase across the board. Rather, it was a few months in the year where there were huge gas lines, stations ran out of gas, and prices approached nearly $1.00 a gallon which was a chunk of change back then (still less than we pay now if adjusted for current times!!!) Add to all of this a flood of cheap foreign imports and American auto manufacturers nearly went into the abyss.

Why?

Foreign imports were cheaper to buy. They got mpg 2 to 2.5 times that of American gas guzzlers.

Detroit started making subcompacts and fuel efficient (for the times) cars. Remember the Citation, Chevette, Monza, Omni, Fiesta? Chevy even made a pickup truck (LUV) that got close to 40mpg (unloaded) city and close to 50mpg on the highway. Oh…how we forget.

So What happened?

Oil prices came back down and Detroit again started making gas guzzlers. Actually Detroit caused the foreign auto manufacturers to make bigger less fuel efficient cars to keep up. Fact is business is driven by consumer demand. With lower gas prices Americans could afford to trade in their cracker jack size Yugo for a roomier ride.

So?

This ain’t the late seventies. No, it is much worse (though we are a pretty clueless people these days). Less than a month ago they were predicting $3.00 a gallon gas prices and we are now over $4.00 in most parts of the country for regular. It is so pathetic that when I was filling up yesterday I began longing for the days of $3.00 a gallon gas. We can probably forget about seeing $3.00 a gallon oil ever again. And that prices did not last for very long (months). To put this in perspective, gas prices for the entire decade of the eighties ranged from a high of $1.03 (1980) to a high of $1.27 (1984).

Why?

First, there is a greater demand oil in the world than their was in the seventies. Second, do you really believe oil companies are going to reduce their prices, especially in the face of this demand?

What now?

But to make these type of cars their has to be sufficient demand for them. Trust me if gas stays at $4.00 a gallon or higher long term there will be suffient demand. The only way to deal with this is to make cars that get double the mpg of current vehicles. This way everything is relative.

What else?

The Chrysler $2.99 a gallon price rebate for three years is a good short term strategy for selling their gas guzzlers and reducing inventory. Others should follow suit. But, buyers had better be sure that they can afford the price of fuel after the three years as they will be unlikely to unload their vehicle and who know what the price of gas will be in three years.

Parting gifts…

We can quit whining too much. Most of Europe is currently paying between $8.00 and $10.00 for a gallon of gas.

As a barrel of oil is now selling for over $125.00 you will be amused to know that in 1959 oil sold for .18 cents a barrel.

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