Let's Jump In The Wayback Machine

Set the dials for May 22, 2008.

Is Arjun Murti The Oracle Of Oil?

An Oracle of Oil Predicts $200-a-Barrel Crude

Religion Can Give You Gas

From Bless you and here's some gas:

Carol Umsted got more than the word of God during services this summer at the Congregational United Church of Christ of Valley City.

She also got $50 worth of free gas, thanks to winning a raffle. For the local farmer, it was a nice side benefit, at a time when gas was more than $4 a gallon.

Churches nationwide are making similar offers, ranging from gas card raffles to 99-cent gas sales at local stations, to boost attendance during the vacation season and attract new members.

But some Christians question whether a financial incentive should be used to draw people into church.

Robert Kruschwitz, director of The Center for Christian Ethics at Baylor University, called the promotions "unseemly" and "misguided."

Read the rest here.

Oil Money Flows

From The Corrupting Influence Of Oil Money:

Since 2001, gasoline prices have more than doubled, and oil companies have made more than half a trillion dollars in profits. The price of oil has surged from below $30 a barrel to over $125, a fourfold increase. The Big Five oil companies could make a "projected $168 billion in profits" this year alone. The United States has only two percent of the world's oil reserves but consumes 25 percent of the world's oil. "At current oil prices," conservative oil man T. Boone Pickens argued, "we will send $700 billion dollars out of the country this year alone." If we continue on the same path for the next ten years, "the cost will be $10 trillion -- it will be the greatest transfer of wealth in the history of mankind," he added.

Hemp Madness

From See No Hemp, Hear No Hemp, Speak No Hemp, Part I by Rand Clifford:

Molders of public opinion work in such insidious ways that their actual methods and means usually go unnoticed. While inculcation of propaganda, lies, and disinformation do much of the shaping, simple omission has profound effect—might even be the favorite because it is, after all, nothing. It’s hard to imagine nothing ever accomplishing so much, but consider that for most people under common awareness manipulation, whatever corporate media (CorpoMedia) omits, to a large extent doesn’t exist.

Flag-draped coffins streaming home in the dead of night from our war crimes in Iraq and Afghanistan are under media blackout, and so mean as little to most Americans as the actual reasons for the invasions, or even the hideous war crimes themselves. By its nature, omission is all but limitless; its application by CorpoMedia has grown to enormous proportions as celebrities and sports overpower hard news. So this article focuses on omission of—the calculated disappearing of a single thing that for thousands of years has profoundly benefitted the health and well-being of people all over the world, and today offers so much more: Cannabis hemp.

To the stupendous misfortune of virtually everything but Big Oil, the chemurgy movement was stifled by Big Oil. A new National Energy Program was the subject of many bills in Congress, focused on utilizing part of Americas vast agricultural capacity for production of alcohol fuels. Big Oil responded with withering lobby power, including slogans such as the government’s proposed energy program "robbing taxpayers to make farmers rich". Then, as now, whatever Big Oil wants, Big Oil gets. Ford’s vision of cheap, clean and renewable biofuels spooked early oil barons into keeping oil prices in the range between $1 and $4 per barrel—prices so low that no other energy sources could compete. But once they were sure the competition had been killed off, the price of oil began to soar. They were not only able to eliminate competition from alcohol fuels...but were instrumental in diddling government into effectively banning hemp cultivation—an incredible robbing of the people to protect entrenched corporate profits that still endures.

Read more here.

The Robber Barrons Are Back

Let’s put two oil men in the White House for eight years and see what happens.

From Exxon posts new profit record by Steve Hargreaves:

Exxon Mobil once again reported the largest quarterly profit in U.S. history Thursday, posting net income of $11.68 billion on revenue of $138 billion in the second quarter.

That profit works out to $1,485.55 a second.

The company returned $10.1 billion to shareholders in the form of dividends and stock buybacks, 12% more than last year.

The big international oil companies have been criticized for plowing much of their profits back into stock buybacks and other programs to benefit shareholders, as opposed to exploring for more oil which could bring down the price of crude for everyone.

Critics charge the oil companies with deliberately restricting production in an attempt to keep prices high.

We Have All Been Here Before

It’s deja vu all over again with The Kinks (From the 1979 album Low Budget):


Read more about the Kinks and Low Budget here.

The Oracle Of Oil

For years Warren Buffett has been referred to as the Oracle of Omaha. Now it appears that many would like to crown Arjun Murti as the Oracle of Oil.

From What Mr. Crude Oil Sees Ahead by Lawrence C. Strauss:

In 2004, Arjun N. Murti, a Top Energy Analyst At Goldman Sachs, published a report predicting "a potentially large upward spike in crude oil, natural gas and refining margins at some point this decade." It was a controversial call, with crude around $40 a barrel at the time. But it was right on the money.

Four years later, crude is trading around 139.

Murti sees energy in the later stages of a "super spike," in which prices rise to a point where demand drops off. In a note last month, he wrote that "the possibility of $150-to-$200-per-barrel oil seems increasingly likely over the next six to 24 months."

With supply growth constrained and global demand staying strong, prices must rise further, in Murti's view. Barron's caught up with him last week in his New York office.

The 39-year-old analyst doesn't give many interviews and keeps a low profile, preferring not to be photographed. But his strong views on energy have resonated across the financial markets.

Read the Barron’s interview here.

Dave Manuel wonders if what Mr. Murti says becomes a self-fulfilling prophecy.

From Arjun Murti - The Man Behind the "Super Spike" by Dave Manuel:

Are his predictions a self-fulfilling prophecy? If oil spikes and hits $200 per barrel, then surely his own words would have had a major impact on oil hitting this lofty level.

Unlike other analysts who seem to crave the spotlight, Murti prefers to remain in the shadows, out of view. According to a recent WSJ article, Murti is actually decidedly anti-oil, and believes that the "super spike" in prices will eventually lead to a significant decline in demand for oil.

Where will Murti's "Super Spike" call rank amongst the all-time greatest analyst calls ever? Time will tell. One thing is for sure though - when Murti speaks now, people will listen.

Let's Privatize Bush

Why do we have a president that hates the government? One who vetoes everything that could possibly do us some good. One who only supports things like war and destruction?

At what point do the Libertarians and Bushite/Reaganites want to stop dismantling the government? When there is absolutely nothing left?

Whatever happened to the concept of government for the common good?

From Travelers Shift to Rail as Cost of Fuel Rises by Matthew L. Wald:

Despite its popularity with passengers, the biggest determinant of the railroad’s health is still the federal government, and in Washington, views diverge sharply.

Last year Senator Frank Lautenberg, Democrat of New Jersey, and others won overwhelming Senate approval for a bill that would offer the states 80 cents for every 20 cents they spend on new intercity passenger rail service, the same as the match offered for highway projects.

The House passed a bill with the same provision by a veto-proof margin earlier this month. The bill will soon go to a conference committee, but the White House is threatening to veto it because it wants the passenger rail system to be turned over to private operators.

Why Does It Take High Gas Prices?

When we get in our cars to drive somewhere do we think of our children and grandchildren, or do we only think about how much that tank of gas is costing us?

Since oil is a finite resource you would think we would be more careful about how much of it we use. You would think that we would want to save some of it for future generations. You would think that we wouldn’t want to be so selfish. It seems that the only way for us to drive less and get rid of our SUVs is for the cost to go up high enough. Why is that?

From Americans drive 1.4 billion fewer highway miles:

Americans drove 1.4 billion fewer highway miles in April than they did in April 2007, the Department of Transportation said Wednesday.

That marks the sixth consecutive monthly drop and coincides with record gas prices and an increase in transit ridership, Transportation Secretary Mary Peters said.

Read the rest here.

Is This The Reason We Went To War?

Is this the reason why Bush was so determined to get rid of Saddam Hussein?

From Deals With Iraq Are Set to Bring Oil Giants Back by Andrew E. Kramer:

Four Western oil companies are in the final stages of negotiations this month on contracts that will return them to Iraq, 36 years after losing their oil concession to nationalization as Saddam Hussein rose to power.

Exxon Mobil, Shell, Total and BP — the original partners in the Iraq Petroleum Company — along with Chevron and a number of smaller oil companies, are in talks with Iraq’s Oil Ministry for no-bid contracts to service Iraq’s largest fields, according to ministry officials, oil company officials and an American diplomat.

The deals, expected to be announced on June 30, will lay the foundation for the first commercial work for the major companies in Iraq since the American invasion, and open a new and potentially lucrative country for their operations.

The no-bid contracts are unusual for the industry, and the offers prevailed over others by more than 40 companies, including companies in Russia, China and India.

Read the rest here.

Memo To All The Flag Pin Bozos

Action that improves the quality of life for all is more important than whether someone is wearing a flag pin or not.

Instead of invading Iraq we could be using the money wasted there to build hydrogen fuel stations all over the United States. This would lessen the impact of many of the problems that we face: global warming, dependence on Middle East oil, the question of whether we should drill in Alaska, high gasoline costs, high food costs, and basically any problem we have where oil is the root cause. Are any of the presidential candidates doing anything about this? After all, they are United States Senators, they do have considerable power. Are any of the presidential candidates talking about this? Where are the proposals?

We could have invested in hydrogen fuel stations years ago. Why didn’t we? Could the fact that the Bush administration is filled with oil men and women have anything to do with it?

Hey Washington! Stop throwing away our tax dollars in Iraq and start funding hydrogen fuel stations all across the United States of America. Let’s see less empty rhetoric and more tangible solutions for a change. That’s a change I can believe in.

The cars are here NOW, we just need the stations. NOW!

From Honda rolls out fuel cell car:

Honda's new zero-emission, hydrogen fuel cell car rolled off a Japanese production line Monday and is headed to southern California, where Hollywood is already abuzz over the latest splash in green motoring.

The FCX Clarity, which runs on hydrogen and electricity, emits only water and none of the gases believed to induce global warming. It is also two times more energy efficient than a gas-electric hybrid and three times that of a standard gasoline-powered car, the company says.

The biggest obstacles standing in the way of wider adoption of fuel cell vehicles are cost and the dearth of hydrogen fuel stations.

We need action, and we need it now.

One last thing. If Washington does get off of its huge collective ass and does what I suggest, I leave it with a suggestion. Don’t give any money to the big oil companies to do this. They don’t need or deserve any of it. Find the entrepreneurs who have been developing alternatives to oil for years and reward them.

All Of The Politicians Don't Know Squat

Tired of high oil and gasoline prices? Me too. Think the politicians don’t know what the hell to do about it? Me too.

Read this.

Will The United States Be Next?

There are protests in Europe concerning high oil prices. Will the protests spread to the United States? My guess is no. We are too lazy and apathetic.

From Europe fuel protests spread wider:

Fuel protests triggered by rising oil prices have spread to more countries across Europe, with thousands of fishermen on strike.

Union leaders said Portugal's entire coastal fleet stayed in port on Friday, while in Spain, 7,000 fishermen held protests at the agriculture ministry.

French fishermen have been protesting for weeks, with Belgian and Italian colleagues also involved.

UK and Dutch lorry drivers held similar protests earlier this week.

The strike reflects anger at the rising cost of fuel, with oil prices above $130 (83.40 euros; £65.80) a barrel.

Trade unions say the cost of diesel has become prohibitively high, after rising 300% over the past five years.

Read the rest here.

Unbelievably High Gas Prices

Whenever I think about high gas prices I think of how much lower the price of oil was before George W. Bush decided to invade Iraq. I don’t think the rise in the cost of oil since then is a coincidence, but I’m no expert.

From I'm no expert, but ... by Don Kuehn:

The media and the public appear to be slow in grasping the reason behind today's unbelievably high gas prices. Now, I'm no expert but, it seems fairly simple: Oil is priced on world markets in U.S. dollars, and there hasn't been a weaker dollar in recent history.

The Bush administration's monetary policies, the seeming incompetence of Secretary Henry Paulson at the Treasury Department and the tinkering of the Federal Reserve have combined to wrench most of the buying power out of the greenback. There has even been speculation that commodity traders could consider dumping the dollar and switching to the euro as the basis for pricing crude oil. What a blow that would be to American economic supremacy and prestige around the world.

Oil cost around $3 a barrel in 1970, and the dollar was strong. Then OPEC began manipulating oil prices by controlling supply. Sure, there were spikes in prices—a peak at about $38 in the early 1980s dropped to under $10 in 1997. Oil "soared" to $30 before dropping sharply after the Sept. 11, 2001, attacks ($18 a barrel), according to the Energy Information Administration.

But since then, throughout the Bush administration, oil has climbed steadily until recently going through the roof, surpassing $113 a barrel. And the dollar has slumped.

Read the rest here.

Is Arjun Murti The Oracle Of Oil?

From An Oracle of Oil Predicts $200-a-Barrel Crude by Louise Story:

“The fact that the U.S. gasoline demand can be down and that the U.S. gasoline consumer is no longer driving world oil prices is a monumental event,” Mr. Murti says. He spends most of his time talking to money managers and analysts, many of whom keep asking him if oil prices will stay high if speculators abandon the market, and says he applauds investors for driving up oil prices, since that will spur investment in alternative sources of energy.

High prices, he says, “send a message to consumers that you should try your best to buy fuel-efficient cars or otherwise conserve on energy.” Washington should create tax incentives to encourage people to buy hybrid cars and develop more nuclear energy, he said.

Of course, if lawmakers heed his advice, oil analysts like him might one day be a thing of the past. That’s fine with Mr. Murti.

“The greatest thing in the world would be if in 15 years we no longer needed oil analysts,” he says.

Yet Another Bush Failure

From Bush ends 5-day Middle East trip with little progress by Hannah Allam:

Bush, however, heads home to Washington with few, if any, concrete gains on his largely ceremonial tour, his second trip to the Middle East in four months. He failed to win Saudi help with rising oil prices and didn't make any breakthroughs on groundwork for a Palestinian state.

I wonder how many taxpayers dollars were used to pay for this trip? It probably would have been better if Bush had just stayed in Crawford and done nothing.

Matt Lauer Is No Mike Wallace

What we have here is one rich guy asking another rich guy questions about the high price of gasoline. Both of these rich guys can afford to fill their gas tanks and then some. Notice how nice Matt Lauer is to one of the guys that is robbing Americans blind. Notice how every answer is a non-answer. Actually Mr. Lauer asks some pretty good questions. However there is no followup to all the non-answers. Pretty wimpy stuff Mr. Lauer.

We desperately need reporters and interviewers who aren’t making millions of dollars a year. Someone who is lean and hungry for a story. Not fat cats like Matt Lauer who are part of the club of the rich elite. We need someone who is mad as hell asking these questions. We need a pit bull, not a lapdog.


If you don't see the video try this: Exxon chief discusses gas prices.

Arjun Murti

From Wall Street's crude ways by David Weidner:

The hubris and insensitivity of energy trading is best personified by Goldman Sachs. A Goldman commodities analyst famously predicted in March 2005 that oil would reach $100 a barrel. At the time, a barrel was trading about $55. The prediction led to a lot of ridicule, but it also drove up prices in the short term, and ultimately came true.

It also led to speculation that Goldman was trying to goose the market because it had a huge position in oil derivatives.

Now, Arjun Murti, the same analyst who made the earlier prediction, is back, promising $200 oil this year. Murti is again talking about demand, but again, world consumption doesn't suggest the price should double.

Bush And Oil Prices

From Skyrocketing Energy Prices by Carl Levin:

This afternoon, I’m speaking on the Senate floor about high energy prices. Unless something is done to make energy more affordable, the record-high prices will continue to reverberate throughout our economy, increasing the prices of transportation, food, manufacturing and everything in between. Skyrocketing energy prices are a threat to our economic and national security, and the time for action is long past.

One of the major causes of our energy crisis is the failed policies of the current Administration. In January 2001, when President Bush took office, the price of oil was about $30 per barrel. The average price for a gallon of gasoline was about $1.50. Since President Bush took office, crude oil prices have nearly quadrupled, natural gas prices to heat our homes have almost doubled, gasoline prices have more than doubled, and diesel fuel prices have nearly tripled.

One key factor in price spikes of energy is rampant speculation in the energy markets.

Could the Iraq War have anything to do with high oil prices? Could the fact that Bush (and his daddy too), Cheney, and Rice all used to work in the oil business have anything to do with high oil prices? Could oil lobbyists have anything to do with high oil prices? Could Cheney’s famous secret meeting have anything to do with high oil prices? Inquiring minds want to know!

When can impeachment become a reality Senator Levin?

This Is Good Obama

Obama tells voters the truth about the gas tax holiday and says it's time to investigate oil companies for price gouging and for Congress to adopt higher fuel efficiency standards and invest in alternative fuels:

There is one thing I would like to add to what Barack Obama says. The poorest people are the ones hit the hardest by high energy prices. The politicians in Washington should raise the minimum wage and add a provision that ties the minimum wage to inflation.