Our Excellent Adventures

Bodman argued the surge was largely a simple problem of supply and demand.

Spoken like a true ignorant zealot of the oil industry. Don’t buy into the party (or should I say oil company and government) line that rising prices are caused by supply and demand. Have you seen any shortages? Any lines in your part of the country, world? No. That is because although there is increased demand it has been happening at a predictable rate. Would the government still be buying crude to continue filling the strategic petroleum reserve if there was a shortage affecting its citizens? No (at least I hope not). The rising prices are not a function of supply and demand. This is not your grandfather’s economics. The rising prices are about one thing - greed!

Analysts also have cited the decline of the U.S. dollar, fears about the long-term supply of oil and aggressive speculation as factors in rising prices. China agrees with that . . .

China, however, insisted that rising demand largely fueled by its own dramatic economic growth was not the sole factor driving prices. Zhang said hedge funds and “hot money” were flooding into the energy sector, distorting the market.

Bodman is simple lost in what is happening as is Bush and probably 99% of the Congress. Visualize Dianne Feinstein, or Hillary or Bush driving into a local 7-11 and filling up. They have no concept of what is happening to the average American. By the time they get reports and letters from us, they are already 4 bucks a gallon behind the news.

Bodman conceded that even quick action would not pull down prices immediately.

“There are relatively few things we can do short term,” he said. “This has been a long time in coming … this is going to take a long time to accomplish.”

I don’t know where Bodman has been but this particular run on crude prices has not been a long time in coming. The current run away speculation that is the real cause of prices rising is been in action only for the last year.

The problem is we are dealing with it like any other crisis. “This is a wake-up call. We’ve got to have clean energy. We need to diversify sources of energy, invest in alternative and renewable fuels, ramp up cooperation in strategic oil stocks in case of a supply shortage, and improve the quality of data on production and inventories available to markets.” I bet I can find these same statements made during the 1973 Arab Embargo. BTW, in those days there were lines because there actually was more demand than supply.

Speculation or call it capitalism if you want. I prefer greed of unregulated speculators (Johnny, if your dad works in the futures market, he is a crook), dishonesty of uncontrolled price manipulators and laissez-faire government officials that currently add 40% to the price at the pump.