Bush Administration is Deliberately Raising Oil Prices

[JCMach1]

This article was published in December!


A Senate panel grilled a key government energy expert Tuesday over why the Bush administration plans to continue adding to the nation's oil reserve as the price of crude spikes near $100 a barrel.

Lawmakers also accused the administration of turning a blind eye to the role that oil speculators are playing in driving up prices.

The Department of Energy is planning to spend nearly $1 billion in 2008 to boost the amount of oil the nation holds in its 750 million barrel Strategic Petroleum Reserve.

One industry analyst, testifying before a Senate panel made up of energy and homeland security and government affairs committee members, said the government may cause a significant increase in the price of crude over the next six months by filling the reserve with the easily refined and most valuable light, sweet crude.

"If I'm right, we could see prices go to $120 a barrel," said Philip Verleger, president of the Aspen, Colo.-based energy consulting firm PK Verleger... http://money.cnn.com/2007/12/11/news/economy/oil_speculation/index.htm?postversion=2007121117


"The fact is, the markets work, and they are working," said Cheney in an interview in his White House office. "And people - some of the big companies obviously - have taken risks. Risk means risk. And there's an upside as well as a downside in some of the choices they've made. We have to be careful not to have this set of developments lead us to significantly expand the role of government in ways that may do damage long-term for the economy."... A trademark concern of Cheney's is the surprise high-impact event that leads to chaos. Preserving a sufficient national oil supply in the event of a terrorist attack fits right into that portfolio.

"He's a big supporter of the Strategic Petroleum Reserve," and would like to see an even faster flow of oil into the system, says Lazear.

The discussions between Cheney and other officials center less on what an attack might look like than on what a disruption to world markets would do, he adds. "He believes it pays to buy insurance," Lazear says. "And oil is 'liquid' - in both senses of the word. Holding some of the U.S.'s wealth in the form of oil," Lazear notes, is also a financial safety net.

Critics on Capitol Hill and in the energy industry have accused the administration of exacerbating high oil prices with its current plan of squirreling away crude - let alone pursuing Cheney's more ambitious desires for the Reserve... http://money.cnn.com/2007/11/22/magazines/fortune/cheney.fortune/index.htm?postversion=2007112517


Does anyone need more proof that current gas prices are a direct result of administration policies designed to get people to call for increased drilling and supply>

[lonestarnot]

1. Never had a doubt!

[yellowcanine]

2. "He's a big supporter of the Strategic Petroleum Reserve" No doubt. Of course it has nothing to do

with the fact that filling up the reserve helps to keep pushing prices up, benefitting both Cheney and his oil company cronies.

[hughee99]

3. He's trying to save us money...

Come on, now. He's expanding the national oil reserve now, in case some "unexpected" event occurs in the near future that reduces the worlds supply and drives the price up even further. Sure, this is affecting oil prices some now, but what would happen if he waited a few months to try to do this, and for some reason Iran was having trouble putting it's oil on the world market and prices shot up dramatically on a per-barrel basis. Then we'd be thankful we filled up our reserve before this "unexpected" interruption began.

[JCMach1]

4. you forgot the SARCASM smilie

[hughee99]

5. I didn't think it would be necessary. ;)

[B Calm]

9. You would think 4 dollars a gallon gas would be reason to release

some of that reserves.

[marmar]

6. Stocking up in preparation for the inevitable attack on, hmmm, Iran?

This country is the absolute throes of despotism.

[JCMach1]

7. I the second article you also learn how Cheney has HIS OWN economic advisors

who were constantly projecting rosey scenarios even as late as last December. :wtf:


Well the :wtf: is about the flow of money. Think of high oil prices as the Financial Classes new TAX on working people. Here's how it works:


1. Money flows in Middle-East on $120 oil sales. The ME economies CANNOT absorb such capital infusions. Money is worthless unless it is making more money.
2. ME invests in downtrodden world and US banks and buy US products to keep their own economy going.
3. Financiers and banks now have the capital again to begin funding the NEXT big bubble and collecting their fees.


It's Robin Hood in reverse. Investor (read Republican class) benefits directly from the new capital.

[global1]

8. A Stupid Question And A Comment........

When the U.S. fills its oil reserves - does it get a discount off the current price? If it just pays the going rate - if I were the oil companies I would squeeze all the $'s I could get out of this government.

Is *Co filling the oil reserves and refusing to let some of that oil into the market because they know they are going to attack Iran and cause a tremendous void in ME oil for a long time?

[JCMach1]

10. They pay market price...

[curious one]

11. last attempt to pocket more money before going away

[Crewleader]

12. k&r

JCMach1,not a doubt here my friend what the Bush administration does and the amount of time left to do more. Look what Jeb did in Florida,with policies not benefiting the Middle Class with his negative effects on working families. I'm glad you got out of Florida in time.
My best to you and your lovely family. :hi:

[aint_no_life_nowhere]

13. Cheney doesn't want to "significantly expand the role of government"?

These words from an administration that has significantly expanded the role of the White House in usurping other branches of government and that has systematically expanded its intrusion into the private lives of the American people?