Quote from limitdown:
Without advertising these subscriptions to some Oil Letter or otherwise, there are claims of some 1.3 trillion barrels of oil locked in shale in Colorado and Utah
((http://money.cnn.com/quote/chart/ch...34&freq=5mi&type=4&uf=128&lf=256&ind_compind=))
Other than hype, is there any reality to these claims, which have been made for the last 40 years since the last oil crisis in this country (back in the 70's)
Other than that, what will be the reckoning with these overly inflated prices on oil that are more market speculation than supply demand based?
It's real from what I hear, I live in Denver Metro. It's was amazing an oil producer spoke on a local consumer advocate show and he spelled it out why oil is so high.
Deregulation by Reagan allowed producers to control all 3
1. Oil in the ground
2. Refining
3. Retail sale to the public
That's a monopoly or collusion no matter how you slice it.
The US consumes 33% as compared to 66% in the 70's. But competition for global is hurting the US big, namely from China and India.
The Bush administration was stupid to tell ppl. consumption is not a problem because they compared our consumption from now to previous decades when it should be compared to global demand going up.
Consumption is a major problem, global that is. The excess supply on a daily, weekly basis is almost gone, in 5-10 years there will be a deficit and then the US will be real screwed without a energy policy. The Chinese own are debt and they could squeeze us hard to ensure they get the $120-$150 oil.
He suggested that their should be a tariff put on imported oil to stabilize prices and by doing so it would encourage further exploration in the Rockies. Right now the market is so volatile only the biggest speculators are willing to risk drilling in the Rocky Mountains due to the high cost and extremely volatile crude prices on a daily basis.
If I can get the podcast/recording I will. It was on the Tom Martino radio show a couple of weeks back. The only motivation the oil guy has to say this is that is the import tariff would benefit him. He mentioned the tariff could be $40 per barrel and they would set prices around 75-80 a barrel range.
I will take the word of the oil producer over you, no offense.