Hedge this Big Oil…


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"Yes, I understand that Ron and Anna are upset with me about something, but I do not understand the argument. Russia was about to invade us? WTF?"

The funny story about the price of oil started way back during the Carter Administration.  Jimmy Carter was the poster boy for how to screw a pooch without really trying.  His concept of “joining hands in sacrifice” spanned the globe.  We missed the Olympics because he didn’t like what the USSR was doing in Afghanistan.  He tanked the economy which caused up to 22% inflation, almost making us a Latin American economy.  The price of gold ran from $220 dollars a ounce to ultimately $848 a ounce.  The cost of Silver ran from $7.25 dollars a ounce to ultimately $44 a ounce.  Jimmy had his brother “Billy”, who later created “Billy Beer”, his lovely wife Roslyn, his mom and “his faith”.  He cut our Defense Budget to beyond the bone.   There were even rumors that the USSR was going to invade the United States.  Carter was a former Nuclear Engineer for the U.S. Navy….but he was against Nuclear Power.  The price of oil and consumer gas prices skyrocketed when he went for the gold and the grand faux pax to upset OPEC, because of the Iranian Crisis and half the the rest of the world.  This whole Administration indeed was a cautionary tale of; “How not to run a railroad or a government!”  By the Grace of God…hopefully his own;  Jimmy was a one term President and was soundly defeated by Ronald Reagan.  If the election included “a loss of confidence provision”, Carter would have been totally successful.

 

Not to bother to mention that Reagan changed everything that Jimmy did, as soon as he could.  In April of 1980 as the cost of a barrell of oil rose to just about what one ounce of silver was worth at the time:  $44 dollars….the cost of buying gas at the pump had risen from $1.23 to just about $2.50 a gallon.  Pretty costly for 1980.  So, Reagan took action.  He called Mexico.  Pemex had really cheap oil.  In those days, the cost per barrel was about $12 a barrel.  The Big Oil folks here all poo pooed the Mexican oil…saying it was not Bonnie Light Crude that was easily “cracked”, but some terrible “dark black stuff” that required extra refining techniques which would price us out of the world market.  Reagan made a deal for 10 years of Pemex Oil for $20 dollars a barrel.  It made the Mexicans happy and it filled our needs for the short fall from OPEC.  This was a major Hedge Fund Buy.  Some said it was a “Future’s Buy”, which technically we suppose you could say was true, but in this case we actually had a contract with Pemex for as much oil as we wanted to buy for $20 dollars a barrel for 10 years.  This takes us to 1990!  For those that forget;  Gas Prices at the pump remained stable throughout those years.  The Clinton Administration did not renew the contract.

Today as we watch the misrepresentations of various lawmakers on our morning talk shows about why “gas at the pump is someone else’s fault”!  We might indeed take a stronger look at the facts.  First off, the United States is not the largest producer of oil annually on the planet!  Who is?  Russia!  How much does a gallon of gas cost in Russia today?  Just about $2.10 a gallon US.

How much does gas cost n Russia? | ChaCha

www.chacha.com Jan 9, 2011 – How much does gas cost n Russia? ChaCha Answer: In Moscow, Russia, one gallon of gas costs $2.10 USD
Who might be the 2nd largest producer of oil on the planet?  Saudi Arabia!  How much does a gallon of gas go for in Saudi Arabia?  You can look that one up and really be shocked.
Who is the 3rd largest producer of oil on the planet?  The USA!  How much do we pay for a gallon of gas?  $4.39 a gallon at last counting.  Who has the largest Natural Gas Reserves on the planet?  Number 1 is Russia, Number 6 is the USA!
The two biggest misrepresentations being flaunted out to the American public is that we should one:  Bring Canadian Oil down to Galveston to be refined and sent out of the country as an export – called the Keystone pipeline!  So, let see….we put our environment at risk so we can send refined gasoline to foreign countries – strictly for Big Oil Gas Profits (not one drop will be used in any American vehicle).  Sounds good, we may have to buy more Big Oil Stocks, if that goes through.  Secondly, that because of the world demand, the cost of gasoline at the pump is going to do nothing but go up.  Well, it certainly is when it is manipulated the way our current domestic oil market is being played.  The so-called “Speculators” (Institutional Investors and Big Banks)  in the oil and natural gas markets are busy at work making sure that prices of a barrel of oil will remain high and higher in the coming days, weeks, months and years – if we let them.
We need a “Reagan” Master Stroke.  We need a Government Hedge Fund that will secure the stabilization and price of oil for another 10 years!  Where do we go?
Russia is an easy answer, but there are others sources of oil from which we can strike a deal with that will be lasting.  We can only say that Big Oil is as usual, Out of Control.  Our whole fleet of US Airlines need to buy Government backed Hedge Fund fuel for 10 years.  If we do not make these deals now, the continuing oil markets out of control will persist.  There can be no so-called “Market Equilibrium” as long as “Speculators and Producers and Refiners” play the games they have been playing since 1901!  The stabilized cost of fuel is even more important than stabilized or rising Real Estate prices.  Fuel cost affects each and every one of us through direct out of pocket cash that goes not into more jobs, but into the coffers of Big Oil who have never been that keen on “diversification”.  Oh they make side deals so they can get their kick backs from Institutional Investors…but other than that profits only serve the golf courses, fine restaurants and the boating and private general aircraft industries.  Sadly, they are outsourcing even those jobs – as we speak!
President Obama, Members of both parties of Congress, The Major Media, The Cable Industry – come on folks tell the people the truth about gasoline and energy prices.  It’s OK….you can do it.  Really!  Remember folks, this is a commodity market, not brain, space, nano or DNA science!  The people of the United
States will soon know the truth and it is about time – that all of you understood the reality of the situation.  After all, this is 2012  – not 1979!
So our suggestion is:  Hedge this Big Oil…..

 


About Ron & Anna Winship

Independent News Producers/Writers and Directors for Parker-Longbow Productions. Independent Programming which includes a broad variety of Political, Entertainment and Professional Personalities. Cutting Edge - a talk show...is the flagship of over 30 URL websites developed or under development. The Winships have been blogging for the Orange Juice since back when nickels had buffalos on them, and men wore onions attached to their belts, because it was the fashion back then.