Oil Strategy
Just when Americans are beginning to reduce their gas consumption (Chart Above), Bush and Cheney are wailing on their Saudi buddies to pump more oil and bring the cost of gas down. Even thought the President said we were addicted to oil, he wants to lower the price of our new heroin. Since he is not running for office, the courageous move would be to promise the American public that oil would never drop below $4 a gallon and they better start changing their habits. He could probably put some sort of emergency alternative fuel surcharge in to make sure that happened even if the Saudi’s panic pumping temporarily lowers the cost of fuel.
Bush’s business allies already know we are at a sea change moment. Yesterday Ford’s Chief Executive Alan Mulally announced the delay of the new F-150 pickup truck, because there were too many unsold 2008 models sitting on dealer lots. They are now struggling to make more small cars. “We view the move to smaller, more fuel-efficient vehicles as permanent, and we are responding to customer demand,” Mr. Mulally said.
If Ford and GM had any sense, they would crank up their European and Asian factories and start importing the high mileage Fords and Opels they sell abroad.
Jon, Jon, Jon,
If they had good sense, we wouldn’t be in this mess.
Jon, Jon, Jon,
If they had good sense, we wouldn’t be in this mess.
I couldn’t believe U.S. Energy Secretary Samuel Bodman’s statements that speculation was not driving the price of crude oil higher and suppliers needed to pump more oil. Demand has fallen in the U.S. while increasing in Asia but the high prices are slowing demand there as well. Despite evidence of peak oil and many other countries moving to alternative energy supplies, the federal government is paralyzed and unable to offer leadership in seeking energy independence.
Then there is the coming war with Iran. What do you think that will do to speculation in oil prices Secretary Bodman? Maybe you should be begging the the Federal Reserve to raise interest rates and shrink the money supply instead of groveling to the Saudis for more crude.
http://goesdownbitter.wordpress.com/2008/06/21/war-with-iran/
I couldn’t believe U.S. Energy Secretary Samuel Bodman’s statements that speculation was not driving the price of crude oil higher and suppliers needed to pump more oil. Demand has fallen in the U.S. while increasing in Asia but the high prices are slowing demand there as well. Despite evidence of peak oil and many other countries moving to alternative energy supplies, the federal government is paralyzed and unable to offer leadership in seeking energy independence.
Then there is the coming war with Iran. What do you think that will do to speculation in oil prices Secretary Bodman? Maybe you should be begging the the Federal Reserve to raise interest rates and shrink the money supply instead of groveling to the Saudis for more crude.
http://goesdownbitter.wordpress.com/2008/06/21/war-with-iran/
No politican is going to say that about gas never going under $4. You know that.
No politican is going to say that about gas never going under $4. You know that.
Still, that’s a bracing graph, and Jon’s strategy about ginning up Opel, etc., is a smart fix. GM and Ford have done just that in the past when they’ve been caught flatfooted on a particular niche or car class. So now they should do it pretty much across the board, as a transitional move. It would add a lot of creativity to the U.S. fleet, too; really stir things up.
Still, that’s a bracing graph, and Jon’s strategy about ginning up Opel, etc., is a smart fix. GM and Ford have done just that in the past when they’ve been caught flatfooted on a particular niche or car class. So now they should do it pretty much across the board, as a transitional move. It would add a lot of creativity to the U.S. fleet, too; really stir things up.
I just saw an ad on TV for Saturns in which they were proudly proclaiming that the best of them got 32 mpg on the highway. Well, I’ve got a
’95 Saturn wagon with 145,000 miles on it, and I just did a round trip 1,000 mile drive to San Diego from Santa Cruz and I got 34.5 mpg on the trip. What’s wrong with this picture? Why the hell should a 2008 Saturn get worse gas mileage than one that’s 13 years old? CAFE standards my ass!
I just saw an ad on TV for Saturns in which they were proudly proclaiming that the best of them got 32 mpg on the highway. Well, I’ve got a
’95 Saturn wagon with 145,000 miles on it, and I just did a round trip 1,000 mile drive to San Diego from Santa Cruz and I got 34.5 mpg on the trip. What’s wrong with this picture? Why the hell should a 2008 Saturn get worse gas mileage than one that’s 13 years old? CAFE standards my ass!
Leaving aside the really cool scenario of your magnetically levitating your way down to San Diego and back at delicious speeds, that’s a heck of an indictment, Rick. Really, a rare anecdote that really tells. You might give that wicked story to the campaign, and let the candidate choose whether to shove it in the face of GM at the next opportunity. Sen. Obama plans to spend a lot of time in Michigan, as I’m sure you know.
What symbiosis, then, between Big Oil and the Big Three? What Blakeian “symmetries” might there be?
So tempting to call them dumbasses, but they’re not; not at all.
Leaving aside the really cool scenario of your magnetically levitating your way down to San Diego and back at delicious speeds, that’s a heck of an indictment, Rick. Really, a rare anecdote that really tells. You might give that wicked story to the campaign, and let the candidate choose whether to shove it in the face of GM at the next opportunity. Sen. Obama plans to spend a lot of time in Michigan, as I’m sure you know.
What symbiosis, then, between Big Oil and the Big Three? What Blakeian “symmetries” might there be?
So tempting to call them dumbasses, but they’re not; not at all.
They’re penny smart and dollar dumb Hugo. I call that just plain DUMB.
They’re penny smart and dollar dumb Hugo. I call that just plain DUMB.
Detroit has consistently lost market share to Japan and Korea. That is dumb. They could have seen the writing on the road twenty and twenty five years ago here in California when everyone started buying Toyotas and Hondas.
Detroit has consistently lost market share to Japan and Korea. That is dumb. They could have seen the writing on the road twenty and twenty five years ago here in California when everyone started buying Toyotas and Hondas.
Ford killed its V-8′s today, for the passenger line.
Supposedly one of the three reasons the Germans wanted Chrysler was to get ahold of and market HEMI technology, which would’ve aspirated American blocks in a more fuel-efficient manner. So they spread rumors for two or three seasons about the introduction of a 6-cylinder HEMI—conceivably, a do-everything powerplant—and instead what do we get? Gangster hearses.
Ford killed its V-8′s today, for the passenger line.
Supposedly one of the three reasons the Germans wanted Chrysler was to get ahold of and market HEMI technology, which would’ve aspirated American blocks in a more fuel-efficient manner. So they spread rumors for two or three seasons about the introduction of a 6-cylinder HEMI—conceivably, a do-everything powerplant—and instead what do we get? Gangster hearses.
Rick,
Detroit has not been losing market share to Japan because of fuel economy. They lost out because the Japanese made more dependable vehicles.
gasdocpol,
Those Americans that live in areas that have no viable public transportation system and do not have the financial resources to change from their used gas guzzlers to new, more fuel efficient vehicles are screwed in your fix.
We need a far more comprehensive plan that includes more fuel efficient vehicles, new electric vehicle technology, solar power plants (check out http://www.nanosolar.com/) wind and nuclear energy. We should also be limiting access to futures bidding to those entities who truly need it in order to set future prices (the airlines, for instance).
Since we will always need oil in some capacity, we should open up the barriers to drilling in this country that would help us to become less reliant on an unstable part of the world. One caveat needs to be added to that, however. We need to ensure that not a single drop of oil produced in this country is exported until the needs of the United States has been met. The snag here is that we need to figure out a way to keep domestically produced oil from being priced the same as OPEC. That’s the part I haven’t figured out yet. I’m working on it, though!
Rick,
Detroit has not been losing market share to Japan because of fuel economy. They lost out because the Japanese made more dependable vehicles.
gasdocpol,
Those Americans that live in areas that have no viable public transportation system and do not have the financial resources to change from their used gas guzzlers to new, more fuel efficient vehicles are screwed in your fix.
We need a far more comprehensive plan that includes more fuel efficient vehicles, new electric vehicle technology, solar power plants (check out http://www.nanosolar.com/) wind and nuclear energy. We should also be limiting access to futures bidding to those entities who truly need it in order to set future prices (the airlines, for instance).
Since we will always need oil in some capacity, we should open up the barriers to drilling in this country that would help us to become less reliant on an unstable part of the world. One caveat needs to be added to that, however. We need to ensure that not a single drop of oil produced in this country is exported until the needs of the United States has been met. The snag here is that we need to figure out a way to keep domestically produced oil from being priced the same as OPEC. That’s the part I haven’t figured out yet. I’m working on it, though!
What would happen were a President of the United States, Roosevelt-style to come with the courts crashing down on Detroit and scatter those megaliths into brilliant pebbles?
What would happen were a President of the United States, Roosevelt-style to come with the courts crashing down on Detroit and scatter those megaliths into brilliant pebbles?
And isn’t it about time for a WPA project for the Mississippi River? Isn’t that just about our most important national asset?
(Also, the Japanese figured out how to mass produce close tolerances.)
And isn’t it about time for a WPA project for the Mississippi River? Isn’t that just about our most important national asset?
(Also, the Japanese figured out how to mass produce close tolerances.)
Don’t know ’bout no close tolerances—though I do know they scared the spinal columns right out of us a few years ago with flat-panel displays—but oh hay-ell yeah dial back the clock and put the WPA onto the Big Muddy. They’d make it work for us better, and they’d make pretty doing it, too. In half this country’s history, the Mississippi WAS our “Transportation Plan”, and I agree that it needs a little tending in its old age, in this era in which we’ve learned to spark and subdue the elements.
Don’t know ’bout no close tolerances—though I do know they scared the spinal columns right out of us a few years ago with flat-panel displays—but oh hay-ell yeah dial back the clock and put the WPA onto the Big Muddy. They’d make it work for us better, and they’d make pretty doing it, too. In half this country’s history, the Mississippi WAS our “Transportation Plan”, and I agree that it needs a little tending in its old age, in this era in which we’ve learned to spark and subdue the elements.
The Japanese mass produce cars with tolerances as close as hand made race cars. Way tighter than German or any other cars.
For the middle of the country, the Mississippi is still our Transportation Plan. The first Interstate system. Without the port of New Orleans and the Mississippi River, this country would die.
The Japanese mass produce cars with tolerances as close as hand made race cars. Way tighter than German or any other cars.
For the middle of the country, the Mississippi is still our Transportation Plan. The first Interstate system. Without the port of New Orleans and the Mississippi River, this country would die.
Well, so they got superior robotics. I’ll grant them that.
As for The River That Rules, yes, sign me up for that WPA. I mean it. Day before yesterday I saw some live footage of a levee giving way near East St. Louis. Big chunks calving off the breach, and some fairly good Class Two rapids as a result. What do we call this, JH? Simply unacceptable? I mean, what do we call it, for heaven’s sake.
Any bar pilot can tell you that that river is never the same twice. That like the Holy Spirit it bloweth wheresoever it damn well pleaseth. BUT LEVEES MELTING LIKE THIS? Not very damned acceptable!
May God help us tame an unvexed Mississippi, and May God save New Orleans.
Well, so they got superior robotics. I’ll grant them that.
As for The River That Rules, yes, sign me up for that WPA. I mean it. Day before yesterday I saw some live footage of a levee giving way near East St. Louis. Big chunks calving off the breach, and some fairly good Class Two rapids as a result. What do we call this, JH? Simply unacceptable? I mean, what do we call it, for heaven’s sake.
Any bar pilot can tell you that that river is never the same twice. That like the Holy Spirit it bloweth wheresoever it damn well pleaseth. BUT LEVEES MELTING LIKE THIS? Not very damned acceptable!
May God help us tame an unvexed Mississippi, and May God save New Orleans.
The word “tame” in that final sentence, is iPhone for “from”. I’m learning, a mere novice of the Order of Cupertine Monks.
The word “tame” in that final sentence, is iPhone for “from”. I’m learning, a mere novice of the Order of Cupertine Monks.
Amen, Hugo. We should get some of those cats from Holland over here. They have this water deal figured out. That, and the WPA did some seriously incredible work.
Amen, Hugo. We should get some of those cats from Holland over here. They have this water deal figured out. That, and the WPA did some seriously incredible work.
To quote Tom Waits, “You must be readin’ my mail!”
To quote Tom Waits, “You must be readin’ my mail!”
Hugo.
You asked, “What would happen were a President of the United States, Roosevelt-style to come with the courts crashing down on Detroit and scatter those megaliths into brilliant pebbles?” I don’t know. Part of me feels that they would be able to regulate prices that consumers pay. The other part of me feels that prices may skyrocket further as beuraucratic processes and under the table deals drive the price up for everything used in the industry ($200 hammers, etc.).
I also wonder what would happen to the millions of Americans that own stock in these companies or have them as part of their portfolio of mutual funds under 401k plans. Would the government pay cash to these people at current stock price levels to buy the industry out? If not, you have just wiped out many people’s retirement savings – something already being done by the government due to their mismanagement of Social Security.
Hugo.
You asked, “What would happen were a President of the United States, Roosevelt-style to come with the courts crashing down on Detroit and scatter those megaliths into brilliant pebbles?” I don’t know. Part of me feels that they would be able to regulate prices that consumers pay. The other part of me feels that prices may skyrocket further as beuraucratic processes and under the table deals drive the price up for everything used in the industry ($200 hammers, etc.).
I also wonder what would happen to the millions of Americans that own stock in these companies or have them as part of their portfolio of mutual funds under 401k plans. Would the government pay cash to these people at current stock price levels to buy the industry out? If not, you have just wiped out many people’s retirement savings – something already being done by the government due to their mismanagement of Social Security.
My fellow scottymck, thank you for taking the question seriously, as I truly was wondering about the prospective fallout. I’d meant to limit the question to the breakup of the Big Three automakers, such that a bunch of “Baby Bells” might result. As for the actual, historic break-up of Bell itself, I’ve no recollection how the ownership positions were handled among the Bell stockholders, and so I suppose that was part of my question. How do we get an increased number of smaller, more innovative companies without dispossessing those who share in the present, moribund monoliths?
My fellow scottymck, thank you for taking the question seriously, as I truly was wondering about the prospective fallout. I’d meant to limit the question to the breakup of the Big Three automakers, such that a bunch of “Baby Bells” might result. As for the actual, historic break-up of Bell itself, I’ve no recollection how the ownership positions were handled among the Bell stockholders, and so I suppose that was part of my question. How do we get an increased number of smaller, more innovative companies without dispossessing those who share in the present, moribund monoliths?
Hugo,
That, my friend, is the trillion dollar question! It is the sole piece of the energy crisis puzzle that is missing. I’ve checked in the seat cushions, under the carpets and even in the cat’s litter box; the piece is nowhere to be found.
The solutions being offered by both political parties have far more missing pieces than either is willing to admit and collectively don’t include that missing piece, either.
The first step I can think of in recruiting smaller, more innovative companies would be to open up drilling in new, previously unclaimed areas (shale in the Rockies, off-shore, ANWR). Allot half of those areas to the “Big Three” and reserve the rest for smaller companies. This wouldn’t result in any lost revenue to stockholders of “The Big Three;” it just would limit, to a degree, the extent of future earnings.
Keep in mind, though, that the break up of “Ma Bell” only resulted in more companies with similar rates, plans and penalties. It’s only a matter of time before collusion sets in. (Did I just use the “C” word? I hope sensitive ears weren’t listening).
I decided to write an article about ANWR about an hour ago and post it on my blog. I should be able to bang it out pretty quickly, I think. It may give some people a little different perspective than they are currently getting from the liberal media.
Hugo,
That, my friend, is the trillion dollar question! It is the sole piece of the energy crisis puzzle that is missing. I’ve checked in the seat cushions, under the carpets and even in the cat’s litter box; the piece is nowhere to be found.
The solutions being offered by both political parties have far more missing pieces than either is willing to admit and collectively don’t include that missing piece, either.
The first step I can think of in recruiting smaller, more innovative companies would be to open up drilling in new, previously unclaimed areas (shale in the Rockies, off-shore, ANWR). Allot half of those areas to the “Big Three” and reserve the rest for smaller companies. This wouldn’t result in any lost revenue to stockholders of “The Big Three;” it just would limit, to a degree, the extent of future earnings.
Keep in mind, though, that the break up of “Ma Bell” only resulted in more companies with similar rates, plans and penalties. It’s only a matter of time before collusion sets in. (Did I just use the “C” word? I hope sensitive ears weren’t listening).
I decided to write an article about ANWR about an hour ago and post it on my blog. I should be able to bang it out pretty quickly, I think. It may give some people a little different perspective than they are currently getting from the liberal media.
Where, in the pipestream, as it were, could things be shared? I mean, obviously exploration is hugely expensive and risky, but were we to have a bunch of Baby-Bells, couldn’t they economically share refining, for example, the way that fruit farmers and nutgrowers and cattlemen cooperate in processing? Would that help?
Where, in the pipestream, as it were, could things be shared? I mean, obviously exploration is hugely expensive and risky, but were we to have a bunch of Baby-Bells, couldn’t they economically share refining, for example, the way that fruit farmers and nutgrowers and cattlemen cooperate in processing? Would that help?
Of course there would be plenty of opportunities for “Baby-Bells,” but, in order to do so without devaluing the stock that people have invested in “The Big Three,” new refineries would have to be opened. There has not been a new refinery built in this country since 1976.
It always comes down to the same thing; new doors must be opened to keep Big Oil in check.
Of course there would be plenty of opportunities for “Baby-Bells,” but, in order to do so without devaluing the stock that people have invested in “The Big Three,” new refineries would have to be opened. There has not been a new refinery built in this country since 1976.
It always comes down to the same thing; new doors must be opened to keep Big Oil in check.
scottymck-A purvayer of the pertinent. Alright
Hugo, endeavores not for the faint of heart or shallow pocket books, wildcatters,
independently minded entrepreneurs who operate in their own best interest.
I had an uncle who was a member of the CBT. In his opinion futures were for those that drilled, grew, raised, processed, used and sold as a hedge to buying, selling or delivering at the market at a certain time. Insurance if you will.
Was Southwest speculating in oil? How about Exxon? What’s business as usual? How about A rancher with live cattle.
Is their a possibility for regulation here? Not, I believe in a free society.
Business will always operate in their own best interest as does Washington/Government.
Freedom is the imperative, responsibility is guideline.
As for defining responsibility, it all depend what the meaning of “is” is.
scottymck-A purvayer of the pertinent. Alright
Hugo, endeavores not for the faint of heart or shallow pocket books, wildcatters,
independently minded entrepreneurs who operate in their own best interest.
I had an uncle who was a member of the CBT. In his opinion futures were for those that drilled, grew, raised, processed, used and sold as a hedge to buying, selling or delivering at the market at a certain time. Insurance if you will.
Was Southwest speculating in oil? How about Exxon? What’s business as usual? How about A rancher with live cattle.
Is their a possibility for regulation here? Not, I believe in a free society.
Business will always operate in their own best interest as does Washington/Government.
Freedom is the imperative, responsibility is guideline.
As for defining responsibility, it all depend what the meaning of “is” is.
RT-”the” “s”
RT-”the” “s”