Friday, December 18, 2009

Why would Chevron care where the oil is drilled, the price is set in the futures market?

The free market sets the price, riiiiight! Oil companies work very much the same as mortgage bankers who get cheap dollars from the Fed and mark it up. ExxonMobil doesn't care when crude prices rise, they just mark it up and invest in the hedge funds. People just cannot understand this for some reason. Those good old boys need some competition but the U.S. Congress just sits and twiddles their thumbs. All ';new'; candidates for change have been preselected. We are up against the wall, folks. Land of the free for the big investors, the fat cats. That is what free trade means. It carefully avoids talking about the investing that has a huge affect on pricing and inflation and, thus, recession. Hell the big investors are recession proof and love a good old fashioned recession now and then. That is how they skim off the cream, periodically.Why would Chevron care where the oil is drilled, the price is set in the futures market?
Great thinking. Might as well pay $25 for a gallon of gas, or why not $100? How much would corn cost if no corn had been planted for fifteen years?Why would Chevron care where the oil is drilled, the price is set in the futures market?
Chevron doesn't care where the oil is drilled except some oil is easier to get that other oil. That is the difference. The most expensive oil is light sweet crude. The shale oil is very expensive to get out of the rock. With the higher prices, it is feasible but still not easy.
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