The sad truth about the Petroleum Industry Propaganda.
Yeah, yeah I heard they caught the 'lame excuse' for a terrorist.
...U.S. crude for June fell 36 cents to $85.83 by 0516 GMT, after striking an intraday high of $87.15 on Monday, the strongest front-month price since $89.82 traded on October 9, 2008, also pushed up by a possible short-term supply crunch linked to a massive oil spill off the U.S. Gulf Coast....
...U.S. crude inventories likely rose last week as the widening contango structure of the futures curve spurred refiners to import more for storage, a preliminary Reuters poll showed on Monday.
Ahead of weekly inventory data from industry group, the American Petroleum Institute (API), and the U.S. government Energy Information Administration (EIA), analysts forecast crude stocks increased by 1.2 million barrels last week....
Mind you, this is only for a week, maybe two why BP is heroically putting together cement structures that will 'hopefully' stem the image issue.
The Petroleum Industry will increase production, REGARDLESS, of the actual 'long view' to supply and demand when their 'image' is dimmed by such an incident.
Why?
Because they will create an event whereby a corrupt politician will 'move' away from acting as Governor Schwarzenegger has so they can continue to be corrupt themselves. They want to be without any oversight, so they have this mess down to a science.
Most Republicans would NEVER take a strong verbal approach to any of their cronies as if 'Pavlov's Dog' to the stimuli that they know will be coming to 'placate' the populous. Republicans also USE THE EXCUSE that 'being nice' will 'get more' out of the company in question than pursuing them.
Like I said, it is a pre-programmed response. I mean that sincerely. What would be 'the words,' Oh, Yeah, "The wiser man gets the best deal." (I don't want to hear how BP can simply walk away and the USA will have to 'go it alone.' THAT is too big to fail and quite frankly if an oil company EVER did that? They would have their leases pulled FOREVER. And if that doesn't matter they can hand over every asset they have and the USA could do the job handily. I sincerely doubt an ally of the USA would ever look the other way either.) Basically, Ahnold is the exception to the rule, most Republicans lack a spine. You'd rarely know it as they never take off their suit coats.
Take this one step further. Image now that this incident didn't happen in the USA, but, Equator or Nigeria where the populous has absolutely no power with their government. Will the oil companies simply accept the fact they have to 'nudge' the poplous back off its 'attack' against them?
No.
They will simply 'tweak' the government in one method or another when 'the natives' get restless. The Petroleum Industry will use intimidation with such governments as well threatening them with scandal for the 'papers' they signed or court action against the government 'due to their inability and experience' to know how to 'handle them.' The country in distress might turn to the USA for advice, but, if it is a Republican in office it will be a matter of stating 'it isn't our concern.' If a USA politician ever decided to intervene, then I am sure there is a political campaign to SOMEONE ELSE the Petroleum company must be more interested in.
I admire the Senator from New Jersey for being 'potent' to the issue even while under such severe political attack at home.
Like a said, they have this down to a science.
After a short run at a higher production and absorbing 'easily' a lower price at the pump, they can return to a 'shortage' when the 'crying dies down' and call it a residual effect from 'the leak' (its not a spill - please get that right) and hike their prices up again.
They have no morals. NONE.
In all honesty, 'the market' with oil as a commodity is corrupt as well.
OIL is a finite commodity. The 'futures' should be based more in that reality than the 'inventories' 'in play.'
With an escalating cost estimated at $15 billion, ecologists are profoundly worried to the outcome of the Gulf and a larger picture, outside the Gulf.
Ecologists brace for oil spill damage
http://www.nature.com/news/2010/100503/full/news.2010.217.htmlPublished online 3 May 2010 | Nature | doi:10.1038/news.2010.217
Corrected online: 4 May 2010
Corrected online: 4 May 2010
Deepwater Horizon disaster looms over the Gulf coast, and beyond.
...Wider impacts
With the economy of the Gulf states dependent on clean coastal water, seafood and tourism, estimates of the cost of the spill have already been put at $14 billion. It is also shifting politics on President Obama's hopes of ending a moratorium on new offshore drilling; late last week, Obama put those plans on temporary hold.
Officials have the additional concern that the oil slick could get picked up by a warm ocean current called the Loop Current, which shuttles warm water northward from the Yucatán Peninsula up the Gulf of Mexico before veering up the eastern tip of Florida. If the oil slick became entrained in the Loop Current, oil could get dispersed to the shorelines of Mississippi, Alabama, the Florida Keys and the east coast of Florida....
