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The Forum > Article Comments > The real reason behind high oil prices > Comments

The real reason behind high oil prices : Comments

By William Engdahl, published 30/5/2008

The price of oil climbs relentlessly higher. Why? Because of deliberate US government policies that permit unbridled oil price manipulations.

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*So long as there was food on the shelves at all.*

Well I certainly don't think that this is going to be your
problem, living in Australia. The thing is, food will become
more expensive to produce, without cheap energy. So it will
be third world countries that struggle. We produced quite
alot of food in Australia before oil came along, we could
do it again, just not have the super cheap export surpluses
that we have now.

If commuters switched to electric, that would free up alot
of presently used oil, for industries that depend on it
completely.

We then of course have new resources. In the Eastern States,
coal seam gas is becoming big biz, as they have learnt how
to tap into it, in the last few years.

Its so large that they plan to build a number of major
export plants in Gladstones and flog it to Asia. Australians
are free to tap into that supply for energy if they wish,
and are prepared to pay international prices for it.
Posted by Yabby, Tuesday, 17 June 2008 9:15:49 PM
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Jacinta - ignore the petty slights. For some time I gave up OLO because debates often became too personal, resorting to defamatory rhetoric. Revolving around a few macho's who monopolised the columns with their intimidating cyber bullying.

Your blurb is absolutely correct. The National watchdogs have been compromised - hook, line and sinker. After 52 national inquiries of double-speak, the ACCC, Fuel Watch, and myriad automobile Org's input, fuel continues to rise exponentially.

Current affair's Grimshaw and Anna Coran's nightly features of irate customers volubly complaining appears to have little impact on our defacto Federal Govt.

Fuel Watch is a no brainer. The RACQ web site updates fuel costs currently in Queensland. Isn't it fatuous - weekends, public holidays etc that the Oil cartel notches up a few dollars ? Not surprising, considering they own all the Refineries, most service stations and has beholden Kevin in their proverbial pocket. Clueless, directionless and Rudderless, best describes our vanity prone messiah.

Underpinning the Oil debate, is a more sinister aberration. One time it was fashionable to sell all our assets, even birthright - for a salacious place in the Sun, worthless baubles, trinklets and a much coveted Order of Australia. Legions would gladly sacrifice manhood,reputations and even familial ties to justify a whimsical pie-in-the-sky fantasy.E.g Arnott's biscuits, Dick Smith, Victor mowers etc.

Late 50's, US expertise decided to build Refineries in Kurnell, Altona and Western Australia. They embarked long term on cornering the market ( recovering from WWII ) They had already scored undisputed Exploration rights.
Lobbyist, donations, back-room hand shakes and the prevailing laissez-faire attitude in Canberra ensured there was a wall of silence and mutual connivance.

Fiftyfive years on, little has change. Conoco Philips is the major player, operating Bass Strait, Timor sea, the Gulf Coastline and beyond.Improved US technology, laser guided seismic surveys probe deeper into the Continental shelf. Extraction still poses a problem.

Our pristine Barrier Reef, an iconoclastic National Heritage sanctuary has immense proven potential. As Saudi, OPEC and Venezuelan reserves deplete, and insatiable thirst exacerbates, it too will be up for grabs.

Peak Oil's a myth
Posted by dalma, Wednesday, 18 June 2008 1:43:26 PM
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and furphy perpetrated by uninformed, panicky wide-eyed journalist. USA is now more dependent on Foreign oil then during the 70's ME crisis, despite stockpiling since the Gulf War. The US Geological Survey are constantly reassessing reserves in Alaska, Artic Wildlife Refuge, Prudhoe Bay, and the Western seaboard. Bakken ( Montana ) reputed to be the largest deposits this century. Estimated 503 billion barrels worth a staggering $ 5.5 trillion.

Where our Taxes go:

The GDP under Howard was 4.6% better off than Rudd's economic management team. $ 283 Billion. In June 08 it's fallen 3.6 %
Inflation 4.2%. CPI is up 4.2% Household debt risen 12 %.
Unemployment rose .8 % with 469,800 on welfare.Of these 73,500 are long term unemployable.Youths 15/19 yrs on New Start & Youth Allowance rose 18.5 % to 57,600, despite 275,390 job advertisements ! The ADF spends $ 15 M on recruitment alone. 1:5 are accepted.
Worst Foreign Debt in history $ 1,039 B. 92% arising from Business ( Subprime fiasco)
Current Account Deficit: In the red for 16 consecutive years at $ 19.5 B or 6.9 % GDP. Annualy $ 70 billion.
For the Eco conscious 51,383 vehicles sold Apr08.Annually 518,873 new cars. Ostensibly, Aust is unpretentiously infatuated with the car, not withstanding Rudd's grandstanding on Kyoto Protocol in Indonesia.Penny Wong, Garret take note.

Our carbon footprint is a charade.

Recent research on Carbon emissions on fossil fuels by CSIRO :

Aust has 0.32% of World's population yet contributes 1.43 % emissions Globally.
Each individual generates 5 tonnes annually. Overall 8 billion tonnes in 2005 compared to 5 tonnes previous years.

Per capita, we are 4.5 times Global avarage, just under the USA.

Bottom line - why worry about light bulbs, solar panels, air-conditioners, when we unabashedly pollute the Planet ?
Posted by dalma, Wednesday, 18 June 2008 2:21:17 PM
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Dalma a few questions if you will?
1. Which decade did we discover the most oil we ever will?
2. How has the discovery of conventional oil been going since then?
3. What is the ratio of discovery to consumption – are we discovering more than we use, or less? How good or 'bad' is the ratio?
4. How many oil producing countries have already peaked and are in irreversible decline?

Thanks in advance for your honest answers.
Posted by Eclipse Now, Wednesday, 18 June 2008 2:24:54 PM
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Eclipse-now or NEVER ??

Are you being facetious ?

If you don't get the gist of the article - it's manifestly clear you are you of your depth.

Go play in the children's league where you obviously belong.

Ciao
Posted by dalma, Friday, 20 June 2008 7:56:40 AM
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Dalma: "For some time I gave up OLO because debates often became too personal, resorting to defamatory rhetoric".

Dalma again: "Go play in the children's league where you obviously belong."

He asked you some pertinent questions that are related to actual oil production data. You answered with personal insults.

If you believe that the earth will produce abundant oil, now and forever, and that the current price rise is only due to speculators, oil companies and governments on the take, well that's your choice. No doubt you'll still be believing it when oil's at $300 a barrel, service stations run dry and supermarket shelves are empty.

Well, good for you - I hope for your sake you're right, because if you're not and Peak Oil is imminent then you're wasting valuable time in which to transition to a lower energy future.
Posted by commuter, Friday, 20 June 2008 8:48:50 AM
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