Nozzle rage: Attack of the pump!

By Michelle Malkin  •  July 10, 2008 09:46 AM

My friend Frank Gaffney sends word of a new video campaign to spur action to end our “suicidal vulnerability to OPEC’s oil cartel.” The videos were produced by the terrific Hollywood duo of David and Jerry Zucker.

Spread the word and visit NozzleRage to join the effort.

More:

Every American is getting hosed. Each time we fill up our cars, we are putting money into the hands of OPEC – the oil cartel led by Saudi Arabia.

The Saudis and the other countries that make up that monopoly control most of the world’s reserves. Most of them pay just a couple of bucks per barrel to get oil out of the ground.

Yet, OPEC is limiting production and encouraging speculation that is costing us and other consumers hundreds of billions of dollars every year. It amounts to the largest artificially engineered transfer of wealth in history. OPEC is waging economic warfare, and it is bleeding our country dry.

Worse still, some of the oil money the Saudis, Iranians, Venezuelans and other OPEC members get from us is being used to support terrorism. We are literally paying people to try to kill us.

This is clearly a ridiculous – and unsustainable – situation. If not corrected, we are going to bleed out as we underwrite our destruction.

Enter NozzleRage. NozzleRage is a video campaign designed, through viral YouTube and Internet distribution, to make clear what is happening to this country and its drivers. Its goal is to channel the fury most Americans feel into effective action.

The first of a series of 30-second NozzleRage videos features an OPEC gas pump ripping off and then attacking an ordinary American consumer. Conceived, directed and produced by the fabled Hollywood team of David and Jerry Zucker, it directs viewers to the www.NozzleRage.com website where they can register to view upcoming videos and find out what they can do to end our suicidal vulnerability to OPEC’s oil cartel.

Posted in: Politics

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  1. #372204
    On July 10th, 2008 at 9:54 am, ajmontana said:

    lol!
    hey 30, does that remind you of an e mail i sent you yesterday. wow, i must have ESPN! :lol:

  2. #372207
    On July 10th, 2008 at 10:00 am, Misscheryl said:

    OPEC is waging economic warfare, and it is bleeding our country dry.

    Worse still, some of the oil money the Saudis, Iranians, Venezuelans and other OPEC members get from us is being used to support terrorism. We are literally paying people to try to kill us.

    I believe this is exactly what the motivation is. We did it to Russia….

    We cannot allow this any longer DRILL NOW AND OFTEN!

  3. #372208
    On July 10th, 2008 at 10:01 am, RedDog said:

    You got to gimme some mo!!!

  4. #372215
    On July 10th, 2008 at 10:08 am, Mister P said:

    Democrats keep looking like idiots. Yep lets protect our beaches in New Jersey. I would rather ship in sand from Saudi Arabia.

  5. #372219
    On July 10th, 2008 at 10:10 am, Blind_Mule said:

    Worse still, some of the oil money the Saudis, Iranians, Venezuelans and other OPEC members get from us is being used to support terrorism. We are literally paying people to try to kill us.

    I’ve said the very same thing just different words. “We are financing our enemies” China, Saudi, Venezuala etc…
    and that is exactly what we are doing buying and selling their products. We as Americans need to take a stand and say “Enough is enough and to much is nasty” as my grandfather used to say, I myself try my hardest to find American products and patronize businesses in my city but unfortunatley this has become a daunting and frustrating task these days. My wife and I stay home alot and don’t buy many things we would like to have because of this. My solution to this is I’m building a little paradise out of my home a place that has the feel of a place we might go on vacation. That’s all that I can think to do at the times we are in.

  6. #372220
    On July 10th, 2008 at 10:11 am, 30 pcs of silver said:

    Hey aj,
    Yes, I do recall the email. And yes, you do have ESPN! ;-)

  7. #372221
    On July 10th, 2008 at 10:12 am, Blind_Mule said:

    in the times we are in

  8. #372229
    On July 10th, 2008 at 10:22 am, Ordinary Coloradan said:

    Drill here. Drill Now.

    Build Nukes.

    Burn Coal.

  9. #372232
    On July 10th, 2008 at 10:28 am, Goldwater Knight said:

    Fischer-Tropsch process. Here and now.

  10. #372233
    On July 10th, 2008 at 10:28 am, DakRoland said:

    One thing I’m glad about, we have a nearby gas refinery that uses only North American crude oil, no foreign oil sources, to produce it’s gasoline. United Refining Co. based in Pennsylvania. They distribute their gas through their Kwik Fill stations and some other local stations. Sadly the price is just as high as others, but I won’t buy my gas from any other company. United Refining is an American owned company, producing a product from American oil.

  11. #372234
    On July 10th, 2008 at 10:29 am, Pat said:

    Politicians are loath to stop the flow of petro dollars back to their libraries an campaigns, not to mention the $300K speaking fees after they lose elections, but we have to speak out.

    Drill Here, Drill Now! Yes, we will not have gas for a while, but our decision to drill will take the steam out of the speculators right away.

  12. #372235
    On July 10th, 2008 at 10:30 am, malkin_fan said:

    The Dems understand this issue better than you think. Just let them do what they need to do to fix gas prices:

    http://www.nypost.com/seven/07102008/postopinion/editorials/jersey_pols_push_for_10_gas_119297.htm

  13. #372237
    On July 10th, 2008 at 10:38 am, ThackerAgency said:

    HAHAHA! That was funny. I agree that we should ‘drill here, drill now’. Forget about whether or not gas will fall for however many years. . . think about the amount of taxes our government will get from that oil. Who needs a windfall profits tax when you can just double the taxes you are getting by drilling more?

    I believe that electric vehicles are the answer. I’m working on a few projects and hopefully I’ll be able to figure it all out. The key is being able to re-charge the battery while you drive. The GM volt is doing that with a gas generator. . . I think there is a better way.

  14. #372238
    On July 10th, 2008 at 10:39 am, wighttrasch said:

    wow. My comment was #1, but now it’s gone?

  15. #372240
    On July 10th, 2008 at 10:42 am, sausage said:

    Good to see Michelle embracing Green issues… less use of foreign oil.. great idea… spread the word… buy a hybrid….dump SUVs and pickups…

  16. #372245
    On July 10th, 2008 at 10:45 am, wighttrasch said:

    buy a hybrid

    Both of my cars are paid for…tell me how ‘buying a hybrid’ saves me money?

  17. #372246
    On July 10th, 2008 at 10:46 am, tarpon said:

    2008 — Vote Democrats out of Congress — Open America’s oil reserves. Stop funding terrorists.

  18. #372249
    On July 10th, 2008 at 10:47 am, Bachbone said:

    Wanna know what’s coming to a gas station near you if Congress keeps stonewalling? I just spent four days with friends from Scotland. Gas there is already $12 a gallon. And the government quietly switched from an Imperial gallon (4 litres) to an American gallon (4 quarts). Come Thanksgiving or Christmas, we may again be hitching old Dobbin to our sleighs and enjoying Frothingslosh in front of a roaring wood-fed fireplace at grandma’s.

  19. #372251
    On July 10th, 2008 at 10:49 am, CleanGuy said:

    When does CAIR jump into the spotlight and condemn the video for being Isamophobic?

  20. #372254
    On July 10th, 2008 at 10:52 am, Blind_Mule said:
  21. #372261
    On July 10th, 2008 at 10:55 am, wise_man said:

    Worse still, some of the oil money the Saudis, Iranians, Venezuelans and other OPEC members get from us is being used to support terrorism. We are literally paying people to try to kill us.
    it directs viewers to the NozzleRage website where they can register to view upcoming videos and find out what they can do to end our suicidal vulnerability to OPEC’s oil cartel.

    According to the Energy Information Administration, the number one source for crude oil imports is Canada. Second is Saudi Arabia. And forgive me for not seeing this already, but can someone provide me a link that proves (not alleges, such as NewsMax or some site that makes the claim) that Saudi Arabia funds terrorists terrorists that are trying to kill us. I recall that the saudi government funds schools that preach hate, maybe the same level of hate for whitey that is also taught in Barack Obama’s former church – But I wasn’t aware of any terrorist training camps in saudi territory that are just like the terrorist camps that were in Afghanistan.

    The third largest oil importing country is Mexico. I suppose that the same case can be made that when you drive your car, you are supporting illegal immigration because the oil money that goes to mexico is funneled into mexico’s comic book that is handed out to it’s citizens who enter illegally.

    Fourth on that list is Venezuela. There is a simple solution for this. Boycott CITGO. Make more videos that when you buy CITGO gas, this money goes directly to Hugo Chavez.

    Next on that list is Iraq. ….. with a “Q”. The quote from that organization mentions Iran … with an “N”. No where on that list from the Energy Information Administration site I linked mentions Iran. So I don’t know how they make the claim that we might be funding terrorism when we don’t give them any money, but they are a part of OPEC.

    And this website mentions what we can do to end our suicidal vulnerability to OPEC’s oil cartel. Well they list two websites to look at and two books you can buy. Set America Free states:

    The attached Blueprint for Energy Security: “Set America Free” spells out practical ways in which real progress on “fuel choice” can be made over the next four years and beyond. We call upon America’s leaders to pledge to adopt this Blueprint,

    and I wonder if Obama or McCain is on board on this one. Would be nice to know.

    At the end of the video, there is a sound effect of a bicycle bell. Well, I can’t bike to work. I have to drive a car. Arianna Huffington told all of us not to drive our SUV, because that supports terrorists. Al Gore in his movie (can’t find a screen shot) towards the end tells us to do something about man made global warming such as ride a bicycle, and not drive our car. Seems like these two wonderful ideas are suggested in this video.

  22. #372262
    On July 10th, 2008 at 10:55 am, eaglehaslanded said:

    Both of my cars are paid for…tell me how ‘buying a hybrid’ saves me money?

    It’s not all about you.

  23. #372267
    On July 10th, 2008 at 11:00 am, swmbo said:

    #8 Post, I’m sending a great big

    DITTO

  24. #372269
    On July 10th, 2008 at 11:00 am, wise_man said:

    Both of my cars are paid for…tell me how ‘buying a hybrid’ saves me money?

    On July 10th, 2008 at 10:55 am, eaglehaslanded said: It’s not all about you.

    It’s his money. How is being in debt for 5 years so you can cut your gas bill by 40% because you paid a premium on a car supposed to help?

  25. #372271
    On July 10th, 2008 at 11:01 am, josetheguerilla said:

    Every American is getting hosed. Each time we fill up our cars, we are putting money into the hands of OPEC – the oil cartel led by Saudi Arabia.

    Not me. I have an FFV (E-85) and a vehicle with a biodiesel conversion. After I came back from my extended “vacation” in Iraq, I decided not to give OPEC one red cent of my money. Ford is already selling a propane dedicated F150. That will be my next vehicle. You can blame me for the food crises however, OPEC doesn’t get MY money.

    Corn anyone?

    /s/

    The guerilla

  26. #372273
    On July 10th, 2008 at 11:03 am, emjem24 said:

    Blind Mule:

    I think the Amish had it right all along. :oops:

    I think another big problem is that we’ve had 30 years of politicians, with Americans’ support, not offering much to get off of foreign oil. We couldn’t build new oil refineries, new nuclear plants, or drill. Now, everybody is shocked (shocked I tell you!) that a big chunk of our oil is imported and we’re paying 700 billion bucks (according to the oilman’s ad campaing) to foreign countries like Saudi Arabia.

    I say it’s way past time to cut off the oil import spigot. What’s even more worrisome is that Arabs are buying their way into our banks, investment companies, and properties like the Chrysler Building. Arabs are bailing out Americans and American companies because of their “excess.” That’s what’s disturbing.

    I’ll second the sentiment: Drill here. Drill now. Pay less.

    Oh, and Snausage: Hybrids are ugly as hell (just like the Vespas). I’ll keep my small SUV, thanks. :sad:

  27. #372277
    On July 10th, 2008 at 11:04 am, rambler said:

    I’ll ride a bike as soon as Al Gore and Nancy Pelosi do.

  28. #372280
    On July 10th, 2008 at 11:08 am, swmbo said:

    To whoever said ‘it’s not all about you’, WRONG.

    It is all about me. Me and my fellow Americans.

  29. #372283
    On July 10th, 2008 at 11:09 am, wise_man said:

    I just bought a Honda Civic for my wife. It gets about 30 miles to the gallon. My 8 year old car that is paid off gets 20. I’d like to buy a car that uses another fuel than gas, (Such as compressed natural gas, LNG or propane) but there isn’t any in my area. For people who are in the market for a new car, then this is a great suggestion.

  30. #372289
    On July 10th, 2008 at 11:13 am, sambo said:

    Boycott CITGO.

    That want do any good. First, Americans work for Citgo and own gas stations that sell their gas. Even if we don’t buy it…someone will (supply problem). It’s the same deal with Iran. We don’t buy it but they still sell it.

  31. #372292
    On July 10th, 2008 at 11:16 am, wise_man said:

    They can work for other gas stations, sambo. If owning gas stations that send all their money to one of three terrorist organizations as this video so comically suggests, then sending 100% of your money to Hugo Chavez should be just as bad.

    “We don’t buy it but they still sell it.”

    To someone else. And then they fund terrorists who will kill us. At least our money isn’t doing it.

  32. #372299
    On July 10th, 2008 at 11:23 am, josetheguerilla said:

    Good to see Michelle embracing Green issues… less use of foreign oil.. great idea… spread the word… buy a hybrid….dump SUVs and pickups…

    My FFV and biodiesel vehicles are both pick-ups, and both kick ass on American fuel. Keep driving your piece of crap Goraclemobile, as I drive in Cadillac style!!!!
    Cheers!!!!

    I’d like to buy a car that uses another fuel than gas, (Such as compressed natural gas, LNG or propane) but there isn’t any in my area. For people who are in the market for a new car, then this is a great suggestion.

    Propane, or LPG is everywhere. Where do live? The thing about my FFV: if there is no E-85, I can fill up with gas or any mixture of the two. I have not had to put gas since 2004. My diesel runs on diesel #2 or 100 percent vegetable oil or used/cooked vegetable oil, and it runs on B100 or B20. I put B20.

  33. #372311
    On July 10th, 2008 at 11:30 am, behiker said:

    Let’s not forget what else that money is being used for… Abu Dhabi just bought 90% of the Chrysler Building. Now why would they want to start buying property in the US?

  34. #372313
    On July 10th, 2008 at 11:30 am, wise_man said:

    I think flex fuel vehicles are great, josetheguerilla. There is a station about 20 minutes east of me that sells e85. Unfortunately they get slightly less gas mileage, and i’ve read from the auto section of the newspaper where mechanics are finding problems with some older cars from fouling from e85 use.

    I also saw the news about the propane conversion for the F150, and the conversion for the larger tank is about $6500. I tried to find any information about what the mileage for propane would be, and how much a station would charge per an equivalent quantity as compared to gas.

  35. #372319
    On July 10th, 2008 at 11:34 am, sambo said:

    wise_man said:
    “We don’t buy it but they still sell it.”

    To someone else. And then they fund terrorists who will kill us. At least our money isn’t doing it.

    I understand your point but to me (logically) there is no difference. Same as Alaska oil being sold to Japan.

  36. #372334
    On July 10th, 2008 at 11:47 am, josetheguerilla said:

    I think flex fuel vehicles are great,

    josetheguerilla. There is a station about 20 minutes east of me that sells e85. Unfortunately they get slightly less gas mileage, and i’ve read from the auto section of the newspaper where mechanics are finding problems with some older cars from fouling from e85 use.

    The gas mileage is less however, when I factor in the price rage, I save about $1,000 dollars a year on fueling cost on that vehicle. When I use fifth gear on E85 I come out short almost one gallon as compared to gasoline, however because of the price of E-85 in my area I’m still paying less for the miles completed. I can go farther with less money on E-85. Older cars are having problems, but thats because the drivers did not change the fuel filters when they changed to E-85 all the time. Also it helps if you put a tank of gas in the tank every 8 months to lubricate parts of the engine that get completely cleaned off by the solvent effects of E-85. My vehicle is an older vehicle; I have not had any fouling problems.

  37. #372340
    On July 10th, 2008 at 11:49 am, wise_man said:

    I understand sambo.

    While I think that buying someone’s book and finding out what they think is the solution to get off of oil imports is a good idea, i’d really like to do something concrete.

    I remember there was some sort of ‘boycott day’ for gas or something that was supposed to make a message to big oil. They probably laughed. Kinda like the “buy nothing day” that is a direct assault on people who buy stuff on the day after thanksgiving. instead of waiting a day to fill up your empty gas tank, I would think that putting one oil company out of business would make a larger (and untimately useless) statement.

    If everyone in the US (not possible) would stop buying gas at CITGO, then this company would go out of business in the US. Stop buying gas there, walk a picket line and attempt to keep others from buying their gas. Probably illegal and would get the protesters arrested. Of course Venezuela would still sell oil to countries where it’s citizens drive cars, but if someone wanted to make a message, that would be certainly louder.

  38. #372346
    On July 10th, 2008 at 11:54 am, wise_man said:

    On July 10th, 2008 at 11:47 am, josetheguerilla said:

    Excellent information.

    Its in the news that food prices are up, maybe in part to corn being used for fuel. (not to mention the transportation costs for food.) In addition to corn, there is switchgrass. Where corn is planted every year, switchgrass grows back every year from the same root, and you get more cellulose from this than corn. If its true, I don’t know why people arent growing and processing this crop.

  39. #372355
    On July 10th, 2008 at 11:59 am, josetheguerilla said:

    I also saw the news about the propane conversion for the F150, and the conversion for the larger tank is about $6500. I tried to find any information about what the mileage for propane would be, and how much a station would charge per an equivalent quantity as compared to gas.

    Yes the conversion is about $6,500 over MSRP. But you have to know that Roush is a performance car company, and their technology is mostly of the heavy-duty race equipment type. They are saying the mileage is about the same. 16/20. You can get the larger expensive 60-gallon tank that mounts in the bed or the 22 gallon OEM tank that fits under the truck like a normal one. In my area LPG is selling for $3.20. Regular octane 89, is selling for $4.29. Yeah, this is going my next truck.

    /s/

    José

  40. #372364
    On July 10th, 2008 at 12:04 pm, wise_man said:

    F150 King Ranch with the 60 gallon propane tank in the bed. … would be nice.

  41. #372370
    On July 10th, 2008 at 12:07 pm, josetheguerilla said:

    Its in the news that food prices are up, maybe in part to corn being used for fuel. (not to mention the transportation costs for food.)

    You’re not kidding!!! I’m paying more for my tortillas and tacos!!!! That’s UNSAT!! However, I’d rather pay more for my food, than give money to OPEC. I think the E-85 infrastructure will use switch grass in the future. They need to get moving on this. My tortillas are at stake!!!!

    /s/

    José

  42. #372373
    On July 10th, 2008 at 12:07 pm, sambo said:

    Where corn is planted every year, switchgrass grows back every year from the same root, and you get more cellulose from this than corn. If its true, I don’t know why people arent growing and processing this crop.

    It’s not economically feasible to break down the cellulose down. They can do it with chemicals but its very expensive. They are looking to find an enzyme that will break it down economically.

    If everyone in the US (not possible) would stop buying gas at CITGO, then this company would go out of business in the US.

    A lot of Americans would be out of a job.

    Of course Venezuela would still sell oil to countries where it’s citizens drive cars,

    Actually we have Venezuela in a tight spot. They produce a very heavy oil that is hard to refine and we are one of the few who can do it.
    Not too long ago they threatened to cut it off and our the oil company just laughed at them.

  43. #372376
    On July 10th, 2008 at 12:08 pm, iamsaved said:

    Wouldn’t surprise me if Iran and Venezuela are into heavy oil futures trading trying to drive the price up and cripple the U.S. economy some.

    It serves their outspoken threats to the United States over the years.

  44. #372378
    On July 10th, 2008 at 12:09 pm, sambo said:

    josetheguerilla said:
    Its in the news that food prices are up, maybe in part to corn being used for fuel. (not to mention the transportation costs for food.)

    You’re not kidding!!! I’m paying more for my tortillas and tacos!!!! That’s UNSAT!! However, I’d rather pay more for my food, than give money to OPEC.

    Head of nail…meet hammer!

  45. #372381
    On July 10th, 2008 at 12:11 pm, josetheguerilla said:

    F150 King Ranch with the 60 gallon propane tank in the bed. … would be nice.

    Right now you can only get the XL or XLT. King Ranch is the Mercedes-Benz of Pick-ups. Can you pass the Grey poupon?

  46. #372394
    On July 10th, 2008 at 12:21 pm, wise_man said:

    Can you pass the Grey poupon?

    I’m fresh out. Even out of gherkins.

  47. #372409
    On July 10th, 2008 at 12:27 pm, ThackerAgency said:

    There are lots of reputable after market products coming out soon to turn any conventional car into a hybrid. The claims are that mileage will double with a 10,000 dollar conversion kit. There are several, one is only going to be 7,000. Again these aren’t out yet, but they are coming.

    And I still believe that electric vehicles are the answer. Eventually all these vehicles will be electric and we won’t need oil.

  48. #372411
    On July 10th, 2008 at 12:28 pm, Dandapani said:

    41% of oil consumed in the USA comes from the USA. 2nd source is Canada at 9%. Saudi is third at 8%…

  49. #372419
    On July 10th, 2008 at 12:30 pm, wise_man said:

    On July 10th, 2008 at 12:07 pm, sambo said: A lot of Americans would be out of a job.

    And they could work for Exxon. Or BP. or any other oil company, not CITGO. If there was a gas station/oil company that was called “Saudi Oil conglomerate” that ran ‘Saudi Sunshine’ gas stations where americans has jobs working the cash registers and all their money went to saudi arabia, then we could boycott that station as well.

  50. #372459
    On July 10th, 2008 at 12:49 pm, pueblo1032 said:

    I like how we on this blog are trying to out-green each other. A true GREENIE doesn’t want you driving HYBRIDS or using BIO DIESEL, they want you living in a cave and riding a bike. Check the facts, the price of oil is sky rocketing primarily because of a weak DOLLAR. In 2002 the EURO was introduced, 1 EURO = 1 DOLLAR. Today, 1.57 EURO = 1 DOLLAR. That is an increase of 57%. The world trades in DOLLARS, thus the increase. NEED TO GET CONTROL OF THE BUCK!!! And as far as the VIDEO goes, THAT IS GONNA SMART IN THE MORNING….

  51. #372465
    On July 10th, 2008 at 12:51 pm, pueblo1032 said:

    OOOOPPPPSS’ 1.57 DOLLARS to get 1 EURO…

    PREVIEW PREVIEW PREVIEW

  52. #372471
    On July 10th, 2008 at 12:52 pm, wighttrasch said:

    Why must we learn to not be ‘dependent on fossil fuel’? There’s plenty of it, and the rest of the world can have it but not me?? What. the. HELL.

  53. #372505
    On July 10th, 2008 at 1:11 pm, graysonret said:

    The way many people’s mindset is in this country, if we had a gas station like that, the customers would be required by law (Congress) to wear neck “protectors”, have spring-operated gas tank covers and wear suspenders. That so the politicians can show that they are “doing something”. Also, “Code pink” would be out protesting why FARC or someother terrorist group isn’t represented on gas pumps.

  54. #372548
    On July 10th, 2008 at 1:33 pm, wise_man said:

    Related to the high price of oil, read this:

    An Open letter to All Airline Customers:

    Our country is facing a possible sharp economic downturn because of skyrocketing oil and fuel prices, but by pulling together, we can all do something to help now.

    For airlines, ultra-expensive fuel means thousands of lost jobs and severe reductions in air service to both large and small communities. To the broader economy, oil prices mean slower activity and widespread economic pain. This pain can be alleviated, and that is why we are taking the extraordinary step of writing this joint letter to our customers. Since high oil prices are partly a response to normal market forces, the nation needs to focus on increased energy supplies and conservation. However, there is another side to this story because normal market forces are being dangerously amplified by poorly regulated market speculation.

    Twenty years ago, 21 percent of oil contracts were purchased by speculators who trade oil on paper with no intention of ever taking delivery. Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known. Speculators buy up large amounts of oil and then sell it to each other again and again. A barrel of oil may trade 20-plus times before it is delivered and used; the price goes up with each trade and consumers pick up the final tab. Some market experts estimate that current prices reflect as much as $30 to $60 per barrel in unnecessary speculative costs.

    Over seventy years ago, Congress established regulations to control excessive, largely unchecked market speculation and manipulation. However, over the past two decades, these regulatory limits have been weakened or removed. We believe that restoring and enforcing these limits, along with several other modest measures, will provide more disclosure, transparency and sound market oversight. Together, these reforms will help cool the over-heated oil market and permit the economy to prosper.

    The nation needs to pull together to reform the oil markets and solve this growing problem.

    We need your help. Get more information and contact Congress by visiting
    http://www.stopoilspeculationnow.com/

  55. #372555
    On July 10th, 2008 at 1:41 pm, wise_man said:

    I wonder, is this the same guy in the NozzleRage video?

  56. #372570
    On July 10th, 2008 at 1:55 pm, DougT said:

    Speculation is not the problem. For every speculator making money, someone is losing. It isn’t all being passed to the consumer (or the airlines).

    Demand is high. Supplies aren’t large enough. The dollar is weak. That’s a recipe for high prices.

    Don’t buy into the speculators are the villains nonsense.

    Commodity prices are rising across the board. Why? Mainly because it takes more dollars to buy them. A weak dollar means inflated prices for commodities.

    Don’t expect commodities to become cheaper until after the inauguration when a new administration might do something about the dollar. It doesn’t matter if it’s BO or JM, as long as they do something.

  57. #372585
    On July 10th, 2008 at 2:02 pm, wise_man said:

    On July 10th, 2008 at 1:55 pm, DougT said: Speculation is not the problem. For every speculator making money, someone is losing. It isn’t all being passed to the consumer (or the airlines).

    So all of the airline CEO’s who signed that letter are liars?

    I don’t know for an absolute. But I kinda trust the CEO’s of airlines over an internet comment from Doug (who may possibly be correct) without further evidence.

    So speculators don’t have any affect over the price of oil? As he said, they drive up the cost on paper.

  58. #372594
    On July 10th, 2008 at 2:05 pm, sambo said:

    Many of the speculators are companies that use a lot of oil (airlines, transportation,utilities) as a hedge against a future rise in prices.

  59. #372604
    On July 10th, 2008 at 2:11 pm, wise_man said:

    Many of the speculators are companies that use a lot of oil

    And these are the people that are taking possession of the oil.

    That letter was about the people who never take posession of crude oil.

    AND – the weakened dollar is driving up the price of oil. This has zero to do with the charge that oil speculators who are doing this for profit, and are not airlines, transportation or utilities who are the focus of that letter.

  60. #372616
    On July 10th, 2008 at 2:20 pm, sambo said:

    It’s hard to tell wise man:

    Today, oil speculators purchase 66 percent of all oil futures contracts, and that reflects just the transactions that are known.

  61. #372632
    On July 10th, 2008 at 2:32 pm, wise_man said:

    Oh, and by the way, this is the list of all the companies who want some action taken against the speculators who only trade on paper, raise the price and then sell for a profit, while never taking posession of the crude oil themselves.

    In addition to the airlines, they include Agricultural Retailers Association, Federal Express Corporation, American Bus Association, American Trucking Associations …

    So it should be obvious that they want the price of oil to go down, because their business and livelihoods, employees are all threatened by high oil prices. So, it’s not just greedy airline CEOs here.

  62. #372640
    On July 10th, 2008 at 2:39 pm, sambo said:

    I heard talk about making the speculators put up 50 percent instead of the 5 they do now. Would help.

  63. #372661
    On July 10th, 2008 at 2:58 pm, AlohaGuy said:

    What’s even more worrisome is that Arabs are buying their way into our banks, investment companies, and properties like the Chrysler Building. Clinton Library.

  64. #372662
    On July 10th, 2008 at 2:59 pm, Vince said:

    Doug T
    The heck speculation isn’t a problem. You say commodity prices are rising because it take more dollars to buy them and that’s BS. It takes more dollars to buy them because commodity prices are rising!

    Confusing isn’t it?

    When you only have to put up a teeny tiny fraction of the contract price, a hedge fund can buy a lot of oil futures which really drives the price. The problem with regulation is that it only drives the funds offshore. Where do you think Soros is trading?

    I used to be a commodities broker and there is a lot that goes into this but take my word for it, speculators are a big part of this.

  65. #372669
    On July 10th, 2008 at 3:07 pm, DougT said:

    There is nothing wrong with buying a futures contract and selling it before it expires to make money. That’s the way the commodities market works.

    And no one says that speculators have to bet that the price of a commodity rises. Many speculators bet that prices will fall and they short the commodity. I’m sure the WSJ has numbers on this.

    By this logic then, it is speculators that drive up the prices of wheat, corn, pork bellies, sugar, silver, etc. Commodity prices are rising across the board. Is it all because of paper speculators?

    The CEOs banded together to send a poor poor pitiful me message to us, the airline travelers. I received this email, also. I would expect that this is a pre-move before some hellacious fare increases or new fees.

    Prices aren’t too high yet. If they were, then demand would plummet. Speculators who can’t sell their futures contracts on oil would have to lower their prices or take delivery (or pay to have the oil sit somewhere.)

    Having more regulation on the commodities market is not the answer. We need speculators to distribute price risk for commodities. The airlines CEOs should know that. What these folks should be asking is: Why aren’t we tapping our own oil reserves? If things are so bad, then why aren’t we releasing oil from the SPR? Why can’t we start using heavy sour crude to make gasoline? (That last one would bring ou the environmentalists in full force.)

    Here’s a counter to the airline CEO letter from three economists at the Fed Reserve Bank in Dallas. Notice how they treat speculators as an indicator of market forces, rather than a driver.

    Notice also their explanation of backwardation and how it is refiners who are driving up spot prices because of future uncertainty. Regulation will correct this about as well as rent control helps keep apartment prices down in NYC.

    I trust the economists’ views more than those from a dozen desparate CEOs.

  66. #372685
    On July 10th, 2008 at 3:17 pm, sambo said:
  67. #372690
    On July 10th, 2008 at 3:18 pm, wise_man said:

    Prices aren’t too high yet.

    ….. interesting.

    The CEOs banded together to send a poor poor pitiful me message to us,

    Whatever. You know better than these people. Apparently. In your mind.

    I trust these people more than I trust you.

  68. #372701
    On July 10th, 2008 at 3:25 pm, DougT said:

    All right, Vince, why would speculators only bet their margins on oil prices rising? Couldn’t they go short? Speculators make money when prices fall, too.

    And, as far as currency goes, if oil were trading in Euros, prices would not appear to be rising quite so high. But, Americans would still be paying $4 a gallon because the dollar is weak relative to the Euro.

    A dollar buys less of a commodity than it did ten years ago. It just happens that the dollar we use to buy gasoline and the dollar used to announce the spot price of oil are the same dollar. So it’s easy to say

    It takes more dollars to buy them because commodity prices are rising!

    because dollars and commodity prices are the same thing. So, you’re statement has to be true. Not very explanatory though.

    The world needs to extract more oil. We need more refining capacity. We need to be able to refine something other than light sweet crude for US gasoline. We need to empty out the SPR. And we’ve got to do something to strengthen the dollar.

  69. #372775
    On July 10th, 2008 at 4:11 pm, Vince said:

    Doug,

    The speculators are shorting the market. They are both long and short, at varying levels and they are doing this with various strategie like Straddles and Spreads.

    You are correct that the devaluing of the dollar is a cause of higher prices. We do need more refineries and we do need more supply but the speculators are playing a major part in this and they are playing both sides of the market. When the trend turns opposite, and it will, they will make oodles (is that a word?) on the short side.

    Although this is a short term thing it leads to distress, fear and idiotic actions by the politicians.

  70. #373108
    On July 10th, 2008 at 11:10 pm, starlightwoman said:

    ROFLMAO! this is so true! I love the part about which terrorist group do you want to support? The should add one “democrats”

  71. #373115
    On July 10th, 2008 at 11:22 pm, rightisright said:

    And the Republican Party can’t figure out how to win ‘08?
    The election should be a landslide win for the Repuks and most ever conservative running…oh, wait I said conservative, never mind on the Repuk comment…we all know their not conservatives.

  72. #373116
    On July 10th, 2008 at 11:23 pm, atheling said:

    On July 10th, 2008 at 11:10 pm, starlightwoman said:

    ROFLMAO! this is so true! I love the part about which terrorist group do you want to support? The should add one “democrats”

    Checking “democrats” is like saying “all of the above”.

  73. #373317
    On July 11th, 2008 at 10:30 am, eaglehaslanded said:

    Here’s the thing…unless you buy the “psychological” argument…if we start drilling now, we won’t get that oil for 7-10 years. If we haven’t made enough changes in our energy policies so we don’t need that extra oil by then, we’re screwed. So drilling isn’t going to help.

  74. #373587
    On July 11th, 2008 at 2:07 pm, dakine said:

    More drilling. Burning coal. Use of lesser grades of oil. Not nearly enough. Weak dollar. Speculators. Lack of refinery capacity. Not the core problems. Check out http://www.thepickensplan.com.

  75. #374230
    On July 12th, 2008 at 12:58 pm, Anil Petra said:

    I had a good laugh until the gratuitous anal rape scene at the end.

    It’s a pity, it was an effective video I would have sent to everyone I know, but for that.

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