Thursday, June 30, 2011

Obama and Oil

I did a 11th grade term paper on the history of oil.  Granted, most of the shit was paraphrased from wikipedia, but I did make a compelling argument on why it was the most important discovery in modern history.  Some other dude was talking about gunpowder, but without oil, we won't have planes and bombs and rockets and that reduces human killing capacity to somewhere between an angry kangaroo and a walrus. 

So as oil spiked to astronomical levels a few years ago, I looked with rapt attention, my eyes all sparkling as I cackled in schadenfreude as those fools around me with automobiles paid through their noses.   Now it's not so funny as my own car sit unloved; its weekly routine consists of moving it for street cleaning. 

Thus it made sense to me how Obama tried to play both sides of the coin as far as oil prices go.  Not to bore you with how oil trades (in other words I'm not an expert and I don't want to get called out by the Internet), but apparently, the shit's being reflected at the pump.  Combined with our moribund recovery, Obama seized this opportunity to kill two birds with one stone.

1. By calling out oil "speculators" or "manipulators", O plays the populist card, making it seem like he's one of us struggling as well, as someone who shares our pain.  Ironically, his armor car gets like 1 mile a gallon so HE'S PART OF THE PROBLEM.  But seriously, he gains the support of common folk, but loses the respect of traders, economists, financiers, and Economics 101 students. 

2. By releasing 60 million barrels of oil (which would last the world about 16 hours) he has solid action to back up those words.  It's like writing a resume and telling people you save animals because you fed this abandoned kitty one time. 

Some blogs already called this the first warning shot against OPEC, basically saying if you don't up production, we will release more oil, depressing the price and fucking with your revenues.  Other blogs bring up the corollary, that O is acting like a middle class Joe Schmoe by selling low (and eventually buying high to replace the reserves)  Indeed, the price has already rebounded as I type this.

But these are all blips on the radar.  Here's the endgame.  Oil will run out one day.  It may come in my lifetime, maybe the next generation.  Whenever it ends, we obviously need a new energy source lest we return to our roots and kill each other with maces and shit.  So in that vein, I don't mind 5$ oil at the pump.  Shit I rather it was 20$ or 30$.  I want gas to get so high that politicians around the world get scared that they will get killed in broad daylight Mexico cartel style.  Only then will we finally get the political traction to move to an alternative energy source.  Really, all we are doing is delaying the inevitable.  Hey, kinda like Greece.  (That means my next post will be about Greece cause really, it's just not getting enough coverage on the internets.)



Oh yeah, did nobody notice the irony?  O calls out speculators for manipulating the price of oil.  Then O releases a pittance of oil, guaranteed to manipulate ease the price of oil.