The WH, Obama and his advisors (Gaithner) answer to the high price of oil/gasoline? Release the US oil reserves. Now just how long term is that?

That will NOT solve the problem.


Leadership? The over riding joke for solving the oil dependence problem. Apparently it is a solution(?) that has no environmentalist or special interest group risk.

Just how long would the reserves last? It really doesn't matter. It is finite. It does not address the problem.

What about next week? Next month? Next year?

The kool aid in spades!!!!!!!!!

btk

The Kool-Aid in spades?

*

Billy, you dont get it, liberals love for the price of gasoline to be sky high and electric bills the same, but wait.................I thought they were always out to help the little man and middle class.
Everyone is drilling in the Gulf except us and laughing aloud how stupid we have become.

Amen to that. A investment adviser stated that oil may not be a good investment and went on to talk about the up and down price history and ended by stating that the oil price is just 4% higher than it was in 1981? How he got there leaves me but I believe that if we did domestic exploration and drilling of oil and gas we would be tottally independent and while we may not be able to go back to 1973 prices we could get them down to liveable levels. I agree with the early post that the liberal dems are doing all they can to make oil and natural gas cost prohibitive in order to push their green agenda. So you have to ask what type of leadership is that? and the naswer of course is that this is not about leadership its about advancing the liberal agenda irrespective of consequences.

Originally Posted by rubicon

...A investment adviser stated that oil may not be a good investment and went on to talk about the up and down price history and ended by stating that the oil price is just 4% higher than it was in 1981...

With all due respect to your investment advisor, I've made a fair amount of money in recent years betting on the big oil companies when the price of oil is temporarily elevated, as it is now. It's pretty easy to track the price of oil--it's on the news every day. The events that cause oil to increase in price are also pretty easy to understand--anything that appears to threaten or interrupt supply. In the current instance, it was the uprising in Egypt (no oil, but Egypt owns the Suez Canal, thru which all the Middle Eastern oil is shipped). Then Libya, which only produces about 3% of the world's oil supply, but the market has bid up oil from about $83 a barrel at Thanksgiving of 2010 to about $105 a barrel last Friday.

If you go back and plot historical profitability--and stock prices--of the big oil companies, almost counter-intuitively they make a lot more money when the price of oil goes up than when it either remains stable or goes down. Other than the possibility that they simply achieve the same profit margin on their gasoline refinery and distribution business regardless of the price of oil, I can't explain it. But I know that pattern exists.

I bought a couple of oil companies that have a large refinery and gasoline distribution component of their business within a day or two of when the problem in Egypt erupted. Since then, only a couple of weeks ago, I've made more than 10% on that investment. I'll watch both the price of crude oil as well as the quarterly earnings dates and take my profits if the price of oil either declines or appears to be stabilizing. Then I'll go back to my normal long-term stock picking.

Normally, I'm a long-term investor, but occasionally I'll buy on bad news and the sell when things seem to be getting good again. This rapid escalation of the price of crude seems to have presented such an opportunity.

The kool aid in spades?

I don't understand your analogy! Please explain.