Archive for the ‘Oil Production’ Category
The morning and evening news shows on ABC, CBS, and NBC haven’t been just reporting consumer discontent about higher gas prices but also actively stoking public outrage. A new study by the Media Research Center, released today, shows that the three networks combined broadcast 183 stories about rising gas prices from April 12 through May 2 yet most of these stories were geared to fueling public fears with hyperbole, no evidence and hysterical claims. Among the findings:
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The networks’ used loaded language in their promotional teases, e.g., “pain at the pump”; “skyrocketing” prices; “soaring” prices; and “sky high” prices.
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Ignoring supply and demand, many of the networks’ stories blamed “Big Oil” for higher prices and discussed “gouging” by gas companies without evidence.
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ABC showcased a woman who claimed she pawned her wedding gifts for gas money.
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CBS, relying on an outdated AARP poll, reported that the elderly were skipping food and medicine to pay for gas.
Research conducted by the MRC’s Free Market Project only amplifies the networks’ anti-Big Oil mindset. For instance, the Free Market Project has previously found:
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NBC and CBS repeatedly reported that gas prices are at a “record high,” but gas prices have not topped inflation-adjusted highs. Gas prices are actually lower than in 1981.
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During the Hurricane Katrina gas scare, the networks repeatedly broadcast gas prices on screen that were 75 cents per gallon higher than average.
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After the Hurricane Rita peak, gas prices fell 45 cents but CBS, NBC, and ABC continued to report on high gas prices four times as often as falling prices.
Source: Media Research Center
To schedule an interview with MRC President Bozell or an MRC spokesperson, please contact Tim Scheiderer (x. 126) or Colleen O’Boyle (x. 122) at 703.683.5004.
Some things are definitely meant not to be, like the Prophet Mohammed teaching capitalism to the West.
by Luigi Frascati
One great confusion in the otherwise already greatly confused societies of Islam is the combination and interaction of spiritual and temporal powers. Unlike the West where Church and State are separate, independent and each sovereign, Islam unites State and Religion together with less than auspicious results. Because State and Religion are one and only, for centuries Muslims have developed ways to integrate religious beliefs with the external economic realities of the nations they lived in. This has had varying degrees of compatibility with the empires and customs they encountered. For example, commerce has adapted to “al-urf”, the custom. But to adapt merchantism is one thing, to build a national financial structure with which to supervise and monitor all economic aspects of a country is quite another. The West has done it, sure … after two-thousand years of history, trial and errors. How can Islam even remotely hope to do it in twenty years.
Since the mid 80’s Muslim bankers and religious leaders have tried to develop ways to integrate Islamic Law on usage of money with modern concepts of ethical investing. By carbon-copying western financial systems and adapting them to the religious tenets of the Qu’ran, the idea was to reinvent the wheel. But the result is a hybrid of Capitalism mixed with Socialism and sprinkled with a heavy dose of politicism so characteristic of Islamic leaders – a kind of Frankenstein with a wicked soul, so to speak. Unfortunately this notion of Islamic economics and finance bound by religious tenets is a dysfunction of economic realities and an inhibition on the development of the regions of the world where Islam is most influential, and where traditional Islamic Law remains a factor in the Middle East ongoing economic disappointments. The weakness of the region’s private economic sectors and its human capital deficiency stand among the lasting consequences of the application of traditional Islamic Law to commerce and finance.
The pivotal point upon which this entire Islamic financial system is based, is that it operates on the basis of ‘zero interest’ in accordance with Qu’ran teachings. Because the Qur’an spoke against usury in the context of early Muslim society, it generally entails trying to remove or redefine interest rates from financial institutions. In doing so, Islamic economists hope to produce a more ‘Islamic society’. The new Islamic economic theory postulates that in Islam, much like the West, central banks would be the sole issuer of credit and money and this for very telling reasons: Islamic central banks should be moved by public interest and their very existence should be considered a social prerogative, so that the power to create money should be vested in them exclusively. In a ‘zero interest’ society, of course, manipulation of interest rates cannot exist. Therefore the tool of Islamic monetary policy is to be found in the expansion and shrinkage of base money supply, which would be allotted by central banks to individual banks to be administered. It is further postulated as obvious, that the larger the money supply, the more productivity it generates and the more spending it spurs. This idea, for now, does not seem to have worked well.
by Lance Winslow
Some people do not quite understand the issues with our economy and high fuel prices, which are a firestorm against our nations efficiencies and standards of living. Yet we must also understand that what we see today is nothing compared to last summer and the prices we saw last summer are nothing compared to the 2006 Summer Season, as the 2006 Atlantic Tropical Hurricane Season hits and the War with Iran gets underway.
You see when prices get really high and there is transportation disruptions from oil tankers, trucks or trains, we have more than just a price spike or supply issue, we actually run dry of fuel? What? Yes that’s right, run out. I do not mean to be alarming but, when trucks and trains stop, America Stops too. Most grocery stores and Major Retailers operate on a real time basis, meaning that Inventories of the past and big warehouses are not needed to the same degree as before. This is what the new economy is bringing. It means lower prices to consumers due to inventories being less and less cost needed to store goods for any amount of time.
Can you even begin to imagine no gasoline or diesel at the pumps? If you can’t well perhaps an Arizonian can tell you what happens, as they had a ruptured pipeline, which caused a supply issue, gas stations ran out of fuel. It was chaotic indeed, but it only lasted some 10-days, imagine a shortage of 3-4 months or even 6-months? Imagine what then? You see without fuel nothing, goes no where, very fast. Consider all this in 2006.
"Lance Winslow" – Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; http://www.WorldThinkTank.net/wttbbs/
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by Peter Kopitz
The world has been experiencing record high oil prices for a while now. Is this a temporary 
phenomenon, or an issue we have to adopt to in the long term? After all, the oil price was a quarter of the current price just a few years ago. Sadly, the geopolitical and technical factors pushing the price higher and higher every month seem unlikely to disappear in the short term.
One of the major factor is the growing tensions between the US and Iran. Tehran’s main weapon is not its nuclear program, it is its oil market, which is the fourth biggest in the world. Not only would any more serious tensions disrupt output, furthermore could Iran block the Strait of Hormuz, a strategic weak point for oil exports. Any disruption would be hard to swallow, given that most oil producers are already working close to capacity.
Then there is also Nigeria, which has been experiencing increased tensions in the Niger Delta, resulting in a 80% deduction of the usual standard barrel-per-day exports.
Moreover, there are refining capacity shortfalls, as no new refineries have been built in Europe and the US over the past 30 years, and existing facilities are old an desperately need repair. In addition, most oil producers are finding it hard to meet the surge in demand, and spare capacity is very limited. Further demand growth from the US and China will also not put a damper on future demand, further complicating things.
Overall, it’s anybody’s guess what will happen in the short and long term, and there is no consensus on the future trend. But one thing is certain, oil is a commodity, and it will be more and more difficult in the future to meet the high demand for this black gold; so prices are not yet set to rebound to lower levels.
Peter Kopitz is currently living in Bangkok, Thailand after graduating with Honors from the University Of Chicago Graduate School Of Business with a Masters Degree in Business Administration. He is actively involved in researching economic and political development in Thailand, focusing primarily on property development, security analysis and investment banking. Hawaii Home Loans | Honolulu Realtor | Hawaii Rentals
Article Source: EzineArticles.com