Do people agree with Rhandi Rhodes that oil prices are high because of speculation?

"Combined, oil and gas companies hold leases to nearly 68 million acres of federal land that are not producing oil and gas. The 68 million acres of leased, inactive federal land could produce an additional 4.8 million barrels of oil and 44.7 billion cubic feet of natural gas each day. That would nearly double total U.S. oil production, and increase natural
gas production by 75%. "

http://forums.therandirhodesshow.com/rr_uploads/drilling_report.pdf

12 Responses to “Do people agree with Rhandi Rhodes that oil prices are high because of speculation?”

  1. SCOTT M Says:

    Congressman Rahall’s committee has offered a strong denunciation of both the oil industry and the Bush Administration by pointing out that a significant majority of all oil bearing lands, both on- and off-shore, are already leased to oil companies but are not being exploited. Powerline, which appears to be a conservative “think tank,” reported on the recent meeting between members of congress and oil industry executives and offered a strong denunciation of our public policy on oil exploration and development, particularly as advocated by Democrats.

    http://www.
    powerlineblog.com/archives2/
    2008/05/020571.php

    There may be two sides to every story, but when those two sides are totally contradictory and the people are “financing” the dispute by paying exorbitant prices for gas and heating oil, we need to find out which side has more facts on its side than the other and “fix” the problem. The oil industry is obviously looking out for its bottom line and congress is obviously looking out for our votes.

    As a confirmed capitalist, I know that an oil company’s goal is to make money; the public interest is served only as a by-product of its effort to do so. I also know that an elected official’s goal is to get reelected and/or set up a lucrative career in the private sector if he retires before he dies; the public interest is served only as a by-product of his efforts to do so.

    How do we reconcile the public interest with the private interests of our publicly-owned corporations? How do we get greedy oil barons who never met a dollar they didn’t like on the same page as inept elected officials who don’t know the difference between an oil well and a wishing well?

  2. Anon Says:

    Oil prices are high because we’re depleting the Talibans bank account, and we’re dumb enough to jack their numbers back up… Worse part about it is… The US government is letting us.

  3. g Says:

    it’s a part of it…

    maybe not all…

    and if anyone thinks that oil companies want to drill more… then you’re not using your head…

    they don’t mind these prices…

  4. Ryan B Says:

    Oil consumption has gone up tremendously not only nationwide but worldwide. Production hasn’t. It’s cause and effect. I agree with your quote. The only problem is what happens when we start drilling more and China is willing to pay more for it than we are? Oil companies will simply sell it to them for as much as possible. Drilling is the only short term answer but there has to be regulation to keep the oil drilled in the us, in the us. You conspiracy theory idiots are crazy! Why would oil companies not want to produce more oil? More oil = more money regardless of the little bit that we will save at the pump.

  5. Mephisto Says:

    Yes he is. It is Fact, every time Bush makes public threats to strike Iran, prices tend to hike.
    Ever Notice he does it before every Summit w/o Congress saying anything.
    The World thinks and believes that Congress supports Bush.
    .http://www.naturalgas.org/naturalgas/extraction_offshore.asp
    with this history, are we to beleive that we have not developed new technologies to improve drilling and production…. just who do you think is fooled..

  6. Johnny Sokko Says:

    Absolutely.
    Can you remember any times when gas prices shot up considerably overnight? Like in response to a refinery fire or a hurricane?
    How can this affect the price of gas that’s already in the tanks at the stations except for speculation.
    That’s why, I feel, even though it would be some time before the drilled oil began showing up at gas stations, as soon as the drill bit touched the ground, prices of gas would start to go down. Maybe not too quickly at first, but at least they’d be going in the right direction.

  7. cattledog Says:

    Speculation would always effect prices but not that much… Rhodes is making excuses for oil corporations and the government. Oil prices and the petroleum is dictated by OPEC, a economic cartel that American oil interests have little pursuasion over… even if we opened all that area (it would take 5-10 years anyway to get real production out of that… but for argument’s sake let’s say we could get oil out of it immediately) it would be just a drop compared to the oil output in ALL the OPEC nations’ yield. Prices would reflect that drop…. which would mean regular people would not notice the difference.

  8. Warren T Says:

    YES THE SPECULATORS ARE PROBABLY PLAYING A MAJOR ROLL IN THE HIGH PRICES BUT IF THE SUPPLY OF OIL WAS NOT AS LIMITED AS IT IS THE SPECULATORS WOULD NOT BE ABLE TO INCREASE THE PRICE OF OIL. IF YOU HAVE TAKEN ECOMONICS 101 YOU WILL KNOW WHAT I AM TALKING ABOUT. RIGHT NOW THE PRICE OF OIL IS INELASTIC MEANING THAT THE HIGHER YOU RAISE THE PRICE THE MORE YOU MAKE. IF THE SUPPLY WAS LARGE ENOUGH IT WOULD BECOME ELASTIC MEANING THAT BY LOWERING THE PRICE YOU WOULD MAKE MORE MONEY.

  9. archkarat Says:

    Part of the reason. really only cure I see is protests or riots. If this keeps up there could be cities on fire across the world.

  10. a bush family member Says:

    China and India is the main cause. Thank Bill Clinton for letting them into the WTO. If they were not in the WTO then they would not have a trade surplus with the western world.

    Bill Clinton got paid money from China. U.S. gov. documents show he was forced to return the money.

    China Is Against Free Trade. What Should Be Done About Its Protectionism?
    http://answers.yahoo.com/question/index;_ylt=ApJiM9ahtMcmuKBl6KGjIQ4jzKIX;_ylv=3?qid=20071023144824AAfmpX7

  11. Norm Says:

    Yes , Yes, Yes, Speculators are recouping the money they lost in the Real Estate bubble and Fed chairman is supporting it. De valuating the dollar has also had its effect, and to prove the point, there is as much 4.00 gas as you can buy available..No shortages and with reserves building up, we may see a drop at the pump to move the product. This game smells like the War on Drugs, pour great amounts of money at a problem which cannot be solved and then raise the street value, more expensive for less product.. In both cases, Oil and Drugs, there is ample supply, you just need the cash.

  12. miz churie Says:

    oil prices are rising because the Bilderberg group set the target price as $200 a barrel & at the moment it’s ‘only’ $138
    http://dprogram.wordpress.com/2008/05/21/goldman-sachs-bilderberg-target-of-200-dollar-oil-nears/

    the govt shouldn’t be chasing after oil anymore, we should be using the resources we have now to develop new forms of energy