The problem with drilling here, especially in the Gulf is the environmental impact. When all is fine, no one complains but when accidents happen then we complain. You can't have it both ways.

We want jobs but want clean air and water too. Many of these places around the world are willing to let companies destroy every living thing in their presence in the name of having a factory there.

Look how they had to shut everything down in Beijing to have the Olympics. Taiwan, Malaysia, India, etc all allow the raping of their land in exchange for economic growth.

If we want lots of jobs and cheap oil then we will have to compete with the world and forsake our air and water.

 

And there is no enviromental impact in other countries? The problem here is both NIMBY and catering to the extreme touchy feelie class. There is such a thing as over doing it, and we are doing just that.

 

Good Lord K. You have to drill somewhere for oil. (facepalm)

 

Have you researched anything in regards to the HUGE reservoir of oil under the Gulf of Mexico? Are you aware that it is is under many thousands of pounds of pressure attempting to get out? Are you aware that it is naturally leaking millions of barrels of oil into the Gulf? Are you aware that the Gulf of Mexico in it's lifetime has almost sterilized this planet twice from methane gas leaking from it....and it's headed that way again. We'd be doing ourselves a favor and the rest of the world by taking some of the oil and gas out of it before it explodes...again. But then again, the Chinese are putting up rigs on it and should they have a failure, well, you can stick it where the sun don't shine cause I can assure you they could care less about yer pretty beachs.

While deep water exploration is not a perfected science, the only way to get that science to go out there and drill. Yeah, the BP rig was a major goof. Mostly because of the Gov't golden boy, Haliburton, who installed the known faulty head, and then advised BP accordingly. But you won't read that in the media. I wished I could really express my contempt for that company but if you think the taxpayer was getting screwed with the $10,000.00 cresent wrench or the $7,000.00 toilet seat, that's incredibly small potatoes by comparison.

 

I sometimes wonder what the general public will do if OPEC ever decides to not trade oil in Dollars anymore but switches to a different currency such as the Yen etc.....people would see prices at the pump jump vast amounts overnight.

There is a downside to printing money...hopefully we don't print so much of it we have to find that out.

 

OPEC is already trying to convert to another currency, theirs. The price of gas here would be about what they pay in Germany or about $8.00 a gallon. The Russians and the Chinese no longer use the US dollar for trade currency, they are using their own. Inflation is something we can't avoid anymore. If you have a freezer, I'd fill it up, NOW! Then you need to go buy another freezer and stock it up as well. Food is going to be going up a lot faster than fuel. If you are a stock investor, I'd move my money out of everything and put it in food company stocks like ADM or the like. What I see on the horizon is not a pretty picture.

 

The problem is that places like China don't care about their environment or their people. Americans tend to care about the environment a bit more than other places. Plus our media will tell what's going on. Do you think the STATE MEDIA in China is going to say anything against the government there?

I have no problem with drilling there but my point is that we can't complain if bad things happen. No one is going to drill there if they risk ponying up $20 billion for reparations. Accidents happen when drilling, shipping or piping oil. It isn't if rather when.

 

Saying something like this could net you a visit from the FBI and Homeland Security. Is there someone at your front door?

Our STATE MEDIA might tell you something, but it's not necessarily what's going on.

 

Onerous gov't environmental regulations are the reasons why the Deepwater Horizon rig even existed. It is much better and safer to drill on land (ANWAR, etc.)

 

Love all this fear mongering about oil being traded in another currency.

1. OPEC does not have a currency, OPEC is a trade bloc not a country ( and includes countries in South America ).

2. The only other currency that makes sense to price oil in in the Yuan, due to being the other high user of oil, China.
- Funny part, the Yuan while claimed to be "free floating" now ( it was pegged to the USD for a long time, with very little float ) China is not going to let it go too far from where it is now. NOV-2010 was 6.6537 to 1 USD, and the forecast for JUL-11 is 6.333 to 1 USD, or about 5% change.
Sounds like a small amount, until to take into account China's economy is growing at ~ 7% per year when compared to the US flat +/-.
Now that 5% looks even smaller. That would make a lot of difference in the pricing of oil to use the Yuan. The US is still China's largest trade partner, they cannot let the Yuan float to what some would call a real value, and still have the US purchasing the metric tons of items per day that we do. The previous congress tried to make this a big deal in advance of the last G20 summit. The US economy & currency in the state that it is in, China still needs the US to buy a ton of stuff per day, and Walmart makes sure of that. Want to see the bulk of the items double at Walmart, let the Yuan trade to a real level, could be closer to 2.5x what the prices are today.

OPEC can pick one of the 12 currencies to price oil in, but that could make things worse, depending on which one used. The value of the Bolivar ( was just devalued 12 months ago by 50% ).
What are the other currencies that can be used, Iran, Iraq, Libya ? exchange rate on any of the 4 above is too volatile for the other members to want to use it. That leaves 8 others.
Part of the reason for using an external currency for pricing was so 1 member could not screw up the other 11, if they did not like a policy set.
Another reason was to price it in the largest importer's currency, which makes it US or China. Currency wise, same thing.

Any of the 12 members currencies exchanges against the USD on the open market, any any currency devaluation of the USD is reflected in the open market exchange rate.
Saudi Riyal exchange rate is relatively flat against the USD, so to price oil in Riyal would make as much sense as pricing it in Yuan.

A spike in the Riyal to USD is a change from 0.266 USD to 1 SAR to 0.2672 USD to 1 SAR.
Huge value problem there.

 

It's not "fear mongering", it's reality. OPEC is beginning to demand payment in other currencies for their own protection. Long term, it applies downward pressure on the USD, which will end up costing us more for oil and other commodities in the market. The dollar is suffering a slow death by a thousand cuts.

Even Formula 1 teams, beginning in about 2006-7, started to have their contracts written so that their sponsors pay them in Euros instead of the USD, when those contracts had been written in USD for decades. This is why the IMF has begun selling bonds to prop up SDR's.

All fiat currencies end in a value of zero, eventually. The end result will be some type of "global currency." Just a matter of when, not if.

www.imf.org/external/np/pp/eng/2010/041310.pdf

http://www.reuters.com/article/idUSTRE70B11S20110112

http://globaleconomicanalysis.blogsp...rves-jump.html

http://online.barrons.com/article/SB...mod=BOL_hpp_dc

 

eh im not worryed they prob dont like him as much as everyone else

 

They can get payment in any currency they want, if the product is priced in USD, that is the open market exchange rate on what ever currency to USD is on the given day.
Not sure where you get your currency info, how is getting paid in a currency for a product priced in USD, converted on the open exchange market, going to apply downward pressure on the value of USD ?
Might as well say when I travel to Europe for business and convert my USD for Euros or Pounds ( most local vendor want Euros, some will exchange USD on the spot in Europe for an inflated exchange rate ), that I am causing downward pressure on the value of the USD as well.....

The Euro has not been around for decades, so it would be kind of hard to write a contract in a currency that did not exist until 2000.

Try having a world currency when governments won't follow G6 rules for minor things, let alone inflation and unemployment rates. We all know how much North Korea and China like being told what to do, let alone Iran and other African countries.

Again, fear mongering, plain and simple....

 

You misunderstood my statement about F1 contracts.
Please re-read and understand that those prior contracts had previously been written in USD. You always seem to take the attitude that someone is lying to you when you are given information that is new to you.


Also, please read the entire IMF link above. If you fully grasp it's contents, including the chart, you will see where the world is headed. To be sure, the American standard of living will decrease in the years ahead. He who controls the money, makes the rules: http://online.wsj.com/article/SB1000...NewsCollection

Regards.

 

Not your guy though...