Price increases and shortages

[Rhodie Ranch]

Just had to look that news up. Two Gulf of Mexico projects and one in Alaska.
Why did they cancel all three projects? It read to me like this:

Well, you know that we had to like make a decision about this, and however it was played out, like we took the data and analyzed all the high and low points of the scale, and then, you know, the pilotable point was made that required a thorough, you know, like a consensus of opinions from officials close to the projects, which then, you know, made the necessary adjustments in the relational confluence of the forces that could possibly, you know, impede the................................................................................................................................................

 

[meadow]

Feds cancelled oil leases in Alaska this month.
Wednesday, Thursday, Friday?!?!?!?

Because, of course they did. [trying to refrain from something more sarcastic]

Took me awhile to figure out the secret code.

 

[Dirtmechanic]

I figured it out. Sorry I have taken this moment to record my thoughts but consider yourself my diary.

The purpose of the Federal Bank raising rates is literally to destroy the economy. The rough tool in our sophisticated age seems stupid to me but these are not my words, you can find the idea in the financial news sites.

Demand for under supplied commodities and other necessaries then will not or does not continue to price spike, which is inflation. So that is an idea that is not unalienable to the Fed. Demand Destruction is the new political buzzword, because it executes the purpose of raising interest rates while not raising the interest premium that should be paid on 30 Trillion of USA Government Debt.

What a tangled web we weave for our future.

Traditional raising of Fed rates is stupid for our US Budgeting and world banks have also Globally understood this is good for the politicians that support them as places like Japan and UK have massive debts for the same lack of ethical control in their respective leaderships.

Personally I think the website reddit has the right Idea, upvote the politicians and they get paid more, downvote them off the front pages of useful laws and they get less. But for freedoms sake make their votes further subject to review and overview of the public vote. The people that are paid by the treasury cannot make rules for the treasury. Period. My representatives are not paid by the government. The government pays for its representative. Thats why they are so nasty during election times.

I really like that payment tier idea! We should change their pay structure. But they are in charge of their pay structure! That is a ethics point to consider.

ps: remember how judges have to recuse themselves for self dealing risk, yet the houses and senators and others like governers do not since they are charged as the babysitters. I think the internet is showing us some unpleasant reality.

 

[flowerbug]

speaking of a partially regulated market driven system as anything other than chaotic as some sort of conspiracy driven thing is rediculous.

 

[heirloomgal]

Gas is $2.22 L Insane, just insane.

 

[Rhodie Ranch]

3.78541 liters to a gallon.

I'm at $4.90 per gallon for regular. That would make my gas $8.40 per gallon, at your CAN prices.

'thud...'

 

[ducks4you]

STILL costs over almost $70 to fill a 15 gallon tank, regular.
Twice to fill up a diesel truck with a 30 gallon tank.
"I am gonna Make it...though THIS year...if it kills me!"

 

[flowerbug]

this all is why we garden. or at least a part of why. to be able to grow some of your own food at least gives you some part of a cushion and reduces some expenses.

as for griping about inflation and the means of cooling things off. cheap and easy money for 13 years. you don't push that much force into something without it eventually blowing up. the only way the government knows to cool things off is to raise interest rates so that lessens overall demand as people find it harder to finance things they want to do. it's a broad hammer, but it's mostly what they know they can do. simply asking people to do things surely has never worked well. c.f. recent examples not worth repeating anything about.

 

[Ridgerunner]

Supply and demand, it drives capitalism. To paraphrase what Churchill said about democracy, capitalism is the worst system but better than all the others. I don't want to get too deep into politics but the checks and balances of supply and demand can be really hard on people.

I used to work for an oil company, there was a definite cycle. Oil prices would be high and we would spend a lot of money on exploration and development. Production would rise, oil prices would drop, we quit spending much money in exploration and development. I'm talking about the oil industry in general, not just my company. Production would drop and prices would rise. We'd start spending money again.

We want immediate relief but this is not an overnight thing. Most of the projects that produced a significant amount of oil took several years from start to finish. This is in "normal" times. Toss in an oil embargo or a war and it gets even messier. I'll mention that political stability was a big part of deciding where to spend the exploration and development money. It may be relatively inexpensive to produce oil in some countries but the political risk of losing it all might not make that a good place to invest.

Ducks, I don't have a clue when prices will actually drop significantly at the pump. They will, always have.

 

[seedcorn]

Unfortunately it’s not a simple supply/demand issue. Most of what we are experiencing is in line of “because we can.” Too many things are shut down to increase margins not over all profits. I get it but we are seeing the “haves” flexing their power. (Before anyone thinks I hate the true rich, understand too many are voting for politicians who just hand over money to people who won’t work.). While trying to encourage a 2nd grader in Big Bros. Lunch buddy program, he the said, mom doesn’t work so why should he? Government will see we have everything we need...... truth from the mouth of babes