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Luis Palau
Clinton to Abolish the Relationship of Supply & Demand and Risk Premiums
I know who I am voting for now. It will have to be HRc. This person is not just a candidate, but some kind of deity. She has promised HERE that if she is elected that the price of oil will immediately drop because [get this] …”I predict to you, the oil-producing countries will lower prices to stifle Americas incentive to develop alternative energy.” Does she not know that the oil producing countries don’t set the price of oil, the market does? They can only “attempt” to control the supply of oil and to bring down the “market” price of oil they will have to produce more oil, something that cannot happen easily or is easily sustainable.
Further, the largest market component of the price of oil today is the “risk” premium that is built into the market value. This is a premium that is inherent in the price of oil in view of the possibility of the curtailment of supply due to Middle Eastern hostilities. I believe that you can equally argue that a precipitous withdrawal from the Middle East by the U.S. could actually increase this risk premium.
To me the most obvious and likely cause of a reduction in the price in oil following an HRc election victory would be the decrease in aggregate demand that would be caused by the world wide recession that could very likely be provoked by the tax policy that HRc has asserted during her campaign. If you think this is greedy Republican talk, just sit back and watch. Hopefully your job is protected……
Now That is What I’m Talking About !!!
Again, I have been away tending to pressing family matters, but I wanted to comment on this recent article about a new vehicle. BMW is taking to (very limited) production it new H7 Hybird Gasoline/Hydrogen engine powered sedan.
I have laughed and scoffed at the E-85 solutions, the Prius Hybird and the role that Carbon Offsets are alleged to play in it all, but this in my opinion has the potential to be the real deal. I will sign on when they move this to a straight Hydrogen fuel powered vehicle and ditch the gasoline altogether. This vehicle has recently been tested in Palm Beach and I am including a link HERE for the complete article from the Palm Beach Post. I encourage you to read it. I think the government and al gore could better spend their time supporting this type of effort as opposed to the nonsense they are spieling.
This could take some time to get the tank down to a more manageable size, engineer affordability into it and provide for a better infrastructure for Hydrogen (gas stations), but even if it is 5 or 10 or even 15 years, this is a better solution and we should drill all the oil we can to keep the economy alive until we reach the “golden age” of motor fuel.
By-The-Way, it is pretty good looking isn’t it? I think it already looks much better than the current (disappointing) iteration of the BMW 3, 5 and 7 series. This would really be a sweet deal concerning our “friends” in the Middle East.