Thursday, June 9, 2011

But it's not BP's fault!

Unemployment claims ticked up another thousand last week continuing what the Republicans affectionately call it the “jobless recovery”. If Presidents are in fact responsible for jobs it should be noted that Obama has produced on average about a million jobs a year which is on par with all modern Presidents except one. Geo W. Bush produced exactly zero jobs during his Presidency and oversaw the only decade ever where there was no net growth in the economy.

Oil was up for the second day following the failure of OPEC to agree on a proposal by Saudi Arabia to increase production in order halt speculation driven price hikes. This move was opposed by number of oil rich countries including Iran and Venezuela who already produce as much oil as they can. There is of course no shortage of oil so pumping more in hopes of producing a market glut doesn’t sit well with the smaller producers.

The one thing there is a shortage of is oil tankers as many are parked offshore with full tanks waiting for the price to go up. Crude oil available to US refineries and stocks of gasoline remain high even as demand lessens. Goldman Sachs and other banks that trade heavily in oil continue to predict $150/barrel oil and $5.00 gasoline while selling hundreds of trillions in derivatives to industry customers to hedge against the wild price swings they themselves are predicting. (what’s a word for fraud that rhymes with treason?)

Republicans blame Obama for high gasoline prices based his imposition of drilling regulations after last year’s BP disaster. This week Exxon-Mobil announced the discovery of two new proven fields in the Gulf of Mexico each estimated at 700 million barrels of recoverable oil. After reports by fishermen the Coast Guard confirms a seven mile long oil slick lying a few miles east of last year’s BP well blowout.

Reports distributed to news media claim that government tests show the oil to definitely be from a different source. The news reader I saw said this three times to make sure you understood this wasn’t BP oil. (Great, there is somebody else’s well leaking huge volumes of crude oil too.) BUT IT”S NOT BP! (a major sponsor of this network)