Corporations bid for Iraqi oil

Supply will surely rise with the Iraq auction of oil contracts.

During an auction of Iraq’s best undeveloped oil fields that concluded Saturday, Baghdad awarded international companies development rights to seven fields that within a few years could nearly double the country’s oil production.

It's very unclear who got what, but considering the billions the U.S. has poured into Iraq, one would think we would at least get the oil. We spend trillions in Iraq so China can develop the oil?

The corporations that won represented a diverse group of nations, including Angola, Malaysia, Turkey and China. They were vying for 20-year service contracts that will pay them a fee for each barrel they produce above a government-set baseline.

Here Comes China with Dr. Doom Right Behind

While Dr. Doom (Roubini) warns of a double dip recession, an interesting New York Times article also appears, Asia’s Recovery Highlights China’s Ascendance.

In past global slowdowns, the United States invariably led the way out, followed by Europe and the rest of the world. But for the first time, the catalyst is coming from China and the rest of Asia, where resurgent economies are helping the still-shaky West recover from the deepest recession since World War II.

While Roubini warns on oil price increases breaking any potential recovery, we note China's robust growth is causing oil prices to rise.

Anyone recall China's Quest for Oil quoting deal after loan after acquisition?

Was the 2007 Oil Bubble a huge Short Squeeze?

Here are a few snips from an explosive article in Forbes magazine:

When oil prices spiked last summer to $147 a barrel, the biggest corporate casualty was oil pipeline giant Semgroup Holdings, a $14 billion (sales) private firm in Tulsa, Okla. It had racked up $2.4 billion in trading losses betting that oil prices would go down.... With the credit crunch eliminating any hope of meeting a $500 million margin call, Semgroup filed for bankruptcy on July 22.

But now some of the people involved in cleaning up the financial mess are suggesting that Semgroup's collapse was more than just bad judgment and worse timing. There is evidence of a malevolent hand at work: oil price manipulation by traders orchestrating a short squeeze to push up the price of West Texas Intermediate crude to the point that it would generate fatal losses in Semgroup's accounts.

Oil Drops Below $60 , IEA to reduce Demand Estimates Further

New Deal Democrat wins the Prediction Prize by going against the tide and predicting oil would drop when almost all were predicting $200 oil.

Oil Falls to 19-Month Low, Gasoline Tumbles, on Demand Outlook:

The IEA, which coordinates energy policy in 28 developed countries, will reduce the estimated growth in global demand for a third month in a report tomorrow, according to four former IEA analysts. Energy prices also dropped because of declining equity markets and a rising U.S. dollar.

``It all comes back to the economy and how deep folks think the recession will be,'' said Rick Mueller, director of oil markets at Energy Security Analysis Inc. in Wakefield, Massachusetts. ``Demand is poor and should get worse as the recession deepens.

Commodities Like a Balloon After a Pin is Stuck in It

Balloon Pop with a Pin

Confidence is at rock bottom. No one wants to be long any commodity. - Jamie Craggy (source Bloomberg)

It appears that New Deal Democrat maybe right on possible deflationary recession.

Oil, Copper, Commodities in Freefall as Economic Woes Deepen:

Crude oil and copper led a drop in commodities, extending a record quarterly decline, on expectations an economic slump will sap demand for raw materials.

Cult of Corruption in Federal Agency that Manages Energy on Public Lands

I believe the management we were under was showing favoritism to the oil industry

From CNN, the Minerals Management Service, part of the Department of the Interior, is a cult of corruption. This agency manages oil, gas, minerals on federal lands.

A report, conducted by the Interior Department's inspector general and released earlier this month, found that employees at the agency received improper gifts from energy industry officials and engaged with them in illegal drug use and inappropriate sexual relations. It looked at activities at the agency from 2003 through 2006

A whistle blower lost his job and was told to not investigate why Shell Oil had raised its oil transportation costs in their contract with the Government.

$2.93 gas this morning

When I did my Countdown to $100 Oil?!? series over the last few months, a few people (not here) offered that we would never see sub-$3 gasoline again.

This morning on the way to work I counted 6 gas stations selling gas under $3, two of them at $2.93.

The Year over Year change in the price of a barrel of Oil is on the verge of going negative. The commodity bubble is popping big time.

GOP VP - Palin on Economics & Trade

Boy o boy. Oh howdy. Is it tough to find accurate information on Governor Sarah Palin, the GOP VP nominee.

Frankly when all one can find about the candidate for Vice President of the United States are thousands and thousands of posts about babies and daughters and daughters with babies and babies with daughters of babies....millions of nasty bits...gathering to bytes, cloggin' up those Internet tubes......well, the world is clearly sexist as hell.

I'm sorry that's the bottom line. You've got a candidate for the 2nd highest public office in the United States and the blogs read like Jerry Springer.

For all you other people out there, all 2 of you, interested in finding out actual policy positions I managed to dig out a few references:

First, Project Vote Smart I'd say is the most credible.

To the left but has a few economic positions:

CFTC Alleges Dutch Trading Firm Manipulated Energy Market

CFTC Alleges Dutch Trading Firm Manipulated Nymex Energy Market

The U.S. Commodity Futures Trading Commission, under pressure from Congress to police markets in the wake of record energy prices, accused Optiver Holding BV of manipulating U.S. energy markets.

The allegations against the Amsterdam-based hedge fund come as the Senate prepares to vote as early as tomorrow on legislation to curb speculation in energy markets and expand the commission's authority and staffing.

``Congress is looking for someone to blame,'' said Kevin Book, senior vice president for Friedman, Billings, Ramsey & Co. Inc. in Arlington, Virginia. ``The CFTC is trying to make sure it's not them.'