Tag Archives: oil

Oil Glut

bkssinclairoil1926

By Katharine Otto, January 20, 2018

Tracking history through personal time shows how my interests evolve.  In January, 2008, I was reading Oil! by Upton Sinclair, the 1926 novel he wrote about the oil industry.

In January, 2018, ten years later, I have read the biography of John D. Rockefeller, Sr., Titan, by Ron Chernow, published in 1998.  This book goes into detail about Rockefeller’s childhood, personal life, his creation of Standard Oil and business methods, retirement, and philanthropies.  It gives short character sketches of most of the people associated with Rockefeller.  It makes an attempt to reconcile the strange mixture of rapacious greed and Baptist charity that coexisted in the man.

I didn’t know it then, but the novel Oil! was probably based on the true story of Standard Oil and the way it destroyed, compromised, or bought out its competitors.  The monopoly was dissolved in 1911 when the US Supreme Court found Standard Oil in violation of the Sherman Antitrust Act.  Chief Justice Edward White gave the company six months to spin off its 33 subsidiaries.

If the purpose of breaking up Standard Oil was to destroy the monopoly and allow for competition, the plan backfired.  The same insiders controlled stock in all the subsidiaries, Chernow notes, and in the decade after the decision, the total value of the assets quintupled.  Rockefeller, who had a quarter of the stock in the parent company, and received the same amount of stock in all the subsidiaries, went from being a mere millionaire to a having net worth of  $900 million, and thus became the richest man on the planet.bkschertitan1998

In 2018, the largest oil companies in the world are Standard Oil descendants.  Standard Oil of New Jersey became Exxon; Standard Oil of New York evolved into Mobil; Standard Oil of Indiana became Amoco; Standard Oil of California was renamed Chevron;  Atlantic Refining morphed into ARCO and eventually Sun; and Continental Oil became Conoco, now a unit of Dupont and Cheeseborough-Ponds, according to Chernow.  British Petroleum later took over Standard Oil of Ohio.

Also in the past year, I have been reading about the divestiture of fossil fuel stocks from a number of pension plans in various countries, including the US and UK.  The Norwegian central bank has recommended similar divestiture from its sovereign wealth fund to avoid too much dependence on oil in its portfolio.

wsjoslooil111717This leads me to believe the industrial age, with its over-reliance on fossil fuels, specifically oil, has peaked, and we are on the path to some new paradigms regarding energy and its use.  I’ve speculated about what sells oil and realized war, international shipping, airplanes, plastics, trucks and automobiles provide some of the largest markets.  In other words, the “global economy” depends heavily on oil and will for the foreseeable future.

To reduce dependence on fossil fuels requires a longer and broader perspective than we have considered so far.   The drum beat for “growth” and “progress,” and for the “global economy,” American dominance, and “jobs,” presumes a continuation along the paths we have taken so far, yet they have led to world-wide malaise, toxicity, and conflict.  Will more of the same be better?

The US dollar lost 95% of its value between 1913, when the Federal Reserve Act was passed, and 2010.  More money isn’t necessarily better, and it leads me to wonder if the frenzy over money, from individual to international levels, misses the crucial issues.  They say money doesn’t buy happiness, but worry over money buys only pain.  They also say money is a symbol for energy, but energy blocked or misdirected, like money, festers and ultimately damages the host. Is more energy better, if it causes destruction?

Oil is the new gold, in today’s economy.  Oil may be more useful than gold, but the way it is used leads me to question whether we are wasting or misspending our energy and resources to acquire only excess, pollution, and trouble.

Oil has become so integral to our 21st century lives that it’s hard to imagine life without it. It’s also hard to imagine the pristine conditions the planet enjoyed before humanity started extracting that gooey black stuff from under the ground and spewing its spent components in the air, dumping it in the water, and spreading it over the land.

Does “the economy” really need to grow, or does it need to retract a little and engage in some self-reflection, to appreciate and make better use of what we have?  Will the “growth jobs” of the future concern themselves with cleaning up the ocean gyres, planting trees, and making re-usable shopping bags?  Are American citizens and taxpayers under any real obligation to support wasteful government mis-spending of empty money that rightfully belongs to the unborn?

Anyone who supports return to a healthy planet should consider how our national policies create artificial markets for fossil fuels, global warming, and planetary suicide.

IS THE DEMISE OF THE RFS IN EISA 2007 AT HAND? — Stop Mandatory Ethanol Blog

Anyone else notice anything strange about Trump’s cabinet appointment process? There is only one secretary level cabinet appointment left: Secretary Of Agriculture. Why is SOA the last appointment? Is there some controversy within the new administration already? Remember, Trump campaigned in the heartland, pandering to the corn state voters, promising he would not repeal the […]

via IS THE DEMISE OF THE RFS IN EISA 2007 AT HAND? — Stop Mandatory Ethanol Blog

This blogger gives detailed and valuable information about the ethanol mandate passed by Congress in 2007.  I stand firmly for absolute repeal of this mandate by the 2017 Congress and hope others see the wisdom of getting this law off the books.

 

Revive Passenger Rail

traintraincommi20896November 11, 2016

Now that we have a Republican president-elect, one who some say will support infrastructure re-building, I’d like to put in my bid for passenger rail.  This is not a new issue for me.  In fact, I wrote President George Bush a letter about it in December, 2005, posted it on my now-defunct website, and sent copies by snail-mail to multiple players on House and Senate committees.

As I see it, the primary reason passenger rail has given way to the private automobile is that the roads and highways are under the public domain and maintained by various Departments of Transportation, but the rail lines are owned by private corporations, like CSX, Norfolk-Southern, and Western Pacific.

President-elect Trump has indicated he wants to expand eminent domain, but no one has suggested eminent domain should be used to acquire corporate land, especially land that holds such a nationally valuable asset such as rail infrastructure.

For a little background on this particular subject, I’m posting below the un-edited letter I wrote to President Bush in 2005.  I have not followed Amtrak since but still believe the passenger rail system deserves careful consideration in light of the energy crisis, global warming, oil pipelines, fracking, automobile congestion, traffic fatalities and and other unhealthy and energy inefficient practices that we have inherited.

 

December, 2005

All Aboard for
DAVID GUNN
 former CEO of Amtrak

A Voter-Citizen-Taxpayer  Apology  For the way he was treated by
the United States Government

George W. Bush
Chief Executive Officer, USA Corporation
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500

Dear George:

The jig is up, Prez.  The plutocracy can no longer hide the garbage it has dumped in our laps, and the “oil crisis” is the pivot point. This latest ploy to churn public assets into private friends’ hands is the last straw.  Let’s compute taxpayer costs of the artificially created markets, fake wars, price supports, subsidies, duties, tariffs, and taxes, at every step of the exploration-to-drilling-to-gas pump vampirism.  Let’s add up the costs to voter-taxpayer-citizens of US government spending to assist US corporations engaged in domestic and foreign oil exploitation, and all the political “friends” who are selling war machines to every country with the money to pay for them . . . and then explain why you want to starve the US public transportation system.

Yes, I am talking about Amtrak. I last traveled Amtrak in May, 2004.  When was the last time you did?  Even though the House last week has tentatively approved $1.315 billion for Amtrak, your original budget provided no money for passenger rail service.  Meanwhile, Amtrak ridership has grown for three straight years, reaching 25,374,998 in FY 2005.

I learned a lot on my Amtrak trip.  Bureaucratic red tape delayed my Silver Star five hours.  I know, because I spent that time shooting the breeze with off-duty conductors and engineers.  They told me how much they respected David Gunn.  They said he’d made a monumental effort to locate un-catalogued warehouses full of parts, supplies, tools, and other equipment that had been lost for decades.  By indexing these supplies, he made it easier for Amtrak employees to find the items necessary to fix problems quickly, efficiently, and inexpensively.  They said Amtrak employees at all levels of the system respected and liked him.  Their attitudes showed it.

You might understand why I was horrified to learn the Amtrak Board Chairman David Laney, Esquire fired Mr. Gunn November 9.  It doesn’t make sense to this aging Boomer, who believes I’m more competent to provide for my future than you are. How, in this “oil crisis” can you justify disabling the most efficient and time-tested use of transportation energy ever devised?

Are you crazy?  I must be crazy to subsidize this incompetence.  So I work and spend as little as possible, to reduce my taxes legally.  The best things in life really are free, so far. Meanwhile, this is how I vote my tax dollars:

DEFENSE – 0%
AMTRAK- 100% of my tax dollars for the rest of your term
(except for 2005, which I’ve already promised to West Central Psychiatric Hospital in Columbus, GA)

One citizen = one vote

Here’s what we need to do.  Eminent domain all the intercity train tracks back.  Passengers have priority over freight, because the passengers pay the taxes and buy the freight.  If the United States Supreme Court can take Susette Kelo’s neighborhood for Pfizer Corporation, the US government can nationalize the rail lines and maintain them as part of the transportation grid.  Link them to the interstate highway system under the Department of Transportation’s maintenance budget, and voila, Amtrak begins to look a lot more attractive.

This cost-saving move will liberate Amtrak to run a user-friendly railroad passenger and freight service. First, we fire the idiots who are quibbling about food cars.  Can’t the US government make a profit on a food monopoly in a hungry, captive, market, with money to spend, on a long distance trip?  Lease me a franchise food car on any Amtrak train, and I’ll show you how.

Better still, lease me a franchise cyber café car with a liquor license.  Think you could pull some strings and get me one of those?  Solar panels on the roof, and an outdoor smoking patio at the back of the car?  Did you know the government gets $3.50 for every legal fifth of liquor sold?  And the tax on cigarettes was 76 cents a pack, last time I checked.  It stimulates the economy to encourage these vices.  Why fight it?  If you want to privatize government, let’s do it in style.

As for Express Trak Freight . . . Do UPS and FedEx pay you to lose money?  They’re getting good value for their shareholders.  I wish the CEO of the USA Corporation could claim as much.

I believe the USA has the worst public transportation system in the world, but I haven’t been everywhere you’ve been.  Tell me, does anybody have worse public transportation than us? Not counting Iraq?  I’d love to see some pictures.  Remember, I pay your travel expenses, but you don’t pay mine.  I stay home, monitor the domestic front, and write letters.  Lots of them, as you probably know.

So George, ask DOT Secretary Mineta to look into that fancy Japanese railroad technology, but make sure he understands we don’t want the equipment unless they teach us how to install and service it.  The technology is worthless if you don’t have local skilled labor to keep it running right.  Besides, if China blows Japan out of the water, we lose if we can’t maintain our own stuff.

This way, we could bring soldiers home and put them to work on the transportation infrastructure. Same salary and benefits.  Help local communities upgrade local systems, so people who can’t afford cars can still work.  I’d support that taxpayer expense.  Help them help themselves, and all that.  Teach a man to fish.

Speaking of the Department of Transportation, what is that $1.1 billion federal grant to Georgia’s DOT for?  Our local legislators plead ignorance.  Is it to promote this Interstate 3 idea between Savannah, Augusta, and Knoxville, Tennessee?   I hear you want to cut a wide swath with barricades at eye level along the Great Smoky Mountains National Park, some of the most beautiful scenery in the country.   I can understand why you’ve kept this funding bonanza quiet.  It appears you don’t want Americans to know how you’re spending our money here.  We live here, George.  We have a right to know.

Now, if you want to allocate that $1.1 billion to reviving the Nancy Hanks passenger train between Savannah, Macon, and Atlanta, I’ll be happy to help, if you’ll  re-hire David Gunn.  I would eagerly support that taxpayer expense.  Mention it to Governor Sonny Perdue, if you think it’s a good idea.  I write letters to him, too.

You and I begin to speak the same language if you talk about an environmentally friendly passenger trains through our lovely country.  Train travel takes us beyond media hype, to the America that exists in three dimensions.

Next question.  I’ve been doing research on the National Rail Passenger Corporation (Amtrak) Board of Directors.  Let’s see if I have this straight.  The board is supposed to have seven members, but it only has four.  As a member of your Cabinet, DOT Secretary Norman Y. Mineta holds one seat.  Of the three remaining members, all are Bush appointees, but only one of them has been confirmed by the Senate.  This gentleman is David M. Laney, Esq., Chairman of the National Rail Passenger Corporation Board of Directors and the man who fired Amtrak CEO David Gunn on November 9, 2005. The other two members, Enrique Sosa (announced April, 2004), and Floyd Hall (announced August, 2004), were recess appointments and were never confirmed by the Senate.  Not only that, but their terms are due to expire this month.

Of course everyone questions whether Mr. Gunn’s firing was legal, a point raised by Transportation & Infrastructure RR Subcommittee Chair Steven LaTourette (R-OH) and echoed by others.  What, exactly do the NRPC’s by-laws say about this?  We need to clarify them so this doesn’t happen again.  In fact, I believe the NRPC should be scrapped, and the Department of Transportation should embrace Amtrak under its protective funding umbrella.  This would elevate passenger rail to the same status as the private automobile and dramatically reduce our perceived dependence on foreign oil.

In any case, George, which member of the current board represents any opinion but yours?  And who gave David Laney that $100,000 for your election campaign?  What do these mysterious benefactors say about Amtrak?

I longer feel obligated to put up with this.  As government costs more and more to do less and less, I begin to wonder what I need government for. Not just you, George, but the entire federal government, including the Legislature and the Supreme Court.  Especially the Supreme Court, after the Kelo decision, but I can deal with only one problem at a time, since don’t get paid for this and have to make my time count.

You made a big mistake firing Mr. Gunn.  He came out of retirement to work for you in May, 2002, so what changed?  Makes you look awfully wishy-washy. I vote for you to offer him an apology and a raise, and beg him to come back.

That he had to fight the US government to protect the US public transportation system was a pathetic waste of his talent.  Government isn’t supposed to make a profit.  That’s why it extorts taxes to support inherently unprofitable services.  Like the presidency, for instance.

This taxpayer wants someone who can get the job done right, on time, with a minimum of hassle. How much does he need?  Give it to him, Prez, then get out of the way. That’s my vote.

Government has a public obligation to insure good value for our taxpayer money.  Its primary responsibility is to pay for the infrastructure that ensures a smoothly functioning society.  By doing this, it shifts larger costs to the larger group, which maintains the balance by using the services.  This makes it easier for individuals and businesses to profit from genuine free-market capitalism in a social context.

Sincerely,
Katharine C. Otto, MD
President, Chair, and CEO
Psychiatrists for Sanity
(and so far, the only member)

cc:

David Gunn
Former CEO of Amtrak
Wherever You Are

National Association of Railroad Passengers
(NARP) www.narprail.org
Another great source

David H. Laney, Esq.
Chairman of the Board
National Railroad Passenger Corporation
60 Massachusetts Avenue NE
Washington DC  20002

Secretary Norman Y. Mineta
US Dept of Transportation
400 7th Street, SW
Washington DC  20590

US Rep Don Young (R-AK), Chairman
Transportation & Infrastructure
2111 Rayburn HOB
Washington DC  20515
Phone:  202-225-5765
Fax:  202-225-0425

US Rep Steven LaTourette (R-OH)
Transportation & Infrastructure
RR Subcommittee Chair
2453 Rayburn HOB
Washington DC  20515
Phone:  202-225-5731

US Sen Saxby Chambliss (R-GA)
416 Russell Senate Bldg
Washington DC  20510
202-224-3521

US Sen Johnny Isakson (R-GA)
120 Russell Senate Bldg
Washington DC  20510
202-224-3643

US Sen John McCain (R-AZ)
Commerce, Science & Transportation
241 Russell Senate Bldg
Washington DC  20510
Phone:  202-224-2235

US Rep Jack Kingston (R-GA)
2242 Rayburn HOB
Washington DC  20515
Phone:  202-225-5831
Fax:  202-226-2269
Savannah office:
1 Diamond Causeway, Ste 7, 31406
Phone:  912-352-0101

US Rep John Barrow (R-GA)
226 Cannon HOB
Washington, DC  20515
Phone:  202-225-2823
Savannah office:
400 Mall Blvd, Ste G, 31406
912-354-7282

US Rep Charlie Norwood (R-GA)
2452 Rayburn HOB
Washington, DC  20515
202-225-4101

 

Friends of Amtrak  www.trainweb.org/crocon
A great resource for Amtrak information

US Rep Corrine Brown (D-FL-JAX)*
Transportation & Infrastructure
Ranking Member of RR Subcommittee
2444 Rayburn HOB
Washington DC  20515
202-255-0123
Fax:  202-225-2256

US Rep Joe Schwartz, MD (D-MI)
128 Cannon HOB
Washington, DC  20515
202-225-6276
Fax:  202-225-2681

US Sen Frank Lautenberg (D-NJ)
Commerce, Science & Transportation
324 Hart Senate Bldg
Washington DC  20510
Phone:  202-224-3224
Fax:  202-228-4054

US Sen Trent Lott (R-MS), Member
Commerce, Science & Transportation
487 Russell Senate Bldg
Washington, DC  20510
Phone:  202-224-6253
Fax:  202-224-2262

US Sen Conrad Burns (R-MT)
187 Dirksen Senate Office Bldg
Washington DC  20510
202-224-2644

US Rep Mike Castle (R-DE)
1233 Longworth HOB
Washington DC  20515
202-225-4165

US Rep James Oberstar (D-MN)
2365 Rayburn HOB
Washington DC  20515
202-225-6211

US Rep Lynn A. Westmoreland (R-GA)
Transportation & Infrastructure
1118 Longworth HOB
Washington DC  20515
Phone:  202-225-5901
Fax:  202-225-2515

Justice Clarence Thomas
Supreme Court of the United States
One First Street NE
Washington DC  20543
202-479-3211

Justice John Paul Stevens
Supreme Court of the United States
One First Street NE
Washington DC  20543
202-479-3211

Harold Linnenkohl, Commissioner
GA Dept of Transportation (GDOT)
2 Capitol Square SW, Room 102
Atlanta, GA  30334
404-656-5206
Fax:  404-657-8389

*Our sister to the south, US Representative Corrine Brown (D-FL-JAX), is the ranking Democratic member of the Railroad Subcommittee of Transportation & Infrastructure.  She is also a strong Amtrak advocate and supporter of re-hiring David Gunn.  See her press release at http://www.house.gov/corrinebrown/press109/pr051109.htm.

On November 9, 27 members of the House Committee on Transportation and Infrastructure sent a letter to Mr. Laney, expressing their “outrage” at David Gunn’s  dismissal.

Voter-citizen-taxpayers who support apologizing to Mr. Gunn, offering him a raise, and guaranteeing him as much money as he needs to get the job done right, please send a train to the Prez.  I don’t believe he’s ever had one.

President George W. Bush

United States of America
1600 Pennsylvania Avenue, NW
Washington, D.C. 20500
Phone:  202-456-1414
FAX: 202-456-2461
e-mail:  comments@whitehouse.gov
Congressional switchboard:  1-202-224-3121
Senators:  www.senate.gov
Representatives:  www.house.gov
A public service initiative courtesy of  www.mhconnections.com

trainrrcros2mi0896

Spotlight Therapy “You ask questions.”

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I dreamed awhile back that I was in a public meeting about the latest GoverCorp outrage (take your pick). I took my characteristic Spotlight Therapy stance, which involves turning the lights on to reveal triangulation tactics.

Afterwards, a 20s-something minority female, eyes shining, came up to thank me. “What for,” I replied. “I don’t accomplish anything.”

“Yes, you do.” she said. “You ask questions.”

“Triangulation” is a term applied to the strategy of playing both ends against the middle. You don’t confront the enemy directly, but go for things that are important to him.  When you turn the lights on, the previously hidden manipulators are exposed.

When the dot.com bubble burst on March 10, 2000, my stock value suddenly shrank below my mortgage debt. At that time I was naïve and inexperienced.  Had I known then what I know now, I would have sold the stock before the bubble burst and paid off the mortgage.  Instead, I trusted a banker and stockbroker who I thought worked for me.  They wiped me out instead.

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I believe it was intentional. This sounds paranoid, but the financial setback started me on a reading tangent that validated my suspicions.  Books like Confessions of an Economic Hit Man, The Robber Barons, The Creature from Jekyll Island: A Second Look at the Federal Reserve, Supercapitalism, Wealth of Nations, Alexander Hamilton, The Whiskey Rebellion, and None Dare Call it Conspiracy,* to name a few—as well as the US Constitution–opened my eyes, and I was horrified.  These writings revealed how boom and bust cycles are created on purpose to consolidate wealth and political power in the hands of relatively invisible insiders.

Desperate people are capable of desperate acts, to save themselves. Perhaps my banker and stockbroker were feeling the squeeze before the bubble actually burst, and trying to save their own skins.

But the practice of trapping individuals and nations in debt has a long history. It gives the lender—the presumed lender, anyway—a strategic advantage in terms of control.  Often the presumed lender, like a bank, is lending other people’s money, called “leverage.” Newspapers like the Wall Street Journal regularly inform their readers how many billions this or that hedge fund or individual controls.

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This is triangulation in action. Between the stock market and the mortgage market, individual wealth has been gutted by seemingly random events.  Don’t believe it.  Spotlight the Federal Reserve, the “lender of last resort,” which has no wealth of its own.  It creates money out of thin air to “lend” to the federal government, which then disburses it to pay bills and fight wars.  This from The Creature from Jekyll Island, which explains the history of money and banking.  It also reveals the secret beginnings of the Federal Reserve Act, which essentially put Congress in the debt-creation business, to trap taxpayers in un-repayable debt until the sun burns out.  In other words, the dollar is backed only by government promises to pay.

Now anyone who trusts government promises deserves to suffer, and those who believe the government has the right to promise unborn taxpayers’ future earnings, in order to repay the Fed for its fiat money “loans,” is living in LaLa Land.

taxarrow0406 What Creature does not say is that the income tax was also initiated in 1913, two months before the Federal Reserve Act, in order to guarantee perpetual interest income to the Fed.  The precedent for this double whammy was set by first Treasury Secretary Alexander Hamilton.  Hamilton introduced legislation for the Whiskey Tax and the first US central bank December 13 and 14th in 1790, for the same purpose—ostensibly to pay off Revolutionary War debts, but also to provide a vehicle for trapping the fledgling nation in a bottomless barrel of new debt.

In my case, debt would force me to work in a career I had come to detest, to feed the absentee bosses and other middlemen, who work behind the scenes to call the shots, yet take no personal risks.

These days, you can’t get away from news reports, politicians, and “economists,” who are bemoaning the state of “the economy,” the need to “create jobs,” and concerns about unstable stock markets and central banks around the world. The hidden truth behind all this hand-wringing is, as Ron Paul has tried to say, “The US is bankrupt.”  (His book End the Fed, is also well worth reading.)

It appears the balance has begun to shift, because everyone–individuals, corporations, and government—is maxed out on credit. Bills are coming due, without resources to pay.  As the Boomer generation (that’s me), approaches retirement, and Social Security payments can’t keep up with expenses, Boomers are withdrawing money from the stock market to make ends meet.  At the other end of the earning spectrum, the millennials are dealing with student debt, credit card debt, automobile debt, and maybe mortgages, too. Not only are there fewer of them than of seniors, but they don’t have money to invest in the stock market.

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But what’s good for “the economy” is bad for individuals. The “strong dollar,” is hurting exports, meaning Josie Taxpayer’s dollar has more buying power at home. Percentage-wise, she pays less in taxes, too.  This “deflation” that terrifies the money churners could have the effect of grounding the dollar at home, where it belongs.  Also, as people get out of debt–whether paying it off, writing it off, declaring bankruptcy, or walking away–the inflated money supply shrinks even more.  Interest on debt, as well as inflation (a “hidden tax,” according to Creature), reduce the buying power of the money. This is great for people who have no debt, and bad for “the economy,” which now is $19 trillion in debt, equal to the gross domestic product.

For example, on Thursday, February 18, 2016, The New York Times ran an article entitled “Oil Price Soars and Shares Rise.”  The assumption by the NYT and Wall Street Journal is that what’s good for stocks and raises prices is good for America.

This false assumption becomes easier to understand when you realize a goodly portion of America is heavily invested in stocks through “retirement benefits” like pension plans, including public pension plans. Hedge fund and pension fund managers can make significant waves in the stock market by moving those large pots of money around.  “Investors,” then, are not primarily the wealthy “one percent” that the public has been taught to hate.

“Investors” are the groups and individuals who make their money through managing other people’s money, people they assume want the greatest value for their money. Only trouble is, the most profitable stocks are issued by some of the most unscrupulous companies, often those with incestuous ties to the government, and are beneficiaries of large, cushy government contracts.

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As is my habit—and one of my favorite pastimes–I underlined and scribbled in the margins of the above-mentioned article. Here, we are informed that stocks climbed the previous day as “investors clung to hope for an international deal” to cut production.  “The price of oil rose sharply, as did the stocks of major energy companies like Chevron.”

“Who benefits by raising oil prices?” I wrote.  I know the State of Georgia benefitted mightily by low oil prices last summer, as Governor Deal signed a six-cent gas tax increase as soon as oil prices fell.  Now, the State of Georgia can expect even more tax revenues.  Already the accumulated excise and sales taxes on gasoline amount to over 50% of the customer cost.

Who is the greatest consumer of oil and gas? I don’t know for sure, but I believe it’s the military, which probably doesn’t pay the taxes and competes for the oil.  I applaud anyone who wants to research that.

When the NYT repeated that “investors’” hope for an “international deal that will cap or cut production,” I commented it doesn’t matter, as demand remains low.  I also asked if this “deal” to cut production also applies to US offshore well drilling, new oil pipelines, fracking, and other domestic eco-rape.

 

We are told that Chevron and Hess profited. We are also told that Kinder Morgan gained, too, on the news that Warren Buffet has acquired a 1.2 percent stake.

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Now Texas-based Kinder Morgan is a loaded kettle of fish. Founded by Richard Kinder, of Enron fame, it is in the process of appealing the state of Georgia’s denial of eminent domain for its Palmetto Pipeline.  Governor Deal did something right, for a change, when he denied Kinder Morgan’s request.  This would have set a dangerous precedent for publicly traded corporations to use state government to seize private property for a pittance.  Not only are oil prices low, and sales slow, but the pipeline is planned to run through 210 miles of coastal Georgia and to affect 396 landowners across 12 counties, only to transport gasoline, diesel, ethanol, and natural gas to the Savannah, Brunswick, and Jacksonville ports for export.  Kinder Morgan also expects to drastically enlarge its liquid natural gas storage facility on the Savannah River.  Meanwhile on the opposite side of the continent, Kinder Morgan is trying to trample Native American Tl’azt’en Nation’s native hunting and fishing lands in British Columbia.

I congratulate anyone who wants to investigate Kinder Morgan’s ethics and stock investors. I’m especially interested in public pension investments in Kinder Morgan, as well as its customers Marathon Oil and Marathon Petroleum, among others.  Remember that everyone in the decision-making “pipeline” from governor to judges to legislators and the United States Congress, state and federal levels of the Department of Transportation, Environmental Protection Division, Department of Natural Resources—and the military—have taxpayer-funded pensions handled by managers for whom there is no bottom line—if they can get taxpayers to subsidize profits.

 

I abandoned Wall Street in early 2008, when it continued to abandon me. I advise anyone who has more sense than money to do the same.  Also, as any stock broker might advise, “Sell high.”

 

 

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*Authors and publication dates are listed in a previous blog, “Sell the TV and Read.”

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