Oil. Is Paulson a Liar Or Just Long oil ?

mmm, well ok saw Paulson on telly yesterday, seems to be doing the circuit ramping his own positions up or something. This guy says OIL is high because of fundamental demand issues. OK all well and good BUT Opec Sec Gen. has just been on confirming (and its his job) that oil demands are being met and have been and will be, there are no people knocking on his door about oil shortages.

SO whats rattling around in Paulsons head for him to know otherwise ? Things like that make me nervous, fair enough if he doesn't know any better, but speculators seem to be ramping up the price Saudi thinks it, opec thinks it how come Paulson don't think it?

Does that sort of thing do anybody elses head in ?

poll vote today !

republican => likes free market => loves free market => worships market => market is god => market is infalliable => market price must be based on fundamentals

that's my interpretation

arabianights said:

republican => likes free market => loves free market => worships market => market is god => market is infalliable => market price must be based on fundamentals

that's my interpretation

Click to expand...

Then he must be a proper d!ckhead.

he's a pump monkey for his previous employer :whistling

Paulson may or may not be pushing his own positions, and oil demand may or may not be being met right now.

But all that's just short term noise anyway, what's of far greater relevance is the fact that oil supply is finite while demand is inexorably rising.

On top of that simple supply-demand equation we may in fact have reached Peak Oil already:





Click: Peak oil - Wikipedia, the free encyclopedia

And all that pretty much makes oil a long term perma-bull until supplies are exhausted.

There is no way round oil being a commodity whose long term chart knows only a major northward trend - with the normal corrections on its journey obviously - up until the point where we have come up with a viable alternative to oil.

Eg it's official government policy in Sweden to become the first oil free nation in the world:

Click: Sweden Aims to be World's First Oil-free Nation

The countries that adapt fastest to inevitable change will be the winners of the future.

A hundred years ago some of the largest and most profitable companies in the world were the makers of steam locomotives.

Diesel was seen as competition that stood no chance of making it, and accordingly steam engine makers kept their heads firmly in the sand and energetically ignored progress.

The result of this short sighted inability to adapt was that the steam engine manufacturers did not survive, while we know how the courageous innovators that pushed Diesel engines made out.

It's make-or-break time again.

High-Time to invest massively in new energy sources right now.

Where the biggest fortunes in the world were made in oil at the turn and begining of the last century, the same fortunes will be made in new energies this time round.

The exclusively only constant in life really is change.

So lets embrace change and innovate !!!

You have to understand how important it is for the 'Oil bulls' in the media to push high prices. BP, Gazprom and Paulson saying Oil is nearly gone is like Carphone Warheouse saying that we are at 'peak mobile'. High oil prices boost the oil majors' profits and allow them to get certain projects done that would not be financially viable at say $80 or $60.

From the biased data we are given it is hard to get an idea of how much Oil is left. Yes, Oil should be higher due to supply concerns but what we're seeing, especially since it hit 100, is market hysteria and those buying the hype are piling in and will get burned. There's nothing new in this though. If you look back to the Internet Bubble it's the same situation. Those who benefit from the mass buying of stocks were talking of Dow 20,000 etc. Get 'em while they're hot.

Similar price action and scare mongering as Uk house prices also... Get on the ladder, we'll never see these prices aggaaaaaaaiiiiinnnnnnTHUMP!!! Negative EQ!

Actually oil companies like BP are largely professing single minded ignorance about the facts behind Peak Oil, prefering to con themselves and other gullible souls living in yesterworld into believing that oil production is a never-ending perpetuum mobile, and that there is absolutely no need for change and adapting to new circumstances.

"BP Plc Chief Executive Officer Tony Hayward is putting money on the line to dispute the theory of peak oil, according to his counterparty in the wager Kjell Aleklett, a professor at Sweden's Uppsala University."
Bloomberg.com: News

Only a handful of companies that were on the Dow 50 years ago survived to this day.
Huge companies never exist for very long because generally once you've reached a certain size you become simply too inflexible to adapt to change.