Comments on Crash Landing: Two Zingers Regarding Oil Companies

We offer WoW power leveling,World of Warcraft powe...

2008-12-25T00:01:00.000-05:00

I like to buy shadow of legend Gold to play the ga...

2008-12-24T01:13:00.000-05:00

I like to buy shadow of legend Gold to play the game. When I have time, I always go with my brother to make shadow of legend Gold, which make us very happy. We make cheap shadow of legend Gold to upgrade and to play the game. But sometimes we run out of shadow of legend Gold money quickly.

Pepe said:Do you know of any really long dissertat...

2008-06-23T20:52:00.000-04:00

Pepe said:

Do you know of any really long dissertations I can read about the importance of time in economics?

Are you making a joke? If you are referring to my dissertation, the joke fell flat, since I barely remember what my dissertation was about.

If you are serious, I think Hicks and Shackle are your babies.

I couldn't agree more. Ahhh, quant finance, those ...

2008-06-23T18:49:00.000-04:00

I couldn't agree more. Ahhh, quant finance, those were the days.

Do you know of any really long dissertations I can read about the importance of time in economics?

Yeah you're right about the time issue, Pepe. If ...

2008-06-23T09:08:00.000-04:00

Yeah you're right about the time issue, Pepe. If we all of a sudden know that there will be an extra million bbls/day in 10 years, that will lower the futures price. (I don't know if they have 10-year oil futures contracts. But suppose they did.)

And then, as we know from our study of quantitative finance, because of arbitrage the lower futures price will lead to a lower spot price.

Physically, what happens is that producers right now with excess capacity (basically Saudi Arabia) ramp up production because on the margin, the lower futures price has now rendered current production more profitable than it was before the news.

2+2 never equals 6.I will go to the grave believi...

2008-06-23T08:57:00.000-04:00

2+2 never equals 6.

I will go to the grave believing this.

I might add, I have heard exasperated oil people t...

2008-06-23T00:02:00.000-04:00

I might add, I have heard exasperated oil people try to respond to the "you aren't drilling on already leased land". The oil guys are shouted down when they try to explain that they cannot get permits ot drill on the land they have leased.

Another argument that bothers me is that "if we drill in ANWAR or off shore it won't produce for 5 or 10 years...and that won't help gasoline prices today".

Well, OPEC does manipulate supply and historically has driven the price up as high as they can by restricting supply and then when the US invests in other production they increase supply and tank the oil price to make the new projects unprofitable. So, for this reason, and for the likely forward looking prices plans to drill would likely lower todays oil prices.

I'm with you, Bob. The sheer nonsense and naked p...

2008-06-22T23:42:00.000-04:00

I'm with you, Bob. The sheer nonsense and naked pandering by COngresscritters and MSM is nauseating.