What can people around the world do that the rocketing rise oil price?

Question

It's the global issue !

Answer 1

Today, a panel of energy of experts testified before the House Energy and House committee.

“Testifying to the House Energy and Commerce Committee, Michael Masters of Masters Capital Management said that the price of oil would quickly drop closer to its marginal cost of around $65 to $75 a barrel, about half the current $135.”

http://www.marketwatch.com/news/story/ga...

Half of our money paid at pump goes to Wall Street speculators. And we can not hear or read main media reporting them. We are kept in the dark.

Answer 2

What can people do?  Well as individuals their impacts wouldn't be a lot.  But as a collective (and I'm not trying to prhase this in socialist terms here) they can make a large impact.

They can cut back on their usage of cars.  They can make shorter trips, try not to pump gas so much, go only (travel, or head to other places) when necessary (like to work, necessary meetings, school, etc).  They can also push their legislators to fund more alternate energy (long term idea though).  Additionally, they could ride bikes, walk, or use transportation doesn't involve cars.  They could take the bus or use public transportation.  The government could help out (if the opp cost is not high) by giving incentives for people to do so.  And yes people should think of using non-vehicle methods and they, if deciding to still drive, can use cars with better MPGs.

What can governments do: Not all that much.  They can urge the oil companies to produce more oil to offset the high demand and prices.  They can also invest in alternate energy methods (but that's long term).  They could give incentives to companies to produce alternate energy and/or make cars with better MPG (not regulate them to do so though, b/c regulation will increase costs.  Rather, they should provide incentives).  Furthermore, they should not regulate speculation.  Its dangerous to do so...and its hard to tell whether governments or gov supported organization would do a better job setting prices.  Lastly, countries such as the US can have a less aggressive policy in the Middle East.  Aggression and tension have contributed to high gas prices.

Answer 3

Oil is brought on the market using the US dollar, so is hard for people around the world to do something about a currency they have no power of. The US dollar has weakened and many traders are speculating prices and using federal law loop holes to make there profit.

The sky rocketing prices is mainly do to the fact that oil companies understand that there is a possibility that the democrats will win the white house and senate and then stop them from profiting as they wish. So they are making there big hit now before it’s too late.

Answer 4

We could stop punishing oil companies to look for alternative sources of energy, if they don't want to why should we force them too.

It is a free market, and if people really wanted to they could invest in this idea.

So I tell you now and the world "Stop punishing them."

Was it worth it?

Answer 5

I am playing big on oil trading. I’m from Morgan Stanly, or Goldman & Sachs, or any big firms on the Wall Street.

I bought millions and millions of barrels of oil when they cost $60--$100 a barrel. I expect to make a kill when I sell. But right now it’s only $135 a barrel. (Please tell nobody:  one day on Jan. Goldman & Sachs traded a volume of barrels = US one years import in volume)

So here is my difficulty:

Congress is now investigating on oil speculation, I am afraid of being caught.  But if I sell them right now, I would end up with little or no profit since the trading fees and hedge fund managing cost are not cheap.

I already request my agents send  the spin out to the media, like: “Oil future looks high, expecting to be in the range of $200 a barrel soon. ”   But it does not work price up as fast as I expected.

So my question is this:  How do I corner the market price up in time so not to get caught by Congress.?

For your info:   Prof. Michael Greenberger’s testimony before Senate makes me very nervous.  He said: ‘If speculation were reined in and trading rules tightened, the cost of crude oil could drop 25 percent.” http://www.mcclatchydc.com/staff/les_blu...

My lobby firm can work Republican party to stall passing the laws, but I am not sure for how long. I am very fearful and worried. What are the options for me ? Please advise.