Radical Noesis - Thinking outside the box

What we do know is that (primarily) European nations released (or promised to release) part of their reserves (crude and refined) to the U.S. to ease the shortage here - and shore up the U.S. economy. Since they were drawing on reserves, one wouldn't think that would dramatically raise gas prices in those nations, but it seems to be. It is also raising the prices outside those nations - Nigeria, Indonesia, etc. Something much bigger is going on here.

Is the global oil supply/demand so narrow that simply releasing reserves causes a global effect? Or does oil and gas pumped in the U.S. not necessarily go to the U.S.? Or is oil refined in the U.S. not necessarily for the U.S. market? I don't know, but that seems to be possible given what is happening globally. If any or all of the above are true, then both the U.S. and the world are in for a rough time. I heard some talking head yesterday say that the U.S. is looking at about six months of increased oil and gas costs due to the hurricanes. That is a long and potentially dangerous time for the U.S., but it may also be a very long six months for the world. Further, a lot can happen in six months and the increases are starting to look like a runaway train looking for a place to crash.

According to RigZone, BP alone is reporting $ 700 million in losses from the storms.

The global news, and the emerging damage reports combine to give a context for George Bush's total reversal on conservation. The situation must be dire indeed, as conservation is not going to reduce costs, but it might avert shortages. Those shortages are already popping up. Last week an number of Shell stations in Portland, Oregon ran out of Regular Unleaded. Hmmm.

Consumers in the U.S. seem to be more aware of the situation than some might credit them for. GM and Ford are reporting plunging truck and SUV sales. Ah, how lies come back to haunt one.