Consider this quote from a Business Insider article entitled
McClendon said the company hopes to reduce its dry gas wells to 7 or 8 in the next 12 months — compared with the dozens it currently has active. McClendon said the company would not seek to move back into natural gas production until prices moved back to $5.
That is, it would appear that they’re curtailing production to drive the price of energy up. Now consider yet another Business Insider article:
“In the mid-1990′s, the participants and performance of oil trading slowly started to change, and by 2003, the dominating forces in oil trader were no longer with the oil companies. The list of NYMEX seat owners again shows just how deep the change was. Right before going public in 2006, only 22 seats remained in the hands of the oil companies that had direct involvement in the buying and selling of oil and oil products. But a much more significant percentage of seats were owned by companies that ostensibly had nothing to do with the buying and selling of physical oil.
In short, to my way of thinking the banks levy private taxes on energy, and those private taxes on energy – affecting, as they do, every single purchase and activity the American people pursue whether for pleasure or simple survival – are simultaneously more effective at manipulating the economy, controlling the job market, and increasing or – as is the norm – decreasing the standard of living of the American people than anything the Fed can or does do. If you pay attention, I believe that you’ll observe a curious synchronicity: Anything approaching good news for the American people, and speculation drives the price of energy up.
The actions such as Chesapeake and the energy speculators – big banking, in particular – are taking provide, in my judgment, indisputable evidence of what a great lie Big Carbon and the Republicans told when they said that placing the nation’s ecosystem – the land, air, and water our children will inherit – at risk with rampant and effectively unrestrained energy exploration would yield a “bonanza” for the American people in terms of reduced costs for energy-vulnerable activities such as home heating and manufacturing.
I would further argue that it will be extremely difficult – if not, in fact, impossible – to offset the rigged currency exchange rates that nations like the communist People’s Republic of China use to ensure competitive primacy with the promised influx of cheap energy from shale gas and near-shore oil exploration when both Big Carbon and the investment banks/speculators see our currently inescapable requirement for hydrocarbons as an unsurpassed platform for extortion – and so continually move to curtail supply or levy private taxes that eliminate any margin benefits resulting from cheap energy.
Now add the additional fact that corporations such as Cheniere Energy are finding that those same banks will fall all over themselves in their eagerness to assist corporations to build LNG export facilities – in fact, Cheniere has ALREADY secured at least $3.6 billion in financing for two liquefaction trains at their Sabine Pass facility.
And finally add the fact that 44 Democratic and Republican congressmen from Arkansas, Louisiana, Oklahoma and Texas are now demanding that the Department of Energy expedite yet more permits for the exportation of America’s natural gas…her energy future:
Me, I conclude that Big Carbon and Big Banking have lost none of their ability nor any of their desire to sell the future of the American people and the safety and security of the United States of America right out from under us all in the name of accumulating a little more wealth for themselves before they kick off (hey…I wonder if they heat hell with oil, coal, or natural gas?) and leave the wreckage of America’s future for somebody else to worry about.
So in conclusion it is my opinion that the American people would be wise to watch how they spend their pennies: If Big Carbon or the Big Banks scent any money in their pockets, the end effect is the same as chumming for sharks – except you get bit at the gas pump and the heating oil furnace instead of in the water.
I would close with a question you might find yourself interested in answering: Who provides the majority of the funding for the Republican Party?