Kudlow - "Drill, drill, drill, so that the futures traders will flee."

[Postman]

http://turcopolier.typepad.com/sic_semper_tyrannis/2008/08/kudlow---drill.html

Larry Kudlow, the financial whiz, was on the Joe Scarborough show on MSNBC today. He repeated his unending mantra of "drill, drill, drill," as a way out of the current wilderness of high priced crude.

His insistence on this simplistic solution to the short term price situation has never made a lot of sense to me. Kudlow is a smart man. He gets around enough in the right circles to know that short term traders in oil futures are the fire behind the crude prices we see now.

When pressed by one of the hosts on the show to explain how favorable congressional action on drilling both on and off shore would affect the price in less than several years, he "came clean."

"Ah," he said (roughly). "Approval of drilling will frighten the futures traders out of the market and the price will go a long way down." "They are already leaving the oil futures market" he went on. "This will push them out even faster."

...........................Why don't they just follow CFTC head Greenberger's advice -
Greenberger said that legislation immediately closing the Enron Loophole with a broader, international scope would stop market manipultion and would cause oil prices to plunge over 25% overnight.

http://seekingalpha.com/article/80010-greenberger-s-testimony-i-banks-control-the-energy-market

[joshcryer]

1. He's essentially right.

Start exploiting oil shale in the green river basin and pow, gas prices will drop to pre 2004 levels.

[mediaman007]

2. They have permission to drill right now! Are they?

Why would they do anything that might disrupt their profits.

[joshcryer]

3. They need to shorten the time to have a lease and begin exploring it, imo.

They shouldn't be able to just get a mineral exploration lease and leave the ground untouched! The DOE is upping its grants toward domestic oil exploration it, it needs to be expanded and the loophole needs to be closed so that the corporations can't *sit* on land leases that go unexplored!

[mediaman007]

7. The drilling companies should be given windows to drill. If they don't

the property returns to the public.

[spanone]

4. he also said the price of oil would be down a dollar in a year after we start drilling

maybe cramer was the smart on after all

[joshcryer]

6. Eh, he might be a bit optimistic, I can grant that, but he's largely right.

Frankly they need to close up the speculation hole but I'd have no idea how they'd do it.

[indepat]

5. Krudlow/Lowkrud whichever is the most obnoxious despicable loudest most shrill

whoring RW shill of all imv. Besides that, I don't like him for he certainly knows/is smart enough to know everything emanating from his mouth is pure unadulterated RW ideology having not a grain of truth or reality. Other than these blemishes, however, he ain't so bad :P

[roamer65]

8. Kudlow is a fucking asshole.

I think I've said enough about this useless turd.

[CrazyDude]

9. There is no evidence to suggest that oil prices would drop beyond the 1% expected

And that's failing to take into account the time value of money.

[sicksicksick_N_tired]

10. He's a whore. Demand had fallen. The basics aren't working because the profit-mongers,...

,...are manipulating the market.

Sure. Allow free-flow drilling on the millions of acres they have leases. Put the monkey on their fucking backs to PROVE that drilling is going to reduce prices. HAH! HAH! HAH!!! Those fuckers have "the power",...MAKE THEM RESPONSIBLE!!!!

I am so sick of this abuse!!!!

[MisterP]

11. it's cute how they're pretending to be populist, "standing up" to the speculators

even though obliterating wilderness because humanity's too lazy to toss a few PVs on their roofs and freeway medians is way more arrogant and high-handed

[showmemo]

12. No question about it!

We need to drill and exploit our own natural resources. Why buy from folks who want us dead. Lets employee American's and drill anywhere we can in the USA. Its ok to use Coal gasafication and lets develop NUKES. France has gone Nukes why don't we do it too.