I recently finished reading the book, “Ruminations on the Distortion of Oil Prices & Crony Capitalism,” by Raymond J. Learsy. The book was a historical review of his writings dealing with Big Oil and why oil prices are so high. In other words, “an overview of…our enslavement to oil and the money inextricably tied to it.”
A former commodity trader, Learsy noted that oil prices are gamed and have little to do with market discipline of supply and demand. He explains in the book how commodity markets work (you really have no idea until you read the book and listen to his interview). In fact, Learsy writes that “This administration [Obama administration] has a profound lack of understanding of how oil markets function.” He also says there is no real oversight by our government over the oil industry or over the workings of the OPEC Cartel (Organization of the Petroleum Exporting Countries).
He notes that no global industry is wealthier than the oil industry and the countries that produce the oil. He explains that the oil industry and traders play the commodity market in a way that maximizes the price for oil. He said that a barrel of oil should not be hovering around $100. Rather, according to the CEO of Exxon/Mobil Rex Tillerson who stated during Congressional testimony in 2011, speculation was adding $30 to $40 to the price of each barrel.
“Six hundred million dollars a day is going from consumers to oil interests each day. This is money that is being stolen out of consumers’ pockets everyday,” said Learsy.
He also points out that in President Obama’s diversified energy strategy, natural gas is not included. Today he explains the U.S. has an abundance of affordable natural gas that is being burned off because there are not enough pipelines to transport it.
This book specifically focuses and on uncovering who is responsible for soaring gas prices. If you want to know as well, then read this book. It is available on Amazon.
Listen to my in-depth interview with Raymond Learsy. BTW – You will enjoy what Learsy would do if he were president for a day to fix the oil price situation. Interview with Author Raymond Learsy
Win a copy of Ruminations on the Distortions of Oil Prices & Crony Capitalism. Email me with the subject line “Ruminations Book Giveaway” by Tuesday, December 10, 2013. The winner will be announced in the DF newsletter on December 11th.