Brown & Sarkozy - Government should control oil

#1
Having saved the world SuperGordo wants to take control of oil prices :roll:
HERE
Wall Street Journal said:
JULY 8, 2009

Oil Prices Need Government Supervision
Producers and consumers benefit from stability.

By GORDON BROWN and NICOLAS SARKOZY

For two years the price of oil has been dangerously volatile, seemingly defying the accepted rules of economics. First it rose by more than $80 a barrel, then fell rapidly by more than $100 before doubling to its current level of around $70. In that time, however, there has been no serious interruption of supply.

The oil market is complex, but such erratic price movement is cause for alarm. The surge in prices last year gravely damaged the global economy and contributed to the downturn. The risk now is that a new period of instability could undermine confidence just as we are pushing for recovery.

Governments can no longer stand idle. Volatility damages both consumers and producers. Importing countries, especially in the developing world, find themselves committed to big subsidies to shield domestic consumers from potentially devastating price shifts.

In Britain and France we know how the price of crude dictates the price of petrol at filling stations -- and the effect it has on families and businesses. And for countries heavily reliant on income from oil exports, the windfalls from brief price surges are offset by the consequent difficulties of planning national budgets and investment strategies.

Extreme fluctuations in price are encouraging energy users to reconsider their reliance on oil. The International Energy Agency, for instance, has cut its long-term forecast of oil consumption by almost a quarter. Producers are in danger of finding out that oil is losing its market and its long-term value.

More immediately , we as consumers must recognize that abnormally low oil prices, while providing short-term benefits, do long-term damage. They diminish our incentives to invest not only in oil production but in energy savings and carbon-free alternatives.

Upstream investment world-wide is already down by 20% over the past year. And with some sources of supply in decline, such as Alaska and the North Sea, the resource we will all need as the economy recovers is being developed in neither an adequate nor a timely way.

There are no easy solutions, and any progress must be made with the full cooperation of the world community and the oil industry. On Monday, we used the U.K.-France summit in Evian to explore a way forward. We hope our ideas inform meetings today at the G-8 summit in Italy, and in future talks between world leaders.

We are committed to the ongoing dialogue between producers and consumers through the International Energy Forum. Saudi Arabia and the Organization of Petroleum Exporting Countries (OPEC) have expressed interest in this as well. Producers and consumers are closer now than at any time in the past 30 years to recognizing the huge common interest in giving clear and stable signals to long-term investment.

At the London Energy Meeting last December, all participants agreed that closer coordination between the International Energy Agency, the International Energy Forum, and OPEC was necessary to develop a shared analysis of future demand and supply trends. The Expert Group of the International Energy Forum should take the lead in establishing a common long-term view on what price range would be consistent with the fundamentals.

These experts should also consider any measures that could be put in place to reduce volatility. And they should look again at whether trading activity is amplifying erratic price movements.

We therefore call upon the International Organization of Securities Regulators to consider improving transparency and supervision of the oil futures markets in order to reduce damaging speculation. This would serve the interests of orderly and adequate investment in future supplies, since volatility and opacity are the enemies of growth. Climate change is also altering government attitudes to energy.

The world's economy is still reliant on secure supplies of oil at prices that are not so high as to destroy the prospects of economic growth, but not so low as to lead to a slump in investment, as happened in the 1990s.

It is a thorny issue, but complex markets need not be volatile or damaging to the wider global economy. We are convinced that producers and consumers alike would benefit from greater transparency, greater stability and greater consensus on the market fundamentals. After two years of destructive price volatility, the time has come for both sides to work together to build on our common interest.

Mr. Brown is prime minister of the United Kingdom. Mr. Sarkozy is
president of France.
 
#2
The man is a complete fukking moron.
If oil prices are that fundemental to economics then take off some of the 65% tax. Fuel costs are strangling the country and have been for years, it is Mr Brown's fault not the oil companies.
W@nker that he is.
 
#3
Oil Prices Need Government Supervision. Producers and consumers benefit from stability.

Of course, we already know that..... Its the bleeding Oils Futures Speculators who drive up prices at times, plus gubbermunts like A-Mad DinnerJacket's who reduce oil production to drive up prices you dipstick....

Really Mr McRuin.... your grip on reality is very tenuous..... What you and Mr Sarkyosee are saying is all very well, but peoples live in the real world. We have to put up and live with the dipstick policies such as the likes of you and your faroucking government come up with...

Plus all the taxes, including Fuel Duty Taxes on a Litre of Petrol and Diesel....

By GORDON BROWN and NICOLAS SARKOZY

Mr. Brown is prime minister of the United Kingdom. Mr. Sarkozy is
president of France.
:oops:

Oh Wow..... I didn't know that....did you?????

I must get out more often and go down to my nearest 'Starbucks' for a Coffee and a Donut.......... Sheeesh!!!
 
#4
uncle_vanya said:
Oil Prices Need Government Supervision. Producers and consumers benefit from stability.

Of course, we already know that..... Its the bleeding Oils Futures Speculators who drive up prices at times, plus gubbermunts like A-Mad DinnerJacket's who reduce oil production to drive up prices you dipstick....
That's the main cause, Uncle_vanya, although Brown the Clown and Midget Man don't want to admit it.

It's been estimated that each barrel of oil was traded 27 times in 2008 even though production steadily rose. In fact, there's been no real dip in oil production since 1992.

The simplest thing to do to achieve price stability in oil is to ban trading it as a commodity and, in particular, as a future. Job jobbed.

MsG
 
#5
Price controls... great. :roll:

Like that's not been tried before and, erm, failed miserably.

Christ, if Sarko is supposed to be on the free market end of French politics, no wonder France is totally f*cked.

The last thing we need now is more meddling by McDoom in the market.

This is probably your wet dream though, isn't it Bugsy? Bring back memories of your beloved ComBlock oil policies?
 
#6
stoatman said:
Price controls... great. :roll:

Like that's not been tried before and, erm, failed miserably.
Indeed. May I nominate the EU's glorious Common Agricultural Policy? The one that doesn't function along the lines of "supply & demand" but rather likes to subsidise a complete industry which would be unsustainable in many parts of Western Europe if left by itself. Long live price control :roll:

I don't think Sarkozy as a "free market president" will touch the agricultural issue. Not as long as France is the biggest agro-subsidy leecher in the EU.
 

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