2.5 Trillion Oil Scam
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Transcript of 2.5 Trillion Oil Scam
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The
global OIL scam$2,5Trillion
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In 2000 the Intercontinental Exchange (ICE) was founded
Goldman Sachs, Morgan Stanley, BP, Total, Shell, Deutsche Bank and Societe Generale
It consists of
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The ICE is an online commodities and futures marketplace
Which operates outside of the US and is free from the constraints of US laws
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The futures and commodities it trades include:CocoaCoffee ‘C’CottonSugar No. 11CoalConolaEmissions
...and of course OIL
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Over this year the price of oil has almost doubled
Jan 09
40
May
50
60
70
80
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Is it because demand is too great for supply?
According to the International Energy Agency, worldwide demand is down 2.6 million barrels a day from last year
NO
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With Saudi production from the Khursaniyah and Khurais oil fields set to increase its output...
...and the Thunder Horse platform in the Gulf of Mexico to start production soon
Both of these will contribute another 1.2 million barrels of oil per day to the world market by next year
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THERE WOULD BE AN EXCESS OF OIL ON THE MARKET
so why the high price?
as a result
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The ICE conducts what is know as “ROUND-TRIP” trading of energy
These trades occur when one firm sells energy to another and then the second firm simultaneously sells the same amount of energy back to the first company at exactly the same price
but these transactions send a price signal to the market and they artificially
boost revenue for the company
NO COMMODITY EVER CHANGES HANDS
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DMS Energy, when investigated by Congress, admitted that 80% of its trades in 2001 were “ROUND-TRIP” trades.
Duke Energy disclosed that $1.1 billion worth of trades were “ROUND-TRIP” since 1999. Roughly two-thirds of these were done on the ICE
Under investigation, a lawyer for JPMorgan Chase admitted the bank engineered a series of “ROUND-TRIP” trades with Enron
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These extra fees are then passed on to you...
THE CONSUMER
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Every year over $1 Trillion is spent by US consumers because of “ROUND-TRIP” trading of oil
or
13% of the incomes of every man, woman and child in the United States of America
or
13% more on food and fuel than before the ICE was founded
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and with 1.7 bn gallons of gas used globally every single day
the artificial shortage and speculative demand created by “ROUND-TRIP” trading means that companies could charge you an extra one dollar per gallon of gas
that might not seem like much
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but that one extra dollar would equate to...
$50 bna monthfor
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$2.5 Trillionglobal OIL scam
and a
by the ICE each year
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for further reading...
http://seekingalpha.com/article/172797-the-global-oil-scam-50-times-bigger-than-madoff
http://www.businessweek.com/lifestyle/content/jun2008/bw20080626_022098_page_2.htm
http://www.businessweek.com/lifestyle/content/apr2008/bw20080422_520796.htm
http://www.nytimes.com/2009/06/09/business/09gas.html