Commodity shortages

The commodity markets do draw in a lot of speculators, but at the core it shifts the risk away from farming, mining, extraction, harvesting, and similar type companies that don’t want to put their operations in jeopardy with exposure to the price changes of the commodities that they produce.

Yeah, I was taught that - particularly with respect to farmers and creating price stability for farm products, and it's reasonable and to a large extent necessary. I find it impossible to equate that with oil that changes hands while still on a tanker crossing an ocean. I can't see someone buying commodities or futures or whatever derivatives the next craze will be without having to take possession and store the commodity as being anything more than speculation. If this behavior were in a court, it would be tossed for "standing"; if you have no intention of actually owning/possessing a product then you have no business being allowed to "buy" it.
 
Yeah, I was taught that - particularly with respect to farmers and creating price stability for farm products, and it's reasonable and to a large extent necessary. I find it impossible to equate that with oil that changes hands while still on a tanker crossing an ocean. I can't see someone buying commodities or futures or whatever derivatives the next craze will be without having to take possession and store the commodity as being anything more than speculation. If this behavior were in a court, it would be tossed for "standing"; if you have no intention of actually owning/possessing a product then you have no business being allowed to "buy" it.

The financiers are in NYC, London, Zurich, etc. They can’t put the warehouses on Wall Street.

Commodity futures expedite and enable the capital to flow. When the contracts come due, the underlying goods must be delivered to and from somebody.

Intangible property is a key component of most enterprises. When broadcasters are bought and sold, the most valuable asset is usually the license that was once issued by the FCC. Selling services doesn’t involve delivering a tangible good. Actually with futures, the more buyers and sellers of the contracts there are. the more stable the prices can be. There certainly are a lot of speculators, but they are generally just trading amongst themselves after the original producers hedge their risk. Where it could get dangerous is when the speculators are allowed to use excessive amounts of leverage. Currency traders are granted enormous margin and their’s is the largest market on the planet.
 
This is an interesting look at present and future natural gas prices.

Why Are Natural Gas Prices High? Because Fracking Isn't Really Profitable.

North American “energy “has been a wealth destructive business in recent history,” a Credit Suisse analyst wrote in an August 2021 report. As a result, “many firms have shifted focus away from just growth to achieving an acceptable return on their investments.” Management is now being incentivized to focus on returns, the report notes.

The unmentioned part is that high energy prices hurt US industry which in turn hurts the US NG market. Hopefully this is the thing that knocks NG out of contention for producing electric power. NG generation was a significant factor in not moving forward with more nuclear energy.
 
This is an interesting look at present and future natural gas prices.

Why Are Natural Gas Prices High? Because Fracking Isn't Really Profitable.



The unmentioned part is that high energy prices hurt US industry which in turn hurts the US NG market. Hopefully this is the thing that knocks NG out of contention for producing electric power. NG generation was a significant factor in not moving forward with more nuclear energy.
I really, really cannot fathom why the US doesn't seriously push hard for nuclear. It's clean, it's effective, disasters are exceptionally rare... I guess energy is just another place where the entrenched political class has to keep problems alive (or exacerbate them) so they can always promise solutions but never deliver.
 
I really, really cannot fathom why the US doesn't seriously push hard for nuclear. It's clean, it's effective, disasters are exceptionally rare... I guess energy is just another place where the entrenched political class has to keep problems alive (or exacerbate them) so they can always promise solutions but never deliver.

There is some push for the newfangled micro reactors
 
I really, really cannot fathom why the US doesn't seriously push hard for nuclear. It's clean, it's effective, disasters are exceptionally rare... I guess energy is just another place where the entrenched political class has to keep problems alive (or exacerbate them) so they can always promise solutions but never deliver.

Money, money, money, mon-ey.
 
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I really, really cannot fathom why the US doesn't seriously push hard for nuclear. It's clean, it's effective, disasters are exceptionally rare... I guess energy is just another place where the entrenched political class has to keep problems alive (or exacerbate them) so they can always promise solutions but never deliver.

It's really about money as DynaLo says. Building a nuclear plant is a huge investment, and there are many across the US that were never completed - TVA has a few of those sunk investments. When a couple of cowboys with a modified jet engine and cheap natural gas could generate electric power cheaply, it put a stake in the nuclear power heart. We'll pay the price now for that short sightedness (whether we blame the investment community, the utilities, or the "renewables" crowd) because you may start a new NG fired plant, solar farm, or bird shredders almost overnight but you can't do the same with a nuclear plant.

The other thing that nobody seems to be talking about but looks like disaster in the making for long term and certified technology is electronics obsolescence. You can't just replace forty year old transistors in nuclear plants if they don't exist and nobody wants to manufacture old parts. Regulations mean you can't buy off the shelf replacement components or systems to keep a plant running when electronics manufacturers are thinking a couple of years for obsolescence of new devices.
 
I think this has already been posted.

Energy Secretary Jennifer Granholm Laughs At Your High Gas Prices


U.S. Energy Secretary Jennifer Granholm laughed at the nation’s high gas prices on Friday when asked about the administration’s strategy to ramp up supply to meet demand.

“[In] Sturgis, Michigan, it is $2.89 a gallon. I guess that’s better than in California,” said Bloomberg Host Tom Keene as gas prices reach all-time highs on the West Coast. “What is the Granholm plan to increase oil production in America?”

“That is hilarious,” Granholm said, throwing her head back with laughter as Americans cope with rising prices at the pump compounded by inflation.




Granholm went on to repeat the White House line of blaming foreign adversaries for their refusal to increase output while the administration actively suppresses supply with an escalated war on at-home producers.


Energy Secretary Jennifer Granholm Laughs At Your High Gas Prices
 
The local natural gas company is running commercials and warning of higher prices this winter when you call in to their service center. It's going to be back breaking for some if we have a cold winter.
 
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I think this has already been posted.

Energy Secretary Jennifer Granholm Laughs At Your High Gas Prices


U.S. Energy Secretary Jennifer Granholm laughed at the nation’s high gas prices on Friday when asked about the administration’s strategy to ramp up supply to meet demand.

“[In] Sturgis, Michigan, it is $2.89 a gallon. I guess that’s better than in California,” said Bloomberg Host Tom Keene as gas prices reach all-time highs on the West Coast. “What is the Granholm plan to increase oil production in America?”

“That is hilarious,” Granholm said, throwing her head back with laughter as Americans cope with rising prices at the pump compounded by inflation.




Granholm went on to repeat the White House line of blaming foreign adversaries for their refusal to increase output while the administration actively suppresses supply with an escalated war on at-home producers.


Energy Secretary Jennifer Granholm Laughs At Your High Gas Prices

Should be run out of office now
 
More leftist stupidity. If they really were concerned about the planet, it makes more sense to produce energy close to the end point were the users are located rather than shipping it in from the other side of the oceans. Green hypocrisy.
 
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