The South Dakota Office of School and Public Lands completed its first oil & gas lease auction of 2012 today at the State Capitol. A total of 75,289 acres of state trust lands were nominated and leased. Those new leases will account for $452,289 of revenues for South Dakota’s public schools and endowed institutions.Read more ›
Post Tagged with: "oil"
President Obama really likes to bellyache about subsidies to the oil industry (which makes modern life possible). But if you’re going to incentivize and facilitate something, is it better to subsidize something that makes modern life possible…or something that is a repetitively proven moneypit…as our president likes to do?Read more ›
The underlying weakness of the dollar is the real cause for price pressures in commodities, include food, oil, gasoline, and precious metals like gold. An increase in one asset or another might be explained by a simple supply disruption or even overspeculation. But in a broad range of commodities — which are priced and traded in dollars — it looks much more like a monetary inflation problem. Commodities are often held as hedges against a weak dollar.Read more ›
As part of the resolution to the 1973 oil shock, the petrodollar was born when Richard Nixon convinced Saudi Arabia to only accept dollars for payment of oil in return for protecting their oil fields and a guaranteed return on investments in U.S. treasuries. How long will the rest of the world will accept a now near-zero return on money held in treasuries — in short, a U.S. fueled inflation — just to prop up a monetary system pieced together by Richard Nixon and Henry Kissinger 40 years ago?Read more ›