Energy Markets, 9.1.08: The Gustav Dividend Fails to Materialize, In Spades

The Energy Markets were looking for a big upward move, based upon the potential for destruction from Hurricane Gustav upon the oil and natural gas infrastructure in the Gulf of Mexico. Right now, it would be wise to reflect upon what that Scottish guy once wrote regarding "Best Laid Plans".

In the runup to this storm, the prognostications of doom, gloom, death and destruction on a biblical or "cleaner" scale, breakdowns of society and near-nuclear-event destruction of the energy production infrastructure were rife and inescapable. To hear some tell it, it was just a matter of time before we would be reverting to a hunter/gatherer society, with a soucon' of "Mad Max" thrown in for good measure. It was a good week to be a gun dealer in the path of this storm. Reports on the wire services said that gun dealers were doing a land office business. In the United States, c.2008, nothing says "disaster checklist" like making plans to take the lives of your fellow humans, apparently.

Our media, in it's institutionalized Histrionic Personality Disorder, drunk with the possibilities offered by its deity, "If It Bleeds, It Leads", and coming off its collective Drunken Mudwallow/Delusional Decompensatory Event at the Democratic National Convention, could not get its well-coifed anacephalics to NOLA fast enough, so they could stand outside in the wind and rain. One can only wonder what courses one must take in University, to qualify to stand outside in a Hurricane and squawk into a microphone. It's one of those jobs that makes working in your local garage's grease pit seem rather inviting.

In all if this, the warnings of Impending Energy Production Destruction, in perpetuity(as in Forever), and the end of our way of life were rampant. Interestingly, most of these prognostications were coming from Bright Young Men and Women in the energy and financial sectors, many who call themselves "analysts". In sober reflection, the gentle reader may well come to the decision that title may be half-right.

What all these "experts" and commentators failed to realize, in their haste to sell a lot of fear and a lot of words for those who would profit from an upward rise in energy prices, is that Nature Will Not Be Mocked. It will wipe slates clean, or not, as it decides. All the wishful thinking and incontinent ramblings in the world will not effect its final outcome in the least. One can wet oneself in preparation for a natural event all one desires, one can marinate onself in quaking fear, one can attempt to sell urine-scented fear as cover for one's financial speculations to their heart's content and beyond; that does not mean that the weather is going to cooperate with you. Once again: Mother Nature will not be mocked.

The apparent reality of The United States of America, c.2008, is that we live for fear and outrage.  We accept the projections of fear sold by every snake oil salesman, used car salesman, con artists, village idiot, and squawking head we see. Our expectations of doom change by the minute, depending on the last bon mot' fed to us by the last commentator who opines on the big electronic eye. We buy outrage from every two-bit drooling moron who excites media electrons. We buy their books, their t-shirts, we subscribe to their newsletters and we get angry at someone. Anyone who is not "us". We love outrage. We live for it. We let it divide us as a people. It's what's for dinner. Incessantly. The caveat is that there is no more effective way for we, as a society, to be manipulated by those who profit from such things than fear and outrage. Fear and Outrage are the ring through our collective nose.

Keep in mind that a ring through one's nose, for the purpose of being led around by it, makes a piss-poor fashion accessory. Damnably unseemly stuff. Hell of a way to run a civilization, too.

On that note, the latest quotes from the energy markets. Your humble scribe would remind the gentle reader that if, where they live, they have seen a considerable spike in gasoline prices, there is a real probability of gouging going on at the distributor and dealer level. If you have noticed this where you live, do not hesitate to call your state's Department of Consumer Affairs or Attorney General. There is no supply-based or market-based justification for any major rise in pump prices. The figures below bear that out.

CLV08.NYM	Crude Oil Oct 08	110.95 12:43pm ET	4.51 (3.91%)
HOV08.NYM	Heating Oil Oct 08	3.0809 12:42pm ET	0.111 (3.48%)
NGV08.NYM	Natural Gas Oct 08	7.566 12:43pm ET	0.377 (4.75%)
PNV08.NYM	Propane Gas Oct 08	1.74 Aug 29	0.00 (0.00%)
RBV08.NYM	RBOB Gasoline Oct 08	2.742 12:40pm ET	0.1122 (3.93%)