Who would you vote for

[CrazyCanuck]

I'd like to say otherwise, but with the threat of a second NEP on my province, I have to vote Conservative. I've been extremely dissatisfied with much of their economy policy, but all the other parties support an attack on Alberta's oil, so I have to make my stand there.

Harper get's my vote, but that's dependant on what the Liberals sell me during the campaign.

And how did the "first" NEP destroy the whole world oil industry, lower world oil prices? How did the NEP cause the world economic slump and world wide production to drop? How did the NEP cause the stock market to slump? How did the NEP cause the technology market to drop?

Stop allowing liars to feed you their baloney.

http://www.seeta.com/articles/bubblesarticle.htm

None of what you said are in his statement that you are arguing against. I believe the issue with the NEP is about federal/provincial jurisdiction over resources and the democratic process with regards to policy making concerning the resource-industry sector.

I know this is a little off topic, but why does our country exhibit such jealousy against Alberta? Maybe if the rest of the country decided to work as long, or as hard, or as effectively as the people in Alberta, they could enjoy the prosperity that results from such work. I've never once heard, in my entire 25 years, an Albertan criticize or claim that a prosperous person in Ontario, or Quebec, or BC shouldn't have that right to be successful. I've never heard anyone in Alberta claim that they should get a cut from, say, the massive manufacturing sector in Ontario, or the diamond mines in the NWT. I've never heard an Albertan claim to be entitled to the benefits reaped by any economy located in some other part of the country.

Why can't the rest of the country just accept that the only thing we should be entitled to is the opportunity to make a "good" life for ourselves and that in Canada, we have that opportunity; each and every one of us.

[Canadian Blue]

Not all CPC are social conservatives, though hopefully that will change. As one would hope that the non-socially conservative will go park thier vote somewhere else as opposed to those who want to destroy Canada.

Doesn't Rush Limbaugh make the same childish claim about "social progressives".

I actually think quite a few CPC supporters would support the Green Party instead of the Liberal's or the NDP.

[White Doors]

Not all CPC are social conservatives, though hopefully that will change. As one would hope that the non-socially conservative will go park thier vote somewhere else as opposed to those who want to destroy Canada.

Doesn't Rush Limbaugh make the same childish claim about "social progressives".

I actually think quite a few CPC supporters would support the Green Party instead of the Liberal's or the NDP.

I would have before they changed to May. She seems of the same bent as Layton and Suzuki.

[Michael Bluth]

Doesn't Rush Limbaugh make the same childish claim about "social progressives".

I actually think quite a few CPC supporters would support the Green Party instead of the Liberal's or the NDP.

So anybody who doesn't support the Canadian left is childish?

Seems like a majority in this poll supports the Conservatives for a reason.

Could it be they are sick of being preached to and looked down upon by the left?

[geoffrey]

None of what you said are in his statement that you are arguing against. I believe the issue with the NEP is about federal/provincial jurisdiction over resources and the democratic process with regards to policy making concerning the resource-industry sector.

I know this is a little off topic, but why does our country exhibit such jealousy against Alberta? Maybe if the rest of the country decided to work as long, or as hard, or as effectively as the people in Alberta, they could enjoy the prosperity that results from such work. I've never once heard, in my entire 25 years, an Albertan criticize or claim that a prosperous person in Ontario, or Quebec, or BC shouldn't have that right to be successful. I've never heard anyone in Alberta claim that they should get a cut from, say, the massive manufacturing sector in Ontario, or the diamond mines in the NWT. I've never heard an Albertan claim to be entitled to the benefits reaped by any economy located in some other part of the country.

Why can't the rest of the country just accept that the only thing we should be entitled to is the opportunity to make a "good" life for ourselves and that in Canada, we have that opportunity; each and every one of us.

Well put. Oil is just what Alberta has... just as Ontario has market proximity and Quebec has waterfalls. How you use what you get to generate wealth is the difference. Alberta is 35% richer than Ontario, and 40% richer than the rest of Canada. That's more than oil wealth. It's the result of effective economic policy and hard work.

[guyser]

None of what you said are in his statement that you are arguing against. I believe the issue with the NEP is about federal/provincial jurisdiction over resources and the democratic process with regards to policy making concerning the resource-industry sector.

I know this is a little off topic, but why does our country exhibit such jealousy against Alberta? Maybe if the rest of the country decided to work as long, or as hard, or as effectively as the people in Alberta, they could enjoy the prosperity that results from such work. I've never once heard, in my entire 25 years, an Albertan criticize or claim that a prosperous person in Ontario, or Quebec, or BC shouldn't have that right to be successful. I've never heard anyone in Alberta claim that they should get a cut from, say, the massive manufacturing sector in Ontario, or the diamond mines in the NWT. I've never heard an Albertan claim to be entitled to the benefits reaped by any economy located in some other part of the country.

Why can't the rest of the country just accept that the only thing we should be entitled to is the opportunity to make a "good" life for ourselves and that in Canada, we have that opportunity; each and every one of us.

Well put. Oil is just what Alberta has... just as Ontario has market proximity and Quebec has waterfalls. How you use what you get to generate wealth is the difference. Alberta is 35% richer than Ontario, and 40% richer than the rest of Canada. That's more than oil wealth. It's the result of effective economic policy and hard work.

Ha ha to both of you.

Short memory huh?

Alberta is 35% richer.....I will assume you are looking for that stat to post .,....right?

[Canadian Blue]

So anybody who doesn't support the Canadian left is childish?

Seems like a majority in this poll supports the Conservatives for a reason.

Could it be they are sick of being preached to and looked down upon by the left?

Michael, did you read the quote which I was responding to. I tend to lean to the left, and am more liberal on many matters but if you noticed who I was responding to, Catchme, one of the most ideological and close minded posters on the board. It was meant to show the hypocrisy of those ideologues who are angry when they are accused of destroying Canada, yet make the exact same charge against another group of people.

Not all CPC are social conservatives, though hopefully that will change. As one would hope that the non-socially conservative will go park thier vote somewhere else as opposed to those who want to destroy Canada.

[Kapitän Rotbart]

Shucks, the poll does not have my pick.

If I could vote for a fringe group, I would. We haven't had a fringe group in Ottawa South for a long while, surprisingly (longer than I've been a legal voter), so I vote according to the roll of a dice. Whichever number comes up, I count down from the top and choose that one.

I feel that no major party reflects what I want. The conservative comes closest to this... note I said conservative, singular. I like Steve Harper, but I find that a lot of his company are not holding onto the conservative values on which the party was founded.

Dion looks a lot like Mr. Bush... I'd love to get a picture of them side by side. It might be worth voting Dion in just for that. Until the fringe and/or rhino parties run in Ottawa South, I might as well roll my dice.

I do like the conservative more than any other major party, but the Canadian economy was ironically doing better under His Satanic Majesty Paul Martin.

[ceemes]

None of what you said are in his statement that you are arguing against. I believe the issue with the NEP is about federal/provincial jurisdiction over resources and the democratic process with regards to policy making concerning the resource-industry sector.

I know this is a little off topic, but why does our country exhibit such jealousy against Alberta? Maybe if the rest of the country decided to work as long, or as hard, or as effectively as the people in Alberta, they could enjoy the prosperity that results from such work. I've never once heard, in my entire 25 years, an Albertan criticize or claim that a prosperous person in Ontario, or Quebec, or BC shouldn't have that right to be successful. I've never heard anyone in Alberta claim that they should get a cut from, say, the massive manufacturing sector in Ontario, or the diamond mines in the NWT. I've never heard an Albertan claim to be entitled to the benefits reaped by any economy located in some other part of the country.

Why can't the rest of the country just accept that the only thing we should be entitled to is the opportunity to make a "good" life for ourselves and that in Canada, we have that opportunity; each and every one of us.

Well put. Oil is just what Alberta has... just as Ontario has market proximity and Quebec has waterfalls. How you use what you get to generate wealth is the difference. Alberta is 35% richer than Ontario, and 40% richer than the rest of Canada. That's more than oil wealth. It's the result of effective economic policy and hard work.

Don't pin your hopes on Alberta Oil too much. If the price of crude drops below US$40 a barrel, then the tar sands oil projects become economically unsustainable. Also, drilling rigs are currently making an exodus out of Province and into greener pastures, namely Mexico, Central and South America.

If Alberta's oil industry does a nose dive, the Alberta will once again become a have-not Province with its hands out begging to Ottawa. In the trucking industry, Alberta is called the black hole, trucks go in with loads, but there is SFA coming out of the Province, a lot of the carriers I deal with on a daily basis refuse to go in there unless they get "rounder" rates.

[Michael Bluth]

Don't pin your hopes on Alberta Oil too much. If the price of crude drops below US$40 a barrel, then the tar sands oil projects become economically unsustainable. Also, drilling rigs are currently making an exodus out of Province and into greener pastures, namely Mexico, Central and South America.

If Alberta's oil industry does a nose dive, the Alberta will once again become a have-not Province with its hands out begging to Ottawa. In the trucking industry, Alberta is called the black hole, trucks go in with loads, but there is SFA coming out of the Province, a lot of the carriers I deal with on a daily basis refuse to go in there unless they get "rounder" rates.

Correct about the price. Do explain the conditions under which oil would drop so much?

Alberta a have-not province? Hmmm, oil prices were in the teens in the Getty years. Despite large budget deficits we were still a have province in terms of equalization.

Alberta hasn't been a have-not province in terms of equalization for over 50 years.

[NowDefeatPoverty]

Correct about the price. Do explain the conditions under which oil would drop so much?

Alberta a have-not province? Hmmm, oil prices were in the teens in the Getty years. Despite large budget deficits we were still a have province in terms of equalization.

Alberta hasn't been a have-not province in terms of equalization for over 50 years.

Oil could drop to 40% (25% below now) if China unpegs their currency and fails to increase oil consumption (oil is USD denominated primarily). Oil could drop if the USA economy implode even more, than we inevitably expect it too. Oil could drop if harsh carbon caps are initiated in key nations. Oil could drop if battery or hydrogen technology advances are made.

Alberta would be $8-9 billion in deficit annually, if not for oil. I think AB's trust fund is only about $35 billion. So five years without oil and without cutting expenditures or raising taxes, and AB is cap in hand again. It says so in the Bible.

[ceemes]

Don't pin your hopes on Alberta Oil too much. If the price of crude drops below US$40 a barrel, then the tar sands oil projects become economically unsustainable. Also, drilling rigs are currently making an exodus out of Province and into greener pastures, namely Mexico, Central and South America.

If Alberta's oil industry does a nose dive, the Alberta will once again become a have-not Province with its hands out begging to Ottawa. In the trucking industry, Alberta is called the black hole, trucks go in with loads, but there is SFA coming out of the Province, a lot of the carriers I deal with on a daily basis refuse to go in there unless they get "rounder" rates.

Correct about the price. Do explain the conditions under which oil would drop so much?

Alberta a have-not province? Hmmm, oil prices were in the teens in the Getty years. Despite large budget deficits we were still a have province in terms of equalization.

Alberta hasn't been a have-not province in terms of equalization for over 50 years.

How could it drop that much? A number of supply and demand factors could come into play.

Let say OPEC for some reason known only to them decided to increase production and if you will excuse the pun, flood the market with oil. This would drive down the price of oil. Or some other non-OPEC producer does it.

Or demand could fall due to the emergence of new technologies are greater national conservation efforts. As we speak, China is embarking on a massive programme of improving the efficiencies of its factories and power plants. Old energy hungry and heavily polluting steel plants are being shut down and replaced. Nuclear generated power plants are either coming on line or in the planning stages. Again, this could drive down the world demand and lower the price of oil. India is expected to follow suit as well and those two nations are the fastest growing importers of oil.

Both here in North America and in Europe, there is a strong push towards making bio-diesel the fuel of choice for ground transport, not only in big rigs but also buses and cars. Again the goal is to lessen both demand and dependency on oil imports. On the marine transport side of things, there are some interesting projects and designs being tested out using air-foils as sails for freighters and tankers. These of course are still a couple of decades away from being adopted, but if implemented, marine transporters will only need to use their fuel burning engines when traveling in confined waters such as straights and harbours.

Increased development and implementation of wind farms, especially off short farms again will lead to a decrease demand in oil and further drive down the price per barrel.

Will all this happen over night? Of course not, but it could and most likely will happen within the next ten to twenty years. As it is, the oil from the tar sands is not the cheapest to extract and will be the first to feel the pinch when the price drops. And it has drop quite a bit lately.

The only other real commodity that Alberta has to fall back on is it agricultural industries and those are currently in a battle with the oil industry over water. Albertan grain farmers and ranchers are none too happy at the amount of water that the oil industry is consuming.

During the Getty years and pre-oil years, Alberta a fairly small population. However, since the latest oil boom, its population has almost doubled or more. Along with the oil boom, there has been a real estate boom which has seen prices of homes skyrocket. If or rather when the boom bust, there are going to be a lot of people out of work who will be holding huge mortgages. You can expect the default rate to climb as prices drop. Alberta has basically set itself up for a huge fall by pretty much banking on one industry. When the current cycle falls, there is going to be a lot of pain felt in that Province.

[jdobbin]

Don't pin your hopes on Alberta Oil too much. If the price of crude drops below US$40 a barrel, then the tar sands oil projects become economically unsustainable. Also, drilling rigs are currently making an exodus out of Province and into greener pastures, namely Mexico, Central and South America.

If Alberta's oil industry does a nose dive, the Alberta will once again become a have-not Province with its hands out begging to Ottawa. In the trucking industry, Alberta is called the black hole, trucks go in with loads, but there is SFA coming out of the Province, a lot of the carriers I deal with on a daily basis refuse to go in there unless they get "rounder" rates.

I believe Alberta's oil industry didn't make the province a "have" province until 1964.

http://www.cbc.ca/news/background/cdngover...ualization.html

I don't see a danger of it becoming a have-not province anytime soon. The major danger in the near future for Alberta is inflation.

[Michael Bluth]

Oil could drop to 40% (25% below now) if China unpegs their currency and fails to increase oil consumption (oil is USD denominated primarily). Oil could drop if harsh carbon caps are initiated in key nations. Oil could drop if battery or hydrogen technology advances are made.

China *fail to increase* oil consumption? China's oil consumption is sky rocketing and the Chinese have been signing deals regularly to ensure their growth can continue in the future.

Harsh carbon caps initiated? hmmm, harsh is the acurate term. Harsh meaning killing the econmies of those key nations.

How far are battery and hydrogen technologies away from having a significant impact on the need for oil? A decade?

[NowDefeatPoverty]

China *fail to increase* oil consumption? China's oil consumption is sky rocketing and the Chinese have been signing deals regularly to ensure their growth can continue in the future.

Harsh carbon caps initiated? hmmm, harsh is the acurate term. Harsh meaning killing the econmies of those key nations.

How far are battery and hydrogen technologies away from having a significant impact on the need for oil? A decade?

I agree with you for the most part, but it is basically a few minor crisis combined with no refinery capacity that jacked up oil from $10 barrel in the late 90's to $58 today. Even something as simple as a US political decision not to fund expensive nuclear reactors, or a sudden Iraq withdrawal, or a scientific paper that links stronger El-Ninos with warming winter temps...talking about a non-linear system here. Battery advances don't have to be industrially implemented for hedge funds to take note. A new deflationary oil refining technology could drop oil prices.

But maybe Conservatives have higher supreme economic info sources than Earthly Liberals and NDPers? If god says oil will not drop below $40 I withdraw this post.

[ceemes]

Oil could drop to 40% (25% below now) if China unpegs their currency and fails to increase oil consumption (oil is USD denominated primarily). Oil could drop if harsh carbon caps are initiated in key nations. Oil could drop if battery or hydrogen technology advances are made.

China *fail to increase* oil consumption? China's oil consumption is sky rocketing and the Chinese have been signing deals regularly to ensure their growth can continue in the future.

Harsh carbon caps initiated? hmmm, harsh is the acurate term. Harsh meaning killing the econmies of those key nations.

How far are battery and hydrogen technologies away from having a significant impact on the need for oil? A decade?

China is well aware of its dependency on imported oil and has begun to enact major policy changes to lessen that demand. At the same time, she is penning not only oil deals with exporting nations, but also defense and investment deals with them. Some of those deals include trading state of the art military hardware for oil. Both China and India are two nations to watch.

As for taking a decade or two. Think about how fast a decade actually goes by. I remember Expo 86 in Vancouver like it was yesterday, yet it was 21 years ago

[Michael Bluth]

China is well aware of its dependency on imported oil and has begun to enact major policy changes to lessen that demand. At the same time, she is penning not only oil deals with exporting nations, but also defense and investment deals with them. Some of those deals include trading state of the art military hardware for oil. Both China and India are two nations to watch.

As for taking a decade or two. Think about how fast a decade actually goes by. I remember Expo 86 in Vancouver like it was yesterday, yet it was 21 years ago

You began this line of reasoning by saying that Alberta could become a have-not province if oil dropped below $40 US a barrel.

According to the Institue for the Analysis of Global Security China's oil consumption is growing 7.5% annually and is expected to keep doing so until 2020 at least. Link

The price of oil dropping below $40 a barrel in the near future is extremely unlikely.

[ceemes]

China is well aware of its dependency on imported oil and has begun to enact major policy changes to lessen that demand. At the same time, she is penning not only oil deals with exporting nations, but also defense and investment deals with them. Some of those deals include trading state of the art military hardware for oil. Both China and India are two nations to watch.

As for taking a decade or two. Think about how fast a decade actually goes by. I remember Expo 86 in Vancouver like it was yesterday, yet it was 21 years ago

You began this line of reasoning by saying that Alberta could become a have-not province if oil dropped below $40 US a barrel.

According to the Institue for the Analysis of Global Security China's oil consumption is growing 7.5% annually and is expected to keep doing so until 2020 at least. Link

The price of oil dropping below $40 a barrel in the near future is extremely unlikely.

2020 is only 13 years away, not all that far in the distance. China is just one factor that has to be considered, other factors include increased supply from either OPEC or non-OPEC producers, new reserves in the South China Sea being tapped, the continuing slow melt down of the US economy. A lot of factors can come into play.

Funnily enough, one of the factors that could kill the tar sands project is the price of Natural Gas. Unlike sweet crude with is fairly easy to pump out of the ground, heavy oil from the tar sands requires heat and energy to crack it. Currently that energy comes from Natural Gas, if the demand for Natural Gas increases or its supply becomes limited either of which would cause its price to climb, then the cost of freeing the oil from the tar sands could become too high. Indeed, this is the rational used last year when the Albertan Government and Oil Industry proposed building a nuclear generating plant up in the patch. (Funny thing is, that is what the Iranians say they want their nuclear plant for as well, but that is another topic in itself)

Oil is a commodity and like all commodities, it is subject to market forces and cycles. Right now it is at the high end of its positive cycle and just assuredly as the coming of winter after summer, oil's cycle will start to decline. Will the decline come? Of course, it is just a matter of time, when it will happen is pretty much anyones guess, could happen in twenty years or it could happen tomorrow.

That is why Provinces with diverse economies such as BC, Ontario and Quebec are in a better position to weather a financial crisis. Alberta has pretty much bet its entire future on the oil and gas industry even to the detriment of its traditional agricultural industries.

[jbg]

The price of oil dropping below $40 a barrel in the near future is extremely unlikely.

It could happen quite easily and in fact I think it will.

[madmax]

The price of oil dropping below $40 a barrel in the near future is extremely unlikely.

It could happen quite easily and in fact I think it will.

Making friends with Chavez or going to do another coup?

I don't know how oil will drop lower than $40 in the near future.

Please enlighten me as I think Alberta has an economic advantage in non renewable resources for 50 to 70 years and by then new technologies may reduce the need for Albertas non renewable resources.

[Michael Bluth]

I don't know how oil will drop lower than $40 in the near future.

Please enlighten me as I think Alberta has an economic advantage in non renewable resources for 50 to 70 years and by then new technologies may reduce the need for Albertas non renewable resources.

It won't.

America is still increasing its use of oil, albeit the rate of increase is decreasing

The absolute amount of oil used by the US will have to start falling below the price of oil will drop below $40.

[geoffrey]

The biggest danger we have in Alberta is Ottawa, that's it, that's all. As long as American is willing to buy our oil (which is forever and ever amen.) we will be a rich province. The Alberta government has dropped the ball on the development of the oil sands, but they have been extremely successful in engineering a tax system that promotes growth and development. The 'Alberta advantage' is huge, why would a company do business elsewhere?

We've got many subsiduary industries now, it's not all oil. We'd certainly be hurt by an oil collapse... but not 35%... we didn't see that under the NEP. And as long as we don't lose 35% of our economy, we'll be considerably richer than anyone else in Canada. It's not ending, it's not luck.

It's extremely business friendly government policies that give Albertans a huge advantage in doing business with the rest of the world... something other provinces have been relucant to do.

[jbg]

I don't know how oil will drop lower than $40 in the near future.

Please enlighten me as I think Alberta has an economic advantage in non renewable resources for 50 to 70 years and by then new technologies may reduce the need for Albertas non renewable resources.

The short answer (I'm rushing out to work) is that I consider China's "miraculous" growth to be drastically overstated. I think much of their oil purchases is for speculation, and that (in addition to Katrina and power problems, etc.) has created the sharp moves in oil prices, first, up to $77 (right after Katrina), then down to $54 (in November 2005), then up to $80 (July 2006), then down to $50 (November 2006), and now back in the $60's.

As most posters know, I do not go for "far out" theories. However, China's "prosperity" is based upon short-lived cost advantages based upon what amounts to slave labor. They are frequently, from what I know, putting down small rebellions that never make the press here. Similar to the way oil-based dictators, i.e. the Venezuelan, Mexican [democratic on surface but not really], Saudi, Iranian, Indonesian [democratic on surface but not really] and similar governments do not invest oil proceeds in local development and helping poor people, the Chinese oligarchs (more similar to the emporors of old than Communists at this point) invest in the stock, bond and futures markets rather than in their own country. I believe that at least some of their "demand" is a result of Chinese "playing the market" rather than coming from real economic activity.

When and if this implodes (as it usually does, witness Malaysia, Indonesia and Russia circa 1997-8) the price of oil will drop drastically. Think the Hunt silver debacle of January 1980, where silver dropped more than 70% in one day (I don't remember exact figures, but think it was from $40 to $8) and gold dropped from around $800 to around $600.

So can and will oil drop under $40? I think it will.

[NowDefeatPoverty]

The short answer (I'm rushing out to work) is that I consider China's "miraculous" growth to be drastically overstated. I think much of their oil purchases is for speculation, and that (in addition to Katrina and power problems, etc.) has created the sharp moves in oil prices, first, up to $77 (right after Katrina), then down to $54 (in November 2005), then up to $80 (July 2006), then down to $50 (November 2006), and now back in the $60's.

As most posters know, I do not go for "far out" theories. However, China's "prosperity" is based upon short-lived cost advantages based upon what amounts to slave labor. They are frequently, from what I know, putting down small rebellions that never make the press here. Similar to the way oil-based dictators, i.e. the Venezuelan, Mexican [democratic on surface but not really], Saudi, Iranian, Indonesian [democratic on surface but not really] and similar governments do not invest oil proceeds in local development and helping poor people, the Chinese oligarchs (more similar to the emporors of old than Communists at this point) invest in the stock, bond and futures markets rather than in their own country. I believe that at least some of their "demand" is a result of Chinese "playing the market" rather than coming from real economic activity.

When and if this implodes (as it usually does, witness Malaysia, Indonesia and Russia circa 1997-8) the price of oil will drop drastically. Think the Hunt silver debacle of January 1980, where silver dropped more than 70% in one day (I don't remember exact figures, but think it was from $40 to $8) and gold dropped from around $800 to around $600.

So can and will oil drop under $40? I think it will.

Chinese slave labour is still more humane than that carried out in American prisons, and soon Canadian prisons too if Harper stays in power long enough. Most of the nations quoted have functioning democracies. Chavez may have a Stalinist streak, but he has demonstrated he cares about his own poor more than say, Dubya does for poor Americans.

We don't have time for another Chretien to come along and bail out another Conservative government spending-us-to-bankruptcy; the boomers are retiring this coming decade.

China "playing" the oil market? Do you know how commodities work? There presently isn't much difference in Crude spot prices and derivative contracts (a few dollars) and no one can store more than a few months of oil. This is typical Conservative craponomics. Hmm... paying down debt, a return on public Canadian dollars of over 7-8%, or building prisons, a *negative* return on dollars; the Canadian eqivalent of Haliburton contracts... it looks like Harper's budget will do everything but pay down debt (in the form of eroding the tax-base for future PMs and killing future surpluses).

Maybe Canadians deserve a decades long depression along with all the dead seniors that entails? I sure as hell feel like I live in Texas instead of Canada. I'll be laughing when they start sending the parents of Canada's middle-class to homeless shelters instead of care homes.

[jbg]

China "playing" the oil market? Do you know how commodities work? There isn't much difference in Crude spot prices and derivative contracts and there is no way to store oil.

As a general policy, I don't respond to portions of posts designeed to bait rather than discuss. I will respond to this point though. If I, a private individual, wants to play the commodities market and perhaps lose my shirt, that's fine. If a government is "playing" the market with my taxpayers' dollars, it isn't fine. China's playing with their people's money rather than using the money to better their country.