Oil future


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  • •    Slide 1: Title slide (introduce the topic and what you will cover)
  • •    Slide 2: Define your topic & state its significance to capital markets
  • •    Slide 2: Define your topic & state its significance to capital markets
  • •    Slide 3-?: Content
  • •    Slide 3-?: Content
  • Let’s look at how this affects the 3x bottom lineThese changing oil prices have a ripple effect:
  • •    Slide 3-?: Content
  • Story about what’s going on with egyptRising population, increased dependence on imports, increasingly affected by fluctuating prices““Oil is used directly in the production of grain and indirectly in storage and transit, so its cost becomes important”-uncertainty for businesses-price becomes distortedThese futures are benefitting people with pensions and hedge funds and hurting those who are iforced to commute by car to find workhttp://www.businessinsider.com/egypts-food-problem-in-a-nutshell-2011-1#ixzz1Yin7scDH
  • Burning oil is bad for our health, and the potential emissions bad for long term healthAre high prices good for the enviro?Are low prices? Fluctuating prices?
  • Point 1: speculation is bad causes price to go up and downthis causes uncertainty for small businesses who depend on shipping"the speculative bubble in oil prices has concrete detrimental consequences for the real economy."bernie sanders articleCFTC found that speculators made up more than 70% of the open interest in crude oil futures, whereas, physical end-users made up less than 30%. (WE HAVE another bubble on our hands!! (SLIDE)Point 2: taxing can be done the right awayjust as quickly as oil speculation was deregulated it can be regulated againPoint 3: Dan Etsyprovided a solution that has always stood out to me. he said a very small but incrementally increasing tax is the way to go. maybe put a 50 year horizon on it. if the argument is that 50 years is too long to wait, Esty said it would never get to that point. the 50 years just acts as a signal, and companies would comply well before to avoid those higher taxes.
  • •    Second to Last Slide: Questions for classmates
  • •    Last Slide: List of references
  • Scale: http://endthelie.com/2011/03/B+W MAP droplet: http://www.examiner.com/public-policy-in-boston/oil-speculation-photoHandshake: http://www.afaceaface.org/blog/2011/05/speculation-explains-more-about-oil-prices-than-anything-else/Peak oil geyser: http://crudeoiltrader.blogspot.com/2010_08_08_archive.htmlSimplke puddle: http://sporistics.atomicday.net/?p=asset:500617024886Oil/food chart: http://www.benzinga.com/11/01/817860/chart-of-the-day-oil-prices-vs-food-pricesOil rig money: http://www.moveoneinc.com/blog/wp-content/uploads/2010/11/oil-rig-money.jpg
  • Oil future

    1. 1. The Questionable Effects of Oil Speculation<br />Capital Markets 2011<br />Ana Le, Mark Sutton, & Zachary Worthington<br />
    2. 2. History<br />
    3. 3. History<br />
    4. 4. Current Context<br />
    5. 5. Current Context<br />
    6. 6. Correlation to Sustainability<br />
    7. 7. Correlation to Sustainability<br />
    8. 8. Correlation to Sustainability: People<br />
    9. 9. Correlation to Sustainability: Planet<br />
    10. 10. Correlation to Sustainability: Profit<br />
    11. 11. Questions:<br />Are higher oil prices good because they promote innovation?<br />
    12. 12. References:<br />