I am not "anti-big oil," but I gotta tell you that "Big Oil" Accountants, aided and abetted by an arcane and zany set of govregs, could easily make one belief that they are losing money at a $1000/bbl. The next President should also promise to shoot an environmentalist every 10 days on the WH lawn. And a movie star environmentalist every 5 days. Especially one that lives in Beverly Hills, an active production zone paying handsome royalties to these silly bozos.
"Drilling Dry Holes," "The Cost of Exploration," Yadda yadda, pass the damn tissues. Largely Boolshiite. They could make money at $20/bbl, especially if we had leadership that could recognize the inanity of "boutique fuels" customized for every urban area, low-sulfur diesel, ethanol additives, etc. ad naus. (For the next twenty-five years, it's my belief that Diesel is the way to go. It's easier to refine and modern diesels run clean enough for any man.)
The world is awash in crude oil. Its commodity price is very largely a market construct. Supply of finished petroleum products is kept in check by much lower than "natural" refining capacity. The CHICOM know this and are attempting to develop crude supplies that will give them cheap energy even after they ship it 12,000 miles from Venezuela, Cuba, and the Sudan to China. When they start getting it from the South China Sea, we'll really see what cheap energy does for an economy, just as it did and should do for ours!
Energy ... especially good old-fashioned crude awl, is a racket. If I were in on it, I wouldn't want to change it either!
Oil is a global commodity and is fungible. We are not awash in oil. Global demand continues to increase as we add 50 million a year to the world population and emerging economies like India and China are becoming more affluent and can afford more and more automobiles. Increased car ownership means higher oil requirements.
China supplanted the U.S. as the world’s largest auto market after its 2009 vehicle sales jumped 46 percent, ending more than a century of American dominance that started with the Model T Ford.
The nation’s sales of passenger cars, buses and trucks rose to 13.6 million, the fastest pace in at least 10 years, according to the China Association of Automobile Manufacturers. In the U.S., sales slumped 21 percent to 10.4 million, the fewest since 1982, according to Autodata Corp.
And exactly who decides how much profit the oil companies can make? Most of the world's oil is controlled by national companies, not the private sector.
Energy ... especially good old-fashioned crude awl, is a racket. If I were in on it, I wouldn't want to change it either!
Yeah right. It is the evil oil companies. Of course who gets those profits? Shareholders like you and me, pension funds, etc. It is no racket, but an essential industry that fuels the global economy. I can remember the oil embargo and lining up to get gas. If Israel attacks Iran, look for a real spike in prices and for shortages.