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Oil Now and Oil Tomorrow
CFP ^ | May 2, 2005 | Alan Caruba

Posted on 05/02/2005 8:41:59 AM PDT by MikeEdwards

Between January and this month, the cost for filling my car tank has doubled. People ask why. The answer is that years of effort by environmental organizations have finally paid off, placing so many restrictions on this nation’s ability to keep pace with its energy needs, that everyone will now pay more and maybe, in the process, figure out who to blame.

You cannot "conserve" energy by simply not using it or using less. The ultimate "conservation" would be to stop mining coal and stop drilling for oil and natural gas. The modern world runs on these sources of energy. Cutting back on their use means less electricity, less fuel for automobiles, trucks, and planes. The United States is a powerful economic machine because that machine runs on energy.

Despite the naysayers, there is ample evidence that vast, often as yet undiscovered, reserves of energy exist. Ever since the first discovery of oil, somebody has been saying we are running out of it and, every year, new reserves are found.

On Earth Day, two New Jersey politicians held a press conference to announce they would re-introduce legislation to make it more difficult for States to permit offshore drilling for oil. There are unknown, but presumably vast reserves of oil off the coast of New Jersey and, of course, we know that such reserves exist off the coasts of California and Florida, two States that have resisted drilling, although it does exist. . . . .

(Excerpt) Read more at canadafreepress.com ...


TOPICS: Business/Economy
KEYWORDS: gas; gasoline; gasprices; oil; petrochemicals
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To: jrawk
Do you not believe in the profit motive?

Sure. Where did I say I didn't?

If you were an oil baron would you: spend on developing more oil fields to reap more profits, spend on developing new technologies so you have a product or service to extend your going concern, or stash it with the high chance you will need it to comply with future regulatory costs or do nothing?

If I were an oil gouger, with supply fixed and demand inflexible, I would raise the costs of my product to the point where disgruntled consumers started to shoot my board of directors and burn my headquarters to the ground. Then I would lower costs 10 percent and act like I had done some noble thing. And all the time, I would blame the price gouging on "environmentalists" and "regulation" and refinery capacity and a host of other excuses that won't withstand even the most casual scrutiny. If the grumbling gets too loud, I'll throw a few billion at some tacky PR campaign to convince the idiots in Consumerland that I give two hoots about them.

21 posted on 05/02/2005 11:25:04 AM PDT by IronJack
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To: IronJack
Do you not believe in the profit motive?

Sure. Where did I say I didn't?


It was an honest question, just wanted to know where you stood, clearly you see corruption in the management and don't believe they are making the proper decisions to keep their business open, not some universal flaw in making a profit.

If I were an oil gouger, with supply fixed and demand inflexible, I would raise the costs of my product to the point where disgruntled consumers started to shoot my board of directors and burn my headquarters to the ground. Then I would lower costs 10 percent and act like I had done some noble thing. And all the time, I would blame the price gouging on "environmentalists" and "regulation" and refinery capacity and a host of other excuses that won't withstand even the most casual scrutiny. If the grumbling gets too loud, I'll throw a few billion at some tacky PR campaign to convince the idiots in Consumerland that I give two hoots about them.

This is revealing, and funny.

--lates
-- jrawk
22 posted on 05/02/2005 11:54:56 AM PDT by jrawk (trust but verify)
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To: IronJack
You actually believe that enviros haven't hurt the supply of oil in this country, or for that matter the world? Where have you been living? While I will agree with you that oil companies are making a profit now, I will also say that profits keep our economy running. If we could drill off of the coast of CA for instance, we would have more oil here and less of an excuse for some of the oil companies to raise prices.

Supply and demand drives prices of any products in a capitilists society and it is the best way to go.

If the government would tell the enviros where to get off then we would all be better off and there would be less price gouging. The oil comapanies are blaming enviros with a good reason, they ARE the biggest reason energy cost so much now.

23 posted on 05/02/2005 12:01:53 PM PDT by calex59
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To: calex59
See, you're the kind of person who makes conversation difficult. Reread my post and you'll see that I never said anything LIKE what you accuse me of. I said that you can't blame ALL the oil price gouging on enviros. Certainly, ridiculous and extreme regulation costs oil companies, which is passed on to consumers. Certainly, enviro nutbags keep refineries from expanding and prevent construction of nuclear power plants, which keep costs from rising. All of that is true.

But those regulations and restrictions have been in place for the last 20 years, and none of them explain why gasoline prices have doubled at the pump in the last year. The biggest reason energy costs so much now is because oil company thieves can charge what they do. If they could charge more and get away with it, they would. And they would blame it all on the environmentalists because people like you would believe them.

24 posted on 05/02/2005 12:42:41 PM PDT by IronJack
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To: IronJack
If they could charge more and get away with it, they would.

Can you name one commodity sold in the world that does not do that?

25 posted on 05/02/2005 12:55:57 PM PDT by thackney (life is fragile, handle with prayer)
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To: djf

I agree with you that the oil companies are making enormous profits from this. I say let them. The more they price-gouge, the more incentive there is for an alternative energy source. And when the alternative energy source takes over, you are going to see these companies collapse. And that will be a fine day. I am very tired of high energy costs. The cost of dealing with the Arab nations is too high, and our oil companies are well aware that we can't drive any less than we are right now. They could probably set the price at $10 a gallon and we would still have to buy it. I know it's not entirely their fault, but it will be immensly satifying to see an alternative energy source send oil's price through the floor.


26 posted on 05/02/2005 1:03:02 PM PDT by mysterio
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To: MikeEdwards
years of effort by environmental organizations have finally paid off, placing so many restrictions on this nation’s ability to keep pace with its energy needs, that everyone will now pay more

The environmentalist movement is but one of many allied organizations within the "fifth column" that seeks to wreck our economy as a means to destabilize our society and precipitate political change to a Marxist system. We are being mugged on a national scale.

27 posted on 05/02/2005 1:14:55 PM PDT by TexasRepublic (BALLISTIC CATHARSIS: perforating uncooperative objects with chunks of lead)
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To: thackney
Can you name one commodity sold in the world that does not do that?

No. That statement alone wasn't meant as an indictment. It was part of a larger catalog of criticisms meant to refute the notion that environmentalism alone was responsbile for higher gas prices.

And oil has the luxury of being one of the world's few commodities that claims an inelastic demand supplied through a virtual monopoly. True supply-and-demand rules don't apply here. If gas cost $5 a gallon, you'd pay it. Because you HAVE to. For one, it costs $5 a gallon everywhere. And for two, your car won't run on iced tea. Oh, you might grouse about it, maybe even trade in the family barge for a blender-powered roller skate. But you'd still buy gas. And you'd pay what the profiteers demanded, regardless of how false the economics.

28 posted on 05/02/2005 1:34:11 PM PDT by IronJack
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To: MikeEdwards

If the Left were serious in their call for energy conservation, they would put an end for forced busing.


29 posted on 05/02/2005 1:36:03 PM PDT by Cowboy Bob (Question Liberalism)
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To: mysterio
I agree with you that the oil companies are making enormous profits from this. I say let them. The more they price-gouge, the more incentive there is for an alternative energy source.

I agree completely. I do not advocate regulation except by the marketplace. The oil companies are thieves and profiteers, but that's the risk you run when you embrace capitalism. You just have to hope that the people running businesses have some kind of conscience. (You might also want to jump out an 8th-story window to see if you can fly.)

And when the alternative energy source takes over, you are going to see these companies collapse.

Sadly, here I have to disagree. By the time they've wrung the last farthing out of the oil-consuming public, the oil companies will have diversified into whatever alternative energy source has been developed. Then they'll proceed to rape us for the next century selling that commodity.

Big Oil knows no allegiance, no borders, and no scruples. It is a virtual nation built on pure greed.

30 posted on 05/02/2005 1:42:03 PM PDT by IronJack
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To: MikeEdwards

31 posted on 05/02/2005 1:45:33 PM PDT by Stand Watch Listen
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To: IronJack
That would be very sad if they did own the next technology. Energy is the blood of the economy, and they are skimming off the top to an obscene point. We are sure to have another recession in the next 2 years, and it will be due mostly to oil and natural gas prices.

But I'm with you. I don't want to see strict regulation and government solutions. Government is twice the thief that these oil scumbags could ever be. However, I would like to see those stupid summer blends consolidated by government. And some help in getting refineries built would be nice. We have so few refineries that if you look at one of them cross eyed, the price of oil jumps $5 a barrel.
32 posted on 05/02/2005 3:47:58 PM PDT by mysterio
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To: IronJack
If gas cost $5 a gallon, you'd pay it.

Indeed, I would. I would also drive a lot less, and my next car would be way more efficient than the current one.

33 posted on 05/02/2005 4:21:00 PM PDT by hinckley buzzard
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To: hinckley buzzard
I would also drive a lot less,

How much less can you drive and still get any use out of your car? At what point do you simply concede that it's not cost-effective to even own a vehicle?

and my next car would be way more efficient than the current one.

How efficient can it be? You can only buy the cars the auto industry is selling. And those cars are only so efficient. I just traded an SUV for a small, sportier vehicle that gets twice the mileage. But since the cost of gas has doubled, I now experience zero savings for doubling the efficiency of my vehicle. How do I go about doubling it again when the crooks at the oil companies fire up the gouge machine again?

34 posted on 05/02/2005 4:48:13 PM PDT by IronJack
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