Posted on 03/25/2008 5:01:44 PM PDT by shrinkermd
Switch to a F-350 Powerstroke and get a radar detector. I did.
Meanwhile, Oilsands Quest (BQI:amex) is sitting on
750,000 acres of rich, bitumen bearing land in
Saskatchewan, and ripe for a partner to help develop
one of several projects there. Land is said to contain
upwards of 20 billion barrels of oil. Exxon, can you
hear me now?
Meanwhile, Oilsands Quest (BQI:amex) is sitting on
750,000 acres of rich, bitumen bearing land in
Saskatchewan, and ripe for a partner to help develop
one of several projects there. Land is said to contain
upwards of 20 billion barrels of oil. Exxon, can you
hear me now?
That's a given. Supply is still the issue. Whether it is caused by not finding it to drill, or the government preventing drilling and extraction, the end result is the same. No crude out of the ground = no supply.
I don't work for Exxon, and never have. I do work for an oil company which competes with them and have for almost 30 years now.
What was your job with Exxon?
Not at liberty to say. But I was employed with Exxon. I wish personally that they never bought up Mobil. Mobil was a good company.. sigh.. good old days.
Lets start with the assumption that incentives help shape behavior and the disincentives do too. After all, that’s what the study of economics is all about. Now lets say that to get more of that 300-500 billion barrels in the Bakken Trend to to market as quickly as possible congress doubled the depletion allowance for those fields and allowed the pipeline and infrastructure companies to double their depreciation. How long do you think it would to increase production from 200k to 5 million barrels per day. Now lets look at refinery capacity. If depreciation of added refinery capacity was double and maybe even an investment credit put in place and a national law preempting all state regulation, how many new refineries would be built in the next five years.
Bingo!
From the day I joined FR, I've been ranting that every American should be required to take economics classes.
we need to buy more oil from mexico enriching that industry so they employ more of their own and deny monies to the musslimes... driving the cost down...
solves so many problems.
t
Yeah, cuz at least I can sleep at night.
Take an MRPII class.
Take a hike.
The fangs sure come out, don’t they..
The nations first new oil refinery in decades may be built in Elk Point, South Dakota. A county referendum on June 3rd will decide if the $20 billion dollar project goes forward. While there are the usual assortment of kooks and tree huggers in opposition, I expect the good people of this state will give a go ahead.
These oil company apologists will never concede the obvious: oil is not a free market commodity since demand does not vary with price. That fact utterly destroys the built-in safeguards that defend capitalism, and opens oil to the exact kind market manipulations we’ve seen in the last 10 years. Nothing will change until there is a viable alternative source of fuel for transportation.
Oligipoly, I think is the term. It’s not ‘evil’ but it is what is it.
Most sound economic theory states that the higher the price of a product, the more of that product that a supplier would want to offer for sale.Yea at the higher price, but reality is, increasing supply drives down the price...It doesn't get anymore basic.
Another one: Make more money by doing less. I wish at my Job it would work like that.That's exactly what energy companies (not big oil) are doing. They're asking everyone to conserve so they can produce less yet charge more for it.
Name one other industry that asks you to buy less of their product.
How do you produce more if your source of supply decreases?The bigger question is WHY produce more when there's more than enough AND you're getting record profits to boot?
I think it's odd that almost every week there's an article posted here about how much oil there is to be got, yet EXXON doesn't seem to know anything about any of it.
I know... I know... but I keep forgetting that Free Republic has graduate students of the Flat Earth Society. If they had any consistenct in what they believe, they'd invest in the stocks of the Big, Eeevil Oil Companies. Which, by the way are composed of people going to work every day; unlike politicians.You're the only one who's said anything about oil companies being evil. I only pointed out a business tactic that is obvious...obviously not to you.
Spending money to have more product to produce later isn't the same as pumping more product into an already lucrative market...which would drive down the price and the profits.
Of course I don't need to tell you that because you and a couple of your friends are the only ones here who really get it.
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