Don't blame us for prices - oil execs (idiot Leahy D-Vt gets SCHOOLED on how oil markets work)

CNN Money ^ | 5/21/08 | Steve Hargreaves

[Libloather]

Don't blame us for prices - oil execs
A Senate Judiciary Committee seeks answers from Big Oil execs for rising oil prices on day that crude crossed $130 a barrel.
By Steve Hargreaves, CNNMoney.com staff writer
Last Updated: May 21, 2008: 3:47 PM EDT

NEW YORK (CNNMoney.com) -- Amid increasing public outcry over record-shattering oil and gas prices, senators on Wednesday hauled industry executives in to testify about the recent runup.

**SNIP**

The executives said it did, and that they are doing all they can to bring new oil supplies to market, but that the fundamental reasons for the surge in oil prices are largely out of their control.

"We cannot change the world market," said Robert Malone, chairman and president of BP America Inc. "Today's high prices are linked to the failure both here and abroad to increase supplies, renewables and conservation."

Malone's remarks were echoed by John Hofmeister, president of Shell.

"The fundamental laws of supply and demand are at work," said Hofmeister. The market is squeezed by exporting nations managing demand for their own interest and other nations subsidizing prices to encourage economic growth, he said.

In addition, Hofmeister said access to resources in the United States has been limited for the past 30 years. "I agree, it's not a free market," he said.

The executives pushed the idea that large parts of the U.S. that are currently closed to drilling - like sections of Alaska, the Rocky Mountains and the continental shelf - should be opened.

"The place to start the free market is in our own country," said one executive. [The drilling ban] sets the stage for OPEC to do what we are doing in our own country, and that is effectively limiting supplies."

[Libloather]

...a heckler in the crowd shouted: "Stop ripping off the American public - bring these oil prices down."

RATS know how to do it - they just refuse to do it.

[Dilbert San Diego]

I don’t like high gas prices. But I wonder if these Dems. understand how world oil markets work, or how capitalism works, or the concept of supply and demand.

[willgolfforfood]

Was he heckling the Senators (*spit*) or the Oil Execs?

[Names Ash Housewares]

My grand dream is that those domestic resources are opened up and some of them bidded on in a lotto type environment to give some new companys a shot for a while. Not long term, enough to invigorate competition again. Then we get some good ol fashion free market going again.

Oh well. Not likely I know.

[Bender2]

As always, them sumbitches at CNN have a quiz:

What is to blame for high oil prices?

OPEC
Big oil companies
Supply and demand
They are unavoidable

The true answer they left off is "CNN, the other MSM and Liberal Democrats!"

[Enchante]

I'm sure that Leaky Leahy and his scurrilous Demagogue pals did not appreciate being schooled - the 'Rats are a huge part of the problem and no part of the solution, it appears.

The executives pushed the idea that large parts of the U.S. that are currently closed to drilling - like sections of Alaska, the Rocky Mountains and the continental shelf - should be opened. "The place to start the free market is in our own country," said one executive. [The drilling ban] sets the stage for OPEC to do what we are doing in our own country, and that is effectively limiting supplies."

[kingu]

Gosh, and here I thought the high gas prices were from aging refineries that haven't been updated in more than a generation, while we close down critical infrastructure that's needed to ease these bottlenecks...

Thankfully there are Democrats around to make it sooo much easier for us, the public, and claim it's all Big Oil's fault. Hey, did Al Gore ever distance himself from all that Oxydental money?

[realdifferent1]

There was a time when Rob Reiner, I believe, and his ilk were screaming for taxes to get $4 a gallon gas, claiming how it ‘would promote conservation, blah blah blah’; guess it’s just a problem when it doesn’t go into the governments pocket.

[Amendment10]

Regardless that Congress has had since the 1973 oil embargo to address oil independence, history is repeating itself. So I'm keeping an eye on energy options.

Although I don't use this product, since people are starting to use bicycles more, people might be interested in this autoshifting bicycle.

Autoshifting bicycle

Also, I'm keeping an eye on developments in bio-fuel production.

First, the bad news about ethanol. Ethanol fires are evidently harder to control than gasoline fires.

Ethanol fires hard to control 1
Ethanol fires hard to control 2

Hopefully, ways will be developed to make controlling ethanol fires easier.

On the brighter side concerning ethanol, there's now evidence that people might get as much, or more, bang per buck for their gas dollars with gas / ethanol mixtures.

Gas-competitive gas / ethanol mixtures

Also, I was surprised by the introduction of a machine (popularly known as a still) for making home-made ethanol.

EFuel100

In stark contrast to the 1700 gallons of water required to make one gallon of corn-based ethanol as indicated by the OP, the EFuel100 uses only 170 gallons of water to produce 35 gallons of ethanol In other words, the EFuel100 uses less than 1% (about 0.2%) as much water as corn ethanol, under five gallons, to produce one gallon of ethanol.

But also note that the water used in the EFuel100 process does not take into account the water needed to grow the sugar that is used for this process.

And watch out for fines for violating biofuel regulations.

Fines for violating biofuel regulations

Also, progress is being made in the development of other non-corn ethanol production technologies as well.

Non-corn ethanol

Finally, I've also been hearing good things about biodiesel production but need to find some links.

[marron]

Its probably worth reminding people that 95% of the oil in the world belongs to governments.

When you are talking about “Big Oil”, you are talking about governments. Private oil mostly work on government concessions. They don’t own the oil they pump, the host governments own the oil they pump.

Private oil may be the most dynamic part of the oil business, but they own very little of it.

[NonValueAdded]

God Bless you, John Hofmeister.

If I was on the committee, I would have stood and saluted you. I don't suppose that happened in real life, though. Heck, Hofmeister's remarks are should be the battle cry to recapture the House and the Senate, along with similar remarks on other hot button conservative issues.

[Right Cal Gal]

But don’t it make a good show for CNN??
However, more and more Americans aren’t buying it.
Where’s the WINDFALL profits? Every figure I’ve seen, from every quarter, says that the net profit of an oil company for a gallon of gas is 7 cents. And for the gas station owner, it’s even less.

The U.S. government makes over twice what the oil companies make on a gallon of gas; California makes 10 times their profit. And neither expends a cent to get it.

[NonValueAdded]

Yeah, but as bad as ethanol fires might be, a hydrogen fire is the worst. Isn’t the safety rule to approach a hydrogen fire holding out a broomstick in front of you? When the broom bursts into flame or is cut in two, you have found the fire. Life sure will be interesting in the HCOT!

[Doohickey]

Headline News as on the TV at the gym. While I didn’t listen, I caught their push-poll question on the crawler: “Are you mad at the oil companies?”, followed by an 877 number to call.

We need to take back our country. I fear we’re beyond using political means to do so.

[Big Horn]

If these rats would take some of the millions they have stole from the people and invest that in the oil patch they would learn its not a sure thing like a gov. check.
They could give up their huge retirement and give it to the people to buy gas. The rats caused the problem in the first place.

[Big Horn]

Thanks for the photo. with obomba everting is staged.
A big fake.

[Libloather]

So I'm keeping an eye on energy options.

Try oil. Once this non-drilling dam breaks, it's off to the races!

I bought some PetroHawk Energy Corp @ around $6.00. Whoo hoo! It doubled and I sold half. (Always protect the principle.)

Also check out LED lighting.

How do I invest in illegal alien deportation services?

[Amendment10]

Thanks for mentioning hydrogen fires. I don’t know much about hydrogen fires. I mentioned ethanol fires because I am trying to be objective about the pros and cons of relying more on ethanol.

[kempo]

Leahy asked all the oil men how much money they made. Now keep in mind that the average wealth of a U.S. Senator is $10,000,000.00. The Democrats have no energy plan. They just showboat for the cameras.

[Libloather]

Was he heckling the Senators (*spit*) or the Oil Execs?

That was me. It was for the obstructionists/senators. (*spit again*)