Posted on 11/09/2005 1:39:04 PM PST by rdb3
(Excerpt) Read more at breakingnews.nypost.com ...
I demand a stop to price gouging at all airports and sporting events. The airlines and the concession stands at sporting events know damn well that my kids are going to get hungry and thirsty and therefore raise the price to make a profit.
Economics
It's not a free market, though.
Drop the barriers to entry - let's see some REAL competition, and then let's talk economics.
Pig.
Turning to Marxism in a time of crisis is a bad thing as well...Right.
...donning flame-proof underwear...
NO! Our Government owes the American people an explanation for using socialists tactics in this great Republic.
Any and all that have called for Big Oil to reach in their pockets to pay the "poor and underprivileged who cant afford heat" should be Removed from Office!!!!!!
Where were these SOB's when Domestic Oil Companies were losing their livelihoods while the Saudis Flooded the Market? HUH???
Who paid oil service company employees (mostly poor Mexicans) when they were all laid off and lost their homes, huh??? WHO PONIED UP MONEY FROM THEIR FAT POCKETS THEN???
I am so SICK of this Out of Control Government of ours..SOCIALISTS PIGS!!!
These campaigns every two years means a wide-open spigot of cash flowing from campaign donors to Big Media!
-PJ
Furthermore, Lee said that prospecting for new oil is an intractible issue. For the most part he said that oil exploration in the U.S. is pretty much over. All the major reserves have been found. Reserves that are known of are either prohibited from being drilled, or they are in deep water GOM. Lee intimated that if a company was going to drill anywhere, they'd be better certain that they're going to tap something. Because at $100 million per well, it don't pay to drill a dry hole. Lee even mentioned ANWR.
He said that there's no conclusive proof that oil exists in ANWR. Lee's has a long background in the industry, and he said that he's talked to many a geologist who was certain where oil would be found. And many a dry well were drilled on that certainty too. So all the controversy about ANWR is for the birds until we actually drill there to find out if oil actually is there.
Furthermore, Lee said that in real terms, even at $70/bbl, oil is cheaper at present than it was in '80-'81. He said that in '80-'81 he said discovery/extraction costs amounted to $4/bbl. He said that today it amounts to $0.66/bbl. He intimated that the expense decrease was due to increased efficiency of the technology, and equipment. He intimated that its extremely difficult for a company to remain fiscally viable engaged in the search, extraction, processing and sale of a commodity that gets progressively cheaper in real terms, despite increased volume of sales.
I thought it was a pretty good interview considering the host, i.e., Charlie Rose.
When your customers reach critical mass, scream bloody murder, and the yelps for someone's scalp frightens an election-mindful Congress to threaten you with an excess profits tax.
"Fine, but let's see a reasonable fraction of those profits go into new refineries and infrastructure. It would be good for the overall economy to put some stability into the fuel price structure."
You're right! In fact, let's do that with the rest of the economy, too. For example, let's do the same thing with all the people who made windfall profits from selling their houses. We should start by forcing them to take their money and invest in low-income housing or building multifamily housing, or tree farms, or directly subsidizing construction companies. All those things would help future housing prices drop, which might be counter to the profit-takers' interests in owning houses now, but hey, the objective is to be FAIR, right?
Also, since the oil companies made almost 10% (imagine!) profit on every dollar they earned last year, and it's widely accepted we should also tax heavily their profits now because they've accrued that phenomenal profit margin, we should do the same for homeowners who sell, make them give any profit over, say, 1%, to their community or to the state.
I think both those reasonable ideas would be widely acceptance by the public, don't you? After all, the same basic law should apply to everyone--from each, according to his abilities, to each, according to his needs.
Preferably in the pockets of their shareholders, of course.
Since the original government tax was put on Big Oil in 1977, the government has made $1.34 trillion in taxes while oil companies have made $600 billion in profits. Who is raking in the windfall again?
Source: Jim Quinn's show. He didn't source it, so bitch at him for the verifying links.
He was a little vague about what he was going to do with short term profits right now. But he intimated that according to the company's philosphy there are two currencies: the $U.S., and Exxon-Mobil stock. He said that he's no control over the former (being dependent on people in Washginton D.C. for that), but has a fiduciary obligation to ensure the value of the latter to stockholders. He said that if in the future revenues aren't of the magnitude they are at present, he has to ensure the financial viability of the company through lean times. He said that in order to finance operations of the company during such times, it may be necessary to utilize the latter currency to obtain the capital necessary (to purchase debt for example).
What BS. Arctic National Wildlife Refuge, 1002 Area, Petroleum Assessment
I guess the oil actually seeping out of the ground naturally doesn't mean anything either.
You said more than a mouthful. It shouldn't surprise me at the number who are taken in by it.
Senator Domenici demanded an explanation from oil executives about how the price of petrol was set. "Most Americans think someone rigs those prices. Are you rigging the price of oil?" he said.
Mr Raymond responded that the question was "extraordinarily complex".
Hope C-SPAN taped the hearings. I missed them.
I don't think oil industry profits are all a matter of prices at the pump, meaning they don't deliver just one product to one category of customer, do they?
What I'd like to find is an easily digestible article explaining the structure of the petroleum industry and explaining the various market forces determining that final price to the customer, whether the product be my gas at the pump or the oven bags I'm using to cook up my babyback ribs.
Don't believe it is a simple matter of supply and demand. Do believe Mr. Raymond when he says setting petrol prices is extraordinarily complex.
One word defense:
Economics
It's not a free market, though.
Drop the barriers to entry - let's see some REAL competition, and then let's talk economics.
No free market? How about Valero(the LARGEST oil refiner in the US), Sunoco, Giant Industries, Sinclair, ALON USA, Flying J, Frontier Oil, Holly Corp (all independent oil refiners)...and all of the exploration companies.
If you can ads that is...
There are good sources of info at eia.doe.gov
Where Does My Gasoline Come From ?
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