subtoFemDommes -> RE: Solve the energy crisis (4/27/2006 2:25:24 PM)
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ORIGINAL: MsMacComb ORIGINAL: subtoFemDommes What's particularly shocking to me is that there are probably a lot of successful business owners on this thread who think it's government manipulation and corporate collusion that are causing these high prices. It flies in the face of the laws of supply and demand, as although there is a record supply of petroleum, there is also a record demand for it. quote:
Umm yea, check. In a time when Katrina happened, Iraq, now rumors of an Iranian war the oil companies are price gouging plain and simple. Great declarative statement. Not that it's backed by anything, but let's say it's true... On second thought, let's not, because that resorts to arguing with what? You say it's true, so it is? (But there is a futures market and yes, they do speculate, however it's hardly going to drive up costs as high as they are for as long as they've been driven, although Bill O'Reilly, a guy I'm guessing you wouldn't agree with on much, thinks so...) quote:
I love how people keep parroting big oils comments (also known as BushCo) about supply and demand. And of course all the economists and respected financial advisor's who say the same thing. The people who are shouting "conspiracy" are talk show hosts and opposing politicians. And they are what? More expert and without agendas of their own? quote:
This past winter it was heating oil and natural gas, now petrol for autos and last night I saw a news article that we can expect a 67% increase in electric rates this summer (except for some east coast areas that will be 100%) And that proves what? In areas where fuel is used to generate, prices will go up - duh. Here in Seattle, where City Light is primarily hydro (evil dams, kill salmon, rip them down... oh, and pay 4 times as much for electricity to keep the evil people warm in winter...) we pay very little. But there's a price for that very little, environmentalists want to rip down dams all over the country to accommodate fish and restore rivers to whatever they were. Nothing is that simple and nothing doesn't have other effects. quote:
Meanwhile back in reality land the price of lighters is the same as they were (butane, propane or whatever they are) I'll ignore the "reality land" comment; I'm sure you'll do the same with my "duh" above... (sheese, and this was all seeming so productive and adult...) The profit margin on those items is now much higher than it once was, after all, they're all made in CHINA by cheap labor, the same labor that works in all those fuel demanding industries and is starting to buy cars and drive up the price of oil. My guess is the 2/10th of an oz of whatever is in them is hardly the bulk of the cost and beside, ever notice all those very expensive butane lighters the convenience stores are now selling? If we're going to speculate, maybe the crack users who buy them are supporting the price of the cheap ones... quote:
Iraqis are still paying about 35 cents per gallon, OK then (when they can get it). Uh, isn't that where it comes out of the ground? If they're going to get an economy going and get us the hell out of there, whatever helps. (NO -- let's all agree to start another thread on anything about that issue, please! ) quote:
Bush has been pumping gas into the reserves and big oil is under investigation for not paying their taxes and price gouging. I know, I know, it's just more proof of the endless conspiracy, but not one investigation of oil price gouging from the 70's on has come up with anything in the past and it's unlikely to now. quote:
How do you make 44 BILLION in profit during a war, in the aftermath of the most devasting natural disastor the US has ever seen and then have the audacity to state that profits are not that high but its just supply and demand. Very simple, let me do the math: Companies want a percentage of return on investment. 10 percent of more is more than 10 percent of less. If the cost goes up, the profits go up, or should they lower the return on investment to give you a break? Remember, even if they removed that 10 percent (which again, no investigation by any administration has shown to be the result of gouging) your 3 dollar gas would drop to 2.70. But then of course, they'd fold and you'd have no gas. quote:
There is no shortage of supply and demand is growing at the same rate that suppliers can provide for. They'll charge (as OPEC is) whatever they can get. That IS the law of supply and demand. If they were engaged in this huge conspiracy, why does the price EVER go down? To keep us off balance? (Don't answer that) quote:
There are wells all over the US and other areas that are capped that could be put back into "action" but then that would increase supply and then big oil would have no argument about the supply/demand reason for its gouging. When it's worth putting those wells back "into action" they do. I sold supplies for years into the Bakersfield oil industry, where there is still very difficult to extract oil. (they have to inject steam, which is derived from burning off gas and also used to power generators that, at least back in the time I was there, sold their co-gen power back into the grid at prices only made profitable by government tax breaks to encourage co-gen). If one of those fields has to go down for maintenance, it takes 24 hours or more to heat it up to the point the crude will flow again... Getting together all of the elements and backup supplies necessary to "heat up" a cold field and put it back online was a time to rejoice, as the suppliers made a fortune off of that very costly process. They only will crank up when they are sure that prices will stay high enough to make the entire, enormous effort worth while. It's the reason they're starting up shale again too.But these fields have been pretty much tapped. Want US oil? Can you say "Coastal"? Can you say "ANWR"? If it were that easy to tap those old wells, do you think the industry would want to expend the huge costs of coastal and ANWR drilling?
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