The 'Idle' Oil Field Fallacy

[OokiiMamoru]

An Opinion piece out of the WSJ

http://online.wsj.com/article/SB1213...s_opinion_main

I wonder how long before Mr. Cavaney is thrown the the wolves.

[bowtieguy]

good link.

funny how no one complains about prescription drugs and their high costs due to "research and development." oh yes, i forgot tax money and subsidising thru higher insurance premiums pays most of them!

when the high cost of exploration and production affects fuel prices it's considered windfall profits.

at least most of us NEED fuel. most of us do NOT need drugs.

altho it's a bit premature, i feel sorry for those that are struggling now with fuel and consumer prices now because when winter comes it will be extra difficult for those that need heating fuel. my thoughts and prayers will be with them.

[cems70]

Mr. Cavaney is the president and CEO of the American Petroleum Institute. His plea for more offshore leases to explore for oil and gas and his case that exploration of these lease areas requires a huge investment does not get any sympathy from me. I will not be an apologist for ANY oil or gas company or industry spokesperson. I believe this current energy crisis is a scheme cooked up by Big Oil and the government as a way to further control the masses. There are simply no fundamentals to support a $130 barrel of oil. On the other hand, expensive energy costs means less mobility and a struggling common person who has all they can do to keep their heads above water financially. Both Dems and Republicans alike are in bed w/ Big Oil, especially the current Bushevik administration, and I think the high energy prices are intentional.

[OokiiMamoru]

Originally Posted by cems70

I believe this current energy crisis is a scheme cooked up by Big Oil and the government as a way to further control the masses.

Ok, here is where I have the problem. Big Oil, or the 5 big oil companies in the US, only control at most 5% of the world supply. It could be argued they are on the inroads with OPEC giving control of 80+% of the world supply. OPEC has never been US friendly. Things just don't add up, and I'm not very big on conspiracy. Now OPEC driving up prices on their own...............

Originally Posted by cems70

There are simply no fundamentals to support a $130 barrel of oil.

Its difficult to rationalize fear. Beating the falling dollar and inflation can hardly be defined as greed. Now changing how futures are bought and sold could have a major influence on oil prices. I believe taking out a loan to purchase any kind of investment should be eliminated.

[ShadowWorks]

Your forgetting the US national debt which is over 9 Trillion dollars and accelerates at over $10,000 per second, it will be 10 Trillion before Bush is out of the White House, Fuel is not costing more, its just the dollar is worth less every day and it cost money to make money, the Federal Reserve is a private bank, I didn't believe it until I actually checked.

Add the new petrol buyers like China and India, we have to share the oil production with the rest of the world, the Ameroe does not seem like a joke any more.

[bowtieguy]

Originally Posted by ShadowWorks

...Fuel is not costing more, its just the dollar is worth less every day...

yet another good reason to drill(in several areas)...

to increase exports and strengthen the US dollar.

[ShadowWorks]

Originally Posted by bowtieguy

yet another good reason to drill(in several areas)...

to increase exports and strengthen the US dollar.

The US used to be a big exporter which helped it boom in from the 1920 to 1950-60 but then the tables turned and oil production slowed down, the US stopped exporting and became a bigger user, its demand has out grown its production, the number of barrels the US uses in a day is staggering!

You have to bare in mind that the US dollar is not backed with Gold. I understand its the main petrol chemical currency now but that will change very soon, the Euro will take over in the next 5 years, I don't see how the dollar can ever recover, no matter how much oil magically appears, the US as a whole imports more than it exports.

Your successive governments have screwed the people down into the dumps.