Thursday, July 27, 2006

Billion Dollar Oil Company Profits Are in the News Lately

It's time to read (or re-read) this article again, written after the Katrina devastation last year.

Key point:

"But there is a consistent undercurrent to the mental void that is driving most of this chatter, namely that large oil-company profits are proof that gasoline prices have been too high; that oil companies have been 'price gouging.' "

9 comments:

  1. Our Congressmen are doing their usual politically correct thing and pandering to the “mob” by calling for a costly, but useless, investigation since by the time the investigators report Congressmen know the “mobs” attention will have gone elsewhere. Sad, but this is how things operate in our democracy.
    As for the price of oil I sincerely hope the price goes to $100 a barrel and I don't much care who gets the so-called excess profits because in the long run the mob will start yelling for alternate forms of energy and much, much more efficient automobile fuel mileage and these things will only benefit our country and our planet if we are forced finally to turn away from fossil fuels. (Yes, Bubba, I am one of those weird ones who truly believes in The Greenhouse Effect. Sorry. We usually agree on most topics, but on this one not at all.) BB

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  2. Oh, and just to note: a report I read yesteday claims that $3.00 a gallon gasoline hasn't changed driving habits one bit. Americans refuse to give up their love affairs with their automobiles. BB

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  3. I don't agree with the Greenhouse Effect, but I agree with the need for new sources of energy, and I agree with better engineering (consumer and business) for the way we use power.

    Having said that, the solution does NOT rely on more government regulation, and the solution does NOT include failing to effectively utilize the assets still available because of some dogmatic social ideal that has no basis in fact or practicality.

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  4. The increase in oil prices is caused by the commodity markets, not gas-guzzling SUV's, government regulation, or company profits.
    There is no oil shortage, just an increase in production costs coupled with speculation regarding the Middle East situation.
    There's little we on this side of the ocean can do about it.

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  5. Jaycee, while it is true that we cannot effect price, you must admit that the amount of oil that we use (forget global warming for now) is excessive. I heard yesterday that 10% of all oil used is used by cars on American roads. That is significant. It is wasteful to have one person commute 50 miles one-way to work in a 10 mpg SUV. It does increase our dependence on foreign oil.

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  6. If there's no shortage, how is it "wasteful?"
    There's plenty out there to use, we're just slaves to the world market. If we develop more US sources, such as offshore drilling and ANWR drilling, we can regain some control of costs and remove the financial stranglehold from OPEC.

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  7. smallpotatoes, there is no shortage, period.
    Whether I get 12mpg or 32mpg only affects my pocketbook, not yours or the world in general.
    I believe we need to pursue alternate forms of energy and alternate sources for fossil fuel in order to break our dependence on foreign sources. While it will be costly in the short run, it will benefit us in the long run.

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  8. More of the name calling I see. Maybe I'll start referring to you as "gay-cee". Nah, that would be childish and juvenille, you are right.

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