Oil execs: Record prices not our fault

[Jim Schue]

Explain the math of how imposing a windfall tax on oil companies and denying them the right to open new fields or build new refineries is going to result in lower gas prices. The government lied about there being an oil shortage in the 70's and now they have created a real shortage by cutting domestic production and refining capacity.

 

Please show me where I am advocating a windfall tax or any of the other things you're talking about.

 

Liberals are in denial because they do not want to take responsibility for the results of supporting the policies that have culminated in $4/gallon gas prices.

 

I don't care if you use liberal as a dirty word. I ain't one. I've pretty much washed my hands of the Dems on the national level. I'm not in denial about anything but the size of my ego.

[Gunner11]

I would agree, but most of the other factors are joined at the hip to the price of energy.

 

Here's what I (almost) hope: The price of oil/gas gets so high that we completely change our country's transportation and energy philosophy, and all those clowns who are cleaning up on the short term end up starving in the gutter 10 years from now because of their greed and lack of foresight. It'll be tough on everybody, but, hopefully, those who deserve to get hurt the most, do. If dozens of Fortune 500 companies go out of business, so be it.

 

Divest now, people. I will have no pity for you when your oil stock bottoms out.

 

Price of goods and technology advances are two big catalysts for change and subversion of industries. The marketplace is an extremely efficient mechanism and if gasoline and transportation become too costly, investment will flow toward an alternative. That is the beauty of supply and demand.

 

A good book for you to read Jim is called The Innovator's Dilemma. It deals with what happens to companies that grow to a point where they are able to be subverted by smaller companies on a price or technology basis. I think you would like it.

[AcesFull]

While I am no fan of liberals, they are not the only ones to blame. Congress (democrat and republican) has done very little to address this issue since the early 70's. Yes I agree that building new refineries and drilling for more oil where we have the ability to would help, but it is only a band-aid on a festering wound. The oil companies were not going to do a lot of drilling in the 80's and 90's anyway because the price per barrel was in the low 20's and teens.

Republicans passed an energy bill that included opening part of ANWR for drilling and Clinton vetoed it. Republicans could have done more, but liberal Democrats have done far more to block expansion of domestic production than Republicans.

 

I had been adding "and Republicans like John McCain" to my criticism of Democratic policies in previous posts, so please make a mental insertion of John McCain and his ilk whenever I say Democrats.

 

While I agree that oil companies would probably not brought a lot of production on line while prices were low, they would have obtained permits and installed some infrastructure that would have allowed them to ramp up production to meet demand. That would have moderated the price increases.

[Gunner11]

Republicans passed an energy bill that included opening part of ANWR for drilling and Clinton vetoed it. Republicans could have done more, but liberal Democrats have done far more to block expansion of domestic production than Republicans.

 

I had been adding "and Republicans like John McCain" to my criticism of Democratic policies in previous posts, so please make a mental insertion of John McCain and his ilk whenever I say Democrats.

 

While I agree that oil companies would probably not brought a lot of production on line while prices were low, they would have obtained permits and installed some infrastructure that would have allowed them to ramp up production to meet demand. That would have moderated the price increases.

 

True, the democrats have been obstructionist in some of the expansion of drilling and refinery efforts. However, I think both parties are in denial and neither is committed to true energy independence. IMO it should be not only the number one priority from an economic sense but also a national security sense as well.

[AcesFull]

True, the democrats have been obstructionist in some of the expansion of drilling and refinery efforts. However, I think both parties are in denial and neither is committed to true energy independence. IMO it should be not only the number one priority from an economic sense but also a national security sense as well.

I agree on all points. The government should be working on a bipartisan basis with oil companies to eliminate production bottlenecks and instead oil companies are being used as verbal punching bags on Capitol Hill.

[John Anthony]

Why do the oil companies walk on egg shells during the meetings? Yeah they do say we need to drill a home and I realize their professionals, but they are delt plenty of low blows from congress. Why don't they say we need to elect a congress who will let us drill at home to lower gas prices?

[AcesFull]

Why do the oil companies walk on egg shells during the meetings? Yeah they do say we need to drill a home and I realize their professionals, but they are delt plenty of low blows from congress. Why don't they say we need to elect a congress who will let us drill at home to lower gas prices?

Fear of retribution. Would you want to be the CEO of a company who bested Patrick Leahy or Dick Durbin in a Senate hearing, only to have your company subjected to extra scrutiny by the SEC, OSHA, and the IRS? The government can make it very expensive to speak the truth and the CEO is responsible to his shareholders. A CEO who started a feud with Congress would not be CEO for long.

[newarkcatholicfan]

Sorry, but a depression is right around the corner at this rate. Prices have already gone up exponentially on most products at the grocery store, while wages have remained pretty stagnant w/relation to cost of living, and that's usually a pretty good indicator.

 

Yup, my South Africa metaphor works pretty well. I encourage everyone to divest from oil holdings ASAP; stop supporting oppressive companies.

I was listening to a show on the radio and they were saying the Depression will start as soon as the gas hits 7 bucks a gal. They predict this to take place next summer.

[pigman]

So this war has nothing to do with oil prices? It's all congresses fault. Man I'm alot dumber than I thought.

[bballfamily]

Heres the supply and demand problem... proven fact.. supply is down, well down in the US. Suppy is well up in China/India/Middle East mostly because there gas prices are regulated to spark economic growth. How do we win?

 

If the supply is down in the US, the answer is simple, tap the resources we have in this country.

[Hearsay]

I am impressed by all the closet economists on here.

 

For those of you favoring the windfall tax, how did that do the last two times we had it?

[Gunner11]

I am impressed by all the closet economists on here.

 

For those of you favoring the windfall tax, how did that do the last two times we had it?

 

:laugh:

[bballfamily]

I am impressed by all the closet economists on here.

 

For those of you favoring the windfall tax, how did that do the last two times we had it?

 

The reasons for great powers failing are inept and corrupt leaders, high taxes, an overburdensome welfare system. All this happens because the citizens become lazy, demand and get used to a government trying to everything for them, instead of doing it for theirselves.

[lynks66]

I am impressed by all the closet economists on here.

 

For those of you favoring the windfall tax, how did that do the last two times we had it?

 

 

Another question that will likely go unanswered.

[John Anthony]

Anyone see the guy on NBC predict 6 dollar gas by end of summer? Another guy thinks it will be double digits within 2-4 years. At 2 dollars govt didnt care, at 3 dollars, the govt said it will come down to 2 again soon or close to it, at 4 dollars the govt is starting to get concerned. At 5-6 dollars the govt is going to have a serious problem with the American people backlashing. Once we get to 5 and edge past it I could see mass rioting break out.

Edited May 23, 2008 by John Anthony