What a coincidence........

[exUte]

Originally Posted by Ma'ake

ANWAR would provide us three months of oil. In the context of millions of low mileage vehicles on America's roads, how would this really solve anything?

Absent any sort of political leadership, we'll learn this lesson again, the hard way, again, instead of a steady, deliberate, managed approach to ween ourselves from cheap oil.

We addressed the auto efficiency issue once before in this nation, during the 80s, and we'll address it again, this time not at the hands of the Sheiks, but at the hands of market, as oil pushes up past the $125 mark, and as the emerging middle classes in India & China decide to go ahead & buy that $2500 new car.

Even 5 mpg change wouldn't have made a difference either. Demand has gone down in the US (demand side of the equation) and the price continues to go up. And we're not running out of oil either (supply side of the equation).

Why is it so much easier to buy the supply/demand argument but not the argument that the oil companies are price gouging.......major.

[exUte]

Originally Posted by SeattleUte

Bashing oil companies is the most mindless drivel imagineable.

The oil companies are entitled to earn a profit just like donut and software companies. Before 2005 the oil companies experienced literally decades during which Their profits and stock prices languished. While lacking the Saudis' oil reserves, they previously suffered from the Saudis' dumping of their crude on the world market, driving down prices. The oil business is fraught with risk, high barriers to entry, and huge demands upon technology and inovation. They go to the ends of the earth in search of oil, often only to dig dry holes or find just poor grade crude. Moreover, the oil companies are burdened by bizantine environmental regulation, trade barriors, and every other conceivable government control including intense antitrust scutiny.

Like all businesses the oil companies have their good times and bad times. Their good times were few and far between for many years. One of the reasons that oil prices are up is that prosperity in India and China has driven up world wide demand. Capitalism's continued triumph in the east is great news.

If the oil copanies' profits have been up the past couple of years, pardon them for capitalizing on a market opportunity to rapidly ramp up prices. Securities lawyers, potato growers, and coffee exporters do the same thing when demand increases. The worm will turn as it always does in a "free" market (if that's what you can call the fossil fuels industry).

Finally, who owns the oil companies? We, the public owns them. In our 401-K's, pension plans, and stock portfolios. Leave the oil companies alone.

Come on conservatives, show the courage of your convictions and celebrate those high gas prices.

and you do have to put gas in cars to drive them and there is NO competition from amongst the oil companies. Is that capitalism?

[Ma'ake]

Originally Posted by exUte

Even 5 mpg change wouldn't have made a difference either. Demand has gone down in the US (demand side of the equation) and the price continues to go up. And we're not running out of oil either (supply side of the equation).

- MPG goes way up if people slow down. Will $5 per gallon decrease speed?

- US demand may have eased or gone down, China & India are just waking up.

- From what I read, the easy oil extraction is nearly gone. The more difficult finds are more expensive. (I'm not defending the oil companies, just noting the finite nature of the resource.) Also, state run oil companies in 3rd world countries & Russia are keeping high-tech oil extraction out... mostly by threatening oil company profits. Do we invade?

[landpoke]

Originally Posted by SeattleUte

Bashing oil companies is the most mindless drivel imagineable.

The oil companies are entitled to earn a profit just like donut and software companies. Before 2005 the oil companies experienced literally decades during which Their profits and stock prices languished. While lacking the Saudis' oil reserves, they previously suffered from the Saudis' dumping of their crude on the world market, driving down prices. The oil business is fraught with risk, high barriers to entry, and huge demands upon technology and inovation. They go to the ends of the earth in search of oil, often only to dig dry holes or find just poor grade crude. Moreover, the oil companies are burdened by bizantine environmental regulation, trade barriors, and every other conceivable government control including intense antitrust scutiny.

Like all businesses the oil companies have their good times and bad times. Their good times were few and far between for many years. One of the reasons that oil prices are up is that prosperity in India and China has driven up world wide demand. Capitalism's continued triumph in the east is great news.

If the oil copanies' profits have been up the past couple of years, pardon them for capitalizing on a market opportunity to rapidly ramp up prices. Securities lawyers, potato growers, and coffee exporters do the same thing when demand increases. The worm will turn as it always does in a "free" market (if that's what you can call the fossil fuels industry).

Finally, who owns the oil companies? We, the public owns them. In our 401-K's, pension plans, and stock portfolios. Leave the oil companies alone.

Come on conservatives, show the courage of your convictions and celebrate those high gas prices.

I love you man.

[Archaea]

Originally Posted by landpoke

I love you man.

You two get a room, and let me know how to get hold of those two oil women.

[Flystripper]

Originally Posted by exUte

the price of oil increases and so do the profits of the American oil companies. I can understand that their costs may go up; but their net income skyrockets. It's clear they have a monopoly (yes I know the big 7 are not a monopoly in a technical sense), because they all charge the same price at the pump whether Texaco, Chevron, et al.

There is no difference between OPEC and the American oil companies. both evil entities.

High profits in the energy sector are due to high operating leverage coupled with high demand. If there was a massive slack in demand you would see these same companies quickly begin to lose money due to their high fixed costs. It really isn't that complicated or devious.