Where's All Of The Oil?
Okay, here we go again....
The free market capitalists say that when there's a need for something, that people or companies will step forward to fill that need when they can make money. If this theory were completely true, we would have oil running out of our ears. The other day on CNBC, I didn't hear the interview, but I did hear the regulars commenting about it. There had been some analyst on who said that with the high price of oil, there really isn't anything to inhibit the oil companies from getting to oil, no matter where it is; whether it be under the sea or in rocks. In the past, they always whined, many times with good reason, I'll have to admit, that the costs to get to all of the oil was prohibitive, and that therefore, they chose not to go to the tough areas to extract oil. Well folks, that's not the case any longer, according to what was said on CNBC.
I go back to what I've been saying about all sorts of things; if it works, do it! If any of these economic theories worked one hundred percent of the time, the world would live by it. There would be no disputing it. The fact is, sometimes free markets work, sometimes they don't. Sometimes government programs or regulations work, and sometimes they don't.
Recently I contacted Senator George Voinovich of Ohio about how every excuse imaginable is used to justify the increase in oil and gasoline prices. He responded to me with a letter just a few days ago. In the letter he recites some of the statistics about American energy use having tripled since 1950, and how India and China are now using more oil, and how this has put a strain on supply, and thus prices have risen. Now, I'm not doubting any of this, but he also noted that oil was like ten bucks a barrel just like ten years ago. So what happened in the time since then? World oil usage did NOT go up tenfold!
Now, I like Senator Voinovich, but then he got my blood to boiling when he gave me the oil company crapola that they've been dispensing for several years now; that is, "while oil companies experienced record high revenues, their profit margins are still below that of many other industries." (This is a direct quote from Senator Voinovich's letter) Then to rub salt into the wound, he continued, "...these larger industry profits have translated into greater tax revenues from these companies payments' of federal and state taxes." (Another direct quote)
Okay, so there are free markets setting the prices, but now they don't like that either, because they want mo' money, mo' money, mo' money!!! Folks, they can't have this both ways; free market pricing AND get to set their own standards for their profit margins. In the end, they're like all of us, when something works in our favor, we like... I mean LOVE it!!! Let it not satisfy every itch, and we're not happy campers.
As to the tax revenues, from what the Senator is saying, we should all be thankful that we're paying such high prices, because it has helped state and federal treasuries. I guess we should all pray for even higher prices then! This is just more nonsense to excuse what's been going on. And it's not a very good excuse at that, or do you prefer higher gasoline?
The free market capitalists say that when there's a need for something, that people or companies will step forward to fill that need when they can make money. If this theory were completely true, we would have oil running out of our ears. The other day on CNBC, I didn't hear the interview, but I did hear the regulars commenting about it. There had been some analyst on who said that with the high price of oil, there really isn't anything to inhibit the oil companies from getting to oil, no matter where it is; whether it be under the sea or in rocks. In the past, they always whined, many times with good reason, I'll have to admit, that the costs to get to all of the oil was prohibitive, and that therefore, they chose not to go to the tough areas to extract oil. Well folks, that's not the case any longer, according to what was said on CNBC.
I go back to what I've been saying about all sorts of things; if it works, do it! If any of these economic theories worked one hundred percent of the time, the world would live by it. There would be no disputing it. The fact is, sometimes free markets work, sometimes they don't. Sometimes government programs or regulations work, and sometimes they don't.
Recently I contacted Senator George Voinovich of Ohio about how every excuse imaginable is used to justify the increase in oil and gasoline prices. He responded to me with a letter just a few days ago. In the letter he recites some of the statistics about American energy use having tripled since 1950, and how India and China are now using more oil, and how this has put a strain on supply, and thus prices have risen. Now, I'm not doubting any of this, but he also noted that oil was like ten bucks a barrel just like ten years ago. So what happened in the time since then? World oil usage did NOT go up tenfold!
Now, I like Senator Voinovich, but then he got my blood to boiling when he gave me the oil company crapola that they've been dispensing for several years now; that is, "while oil companies experienced record high revenues, their profit margins are still below that of many other industries." (This is a direct quote from Senator Voinovich's letter) Then to rub salt into the wound, he continued, "...these larger industry profits have translated into greater tax revenues from these companies payments' of federal and state taxes." (Another direct quote)
Okay, so there are free markets setting the prices, but now they don't like that either, because they want mo' money, mo' money, mo' money!!! Folks, they can't have this both ways; free market pricing AND get to set their own standards for their profit margins. In the end, they're like all of us, when something works in our favor, we like... I mean LOVE it!!! Let it not satisfy every itch, and we're not happy campers.
As to the tax revenues, from what the Senator is saying, we should all be thankful that we're paying such high prices, because it has helped state and federal treasuries. I guess we should all pray for even higher prices then! This is just more nonsense to excuse what's been going on. And it's not a very good excuse at that, or do you prefer higher gasoline?
Labels: energy prices, free markets, George Voinovich, oil prices
posted by Randy at 10:56 AM
2 Comments:
Let's not forget government regulation...
I'm all for government regulation, as least for starters, but the problem is, the wealthy and business interests weren't stupid when they got all of the energy products on world futures' markets; the key word being "world." Now, one government alone can't control the situation, although the U.S. would certainly have a big say, if it chose to crack down.As I worte in a different blog, I'm for the government digging wells and building refineries; that is, going into competition against these greedy #$%&^#. Anything to hit back and maybe get this situation stabilized.
To me, the wealthy got these products somewhat removed from U.S. control, and they're going to ride that pony until it drops.
As long as people, especially Americans, let them hit us, they're going to hit us. Their greed and ego trips exceed any love of country or care for their fellow beings anywhere in the world.
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