Dixie - In Memoriam
New member
Yes Dixie, it is a really sweet gig. All you need in order to get in on it is enough capital to get a contract to buy a company's oil for a set period of time. In other words, a shitload of capital.
Seems there is a lot of people in America with a shitloads of capital who haven't heard of this, because they aren't doing it. It also seems like, if anyone with any sense had any money lying around, they would certainly be investing in such a sure-fire plan to make even more money. Don't see that happening either.
There is a set amount being released by OPEC, but OPEC is not the only source for oil. And having only 5 major oil companies means its easy to manipulate the prices you get. No rogue is going to cut prices and cost you money. I am not sure you realize it, but Exxon/Mobile, British Petroleum, Chevron and the like DO have producing wells. They also have fleets of tankers, and refineries, and truck fleets and gas stations. So while they may buy some from OPEC, they control virtually the entire process.
You state that having 5 oil companies means it's easy to manipulate the price they but you haven't really explained that. The oil companies buy the vast majority of their oil from OPEC, because we do not produce enough domestically, and I can pull the actual numbers if you need to see them, but I assure you, we import far more than we drill ourselves. Now, back to the argument that the 5 oil companies can "manipulate" the price of oil.... how exactly does that work? Because the way I see it, if your company needs and wants something my company has, you have absolutely NO leverage in what I decide the price will be.
And just as an FYI, I have no idea where you came up with the "The same number of consumers need gas...", but it shows you haven't a clue about the process or what has been happening. The number of consumers and the rate of consumption has steadily climbed.
Well, yes the number has steadily climbed with growth, but it doesn't change because companies merged. There are not fewer people needing gas or less gas being supplied because companies merged. In short, company mergers have nothing to do with supply and demand, thus nothing really to do with profit or prices. In fact, an argument can be made, with one less CEO to pay, one less R&D department to fund, and overall less corporate infrastructure to support, mergers actually help lower the cost of gas to the consumer by making the oil companies more efficient.
The Florida Tourism Bureau was the first and most substantial lobby for the moratorium on drilling off the coast of Florida. Tourism in Florida generates between $57 Billion and $62 Billion annually. In 2005 almost 86 million people visited Florida. And you think environmentalists pushed thru the bill that banned drilling in Florida's waters? That is absolutely wrong. It was the tourism industry.
Again, my focus is not on finding someone to point my finger at and bitch, it is to try and resolve the problem. You can believe whatever fantasy you like, most of us are smart enough to know the Environmental lobby is who pushes for no drilling. Perhaps the Tourism lobby is full of Environmentalists, that would make sense, wouldn't it? So, while you want to sit here and split hairs over who is to blame and who we can point our finger at, I am simply trying to move past that and solve the actual problem.
Some of the increased regulations are environmental in nature. Most of them are tax revenue oriented. New refineries mean new taxes. The old refineries are almost always grandfathered in. The new refineries would have to pay huge sums in taxes, because people see the oil industry as a cash cow. Also, every time one of the big oil companies has tried to build a refinery their efforts have been blocked by state and local referendums aimed at keeping such a "dirty" business out. This is not a handful of treehuggers, this is a push by homeowners, land developers and city & state officials.
It's pushed and promoted by the Environmental lobby, they are responsible for the propaganda, they are responsible for the initiatives, they are responsible for the obstruction of every initiative to become independent of foreign oil. Homeowners, city and state officials, and land developers who are also Environmentalists, maybe.
Also, I talked about ANWR being one way of getting our oil domestically. That has been repeatedly blocked by environmentalists.
Yes, it has been. It's good that you at least have that bit of reality going for ya. I just don't understand why you can't see that it's the same people across the board, who are obstructing progress. Now, they are clever enough to give their little groups different names, or hide behind a politician or tourism group, but it's the same exact lobby of environmentalists.
Our oil prices have also jumped because worldwide demand has grown by leaps and bounds due to the development of India and China. We are no longer the only oil hogs around. So what there is goes for a higher price.
Again, my argument is not about why oil prices are continuing to rise, that is a really simple argument, it's supply and demand. If we owned our own domestic sources for oil, and no longer needed to buy oil on the world market, I couldn't give two shits how much China pays for it! It doesn't matter how much it goes up on the world market, it can go to $10,000,000,000.00 a barrel, and our price will be the same because it is coming from our own domestic sources. Is that point just not making it into your head for some reason?
And its not going to get better (except for perhaps a very short drop). Its going to get worse as supplies become more and more scarce.
But you started this thread with the statement that treehuggers were responsible for our high gas prices. That is not only wrong, but it is oversimplistic.
Well, I agree it will only get worse, as long as we cater to the Environmental lobby and refuse to drill and refine our domestic oil. We can go round and round pointing fingers and casting blame all over the place, we can chastise the greedy rich oil companies, and vilify the greedy rich corporations, we can blame Republicans or Tree Huggers, we can keep electing politicians who are committed to doing nothing about the problem and, in 5 years, we will still be sitting here debating what to do about $20 a gallon gas.