5/23/2007

Pity Party for Big Oil



























Big Oil on Edge of Extinction: Business Week Podcast.

9 comments:

Cato said...

lol...

So...

lol...

So to lower prices for gas, Bush called on the government to basically subsidize ethanol right...

lol...

Well because of that...

lol...

oil companies won't build new refineries (and there was already a shortage in refining capacity) and so now we'll have ever higher gas prices as demand for gasoline goes up and we don't have enough (we have enough oil -- not enough gas)! lol...

http://www.nytimes.com/2007/05/24/business/24refinery.html?ei=5065&en=88a4750c6b8de113&ex=1180584000&partner=MYWAY&pagewanted=print


IDIOTS

THE BUSINESS OF BUSINESS IS ONLY BUSINESS' BUSINESS.

jpn said...

Cato:

I would agree with your concluding statement. I would then at that the purpose of government is to put boundaries around the business of business and to provide guidelines for how business operates in the context of the juristition of said government.

Ink Stained Wretch said...

CATO:

Why would big oil want more refining capacity when they are intentionally cutting back on what they have now, controlling the supply and bumping up prices. Their profits are higher without more refineries. IDIOT
WTF

cato said...

Profits are not higher by selling at a higher price, necessarily. The profit margin on gasoline is very small for everyone outside of futures speculators.

So-called "big oil" would want to sell more gasoline to make more money. Pretty simple.

Andy Rand said...

CATO:

Have you forgotten your basic Adam Smithery?
If big oil makes MORE oil available, the price isn't going to stay the same but go down. There is less expense with selling less oil for a higher price (Transportation costs etc)than more oil at a lower price.
Not as simple as you say.

cato said...

Oh and by the way "ink stained wretch", it's not nice to call other people on this blog, or any place where you are having a discussion with someone, an idiot. Before you jump on me -- I was speaking of the idiots in the White House who are calling for increased "alternative fuels" and how it's backfired.

Ink Stained Wretch said...

CATO.........

I took your IDIOT comment as aimed at
bloggers here. Call me an IDIOT..... I'll return the favor.

I'm sorry for not being nice.

As for alternative fuels.....
If we'd actually followed these plans
dating back to the Carter Administration, we'd have much more fuel efficient vehicles, and be less dependent of foreign oil. These calls are not new. They are over 30 years old and date back to the Nixon "energy crisis". Oil is
"non-renewable" When it's gone....
it's gone. There's nothing wrong with promoting alternatives.

cato said...

We will never run out of oil.

And it is renewable. Very slowly... although there are schools of thought that can show it is not actually a fossil fuel, unlike coal, although I don't particularly think they are very compelling arguments. Crazy Russians though...

Anyway, we won't run out. Sure it'll get "expensive", but we won't run out. We'll find all sorts of "alternative fuels" when the MARKET demands it. Fuels like oil derived from shale. Sure, we'll have to strip mine for it. Boo-hoo. Currently they are still discovering extremely large amounts of crude oil reserves every year, and I do recall reading about how the largest has not even been tapped (in Gulf of Mexico). We got plenty of oil. Sure, it'll get "expensive" but we got plenty of it. Speaking of "energy crisis" dating back 30 years, they've been talking about how we're nearing "peak oil" for at least that long. Any year now, any year now...

There IS something wrong with governments promoting alternatives. By promoting alternatives what have they done? Oil companies have scaled back on refining, increasing the price of refined oil. The price of corn has skyrocketed. There were riots in Mexico over the price of corn -- due to ethanol -- which led to price controls, since they need their tortillas. Government should just step back and let the invisible hand guide us. Necessity is the mother of all invention. Not Government.

Andy Rand said...

CATO:

I'm sorry but to me your argument is pure foolishness. It's like saying, you'll never run out of money. So just spend until you don't have anymore and then worry about it.
This is what fools do. They don't plan at all for the future. The same is true of oil. When it becomes so scarce that it affects every aspect of the economy, and it will take decades more to develope alternative fuels and get and create a distribution system, it will be to late to avoid disaster.
You and your "pure" ( and might I add minority view) of the Constitution as the centerpiece of humanity is totally impractical, and realistically adopted by nobody with real political power. Even Bush give lip service to creating alternative fuels.
The same argument is made by the local yokels about building schools. When there are too many kids then we'll build. (Forget the fact that there are already too many) Like a school is going to rise up instantly like Quaker oats instant oatmeal!. Social units (insert governments) need to plan for the future, not simply react.
As for the invisible claw of the market. It takes more faith to believe in that than it does to believe in God.
Just heard from some Iraqis about how well there non-government is working. Immediately following the collapse of Sadam's government ( a tyrant to be sure) crime rose precipatously. Women started being kidnapped as sex slaves. Why, because there was no government to hold them accountable. They commited these crimes because they could, and could get away with it.
Anarchy (Self Government) only works in think tank documents and on blogs, not in reality.