RugbyD wrote:something to note here is that the sky is not falling, and it never will. Current market prices, which are still pretty low in historical real$ terms, are making new production methods economically viable. Over the past 3 weeks my company has been part of the loan syndicate to finance 2 ventures to consummate development of canadian oil sands, which have massive amounts of recoverable oil. New technologies, financed by the massive profits that people like the Exxon CEO enable, are continuoulsy improving recoverability of oil and exploration techniques. Current conventional oil deposits can only be drained up to 35%. Every time new technology ups that %, our proven reserves increase, helping keep prices down.
If anything, anger over gas prices should be directed and people like Hugo Chavez and the Iranian prez. Unstable collectivist sociopaths make your life more expensive, not the companies charged with the risk of dealing with these psychos.
I read yesterday that the current highs are not supported by the current economic reality and that they are being driven up by fear and speculators. Most analysts feel that the price of crude should drop by at least 20% this year. Is this right?
I'll try to find the article online.
I think crude will drop because fear is overblown, but fear = reality. People are right to fear dictators; they behave irrationally and often destructively. In the long run everything will be just fine, but inelastic markets are particularly susceptible to short-run issues, and we see precisely this right now.
And w/r/t to speculation, it depends on what they mean by that. If they're talking about commodity traders, its BS. At most they have a small influence on the margin. Throughout the history of oil, traders have always been an easy target, but 95%+ of their action is providing liquidity to the market and is rarely naked speculation.
Have you seen the jowels on this guy? I think Jon Stewart did a piece where Raymond was really keeping expensive stamps, priceless art and a Honus Wagner baseball card IN HIS JOWELS.
His severance package comes to about $150,000 PER DAY THAT HE WORKED. That's in addition to the millions, if not billions, he made as CEO and chief shareholder.
I'm also an advocate of capitalism and Exxon is a huge company, the biggest in the world, and they make a lot of cash. But my common sense and logic gets in the way; not so much whining for myself. I can pay $3/gallon with a huff and some whining, but what about people who literally can't afford to heat their homes because of the price of oil? What about the people who have to choose between eating and driving to work? Don't you think there's just a little discrepancy here? More than anything, Exxon is not a particularly socially responsible corporation. Bill Gates has given, literally, billions upon billions of dollars to fight hunger and starvation, yet all people have to say about him is how he's a money-hungry scheister. Now Gates never did anything for me, and yes I feel ripped off every time a click "Accept" to one of his EULA's. But in some ways Gates sells a luxury, or at least an item that has alternatives. No one's telling people they can't just go buy a Macintosh. But gas, gas is a necessity. People don't just need it to drive to work, they need it to heat their homes and cook their food. It's not even that I expect Exxon to do something about the gas prices, I took economics, I know that gas prices are set by factors that way out of the control of any individual corportation.
But answer this for me; Exxon is the biggest and most profitable, right? So why is it that when I look at the gas stations in my neighborhood, Exxon gas prices are always higher than Texaco, Shell, BP, Sheetz and almost every other gas station. Exxon and Mobil stations are always the dirtiest and oldest too, but people are still filling up there with more expensive gas. So I do my part; I never fill up at Exxon or Mobil if I can help it. I even try to avoid Texaco. But they're just so big, that sometimes there's no choice.
No shock...Big Oil, corporations & lobbyists runs this country. Under this two party sell-out system we have, that's not going to change anytime soon. If anyone thinks politicians give a crap about the average family, get real.
Capitalism is a great thing but when greed and outsourcing of everything takes over to this degree, superpowers weaken in the long run. Self-reliance carries some weight. We've lost a lot of weight with our policies.
As a nation, we don't manufacture much these days. It's all import, import, import. Where are the exports (other than jobs)? When a nation relies on others as much as we do, we're in trouble.
Heck, recently some of our "leaders" wanted to allow the UAE to operate security at our ports and even more recently allow China to manage inspection of nuclear cargo.
Take a look at Brazil and the manner in which they're becoming energy independent. We'll need $ for infrastructure but long-term, it's a smarter move than most that are being made by the current power-that-be.
RugbyD wrote:The market supports this price, making it fair.
Just because people have no choice but to pay $3+ per gallon, that doesn't automatically make it a "fair" price. They could charge $10+ per gallon and people will still have no choice but to purchase it and it still wouldn't make the price "fair".
I also don't lay the blame at Exxon's feet, but they are a part of the problem. They are the biggest, so why not undercut the market and drive prices down to reasonable levels? Ah, that would be pretty stupid from a business standpoint when they know they can rob us blind simply because we've got no other choice. Why make a little when you know you can stick it to everyone and make a fortune?
Speaking of robbing, I overheard a story at the bowling center tonight about a guy robbing gas stations and leaving a note saying "Quit robbing from us, and I'll quit robbing from you." on it. Now if that's true, I wouldn't be surprised at all to see it hit the national news, and copycats coming out all over the country..........
Yes doctor, I am sick. Sick of those who are spineless. Sick of those who feel self-entitled. Sick of those who are hypocrites. Yes doctor, an army is forming. Yes doctor, there will be a war. Yes doctor, there will be blood.....