Field wrote:I'm more worried about how $4 gas will lead to even greater levels of inflation. You won't see the Fed lowering interest rates anytime soon if that happens.
OT a bit but there's a fantastic history of prices since the Medieval Era called 'The Great Wave' that explains how spikes in fuel prices have 'led' each spike in inflation since that time and, in turn, have led to wars, cannabalism, drug use and all sorts of other ills. It sounds a bit far fetched but it is a pretty breezy read and summarizes a lot of pretty dense histories of prices in one 200 some odd page book.
Oil companies have not built new refineries b/c there's little reason to. When the govt heavily subsidizes your supposed future direct competition and constantly threathens to steal your money via "windfall profits" taxes, why would you bother with the CapEx on something that takes a very long time to complete and bring into operation?
Field wrote:I'm more worried about how $4 gas will lead to even greater levels of inflation. You won't see the Fed lowering interest rates anytime soon if that happens.
OT a bit but there's a fantastic history of prices since the Medieval Era called 'The Great Wave' that explains how spikes in fuel prices have 'led' each spike in inflation since that time and, in turn, have led to wars, cannabalism, drug use and all sorts of other ills. It sounds a bit far fetched but it is a pretty breezy read and summarizes a lot of pretty dense histories of prices in one 200 some odd page book.
Thanks for the heads up. I just read a summary about the book and it looks very intersting. Economics is an area of personal interest, so I think I'm going to pick it up.
RugbyD wrote:Oil companies have not built new refineries b/c there's little reason to. When the govt heavily subsidizes your supposed future direct competition and constantly threathens to steal your money via "windfall profits" taxes, why would you bother with the CapEx on something that takes a very long time to complete and bring into operation?
Exactly. We bring these high prices on ourselves by having laws and a legislature in place that do not promote new refining and exploratory means.
I agree with Knapp on this one. Prices are already too high, and when the gas companies are banking record profits for any business for any year (Exxon), yet prices are still climbing, there's definitely something wrong.
I got an interesting email, but I'm going to start a new thread on that.
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.....
RugbyD wrote:Oil companies have not built new refineries b/c there's little reason to. When the govt heavily subsidizes your supposed future direct competition and constantly threathens to steal your money via "windfall profits" taxes, why would you bother with the CapEx on something that takes a very long time to complete and bring into operation?
also, if oil companies are 'managing' production, they would likely look closely at the cost now of refineries vs. the return on that investment in 10 or 15 years when production drops and, if it's not a clear 'win', why bother?
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by knapplc » Mon May 07, 2007 1:44 pm 
