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Are Oil Prices Driven by Capitalism... Or Something Else? - RF Cafe Forums
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Kirt Blattenberger
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Post subject: Are Oil Prices Driven by Capitalism... Or Something Else?
Posted: Wed Jun 11, 2008 2:06 pm
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Site Admin |
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Joined: Sun Aug 03, 2003 2:02 pm Posts: 878
Location: Erie, PA |
Greetings:
Anyone who knows me knows that I am no friend of big government.
However, I do believe that government serves several important functions, including
those mandated by the Constitution like a judiciary system and national defense against
enemies foreign/domestic, as well as civil services like fire fighting, consumer safety,
environmental preservation, etc. He/she would also know that I am conservative in the
majority of my viewpoints.
That stated, I must say that I vehemently take issue
with the strategy adopted by leading conservative talk show hosts and writers when discussing
high gas prices (Michael Savage being the one notable exception). They unabashedly take
the side of the oil companies’ obscenely high profits, pointing out that the companies
make “only” 4 cents per gallon profit while the government takes 18 cents per gallon
for “doing nothing.” The argument is that the oil companies do all the work to procure
and process the oil, while the government does nothing for its take. The fact is that
if it were not for the transportation infrastructure built, maintained, and protected
by the government with the gas tax money, the oil in all its end form products (gasoline,
heating oil, diesel, rubber, etc.) would be useless because the products would not be
efficiently deliverable– if at all.
An exhaustive documenting of gross waste
and mismanagement on the part of the government in execution of its responsibilities
would fill volumes; the outright fraud committed by siphoning off gas tax money for
unrelated pet projects is probably the biggest example. So, I’m not taking the side
of the government – I’m just doing an honest assessment.
Politicians, ever willing
to exploit an opportunity for class envy and pitting one group against another, proposed
a windfall profits tax on oil companies to punish them for the high prices. The problem
with that approach is that it does not lower the cost of gasoline for consumers – it
just puts more of our hard-earned money in the coffers of the greedy politicians for
their pet projects. Capitalism is a great system, and I whole-heartedly support and
benefit from it, but in the case of oil – a commodity – supply and demand cost relationships
are dictated by futurists and not the “real” world. Instead, maybe the oil companies
should have to live under the same rules as public utilities whereby a commission of
community residents and local officials must agree on the need for price increases to
consumers. That reported 4-cent-per-gallon profit is after perks and endless write-offs
for every type of qualifying expense; it's the part of earnings that investors are allowed
to share. If the oil companies have to live within a budget, their habits will change.
It is no secret that there is a relatively small, very politically active portion
of the population (foreign and domestic) that is loving the high gas/oil prices because
it has caused consumption among some groups to decrease – although not by a whole lot.
Products still need to be transported to market, and people need to get to the market
to buy the products. Obviously, though, overall consumption increases every quarter
because assuming the profit margin stays the same (4 cents/gallon), the record earnings
reported every quarter means more of the product must be being consumed.
Some
people who read this will be tempted to respond with the mantra about letting the marketplace
set prices, but the average consumer has practically nothing to do with the current
price of a gallon of gasoline or home heating oil. We are at the mercy (or lack thereof)
of the professional traders and manipulation by mega corporations and governments. What
we are witnessing, IMHO, is a huge transfer of wealth from the upper lower class and
all ranges of the middle class to sultans, corrupt government officials, world organization
heads, large market traders, and the upper echelon of huge corporations.
My
preference would be to exploit our own massive untapped proven reserves of oil fields
and oil shale deposits, and begin building nuclear power facilities. Technologies are
already developed to safely extract and transport the products. It is outrageous that
we have allowed ourselves to become so dependent on foreign energy supplies that we
are now at the mercy of even our sworn enemies for providing us the resources we need
to keep the country’s economy and overall sense of well-being in good shape.
If that is the way the world is allowed to work, then maybe that’s our collective
destiny. Just don’t call it capitalism.
_________________ - Kirt Blattenberger
RF Cafe Progenitor & Webmaster
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Kirt Blattenberger |
Post subject: Report on Available Shale Oil - by the perky Katie Couric
Posted: Tue Jul 01, 2008 12:43 pm
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Site Admin |
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Joined: Sun Aug 03, 2003 2:02 pm Posts: 878
Location: Erie, PA |
Greetings: With crude oil prices topping $143/bbl today, and the king (yep,
they still have kings) of Saudi Arabia telling us, " Consumer
countries have to adapt to the prices and the mechanisms of the market,"
it looks like we are going to be screwed for a long, long time if something is not done
immediately to get the price of oil down. It is no secret that the reason prices
have been allowed to skyrocket is to force a behavior adjustment for the sake of "manmade"
global warming. It does not matter to the extremists whether the unintended (probably
intended) consequence is the tanking of the country's economy in the process. They have
successfully prevented the tapping of vast reserves on American soil for both crude
oil and shale oil. According to the news reel below, the available oil from shale deposits
alone are measured in the trillions of barrels, and could surpass the oil in the Middle
East. They have prevented the building of new refineries to the extent that we actually
buy a lot of processed petroleum products like gasoline. Now that
prices are so high and citizens have finally begun demanding that the Congress do something
about the situation (I seem to remember the current crop promising to lower gas prices
- $2/gal in 2006 - if put back into power), the mantra we hear is that even if we start
today, it would be 10 years before the first drop of gasoline was delivered. That 10
year figure is only valid if all the litigation time to fight back the extremists is
factored in. Industry experts say that 2 years is more like it if given an unimpeded
path to completion. This is the country that built the mightiest navy on Earth within
two years from the time the Japanese decimated the Pacific fleet at Pearl Harbor, so
don't tell me we couldn't bring massive extraction and processing capabilities online
within a couple years. Just the threat of actually doing it would cause a panic in the
oil futures market, but we need to do more than threat. We must follow through and gain
complete independence. When in the world are we allowing ourselves to be held hostage
by a handful of countries who hate us and would prefer that we be decimated? Why in
the world are our elected officials encouraging this? You cannot pin this situation
on the Republicans any more (no, I am NOT a Republican) by accusing them of being the
oil barons. Check the records dude, there are as many or more Ds as there are Rs invested
in the oil situation. Remember that Al Gore's father made the family fortune on Occidental
Oil. How about Rockefeller? You know about Richard Cheney working for Big Oil because
the Old Media inundates you with it while never mentioning "their guys." It is time
for a revolution against ALL the haughty fools in Congress and demand that roadblocks
be removed for allowing our companies to extract, process, and distribute our own oil.
There is absolutely no validity to the notion that Americans deserve to suffer for being
citizens of a great nation. We out-produce every other country in the world. We are
the main force in feeding, educating, and caring for indigent peoples al over the world.
That is not a criticism of other countries or other their citizens, just an indisputable
fact by any measure. Our economy and well-being depends on affordable energy, and we
are feeling the effects. Please, if you are an American, contact your congressmen
and senators today and demand that they get out of the way of our becoming energy independent.
_________________ - Kirt Blattenberger
RF Cafe Progenitor & Webmaster
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Posted 11/12/2012
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Copyright: 1996 - 2024
Webmaster:
Kirt
Blattenberger,
BSEE - KB3UON
RF Cafe began life in 1996 as "RF Tools" in an AOL screen name web space totaling
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