The trickle down effect
#11
07-28-2006, 01:42 PM
Guest
Posts: n/a
Re: The trickle down effect
When just a very small percentage of 3 billion chinese decide they want a car, oil demand is going to explode.
Gasoline production problems when a refinery shuts down will spike prices drastically but those are short term. However if demand increases in the US and anything ever happens long term to a refinery we're hurting!
Gasoline production problems when a refinery shuts down will spike prices drastically but those are short term. However if demand increases in the US and anything ever happens long term to a refinery we're hurting!
#13
07-30-2006, 02:31 AM
Re: The trickle down effect
Originally Posted by MFLetou
In fairness to those "greedy" oil companies, though, they went through a long period of losses and no profits...about a decade.
The profit margin in that business is very thin, and billions is getting put right back in to develop cleaner technology (ExxonMobil is spending $4.9 billion this quarter).
No, I don't work for an oil company or anything, I'm just saying that they're getting a bit of a bad rap, and are largely not responsible for the current spike in gas prices.
The US needs to pursue a hybrid (pun intended) policy of increased production, including drilling for oil offshore, for oil shale, and in Alaska, and conservation (CAFE standards), tax incentives for cleaner vehicles, etc. We're already going as much as possible for renewables (solar, biomass, geothermal), but the technology takes a while to develop and right now is not economically viable (it costs more to put up and operate a solar panel than the panel produces in energy). We'll get there eventually though.
The profit margin in that business is very thin, and billions is getting put right back in to develop cleaner technology (ExxonMobil is spending $4.9 billion this quarter).
No, I don't work for an oil company or anything, I'm just saying that they're getting a bit of a bad rap, and are largely not responsible for the current spike in gas prices.
The US needs to pursue a hybrid (pun intended) policy of increased production, including drilling for oil offshore, for oil shale, and in Alaska, and conservation (CAFE standards), tax incentives for cleaner vehicles, etc. We're already going as much as possible for renewables (solar, biomass, geothermal), but the technology takes a while to develop and right now is not economically viable (it costs more to put up and operate a solar panel than the panel produces in energy). We'll get there eventually though.
Last year, Exxon made the biggest profit of any company ever, $36 billion. Exxon is giving the retiring chairman Lee Raymond one of the biggest retirement deals in history. He is getting $400 million with full pension, stock options and other goodies including a consulting deal for $1 million, personal security, a car and driver and use of a corporate jet for "professional" purposes.
In 2005 Raymond's paycheck was $51.1 million which works out to $141,000 per day or $6,000 per hour. It is nearly 5 times more than what the CEO of Chevron made.
The problem is O.P.E.C! It always has been and it always will be. They have the vast majority of the world's oil reserves and are projected to continue this domination untill the last drop of oil is consumed. In the 70's they drove up the price of oil and learned a lesson. From the late 70's to the mid 80's, the production of more fuel efficient cars rose sharply, the price of oil dropped as demand went down and we were on the right path.
Then the U.S automakers saw a market in SUV's due to cheaper oil prices. Congress allowed the SUV to get around the requirements of fuel economy and emissions by removing them from the passenger vehicle category and placing them in the light truck category. And here we are. Lots of hogs, small trough, short-sided planning and profiteering, and alot of people angry wondering what went wrong.
The leaders of O.P.E.C are highly educated people who send thier sons and daughters to the best schools that western civilization have to offer. However, the leaders of O.P.E.C also fund schools that teach fundamentalist Islam and a hatred for the west. Of the people who are known to have flown airplanes into U.S buildings, 15 of the 19 people were from Saudi Arabia. We need to do less and less business with these people for the forseable future. However, a nuclear bomb capability is only years away. Clearly, a delicate handling of the region will be required.
The opening of ANWAR is rediculous. It is like selling out vast tracts of land that we had previously wanted to leave to our children. It would only be for a quick profit that would do little if anything to contribute to our energy requirements. It is just another example of the very short-sided thinking that has gotten us in our current predicament.
Last edited by BlueCam; 07-30-2006 at 04:06 AM.
#14
07-30-2006, 08:56 AM
Re: The trickle down effect
The oil company’s will never loose a dime!
Every drop of oil that is not used up in our internal combustion engines will go into making more plastics, lubricants, jet fuels, etc. The demand for these products will only grow to meet the needs of our ever growing population.
Every drop of oil that is not used up in our internal combustion engines will go into making more plastics, lubricants, jet fuels, etc. The demand for these products will only grow to meet the needs of our ever growing population.
Thread
Topic Starter
Forum
Replies
Last Post
RoyalF
Honda Civic Hybrid
21
04-10-2005 05:40 PM
