Big Oil Defends Profits Before Irate Senators
So, at times such as these (looking at a possible/probable $4/gal at the pumps) … yeah, we tend to kick around the oil companies and their high paid CEOs … Nobody likes a winner.
But the oil companies aren’t responsible for setting the price at the pumps, or the cost of a barrel of oil. The world markets do that, with influence from events (political and natural) happening around the world that might effect oil drilling/production/distribution … and by OPEC and [other] oil producing countries whose dictator governments are none too friendly with the USA and are eager for the price to skyrocket even higher than currently.
So, yeah, if the price of oil and gasoline are high, the oil companies will profit. It’s the nature of the beast. You know that. You buy stock dirt cheap and hope the damn thing goes through the roof.
And oil companies actually EMPLOY thousands of people … and pay their checks … some I’d wager with profit-sharing. Not to mention oil companies have to pump money into other aspects of the industry.
But to hear Senators (the Senate “Judiciary Committee”?!?! … JUDICIARY??) grilling these men like they are the scum of the Earth is not only asinine, but highly misdirected.
Instead, everyone of these Senators needed a handheld mirror to look into to see where most of the blame lies. With them!
Shell oil President John Hofmeister answered Sen. (leaky) Leahy’s diatribe of “you explain and justify this to me in a FREE MARKET” bullshit with one hell of a bitch-slap that I so far have only heard (audio) played on Rush Limbaugh’s radio broadcast this afternoon.
Paraphrasing President John Hofmeister: “Senator … THIS is not a free market … when we are NOT permitted to drill on the continent, the coastal (nevermind that lots of OTHER countries ARE drilling there …) or ANWR (ten yrs. ago Congress said iot would take ten yrs. to get that oil … duh!) or shale in Colorado … AND are NOT permitted to build new refining facilities here …”
If it didn’t ‘fall on deaf ears’ with the Judiciary(WTF?!?) Committee, it was met with remarks from the Senators of “OH! SO now YOU’RE the victims, huh?” indignation.
The damn truth is … Congress can’t handle the fucking truth!
Meanwhile the Bovine Spongiform Encephalopathy infected (mad-cow-disease) branch of our government is convinced yanking more taxes from the oil companies, bullying them in public ‘hearings’, putting the thriving Polar bear on the endangered species list, halting deposits into this nations oil reserves (yeah, as Iran stocks up in the Gulf), and threatening to sue OPEC (yeah … that’ll work … LMFAO!) is the ONLY answer(s) THEY can come up with. And let’s not forget Hillary’s promise to “take those oil profits” if she were to become POTUS. (Sounds a little Chaves-esque, eh?)
————————————————————————————–
Big Oil Defends Profits Before Irate Senators
By H. JOSEF HEBERT
WASHINGTON - On a day oil prices leaped to unheard-of highs, senators lined up Big Oil’s biggest executives and pummeled them with complaints that they’re pretending to be “hapless victims” while raking in record profits.
“Where is the corporate conscience?” Sen. Dick Durbin, D-Ill., asked the top executives of the five largest U.S. oil companies.
It’s all about economics, came the reply. Supply and demand. The company leaders tried to shift attention from motorists’ anger over $4-a-gallon gasoline to a debate over new areas for drilling.
But senators at the Judiciary Committee hearing weren’t having any of that. They wanted to press the executives about public anguish over paying $60 or more to fill up a car’s gas tank.
“People we represent are hurting, the companies you represent are profiting,” Sen. Patrick Leahy, D-Vt., told the executives. He said there’s a “disconnect” between legitimate supply issues and the oil and gasoline prices motorists are seeing.
The executives, sitting shoulder to shoulder in the hearing room, said they understood people were hurting, but they tried to blunt the emotion with economic analysis.
Profits have been huge “in absolute terms,” conceded J. Stephen Simon, executive vice president of Exxon Mobil Corp. (XOM), but they “must be viewed in the context of the massive scale of our industry.” And high earnings “in the current up cycle” are needed for investments in the long term, including when profits will be down.
“‘Current up cycle,’ that’s a nice term when people can’t afford to go to work” because gasoline is costing so much, replied Leahy with sarcasm.
“The fundamental laws of supply and demand are at work,” said John Hofmeister, chairman of Shell Oil Co., acknowledging it is something the oil industry has been saying for some time and that the explanation may sound “repetitive and uninteresting.”
Hofmeister was joined by executives of Exxon Mobil Corp., Chevron Corp. (CVX), BP America Inc. and ConocoPhilips Co. Together the five companies earned $36 billion during the first three months of this year.
As the executives sought to explain their profits and why prices are so high, the global oil markets were moving into new, uncharted highs, touching $133 a barrel for the first time. The national average price of a gallon of gasoline hit $3.80, with $4 showing up in more places. Crude prices increased even more in late electronic trading Wednesday hitting $134 for the first time.
It was the second time this year the executives had been summoned to testify before Congress. When they came in early April oil cost about $98 a barrel.
This time the exchanges got personal.
Simon was asked what his total compensation was at Exxon, a company that made $40.6 billion last year. Simon replied it was $12.5 million.
John Lowe, executive vice president of ConocoPhillips (COP) Co., said he didn’t recall his total compensations. So did Peter Robertson, vice chairman of Chevron Corp. Hofmeister said his was “about $2.2 million” but was not among the top five salaries at his company’s international parent. Robert Malone, chairman of BP America Inc., put his “in excess of $2 million.”
Sen. Arlen Specter, R-Pa., noting that Exxon’s profits had nearly quadrupled from $11.5 billion in 2002, said he had heard nothing from the oilmen that would explain “why profits have gone up so high when the consumer is suffering so much.”
The executives, appearing under oath, cited tight global supplies with scant spare production capacity and the fact that large areas of land and offshore waters remain offlimits to drilling. And they said they’re worried Congress was talking of requiring the five companies to pay more taxes.
“I urge you to resist these punitive policies,” said Hofmeister.
It was not what many senators wanted to hear.
You have “just a litany of complaints that you’re all just hapless victims of a system,” Sen. Dianne Feinstein, D-Calif., told the executives. “Yet you rack up record profits … quarter after quarter after quarter.”
One senator after another cited the pain that high energy prices are causing farmers, small businesses and people trying to find a way to afford a vacation trip this summer.
“Is there anybody here that has any concerns about what you’re doing to this country with the prices that you’re charging and the profits that you’re taking?” Durbin asked.
The titans of America’s oil industry sat quietly for a moment.
“Senator,” replied Exxon’s Simon, “We have a lot of concern about that. And we’re doing all we can to put downward pressure on prices.”
(AP)
Iowa Congressman Steve King said this today on Glenn Beck’s radio program about his recent trip to ANWR:
I flew over and I also went down on the ground, I talked to the Eskimos there that want to drill. It’s 19.6 million acres. There’s not a single tree in that entire area, not for 700 miles from where they want to drill for oil. This is a carbon copy of the ecosystem that we drilled in the north slope of Alaska in the early Seventies.
Be respectful of others and their opinions. Inflammatory remarks and inane leftist drivel will be deleted. It ain’t about free speech, remember you’re in a private domain. My website, my prerogative.
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Price too high, drill. Simple enough that even a Senator can understand.
May 21st, 2008 at 6:12 pmWhich Senator ever produced one damned ounce of oil? Or anything useful to American people?
TERM LIMITS!!!!!!!!!! Two 6 year terms with a prohibition from lobbying for 20 years. (Senate) Six 2 year terms for the House, same lobbying rules. Surely twelve years is more than enough time to scam us out of half a fortune.
May 21st, 2008 at 6:22 pm“Simple enough that even a Senator can understand.”
Not if they are a fucking Democrat!
May 21st, 2008 at 6:26 pmBig Oil vs. Big Tax, Big Regulation, Big Brother, Big Nanny, Big libs, Big mouths. Big deal!
May 21st, 2008 at 6:27 pmWhy do we have so many dim bulbs in congress?
May 21st, 2008 at 6:44 pmFrom a site called BitsBlog “How to raise fuel prices”
May 21st, 2008 at 6:56 pmCreate shortages in the oil markets by ensuring domestic oil supplies can never be used.
Regulate domestic suppliers out of business with NIMBY, and enviro-whackjob policy, and regulations and of course, the great leveler, taxes.
Make sure that no new refineries are built over a period 30 years, to meet the need.
Mandate that everyone buys only governmentally mandated formulations of gasoline, thus creating shortages of the ingredients.
Make sure that each area of the country has it’s own mandated formulation, which will strain the already over-strained existing refining infrastructure, thus raising prices.
Create even further price increases by ensuring that each area of the country moves to seasonal blends, which will create even more havoc on the refiners, thus raising prices even further.
http://bitsblog.florack.us/?p=9836
So what part of this is the fault of the oil industry? Our government is the real cause of high gas prices.
I don’t trust CEO’s. Never have & I never will.
To have the likes of Durbin & Feinstein questioning *anybody* is even more deplorable.
May 21st, 2008 at 7:01 pmThanks for bringing up the seasonal and regional formulas …
PART of what we are seeing now in pump prices is the refineries switching over to mandated summer formulas … which effects refined gasoline supply to the consumer all across the board.
I’m NOT an economist … nor do I trust I’d be a slam-dunk business person.
But damn it! I do have a hell of a lot of common sense … and NONE of this makes ANY.
May 21st, 2008 at 7:16 pmCongressional hypocritical demagogues. They cause the problem and then theatrically call up people to “answer” for their “crimes” of being in a business where demand has outstripped supply, courtesy of the Congress, among other reasons.
May 21st, 2008 at 7:35 pmOh, and now, according to Feinstein and Durbin,making a profit is a crime. Sick puppies.
May 21st, 2008 at 7:36 pmthe oil companies need to run ads telling people what we know, if they can drill in anwr , off the east coast and gulf, we can increase supply and drive down the price. they need to let the people know that the dems have blocked the efforts to drill and build new refineries.
May 21st, 2008 at 7:56 pmCapitalism is a crime, and socialism (ie government taxes on gas prices) is for the good of the country. Glad to know the Russians haven’t invaded America at all, no sir!
May 21st, 2008 at 7:57 pmThats what i told someone earlier.
Dems in congress call in people who have nothing to do with prices, put together a dog and pony show when its their fuckin’ fault! really makes me mad.
May 21st, 2008 at 8:00 pmThe arguement or excessive regs slowing the process down for more oil is pretty logical. Those retards in congress don’t want to admit it, but their ridiculous laws to appease the dumbass environmentalists like goracleand the republic of california areruining our country and putting udue harships on regular people just so they feel okay about their own private jets and huge gas guzzling cars. As long as they pass stupid laws, they offset thier carbon credits right?
Instead of two chickens in every pot, I want to see two oil derricks in every lawn, Drill America! Make refinernies in America!
May 21st, 2008 at 8:04 pmWhile all oil-importing nations buy oil at global prices, some, notably India and China, subsidize the cost of oil products to their nation’s consumers, feeding the demand for more oil despite record prices. They do this to speed economic growth and to ensure a competitive advantage relative to other nations.
Meanwhile, in the United States, access to our own oil and gas resources has been limited for the last 30 years, prohibiting companies such as Shell from exploring and developing resources for the benefit of the American people.
Senator Sessions, I agree, it is not a free market.
According to the Department of the Interior, 62 percent of all on-shore federal lands are off limits to oil and gas developments, with restrictions applying to 92 percent of all federal lands. We have an outer continental shelf moratorium on the Atlantic Ocean, an outer continental shelf moratorium on the Pacific Ocean, an outer continental shelf moratorium on the eastern Gulf of Mexico, congressional bans on on-shore oil and gas activities in specific areas of the Rockies and Alaska, and even a congressional ban on doing an analysis of the resource potential for oil and gas in the Atlantic, Pacific and eastern Gulf of Mexico.
The Argonne National Laboratory did a report in 2004 that identified 40 specific federal policy areas that halt, limit, delay or restrict natural gas projects. I urge you to review it. It is a long list. If I may, I offer it today if you would like to include it in the record.
When many of these policies were implemented, oil was selling in the single digits, not the triple digits we see now. The cumulative effect of these policies has been to discourage U.S. investment and send U.S. companies outside the United States to produce new supplies.
As a result, U.S. production has declined so much that nearly 60 percent of daily consumption comes from foreign sources.
The problem of access can be solved in this country by the same government that has prohibited it. Congress could have chosen to lift some or all of the current restrictions on exportation and production of oil and gas. Congress could provide national policy to reverse the persistent decline of domestically secure natural resource development.
May 21st, 2008 at 8:05 pmIt’s not that they’re ignorant, lack common sense or that they don’t understand.
May 21st, 2008 at 8:37 pmWhat you are seeing is an agenda to Socialize America by those that believe they are smarter than, and therefore know what is ‘best’ for, the ‘common’ American.
Despite the numerous indications to the contrary, they believe that THEY are smart enough to make Socialism work in America.
Obambi told us that in his comments to his monied elitist buddies in San Fran.
Why the Judiciary Committee vs. ‘Big Oil’? Leahy believes that he is the smartest man on the planet.
As for corporations? It remains in their interest that you be as wealthy as you possibly can make yourself.
That is not true of the Dhimmicrat Party of 2008.
Someone tell me, WHEN will our government stop shooting itself and the American people in the foot?!!! I would love to see the government do something GOOD for the country for a change!!!!
May 21st, 2008 at 8:45 pm“While all oil-importing nations buy oil at global prices, some, notably India and China,……”
And what is spurring the growth of China and India as competitors for oil on the ‘open market’?
May 21st, 2008 at 8:46 pmBeen to a WalMart lately? Talked to tech support for your…. well, anything?
I heard an oil expert on Michael Medved earlier this month mention that refining capacity has become the choke point for there to be a decrease in pump price. He even stated that we are now, or are about to start importing refined petrols.-gasoline to keep up with demand. I also came across a site that mentioned some 200 refineries have shut down in the thirty year period since the last refinery was built in America. It’ll be interesting to see, assuming term limits ever kick in, if Robert Byrd will have to leave D.C. like he arrived, on horseback- (minus the sheets this time.)
May 21st, 2008 at 9:39 pmBeen to a WalMart lately? Talked to tech support for your…. well, anything?—–> What you are seeing is an agenda to Socialize America by those that believe they are smarter than, and therefore know what is ‘best’ for, the ‘common’ American = EUREKA, that’s explaining one’s position , let the poors going poorer, let the richs going richer in their ivory tower, the problem is that the poorers are going to become too numerous, a guess, eliminate them
May 22nd, 2008 at 2:24 amHey fooking Dhimi Congress: Explain to me the .54 cents a galon tariff on imported ethanol? How is it that you tax green fuel imports…but you don’t tax oil imports?
Is there a problem here? You bet your sweet bippy there is. There are WAY too many idiotic little kiddies in Congress. So long as we give these dufouscrats the gavel, we will never get off of imported oil…and the price of fuel will continue to skyrocket, so that the jihadis in Saudi can continue to finance the jihadis fighting against us.
Fooking brilliant Congress. You stupid shits don’t even understand how the world oil markets work, and people keep electing these dull wits to represent them?
Listen people, if you want higher oil prices, keep electing these Cranial Rectal Inverted types and you best get used to higher taxes, higher food prices (blame ethanol) and higher gas prices.
You don’t send little mushy-headed children to do a grown-up’s job in Congress or the WH. But if you chose to keep f*cking up, you deserve what you get.
So don’t pass the buck like Congress is wont to do. You the electorate only have yourselves to blame.
May 22nd, 2008 at 2:43 amThe Democratic Congress solved the oil crisis!
By developing new sources of petroleum?– No
By drilling in ANWR?– No
By drilling off the coast of Florida?– No
By drilling off of the east coast?– No
By drilling off of the west coast?– No
By drilling off the Alaskan coast?– No
By building oil refineries?– No
By developing shale oil deposits?– No
By adding nuclear energy production?– No
By adding clean coal production?– No
House Democrats passed legislation today to sue OPEC to bring down gas prices.
May 22nd, 2008 at 3:46 amBrilliant– A law suit against OPEC will solve all of the Democratic energy policy failure.
“Is there anybody here that has any concerns about what you are doing to this country with the prices that you are charging and the profits you are taking” Senator Dick Durbin, D-IL.
Talk about the pot calling the kettle black! The arrogance and the hypocrisy of Congress is staggering. The oil companies get about 8¢ a gallon. Guess who gets the rest???
May 22nd, 2008 at 5:37 am“I want my money back”
fuckin poors !
May 22nd, 2008 at 6:01 amI see no reason to drill and pump out our oil until we have used up everyone elses first.
Every woodcutter knows you stump your own trees last.
For as far as Oil and the completly over the freaking top profits that have been being made for anyone, some of you all included, to think that the role thier brokers play on the comodities market in driving up the price of fuel so they can sell it and reap those massive proffits is coincidental baffles the hell out of me.
What sets the price of fuel is the going rate when it is refined, not what they paid to get it out of the ground or get it to the refineries. When its your brokers who are the major players on the comodities market that is as good as printing your own money. Only they pulling it out of our asses to get it.
If I thought there was a way to regulate the commodites market without screwing up everything else I would be all over it. Unfortunatly with only the three or four major players in the market the checks and balances that ushually will regulate such a thing have gone to chit and we get what we are getting now.
Them getting stupid rich and us taking it in the ass.
May 22nd, 2008 at 6:01 am“So what part of this is the fault of the oil industry? Our government is the real cause of high gas prices.”
WE ARE THE GOVERNMENT. THIS IS OUR OWN FAULT.
Congress sits there on their loathsome spotty behinds squeezing blackheads, not caring a tinker’s cuss for the struggling middle class.
The only drilling congress knows about is when they drill into some congressional page.
So, will the revolution be televised?
May 22nd, 2008 at 6:05 am“…let the poors going poorer, let the richs going richer in their ivory tower, the problem is that the poorers are going to become too numerous, a guess, eliminate them
”
franchie, you got ta either stop drinking earlier or start drinking later.
May 22nd, 2008 at 6:27 amK?
nah, I am doing in sullied rants
May 22nd, 2008 at 6:35 amFranchie
The transformation of the US economy becoming pyramid shape has been well under way for 20 years.
America has failed to understand its power is its Labor NOT its Capital. Capital is nothing but printed paper backed by more paper and a promise.
Produce domestically I will gladly pay more as I/we will all have more to spend because we are all working at jobs paying better wages because we will all be working.
Stop importing crap from China and Taiwan and sticking them on the shelves of Wal Mart. That store is revolting
How much crap and junk do you need to look at. Mindless consumerism. How about 5 brands of toothpaste not 40. When does it end. That kind of choice doesn’t make me feel like I am part of something special it makes me puke.
Minumim Wage should be $15.00 per Hour by now.
May 22nd, 2008 at 6:36 amUnfortunatley
America sometimes only see’s a problem until its already happened.
We need to focus on getting ahead of the curve and stop living for the moment all the time.
That is what happens when you feel your perfect and don’t think anything is wrong. Very arrogant.
May 22nd, 2008 at 6:41 amThis is how I would describe by annual taxable income the old canard of class level- Poverty, Lower,Middle Upper and Wealthy, “Rich” class
Single income Annual Not family. Single is what counts fuck “Family” income
Poverty- Under $30,000
May 22nd, 2008 at 6:54 amLower- $31,000-$45,000.00
Middle- $46,000-$150,000
Upper -$150,000-$500,000
Wealthy-$501,000-$5,000,000
“Rich” $5,000.000-Up
Quincy, how high is your minimum wage at the moment ?
here it’s 8,50 €, take off 20 % social charges
it’s not enough for low-level workers
I agree that the “bosses” take benefit from the threat of delocating the jobs in 3rd world emerging countries, so the guys, instead of being paid for 40h/week they work 70h/week and they are only paid 40
May 22nd, 2008 at 6:57 amI watched until 2:00 AM this morning this pathetic spectacle. I am now reminded why I literally hate the Dimocratic party - especially its Senators. I have never witnessed a more uninformed group of demagogues than I did, no matter what you think of “Big Oil.” Truly pathetic.
And through the whole thing, I was thinking if these assholes from Feinstein to Schumer (the worst of the bunch in my opinion last night) would quit worrying about playing big shot and ask these men what they could do to help, it would have been productive.
Here’s the bottom line gang and in essense what was said last night: you can force us (Big Oil) to pursue all the alternative fuels you want but you assholes are to dumb to understand that there is no substitute for cheaper cost or efficiency than hydrocarbons. And you clowns dressed as Dimocratic Senators are simply too stupid to understand that.
I do have one criticism of the eloquent representatives from “Big Oil”. Quit being polite pussies and act like you’ve got a set. You can start by ripping these politicians a new asshole for the entire nation to see - you’re certainly smart enough. And why you don’t do that is beyond me.
May 22nd, 2008 at 7:17 amFranchie
Your 8.75E would be $13.56 US Dollars so take off 20%
$10.85
It is $5.75 Federal or 3.8Euro. So we are half yours. Pretty sad
But the Minimum Wage does vary depending on the individual US State itself.
May 22nd, 2008 at 7:22 amFranchie
You listen to Pat’s radio program? US Eastern time 11:00P.M so 6:00 AM France No?
I am going to listen live this Sunday due to having Monday off.
I assume he is going to have a Memorial Day show special?
How about it Pat?
May 22nd, 2008 at 7:27 am1.) This is about control. Control of our ability to move to and fro about this country. The ruling class is trying to isolate us into the cities where they can more easily police us.
May 22nd, 2008 at 7:28 am2.) This will allow them to by up all the arable lands and create thereby control the food supply.
3.) With the continued influx of illegals they will be able to keep wages low and increase demands for tamper proof national IDs.
4.) Ultimately this will put out the light of freedom for the world elevating China to super power status.
5.) Soylent Green.
Answer: Move to Brazil and buy Petrobras (PBR) stock and fuck the earth.
The rich get richer, good for them! That’s CAPITALISM at the heart of it. EVERYONE has a shot to earn a piece of the pie, they just need to STEP UP and work at it. Keep your socialist propaganda to yourself.
May 22nd, 2008 at 7:38 amI do have one criticism of the eloquent representatives from “Big Oil”. Quit being polite pussies and act like you’ve got a set. You can start by ripping these politicians a new asshole for the entire nation to see - you’re certainly smart enough. And why you don’t do that is beyond me.
————————————————————
Baby, they have Round 2 infront of the pompous House today.
Hopefully they are embolden enough from yesterday to do just that … to SOME degree. And the g.d. Repubs on these ‘committees’ need to step the hell up here and stop worrying about being accused of being in the pocket of ‘big oil’ …
A bit more from yesterday (Hopefully there will be bigger and better sound bites from today as well):
[[[ … Senator Orrin Hatch walked Hofmeister through the Democrats’ latest efforts to block energy independence:
HATCH: I want to get into that. In other words, we’re talking about Utah, Colorado and Wyoming. It’s fair to say that they’re not considered part of America’s $22 billion of proven reserves.
HOFMEISTER: Not at all.
HATCH: No, but experts agree that there’s between 800 billion to almost 2 trillion barrels of oil that could be recoverable there, and that’s good oil, isn’t it?
HOFMEISTER: That’s correct.
HATCH: It could be recovered at somewhere between $30 and $40 a barrel?
HOFMEISTER: I think those costs are probably a bit dated now, based upon what we’ve seen in the inflation…
HATCH: Well, somewhere in that area.
HOFMEISTER: I don’t know what the exact cost would be, but, you know, if there is more supply, I think inflation in the oil industry would be cracked. And we are facing severe inflation because of the limited amount of supply against the demand.
HATCH: I guess what I’m saying, though, is that if we started to develop the oil shale in those three states we could do it within this framework of over $100 a barrel and make a profit.
HOFMEISTER: I believe we could.
HATCH: And we could help our country alleviate its oil pressures.
HOFMEISTER: Yes.
HATCH: But they’re stopping us from doing that right here, as we sit here. We just had a hearing last week where Democrats had stopped the ability to do that, in at least Colorado.
HOFMEISTER: Well, as I said in my opening statement, I think the public policy constraints on the supply side in this country are a disservice to the American consumer.
The committee’s Democrats attempted no response. They know that they are largely responsible for the current high price of gasoline, and they want the price to rise even further. Consequently, they have no intention of permitting the development of domestic oil and gas reserves that would both increase this country’s energy independence and give consumers a break from constantly increasing energy costs.
Every once in a while, Congressional hearings turn out to be informative.]]]
http://powerlineblog.com/ (Tnx, John!)
May 22nd, 2008 at 7:48 amHasn’t it occurred to anyone that world oil production is peaking? The US was the biggest oil producer in the world until we peaked in the early 1970’s as predicted by then Shell Oil geophysicist M. King Hubbert.
After our domestic peak, the US had no choice but to start importing oil. This was the genesis of our pitiful dependence on towel heads, socialists, and Jihadists.
After oil reserves peak, we don’t run out of oil, in fact there is plenty of oil left. What we do run out of is *cheap* oil and that my friends is where we are today.
America needs to move towards a long term energy solution like in the quickest way possible with the priority of a war footing. The department of energy and the military have know about this for some time now so I presume there is a contingency plan ready. We will be seeing $150.00 per barrel oil by the end of the year. Remember folks in 1999 we were paying $8.00 per barrel. Hydrocarbons are becoming a very precious resource these days.
The 21st century is going to all be about energy and a post hydrocarbon world. Why do you think president Bush told producing nations recently that they are running out of oil and need to prepare and diversify their economies for a post hydrocarbon world?
This was no accident - it is code to those who are listening for what is really going on …
May 22nd, 2008 at 7:50 amMy dad can tell anyone that the biggest enemy to our energy resources, is idiotic government regulation. He is an officer with a heating oil business back home, and the prices of heating oil were extremely tough on customers; therefore his drivers couldn’t get the overtime they sought.
Damn government regulation, damn the environmentalists.
Yet, we have the bastards in Congress not dealing with the problem, only worsening it!!!
May 22nd, 2008 at 7:50 amQuincy:
“We need to focus on getting ahead of the curve and stop living for the moment all the time.
That is what happens when you feel your perfect and don’t think anything is wrong. Very arrogant.”
“Mindless consumerism.”
Yeah… Obama told us that the other day. You a fan?
A helluv lot longer than that…… Name an ‘economy’ that isn’t? I probably should add *one that actually works*.
Uh no…. money is nothing more than a ‘representation’ of the production of humans. Always has been. Not the ‘root of all evil’ that it seems you believe. You know… as in I get paid for my labor, I buy gas from an oil company, they take my money and buy more oil to make more gas.
I will say that the folks that get ‘creative’ with money require some oversight and regulation. These days that would be hedge funds in my opinion.
And who will we find in the top five of hedge funds? I don’t wanna mention any names but his initials are George Soros. A weak dollar and high energy prices are very much in this shitheads ‘best interests’. Wonder when Leahy has him scheduled to testify?
There’s no reason to be overly restrictive of free trade between nations when it is in their *mutual* interest. However ‘Globalization’ as the U.S. Government agenda cannot turn out well. These guys can’t manage shit.
May 22nd, 2008 at 7:57 amDrillanwr,
IMO, Hatch was the only one actually with a backbone yesterday. And you’re right. Much of that was very informative to me. Even being in the petro industry for 20+ years, I learned a lot yesterday.
And I came away from that circus thinking if we could get the stinking politicians out of the way, things are not nearly as hopeless about domestic fuel as we’ve been led to believe.
One thing that was really burning me was the continual call for the inefficient refiner. You got to be kidding me. I dare anybody to show me an industry more efficient than petroleum. I guess our Dim “witted” politicians, masquerading as scientists, have never heard of maintenance or turnaround.
This is what you get when clueless attorneys entire the fray with limited knowledge. Dick Durbin, the clown from Maryland, Feinstein, and Chuck Schumber should be taken out and horse whipped.
May 22nd, 2008 at 8:02 amYeah son, get that Alaskan Oil, what are we waiting for damnit!
May 22nd, 2008 at 8:04 amSully
You can criticize/critique my economic approach. No problem I enjoy the debate.
Hell you can cuss me out.
BUT PLEASE I am NO fan of that creature you named i.e Obama.
Other than that I like Capitalism and indeed I am a Capitalist. Just want a liitle sanity back in my country.
May 22nd, 2008 at 8:18 amLike it was from 1950-1990
The oil company execs need to speak in small words, so they can quoted in sound bites for the ignorant masses, and that includes the ignorant masses on the hill.
May 22nd, 2008 at 8:19 amSully
By the way I like that Wordsworth poem on the Memorial Day post.
May 22nd, 2008 at 8:23 am“money is nothing more than a ‘representation’ of the production of humans” that gets a life in offshore paradises
_____________________________________________
quincy
You listen to Pat’s radio program? US Eastern time 11:00P.M so 6:00 AM France No?
I won’t be able to… I am having a short break
(enculé!!!)
May 22nd, 2008 at 8:27 am______________________________________________
Tom in Co,
Quincy
I don’t want to cuss you. I just asked what economy would suit you? You say capitalism but you sound nothing like a capitalist to me. Perhaps if you expanded on your “economic approach”……
May 22nd, 2008 at 8:39 amIF after reading what this government has done to get us where we are in the last 30 years with our (non) energy policy you can STILL sit there and peck away on your key board:
“Hasn’t it occurred to anyone that world oil production is peaking? The US was the biggest oil producer in the world until we peaked in the early 1970’s … After our domestic peak, the US had no choice but to start importing oil … America needs to move towards a long term energy solution like in the quickest way possible with the priority of a war footing.”
The staunch environmentalists would rather mankind die-off …
I find it f-ing astonishing that we need a “sunset” on things such as The Patriot Act … But NOT on all these restrictions Congress has strongly imposed on this country’s ability to drill on our own domestic soil and coasts so we can tell the “towel heads, socialists, and Jihadists” to fuck off …
May 22nd, 2008 at 8:41 amSully
Unfortunately you are catching me when I am pressed for time.
The reason which you probably don’t believe is that I have a meeting in Weston Florida about a $3 mil project in
Miami Beach that the company I work for is interested in completing. The developer bailed and left it unfinished.
So I am crunching the numbers to see if it is feasable.
However, I will catch you on the next post time with a more detailed idea of my economic thoughts and theories.
Take care. Stay safe this weekend and
to the veterans
May 22nd, 2008 at 9:00 amSully
Incidentally I am not a “rich/wealthy guy”
Based on my class critique above
I am Middle of the Middle class. Working to get into the
Middle of the Wealthy class.
Later man
May 22nd, 2008 at 9:06 amdrillanwr well you suspect wrong …
If you want a label how about the “get America energy independent in the fast way possible” types.
I support *all* American made fuel. I personally use E85 in my American made pickup so my fuel dollars stay in this country supporting our economy.
Let me be clear - I am all for domestic drilling, shaling, and whatever it takes to get us energy independent.
The undeniable fact is we are running out of cheap hydrocarbons so we need shot, medium, and long term solutions to our energy problems.
Drilling domestically falls under short term. So we all need to keep that in mind when we talk about oil.
May 22nd, 2008 at 9:06 am^^^^
May 22nd, 2008 at 9:14 amquincy:
Huh? I believe you. I’ll be here waiting for you to find the time. Before you go though, please tell me it’s OK to mindlessly consume beer this weekend…. pretty please? I’m gonna need to drive to a store to get it too so…..
“I support *all* American made fuel. I personally use E85 in my American made pickup….”
HEY!!! That’s my f-in corn you’re driving around mindlessly consuming!!!!!
May 22nd, 2008 at 9:17 amLook into the abiotic theory on oil. Yes, oil is a natural product, produced by Mother Earth herself. It is not a finite resource. As I write this, Mother Earth is making more. What we have done to date is pick the low hanging fruit. The stuff that intruded thru geological faults closer to the surface of the earth, or in some cases like Pennslyvania, or the LA (La Brea Tar Pits), actually ooze from the ground. There is so much oil, or BOE (barrel of oil equivalent) in or around the Continental Shelf of North America that we should barely be importing little, or any oil at all. Who in their legisltaive brilliance, by a factor of better than 90%, has killed East Coast Continental Shelf oil exploration? Or Gulf Coast? How about ANWR? Or the just announced moratorium on all efforts to extract oil shale in Colorado/ There is more BOE in the oil shale than all of Saudi Arabia’s reserves (BTW all official reserves from sources like the Mid East or other similary governed areas are highly suspect, as in overinflated) We now have a huge multi billion barrel discoveries in the Gulf. Those are deep water, and expensive, not the low hanging fruit. The recently upgraded Bakken Island deposits in North, South Dakota, Montana, and southern Canada now looks like it may again contain over twice the STATED Saudi reserves. These are known reserves that will cover our consumption more than 50 years into the future. The truth is we need to start developing them now, or prefferable like ten years ago. Ten years is really the feasible time to discover, drill, lay out the pipelins, and other infrastructure needed to develop a field and get it to market. Meanwhile our Democrats have just engaged in a game of destructive obstruction during all this valuable time, and even more idiotic, seem to be working harder at this policy of obstruction. You think $4/gallon gas is high. That is just the part of it, the worst is actually ahead of us. Not just gasoline, but much, much higher heating oil or natual gas bills. Bills that will become prohibitive, or worse, outright shortages that people will suffer from like in terms of exposure, or freezing to death. Fuck global warming. Those who are willing to look at the truth and look at the likely true future see it more likely a colder future in the decade ahead. Think about how much more struggle that will be. Just head a dumbass political add by the Pelosi bitch as I write this. She finishes off all her usual proposals with a pleas with a new one:Personal Methane Reclammation. What the fuck is THAT? Putting a but plug up her ass and venting it when she fire up the kitchen stove for a cup of tea? Forget the industial size solar applications. Those in hiogh urban centers will not have enough urban space, or propper located sun exposure (dwelling faces North?) to deploy a collector of sufficient size. Not all climates have enough sunlight during the overcast winter months, when energy is needed most, to be effective. Ohwhat about the exotics, the photovotaics, efficent reflective solar collector? They all use expensive, and increasingly more expensive commodities to build them. Where will all that money come from? In short, what a dumb ass bitch! Anyway, the final culmination of this all is that they are denying us of all OUR natural resources and engaged in wateful posturing today grillng oil executive. It’s like the seventies all over again with Jimmy Carter and the windfall proffits taxes. What did that accomplish? Useless shit then, useless shit now. We now are locked into an existence of spending more of our money and transfering it overseas to enrich our enemies. Meanwhile we bankrupt ourselves in the proccess. Then they think we can talk tough and force OPEC to get inline. NEWSFLASH! They do not have to sell their oil to us. That thinking is 20 years too late. Whatever we do not buy India and China will take off their hands. We will become more empoverished as a nation to the point of bankruptcy. By then our creditors (China, Russia, the Europeans) will demand something of value. Care to guess what they will take? All that oil we never used for ourselves will be sucked from the ground by Chinese firms. Hows that for ultimately taking it up the ass you dumbfuck Democrats and everyone who votes for them!
May 22nd, 2008 at 9:24 am“…I support *all* American made fuel. I personally use E85 in my American made pickup…”
HEY!!! That’s my corn you’re mindlessly consuming in that fuel guzzling pickup!!!! Knock it off!!!
May 22nd, 2008 at 9:36 amDude…commodity brokers don’t care if prices go up or down, they make money either way. Commodity markets are the closest thing we can witness to a pure democracy…You should thank you lucky stars they exist.
Pete, the U.S. production ‘peak’ is artificial. Production is being restricted by congressional fiat…domestic production would skyrocket if allowed…we have enough domestic supplies of oil to last, at current levels of consumption, for another 250 to 300 years! (Estimates of domestic oil-shale range as high as 2 T-R-I-L-L-I-O-N barrels of oil!) See here: http://www.ibdeditorials.com/IBDArticles.aspx?id=296263015116278 And here: http://www.ibdeditorials.com/IBDArticles.aspx?id=295485696665472 (and beyond that, read Dan Yergin’s “The Prize”).
In my view, and I want to be clear about this…There is a CRIME THAT’S BEING COMMITTED AGAINST THE AMERICAN PEOPLE and it’s democrats who are perpetrating this crime. THERE IS ABSOLUTELY NO MARKET REASON FOR THE PRICES WE ARE PAYING! NONE!! Democrats are causing ALL OF THIS because they’re interferring with normal market reactions to increased demand. They have …restricted production of U.S. oil and gas (ANWR, offshore and oil-shale/sands)…restricted construction of new refineries…restricted construction of new coal-fired electric plants…restricted construction of nuke plants…subsidized ethanol production while placing tariffs on imports of cheaper ethanol and placing a additional tax burden on consumers to pay for this folly,(use ethanol itself is spurious as it DECREASES energy efficiency by approximately 30%. See here: http://mjperry.blogspot.com/2008/05/ethanol-post-office-trucks-more-gas.html)…and then, threaten a windfalls profits tax which will only increase the burden on American consumers while decreasing supplies further. See here: http://detnews.com/apps/pbcs.dll/article?AID=/20080522/OPINION01/805220357/1007/OPINION
Democrats are committing the crime…but WE THE PEOPLE allowing it to happen.
WE THE PEOPLE…can change all of this. Kick these idiots called democrats out of power.
May 22nd, 2008 at 9:40 amUpdate Petrobras (PBR) recently discovered a 33 billion barrel sweet light crude oil deposit. It will begin production in 09.
May 22nd, 2008 at 10:07 amNo! we are not running out of oil.
We are running out of freedom.
looking for a job in nuclear energy ? 12 000 jobs are proposed by Areva in world wide
May 22nd, 2008 at 10:22 amNooo-cleee-ARRRR Ennnn-ERRRR-Geeeee
Make two dozen reactors. Switch to electric cars. Much of the problem is solved.
May 22nd, 2008 at 10:25 am“Nooo-cleee-ARRRR Ennnn-ERRRR-Geeeee”
May 22nd, 2008 at 10:30 amWorth repeating.
It won’t matter how clean energy is after the nukes start popping off in the middle east, when the Chinese need it and have no resources of their own. They’ll come get it.
May 22nd, 2008 at 10:56 amFuck the earth. We need cheap oil now.
GRRRRR! Hear that! it’s the sound of the east and west offshore drilling rigs. If we don’t drill the Cubans and Chinese will.
America needs to move towards a long term energy solution like in the quickest way possible with the priority of a war footing.
We need cheap oil now.
GRRRRR! Hear that! it’s the sound of the east and west offshore drilling rigs. If we don’t drill the Cubans and Chinese will.
————————————————————-
Imagine if the USA had allowed the USSR to build and stockpile weapons of all kinds while we REFUSED!
Other countries ARE drilling in coastal areas not far from OUR country.
Then there is Iran and Venezuela manipulating the markets and supply with their oil … and there IS the OPEC mob …
So, YEAH! We DO need to get on a damn ‘war-footing’ with this …
An Oil War footing … and open OUR domestic territories to US …
And I don’t want to hear about biofuels and ‘new sources of new energy’ … You DON’T stop using what you have until you get something else …
Let’s get realistic here … The problem is more immediate than coming up with some amazing “POOF” answer in some lab …
May 22nd, 2008 at 11:11 amMake two dozen reactors. Switch to electric cars. Much of the problem is solved.”
Both are excellent ideas but represent more of a long term solution because, on a BTU equivalency basis, no other source of energy can (yet) compete with oil…
The only economically viable short term solution is to IMMEDIATELY increase (domestic) production and increase refining capacity, (drill and build refineries). While electric cars are really cool, they aren’t available and until they are, personally, I don’t want to pay $4.10/gal for my gas…I want to pay as little as market forces will allow. I am a capitalist and I believe in and trust FREE markets.
If the U.S. announced today we were going to commence offshore drilling as well as up in the ANWR, the price of oil would drop below $70/bbl in a NY minute. It would also have the additional benefit of breaking OPEC’s stranglehold on supply.
In my opinion, if world supply/demand were allowed to ‘naturally’ balance out, oil would settle down to $30-$50/bbl. Removing domestic restrictions would immediately move the market in that direction.
May 22nd, 2008 at 11:24 amI don’t see any info as to how much it will cost to extract the shale. I have yet to see any evidence that proves we are not running out of *cheap* oil. Cheap now being $150.00 per barrel or less.
I’ll say it again. The world has lot’s of oil. Peak oil only means that we are running out of cheap oil.
Bringing on other domestic sources online will only help but it wont solve the problem.
Solving the problem means using all resources at your disposal.
Short Term: domestic oil, bio fuels, fuel efficient vehicles, etc.
Mid Term: nuclear energy to power electric cars, cellulosic ethanol, oil.
Long Term: hydrogen, electric, fusion?, etc …
May 22nd, 2008 at 12:03 pmdrillanwr
May 22nd, 2008 at 12:11 pmYes! It is a war alright. A war for the preservation of our freedom.
And a fight America won’t win until we stop worshiping the damn planet and stop letting the libs, media and NEA teach our children and parents that we’re fucking up the planet.
It’s such a fucking crock o’ shit.
I don’t know if America even has a fight left in her though.
We have lost our way as a nation. There is no unity on any issue. The most I’ve seen lately was for about a month after 9/11.
$5.00 gas is not perceived as an attack like 9/11, but it is. In this case though it is a suicide bomb worn by the environmental elitist’s and our own politicians.
Vote America into a brighter future. It’s something we can ALL DO.
May 22nd, 2008 at 12:41 pmI’ll say it again: you should read Dan Yergin’s “The Prize”. You’ll develop a better understanding of *cheap* oil and the ‘boom-bust’ pricing cycle that has, and will continue to dominate the oil and gas industry since it’s beginning in the 1850’s. The price of oil is affected by many factors, but supply vs. demand is the single most important factor. I’ll say it again: democrats are pointlessly limiting access to plentiful supplies of domestic oil.
You want “cheap” oil? ANWR and offshore (the Gulf of Mexico and the Atlantic and Pacific continental shelfs) have reserves estimated to approach 120 billion bbls. that are recoverable at costs ranging from $11 to $20/bbl. BTW, those reserves are equivalent to Saudi Arabia’s.
There’s a pretty good ‘reader’ prepared by the Dept of Interior, Bureau of Land Management (found here: http://ostseis.anl.gov/guide/oilshale/index.cfm ) that’ll provide you with some of the basics. By BLM’s estimate, this oil is recoverable at approximately $60/bbl. I’ve recently read (sorry, at this moment I can’t recall where) about new recovery techniques that will lower that to the $20-$30/bbl cost.
I agree we should use all our resources…The price of oil will eventually increase over time and as that happens, technological developments will allow alternate sources of energy to compete with oil (think hydrogen, it’s the most abundant element in the universe). But, the natural interplay of supply and demand must be allowed to occur in free a market environment; that will prevent price spikes like we’re suffering right now.
By artificially limiting supply, democrats are forcing us to suffer an unnecessary and extremely rapid price shock which is not only criminal, it is dangerous.
We’re being robbed, democrats are guilty by commission and we should not allow it to continue.
May 22nd, 2008 at 1:25 pmI’m jumping on this thread late, but some of this country’s problem reflects exactly the way you’ve classified the income brackets. “Fuck ‘family income’, single is what counts.” My wife and I have sent our middle and youngest children through college and the oldest to the Marines on an income $3,000 above your highest ‘poor’ level. We did this by insisting our kids contribute to the “family income” i.e., help paying their way (earning their own money) as soon as they were old enough to work. This while both maintaining good enough grades in high school to make the honor roll and the dean’s list in college. Our oldest in the Marines has enough citations to fill the mantel. We own our own home, not a mansion by any means, but how much of a castle does a family need? I think as a whole we as a nation place too much emphasis on “things” and not enough on “family”. Family will carry this nation through thick and thin, not things. Kids who understand that “things” are made possible by hard work and fiscal planning, not by money grown on trees or government subsidies will take this country forward in the future. I will go to my grave satisfied knowing that my wife and I have children who will contribute to society, not suck from society. I’ll take this above riches, vacation homes, etc. any day - regardless of the price of any commodity.
May 22nd, 2008 at 5:28 pmMr. Quinn,
May 22nd, 2008 at 7:35 pm
Richard Quinn:
May 22nd, 2008 at 8:35 pmRight on the money. Very good. I agree 100%. And I will be doing the same thing.
It seems the dums refuse to listen, the MSM are thier pawns and pawns of the environuts. The oil execs need to shout back that the dums have caused it by limiting drilling and refining. To add to it, the truckers should converge on DC and shut it down by parking on all the streets and tell congress we need to drill and build. Otherwise, I fear nothing will be done, oil will continue to rise. I agree with above if congress passed laws opening up anwr and our coasts,and building refineries, the price of oil would drop in half, an hour after Pres. Bush signs it. I have voted R since moving to NC. I am trying to do my part telling people when I hear them bitch about the hight price of gas, which political party caused it and is blocking the only solution.
May 22nd, 2008 at 8:42 pm