Re: DEMOCRATS AGAIN PREVENTING AMERICA FROM DRILLING FOR OIL!!

On Jun 27, 10:39 am, "Bob Eld" <nsmontas...@[EMAIL PROTECTED]
> wrote:
> "Monkey Clumps" <spacebrai...@[EMAIL PROTECTED]
> wrote in message
>
> news:671eda19-0d12-42b0-8762-13a9aefe5bc2@[EMAIL PROTECTED]
>
> > On Jun 26, 3:58 pm, "Bob Eld" <nsmontas...@[EMAIL PROTECTED]
> wrote:
> > That's not really the sort of thing you can get a CITE for since oil
> > companies are private.  However, common sense suggests that if they
> > had access to large finds on areas they already lease, they would be
> > putting them into production now.  Oil companies aren't fools.  They
> > are very good at their business and their business is finding oil and
> > extracting it.  The simple fact is this, if we want to increase
> > domestic production we need need to allow more area to be explored and
> > put into production.  The democrats needs need to cut the obfuscation
> > and decide whether they are for increasing domestic production or
> > against it.  If they are against it they should own up to the fact and
> > face the American public.
>
> Snip....
>
> Yes well, that sums up one of the major problems doesn't it? Oil
companies
> are PRIVATE companies dealing in a very public national resource.  One
we
> apparently know little about according to you. Furthermore, their end
> products are commodities that are necessities. The idea that they are
> altruistic benign entities always operating in the public interest is
> absurd.

So what are you suggesting, that oil companies should be
nationalized?  That has been happening actually.  Look at Venezuela.
The nationalized, kicked the private companies out and are now in the
process of running their industry into the ground through gross
incompetence.  Private companies have always been far more efficient
than government companies.

>
> Furthermore it is absurd to believe that they will just drill for more
oil
> to make more money, when in fact, the opposite is true. It is in their
> interest to keep supplies tight and that's exactly what they are doing.
It's
> economics 101.

Maybe with a monopoly, which the oil industry hardly is.  In an open
market rising prices tend to cause supply to increase.  That's how the
system self-regulates.  When prices are high there is an incentive to
sell.  Haven't you heard sell high, buy low?  With oil prices at an
all-time high, every oil company wants to sell as much oil as they can
suck out of the ground.  That's economics 101.

> Why would any company want to increase supply when the MONEY
> is in doing the opposite?

Dude, do you understand how markets work?  You seem very confused.

> Exxon made more money last year that any
> cor****ation in HISTORY. Why the hell would they want to change that?
"Oil
> companies aren't fools" You said it!  No, but we the people are.

Let me try to explain this to you in the simplest terms possible.
High prices are a massive incentive for Exxon to produce and sell as
much oil as they possibly can *right now*.  Exxon doesn't control oil
prices.  Its not even close.  The Saudis try to but even they don't
have enough market share.  Since Exxon doesn't control the price, they
want to max out production and sales when the price is at $140 not
years down the road where thing may have settled and the price might
be $50.
>
> Maybe it's time to revisit our anti trust legislation of the 1910's.
Maybe
> it's time to break up the vertical integration in the oil business and
allow
> more competition in the business. Maybe it's time to manage our NATIONAL
> resources as though they belonged to the public and not to Exxon. Maybe
its
> time to look at petroleum supply and fuel as a public utility.

Oh geez.  We're facing an energy crisis that requires innovation and
efficiency to get through and you suggest we solve the problem with
socialism and government intervention, a guaranteed destroyer of
innovation and efficiency.  Sounds like a brilliant plan. *roll eyes*