On Jun 30, 9:04 pm, gringo <gri...@[EMAIL PROTECTED]
> wrote:
> Monkey Clumps wrote:
> > On Jun 30, 1:15 am, gringo <gri...@[EMAIL PROTECTED]
> wrote:
>
> >> FIRST, they need to uncap existing producing wells and begin to drill
in
> >> land they're already permitted to drill on.
>
> > Its pretty clear from this statement that you have no idea what you
> > are talking about. "Uncap existing producing wells"? Are you
> > actually suggesting that oil companies have shut down existing,
> > producing wells with oil prices above $140? That's laughable. Let's
> > see some cites.
>
> > You probably think offshore leases come equipped with pre installed
> > well heads and production platforms, each with a guaranteed amount of
> > oil and gas. All the oil companies have to do is flip a switch and
> > count the money, right? Why don't you take a step outside your
> > fantasy world and get back to us when you have some ****ing clue about
> > reality.
>
> You're thinking present tense; Big Money thinks long-term.
>
> Much of the oil being pumped in the US now comes from wells drilled
> 20-50 years ago. When first tapped that oil was worth a few cents per
> gallon. Today, that same oil is worth a few dollars per gallon.
> Tomorrow, that same oil will be worth, what, $20 per gallon??? All
> without one red cent in additional cost. So, there certainly is
> incentive for them to hold onto their assets.
>
> For the self-same reason, people collect cars, stamps, coins, guns,
> paintings--all manner of things, tucking them away sometimes for a
> lifetime, knowing that their value will increase a hundred-fold.
>
> If you can't understand what I'm talking about, you are dumber than a
gnat.
>
Oil companies are not stamp collectors, you moron. They are public
cor****ations owned primarily by pension funds and mutual funds. They
are in a highly competitive market and they have to produce profit to
satisfy their shareholders and fund future projects. When prices are
high they have to maximize production. If they don't, they know their
competitors will and they will unable to compete against them in the
future. They will be out of business if they don't make hay while the
sun ****nes. This idea that they would purposely sit on known
producing sources in hopes of higher prices 50 years later flies in
the face of reality. Sure prices will probably continue going up, but
thats not the deciding factor. The current management wants to
maximize profits *now*, not 50 years down the line, dummy. You left-
wingers really don't understand **** about how business works, do
you?
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