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View Diary: Republicans refuse to swear in testifying oil execs (124 comments)

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  •  These hearings a just a farce (none)
    For the GOP to look like they are doing something.

    Even the "Windfall profits" tax is a joke.

    The real problem is getting covered by this.

    Why are companies making these kinds of profits getting subsidies.

    If the companies get taxed this year or donate money to help out needy families, they still get to keep their subsidies and the GOP looks like they did something.

    I hope the Democrats can bring up the real issue here.

    •  Very simple, really. (none)

      You give them subsidies to make them do something they weren't inclined to do in the first place.  Oil companies work to maximize profit, not oil production.  They are not legally allowed to restrict production (that's price fixing or colluding) however, they aren't required to maximize production.


      The US government would rather have lots of oil and a lower price than less oil at a higher price.  You give them subsidies so it makes more sense to produce more oil, not because you want to help the oil companies' bottom line.

      •  So in other words (none)
        You're telling me we now have lots of oil at lower prices.

        I understand the theory behind the subsidies.

        However, in reality, the oil companies are bringing in record profits.  Why aren't those profits being used to do more exploration?

        •  In large part... (none)

          ...because most of them are convinced that the current price of oil is vastly inflated due to speculation.  Most of the industry (I qualify this "most" not "all") thinks that the real price of oil should return to $35 within a couple of years.


          Even small, on land projects can take 2-3 years to get producing.  Couple that with a general shortage of rigs, and there's just not a whole lot of production coming on line at the moment.


          The oil companies basically want enough subsidies to insure that projects they start now are still profitable when oil returns to $35 a barrel.

          •  I would hardly call it "speculation" (none)
            when the market is fixed by opec and backed up by Bushco as buyer of last resort. The scams these guys are pulling on all levels are just shameless.

            Oil is what makes the world run. What happens if oil STOPS. To think that the Powers That Be aren't competing frantically for the worlds remaining energy reserves is worse than naive, it borders on criminal negligence.

            To think that all oil companies in the world have folded/merged into only 5, and that those 5 are NOT colluding (have you participated in high stakes American/Global economics, or any?) makes me seriously wonde at peoples sanity. Please do not take this as a personal attack. But to see anyone even remotely in defense brings out my claws.

            "The pen is mightier than the sword, but only at a range of greater than five feet" Malaclypse the Younger

            by buhdydharma on Wed Nov 09, 2005 at 03:29:21 PM PST

            [ Parent ]

            •  OPEC hardly bothers, these days. (none)

              when the market is fixed by opec and backed up by Bushco as buyer of last resort. The scams these guys are pulling on all levels are just shameless.


              Well, A) The US doesn't control OPEC and B) Our private oil companies aren't members.  OPEC hasn't been restricting production much, so it's not really the equivalent of the oil shocks of two decades ago.


              To think that all oil companies in the world have folded/merged into only 5, and that those 5 are NOT colluding (have you participated in high stakes American/Global economics, or any?) makes me seriously wonde at peoples sanity.


              There are a hell of a lot more than 5 oil companies.  There just aren't as many publically traded ones, many are huge state oil companies that aren't for sale.


              The seven largest of these companies don't have reserves equal to even a third of Saudi Aramco's 260 billion barrels of reserves.  They may seem like huge conglomerates, but in the world of oil, where entire countries are essentially oil companies, they're virtually bit players.


              •  Gee where can I sign up to be a 'bit player' (none)
                and make $75,000 a minute. I am sorry if I give the impression that it is only the big 5 that are greedy rapapcious....

                Opec doesn't bother anymore cause bushco is now keping prices high for them. But they still set the base and all know it.

                I encourage you, humbly, to think of oil not as a tradeable commodity, but as The Only Power Source We Have

                Whoever controls it litterally controls all the commerce in the world. Think about Buscos record of integrity and competence.

                And finally I heartily encourage you to go from door to door in rural America in Feb. to defend the 'Bit Players'

                "The pen is mightier than the sword, but only at a range of greater than five feet" Malaclypse the Younger

                by buhdydharma on Thu Nov 10, 2005 at 08:22:51 AM PST

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