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View Diary: Exxon CEO: Oil Price is 9x Higher than Production Cost (75 comments)

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  •  The ratio is reversed (8+ / 0-)

    when you account for the true cost of oil production by factoring in what this country spends in blood and treasure for all the military adventurism necessary to secure our access to foreign oil reserves.

    "Welcome to Costco, I love you" -- Greetings from "Idiocracy"

    by martinjedlicka on Sun May 22, 2011 at 07:59:50 PM PDT

    •  Oil companies don't pay (5+ / 0-)
      Recommended by:
      MsGrin, Aspe4, Praxxus, elwior, semiot

      for military adventurism, therefore its not reflected in the production cost.

      Hope. It is the quintessential human delusion, simultaneously the source of your greatest strength, and your greatest weakness.

      by The Anomaly on Sun May 22, 2011 at 08:04:27 PM PDT

      [ Parent ]

      •  my point is (3+ / 0-)
        Recommended by:
        elwior, Floande, semiot

        talk about the cost of oil, whether at the gas pump or at the derrick is academic unlessl we account for the true costs of access to foreign reserves.   What the oil companies pay is the lobbying and bribery necessary to ensure our military efforts align themselves precisely with their economic interests.  

        The cost of simply sucking oil out of the ground has always been a lesser factor and should come as no suprise to the observer, much less the consumer.  That only matters costwise when oil companies resort to hard oil schemes like tar sands extraction.

        "Welcome to Costco, I love you" -- Greetings from "Idiocracy"

        by martinjedlicka on Sun May 22, 2011 at 09:22:11 PM PDT

        [ Parent ]

    •  Why would you factor that in? (0+ / 0-)

      Most of the US companies didn't get major contracts in Iraq, and there wasn't anything to even bid on in Afghanistan.

      Civil engineering firms like Bechtel and KBR got most of the contract money in Iraq and Afghanistan.

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