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Author
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Topic: When it comes to big oil and big oil companies, we're in big trouble
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Charles
Administrator
Member # 7
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posted
That's the conclusion I came to after spending considerable time watching Congressional hearings on C-SPAN yesterday. The heads of several major oil companies were grilled in Washington DC on the skyrocketing price of oil. At $135 a barrel, it's heading to $200 a barrel and according to what was discussed, we can expect prices at the pump to reach $7.00 a gallon by the end of next year, threatening the economy not only of the US but the world economy as well.
Did I mention that oil companies have made $36 billion in profits in the first 3 months of this year alone?
Here's something else to consider from what I learned watching the hearings. In Saudi Arabia, it costs less than $10 a barrel to produce oil.
Folks, you may not like this either, but according to the projections of oil company executives, who assure us that they're doing everything they can to develop alternative energy sources, we'll still be dependent on oil for at least 80% of our domestic energy needs by 2050. That's more than 4 decades from now.
According to their testimony, there's no problem with oil supply. We're well stocked and refineries aren't having a problem meeting demand. It's the speculators that are driving prices up. Bad, evil speculators! That, and the demand we have that is not diminishing. That, and not being able to take full advantage of domestic sources for oil production.
It costs $10 a barrel to produce it in some markets folks, but it's selling at $135 and going much higher.
I hope the next administration we wind up with, whomever it may be, will do more to address this emerging situation and start mobilizing industry towards creative and practical innovation and long term solutions rather than just giving it all lip service.
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IP: Logged
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Bruce
IE # 1
Member # 36
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posted
I'm of the opinion that there is little to be learned by watching Congressional hearings on high oil prices. It's a circus, intended for public consumption (these guys contribute big time to Congressional campaigns, for god's sake), having little to do with how oil is priced or with what you're paying at the gas pump. The reality is that there is a problem with supply, relative to increased (and growing) demand. That's what the price of oil reflects. The "speculation" involved in that price is an expression of the anxiety traders feel about being able to acquire more and cheaper oil in the future, in the face of skyrocketing demand from developing countries.
The world has been pumping oil at roughly 84-86 million barrels per day for almost three years now; virtually every rig in existence is going full-bore, the best technology is being deployed, and yet we don't seem to be able to move that needle any significant distance. Like Alice's Red Queen, we have to run as fast as we can just to stay in place.
The era of cheap energy is over, and we're just starting to feel the pain as the waves of price increases undergirding practically everything we purchase roll through our economy. Even the International Energy Agency seems to be getting the message at this point. I'd like to suggest (as I did at the end of my cartoon on the subject) that a more accurate picture of our energy situation can be gleaned online here and here, among other sources. Hopefully higher prices will start getting us to pay attention to our predicament with regard to fossil fuels. It's not something that can be remedied by scapegoating (admittedly vastly overpaid) oil executives. That's like asking your pusher to please, pretty please, return a portion of the profits he's made off your addiction. Getting corporations to behave responsibly is a separate issue; the basis of this problem is geology and a nation of consumers in denial.
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Charles
Administrator
Member # 7
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posted
Sent in today by a reader to share with the community. An absolutely must see video.
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The Energy Non-Crisis
http://video.google.com/videoplay?docid=-8668319287834598272&q=&hl=en
Lindsey Williams, who has been an ordained Baptist minister for 28 years, went to Alaska in 1971 as a missionary. The Transalaska oil pipeline began its construction phase in 1974, and because of Mr. Williams' love for his country and concern for the spiritual welfare of the "pipeliners," he volunteered to serve as Chaplain on the pipeline, with the subsequent full support of the Alyeska Pipeline Company. Because of the executive status accorded to him as Chaplain, he was given access to information documented in his eye opening book, The Energy Non-Crisis. After numerous public speaking engagements in the western states, certain government officials and concerned individuals urged Mr. Williams to put into print what he saw and heard, stating that they felt this information was vital to national security. Mr. Williams firmly believes that whoever controls energy controls the economy. Thus, The Energy Non-Crisis. For info on what we can do to put a stop to what the global elites are doing, please check out the Kick Them All Out Project http://www.KickThemAllOut.com
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Bruce
IE # 1
Member # 36
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posted
Okay, fine. Forget I mentioned it. All we have to do now is have Congress investigate the problem and figure out who those bastards are who've been sitting on our petroleum up north since the 70s oil crisis and force them to start pumping it so we can go back to gas at under a dollar a gallon. 200 years worth of oil and natural gas! Hooray! We're saved!
IP: Logged
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Charles
Administrator
Member # 7
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posted
See the video and listen to this man. Don't just watch the first 10 minutes, think that's all there is and draw a conclusion. The video is 75 minutes long, but its content in entirety is extremely important. I urge everyone to watch and listen to what's disclosed. It'll help you see and understand the big picture.
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