Monad Portal
Was it me?
the problem is oil drilling stopping due to environmental lies.
It's price gouging, not inflation or supply issues
- Thread starter LV426
- Start date
the problem is oil drilling stopping due to environmental lies.
Yakuda
Verified User
The thing is you can't haven't both ways. If you want low prices you need competition. If you want independence it's costly. Eventually though prices would spike downward
As to the ease of starting an oil company it shouldn't be easy but but can be done.
Monad Portal
Was it me?
so in this case the price will keep falling. a race to the bottom is good in commodity prices.
A complete and total lie.
Those companies hold millions of acres of land they could drill on, they're just choosing not to because drilling more means lower oil prices, which means lower oil profits.
Independence doesn't have to cost a thing if you're willing to nationalize the industry.
The only way the price of oil goes down is either if OPEC wants it to, or if we nationalize it for public consumption.
But that immediately places that company at a disadvantage because that company will not:
1) Have any operations
2) Hold any leases
3) Possess any of the commodity
It would have to be deficit financed, and I just don't see a bank or lender willing to stake that kind of loan on an industry that is completely controlled by a cartel.
But it's not good for the oil companies, which is why they don't open up new drilling on the millions of acres they've already leased.
We keep coming back to the same thing no matter how we look at it; profit is in direct contradiction with energy independence.
To achieve energy independence, what do you need? To extract the amount of oil that aligns with our consumption. But we know that the more oil that is extracted, the less profitable it becomes. So we can never, ever achieve energy independence because of for-profit companies that would lose money if production increased.
Nope, because more regulations mean lower profits, capping royalties for example.
Yakuda
Verified User
You moron.
Regulations have nothing to do with this.
Those oil companies could drill on millions of acres of land tomorrow, they're just choosing not to because drilling more reduces the price per barrel, and the costs to extract the oil are more than what that oil is worth on the global markets if it's extracted.
That's why they aren't doing any new drilling...it's not profitable because the commodity price is controlled by a cartel.
Sure put Washington Bureaucrats in charge!!
They'd do a better job than the oil company executives who only care about their profits and are willing to sell oil extracted from under our feet to China for more than we would pay.
Well then you're in a pickle because we can't achieve energy independence so long as for-profit multinational companies are extracting the oil from under our feet and selling it to whoever is willing to pay what they're asking.
Again, all oil is bought and sold on the same global market...the only way to get around that is to nationalize the industry.
It is more than that. They want more leases because they can claim a deduction on the land and avoid taxes. They have 7000 leases they have never touched and do not intend to. They of course control the lease auctions and get them very, very cheaply.
Yakuda
Verified User
I'm kind of in that pickle anyway and I would still prefer it to nationalization. That's just me.
I see your point but I see far more pitfalls with that. I don't want the govt deciding what I get. It doesnt work anywhere
That's a very good point. Well stated.
Fair enough.
It's hard to say what could or would occur because something like that hasn't really been done before in the US; but what we do know is that the current system isn't working because the oil markets are controlled by a foreign cartel.
signalmankenneth
Verified User
Yakuda
Verified User
We may agree it's not working but the solution is another matter. In think ultimately the market is the best regulator of prices as it reflects what's actually happening and not what we want to have happen. Make sense?
Sure. Fair enough. Thanks for the reasonable discussion.
Monad Portal
Was it me?
but your goal is increasing production.
you want overall less consumption for austerity, the environment and population control and high prices for your crony friends..