Big oil can kiss my big a$$
Do you believe for a second the rhetoric that comes out of the big oil companies?
I'm reading today about big oil defending their actions, citing the rise in American energy usage and the turmoil in the global market. They also complain about the restrictions placed on them by the government with respect to exploration and expansion. I'm going to have to cry flaming bullshit on pretty much all of that.
Now I'm no economist, but I can look around as well as anyone else. Do I see that we're using more oil? Sure. Do I see an increase in consumption that remotely reflects the huge increase in gas prices? No! In fact, I've seen indicators that show a very steady increase in energy use for many decades. If big oil did good business, wouldn't they be scaling their production to meet this demand? Tell me why oil prices are so much lower now than three months ago. Remember, the ships that set out of the Persian Gulf then are just now pulling in to port, and recall THAT's when costs per barrel were setting records. So how is it, with our increased consumption (even now, during winter), combined with the cost have resulted in new low prices? I don't buy the increase in consumption argument - they knew as well as anyone how usuage would increase, and they took the chance to profit off of it. That's price gouging.
How about the way the price fluctuates by about 10%, even on a daily basis? Am I really to believe that all of the different oil execs for all of the different companies are really so in touch with the market that they can niggle things around that precisely? Even they admit, when asked about "rigging the price of oil," respond that the answer is "extraordinarily complex." I'm impressed. If they can do that well negotiating such a complicated system, they'd probably make a killing in the stock market.
Then again, there is the other possibility that they just tinker to see what the market will bear. The airlines do it, why not big oil? In the modern age of information, you raise prices a dime, you see consumption fall, you lower it a nickle and watch it rise. You play around, keeping everyone on their toes enough that they can't count on the price not being worse tomorrow, and you make your buck.
And finally we come to the exploration. If you were in power, would you let some oil company that just got done raping its consumers to go out and rape the contryside? Not a chance. Besides, it's well known that there is not sufficient oil reserves in the US to make a difference for more that a few years. At least while we have reserves, we have a card to play against foreign markets. No, drilling here at home would only mean the oil companies can cut out the price they pay overseas, so they can make more money with less work.
I should probably admit, I don't mind the cost of oil being high. In fact, I'd like to see it go up a little more. Call me crazy, but I buy the argument that says alternative energy will only see more action when it is fiscally comparable. What I don't like is being kicked in the nuts by ANY company I deal with, and then have them lie to me about what they're doing. Goodyear did it when Firestone was Fords whipping boy - they raised their tire prices, then eighteen months later had to lay off a bunch of people because (surprise) everyone had forgotten why they were avoiding Firestone. Some people just don't realize that you don't pee in your Cheerios.
My electic bike should be here in the spring. I'm content to let this play out, to see oil prices soar, and see the oil companies crumble because they haven't bothered to diversify (ENERGY companies, anyone?). That's just good karma.
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