Nations cannot flourish without adequate access to plentiful and affordable commodities. Nations go to war almost always because they are competing for resources. Without adequate access to affordable energy and without a military advantage to defend that supply, competitors will surely move in at our disadvantage, and just watch the price of gasoline shoot up to the stratosphere.Quote from achilles28:
If you really believe oil barons would gladly put Americas welfare first - in exchange for their own trillions - I've got a great piece of beach front property in az id like to show you....
Billions have been invested in R&D by the private sector in defense and energy so that oil is accessible, and gasoline is affordable. There is also a vested interest by these private sectors in government foreign policy to ensure that America maintains its advantage. If energy is too expensive, economies are doomed as soon as they start.
Thatâs the vested interest in Americaâs welfare Iâm referring to. Because of their efforts, gasoline doesnât cost $10 a gallon today. But at the same time, they want to make money and will continue to âtestâ the publicâs reaction to price. Thatâs why we have three grades of gas: if everyone buys the premium grade, the price of gas goes up, and visa versa.
However, we saw gasoline go up in tandem with market oil prices, which is suspicious because itâs likely that refineries are buying oil well below market prices. At this point, you have to rely on public outcry, which leads to government intervention (regulation.) In my opinion, I think the public outcry was relatively weak.
No, those are examples of companies that shouldnât be. And most arenât. In these cases I would put some blame on government for deregulating just about everything in the 90âs. I would also put some blame on a very apathetic public, which causes special interest groups to hijack government. The deregulation was great for business, but it also caused these companies to do what they did, which reminds us why there has to be some practical regulation.Quote from achilles28:
Yes, they're just 'misguided'. Just like Enron, Tyco, Arthur Andersen, Worldcom ect etc.
How can we help those poor souls find their way again?
But big oil is uneasy with oil at > $60 because expensive energy makes people look for and develop other energies. It makes the big oil lobby lose credibility. Other energies become economical to develop. If big oil controls the world, then we should expect the price of oil to fall back to $30 in the next year. Otherwise, I think they are in trouble.Quote from achilles28:
Interesting. But what makes you think big oil is even one step closer to losing its iron tight grasp on us?
We are still just as dependent on oil as we ever were. Alternative energies receive paltry funding and the lions share is just a distraction to placate the public into believing something is actually being done to wean this countries insatiable addiction to petrochems.
Nothing of any consequence is being done - except that which the American public take it upon themselves to do. Privately.
Is that why Americas best buddy (big oil) was shown over the summer to be consciously sidelining existing refining capacity to exacerbate shortages and boost prices?
Big oil earns tens of billions per quarter. Why would they want to see a resurgence of 15 dollar-a-barrel oil that barely puts them in the black?
On top of expensive oil, as every day goes by, America is being placed in an increasingly disadvantageous geopolitical position, because of China and the fact that a lot of the oil sits under an increasingly hostile Islamist World. Because the West is no longer the only major buyer of oil, the industry has become a perpetual sellerâs market. And Americaâs big oil now has to compete with Chinaâs own âbig oilâ for access to the best fields and so forth. And to have this access, you have to win friends and influence people in high government.
And the Muslim oil-rich World is showing their arrogance and bravado because now they can pit one non-Muslim nation against another while the world makes them filthy rich from buying their expensive oil.
The anti-U.S. propaganda in oil producing nations has a life of its own. Part of this comes from the fact that they know they have China to sell oil to. The other part is coming generations defined by unrelenting anti-U.S. propaganda. We could leave Iraq and condemn Israel tomorrow. It wonât make any difference because hating the U.S. gives them identity, meaning and purpose. Watch the Cartoon Riots turn against the U.S., when the U.S. had nothing to do with it.
In short, you may think America's big oil has all this global power and manipulation. But unless oil falls back to $30 and gasoline back under $1.50, the status quo they try to maintain is losing credibility day by day. Letâs see if they can âgetâ that price down.