the oil companies point out oil is about 40.00 a barrell , not 140.00
where it used to be. last time taxes were raised on big oil it made
america more dependent upon opec. the oil industry will air commercials fighting new taxes on oil, bit in your opinion, do you think
he will get the tax increases in and how do you feel it will effect
the oil industry, thank you.
So far every indication is that the Obama administrations stance on the oil industry is a pretty big paradox. He wants us to be less dependent on foreign oil, but he won’t work to open up exploration and production activities in the outer continental shelf. It looks like he wants to impose punitive taxes on oil companies, which in the end will only discourage investment in domestic production. Why drill here when it’s cheaper to drill somewhere else, or you don’t believe you’ll make a decent return on your investment.
To give you an idea of the kinds of decisions and risks oil companies are already faced with, Chevron and it’s partners will have spent somewhere between 4 and 6 billion dollars on developing one of their fields in deepwater gulf of mexico before they extract one drop of oil out of the ground. Obama’s taxes would tax a project like that every step of the way.
Right now other countries like China, Canada, Brazil etc.. are working to secure energy supplies for the future in their outer continental shelfs. Russia is reported to begin drilling in cuba this summer, only 60 miles off the coast of florida. But our politicians are instead going for cheap political gain and grandstanding against oil companies who are currently unpopular.
It is certainly true that we need to invest in renewables, but our own departement of energy’s most aggressive models predict that oil will still make up 80% of our energy mix by the year 2030.
Oil prices are low right now, but within a few years they’ll be back up to 70 to 80 dollars a barrel. By 2018 we could see 100/barrel again. It would be very arrogant of us to demand that other countries produce more oil while we prohibit and discourage domestic production with moratoriums and punitive taxation. This however, is what we’ve been doing so far.
Additional info: if you have any more questions feel free to email me. As you can see I can talk about this all day long.
Additional info2: The oil industry already pay the highest tax rate of ANY industry. I think that already qualifies as fair share. Is it fair to make them pay even more (especially when we know the real reason is that most people don’t like them)?
additional info3: I forgot to mention that the person Obama appointed as his energy secretary looks like a total douche. Steven Chu. So it doesn’t look good.
I keep hearing that big oil gets all kinds of governmental subsidies. Can anybody give any specific examples? Or is this more of a myth that people eventually believe is "truth" because it is repeated again and again? Give me some hard evidence, please, of current subsidies received by specific oil companies, including the dollar value of the subsidy, and a link to the source of your information. Thanks.
this is a Republican point of view talking about the Dem congress cutting oil subsidies…
http://www.cato.org/pub_display.php?pub_id=7066
if you want to go digging around in the fed budget for the actual line items… go crazy… but I’m not that bored…
the congress and the president sure do talk about them a lot for something that you don’t think exists though
In the 1970’s some genius decided that us dollars would no longer be backed by gold. With pressure Oil was sold on the international market by US dollars, this has become to be known as petro-dollars. The euro has flourished as a currency, overtaking the US dollar in a growing number of countries. Our own debt has resulted in a weakened dollar and higher oil costs. Will the US dollar become insignificant globally if oil states shift to the Euro? Would our economy collapse?
I am thinking depression would ensue as a result of the shift to the Euro. Selloffs of t-bills would compound the problem….but I am not an economist.
If the Euro were to actually become the new petro-currency it would be bad for the US, but would not actually collapse our economy.
It would mean a much weaker dollar (higher costs of imports, etc) that would certainly not be good for us, but would not be world-ending.
The real important thing though, is that it is not going to happen. There are too many places (including the central banks of many foreign governments, China at the top), that have too many of our T-bills to even want to begin paying for their oil in anything but a dollar. If they do that, and the dollar falls through the floor, all of their investments fall through the floor too. It is a bit of a self-perpetuating cycle, and could lead to some very dire circumstances, but for the time being, no one is running from the dollar any time soon.
"This hysterical ranting about oil prices has got to stop. Google "Peak Oil" and discover that the escalation in oil prices was inevitable and widely predicted."
Did you google Peak Oil then ?
NB. if he is smart, he will have Spread Bets NOT Oil Company shares .. the Oil Co’s are too open to political interference, especially in the countries where the oil is actually pumped out of the ground ..
PS I bet some of those idiots bleating on about how the Gulf War was ‘all about Oil ‘ are looking stupid now .. if it WAS ‘all about oil’ how come USA is powerless to stop the price rising ??
..
if so is the effect a negative or positive externality? Also does the oil industry provide public goods or common goods? explain
There are many third parties involved that drive up the price of oil. One, the retailers are usually independant from the drilling processes (though some are subsidaries of said drilling companies, like Exon/Mobile). You’re also paying off the non-company men involved in labor and drilling, like Halliburton companies which build the platforms, pipelines and hard-machinery for processing. (one of the main reasons Cheney was so keen on blowing up all the machinery already in Iraq, to get paid replacing it as well). Then there’s legal fees for lawyers haggling over international prices and contracts between companies, the suitcases full of money for the lobbyists to deliver to the politicians to influence the tariffs, the advertising firms they hire, construction for the retailers’ outposts, etc. Ultimately the largest cut is in taxes and transportation. The governments impose hefty fees for all this oil to even be sold in their country… some environmentalists tax it extra to "deter consumption" which is a failed goal since it’s not like there’s an overabundancy of electric cars to use instead of gas guzzlers… and the conservative economists also tax it heavily to drive up prices and fix competition. (woe be to any third party oil retailer who decided to cut out the middlemen and sell dollar/gallon gas today). Transportation too is a heavy cut, as I remember hearing that drilling for and transporting oil is a very inefficient process since so much oil needs to be used to get and transport oil. Furthermore, much of the transportation not handled by the company men is outsourced to truckers, railroads, those that maintain the pipelines, etc… so there’s a big subsidary industry in just moving the stuff rather than getting and selling.
While I’m not familiar with the specific terms, I think gasoline sales are considered common and not public goods, as the industries are highly privatized and multinational in design. This gives them the ability to eschew the hardlines of most of the countries in which they do business, since certain operations they can do one place and others in a different country. Their influence on the politics and economies of many countries at once can be seen almost as them being their own private empires bearing loyalty to no one state entirely. (the auto industry does much of this for dealing arms and weapons to both sides of wars as well, like GM and Ford) So my guess is that gas is a common good not public. There may be exceptions in state-run closed off communist markets like China Cuba and Venezuela however, where gasoline is rationed to citized and sold to other countries.
Would you work on an oil platform, drilling holes in mother earth for $50/hr with full benefits? Or would it take $65/hr?
At what price would it take for you to sell your soul to the evil oil corporations?
Been there done that for a lot less (approx 25 buck per hour). I didn’t drill oil wells. I actually drilled (well I watched drillers drill) groundwater monitoring wells all over So Cal. I used to work as consultant to the evil Exxon Mobil, Chevron, Shell, etc. The funny thing about those evil corporations is that they have very nice ordinary people working for them except maybe Exxon Mobil that seems to go out of their way to hire d*ckh**ds but I digress. The left’s view of these corporations is nowhere near the truth.
What is downhole drilling is it pertains to the oil industry, and do most oil drilling companies use this method
It usually refers to an assortment of tools, as in downhole drilling tools, used in the borehole to drill the well and perform certain operations in the hole during drilling.
How do small businesses compete in an emerging market? (the oil industry) The case is "Walsh Petroleum)
No enough detail. The oil industry covers a lot of stuff from exploration, production, transportation, refining, trading, wholesale and retail sales.
THE QUESTION!!!!
how did the domestic oil industry evolve? Where, when etc.
What has been the role of government is promoting or controlling the oil industry?
TODAY, do we have a comprehensive policy relating to energy development and or conservation? if we do what are its highlights? if we dont why not? is american foreign policy a factor?
Whoa….nine questions in one….is that a record?
I’ll answer the questions I feel I can answer in a fair amount of time.
The domestic oil industry evolved haphazardly, partly by mistake and partly by design. Pennsylvania, Texas, California all play important parts in the develop and history of the industry that dates back as far as 1869.
Certain oil products had been used for thousands of years, but approx 1869 the first oil wells were used to extract oil products from deeper in the ground, not just surface extraction.
in a barrel of oil you can bet gasoline, kerosene, heating oil and others….at first…only some of these products were being used……the items not used were cheapest at first since they were not sought after….kerosene is used in lamps and gasoline is NOT (too dangerous)….since there were no cars in 1969, no one really was too eager to get the gasoline…..
you can do the rest of your homework now or someone else can help fill in the blanks
Good or bad for business? If he does win the nomination and attacks the Oil Companies and countries like China?
It shows he does not understand business and is against free trade. He’s pretty much a socialist.