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Our clueless leaders in the Senate have decided that drilling the Alaska Wildlife Refuge will keep us in cheap oil long enough to get reelected one more time. This is leadership? :(
 

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Hep, it has to happen sooner or later.

We are not moving quickly enough toward renewable energy, and even after we do, the manufacturing base means that the world will still use oil faster than it is being made (hint: it's not being made).

Eventually, I believe we should (and will) have to find and use ALL oil reserves EVERYWHERE in the world.

I'm not advocating waste; after all, I am a Prius owner! But I think it's a fact of life. We MUST find, identify, and measure all oil reserves everywhere in the world, and eventually, we'll need to tap them all.
 

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In the 1980's, big oil bought up all of the solar companies and their technology and patents.

They will not develop or push any alternative technology until they have pumped every last gallon.

Exxon-Mobil made over $100 billion in profit last year... that is profit, not revenue.

The writing is on the wall.
 

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If what you say is true, then is "big oil" was the only one being greedy? After all, in order to "get bought up", those solar companies would have had to agree to the buyouts. Anything else would be called "theft."

Something else to ponder:

What's the best reason for buying or selling something?

Being better off after the transaction. We buy or sell things for any number of reasons, but it's almost always because we want to be better off (by owning something we need or want, or by getting rid of something that no longer is practical, useful, or relevant to our goals, or just too costly to maintain in proper working order).
 

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Exxon Mobil didn't make anywhere near 100B last year. They own alot of oil, when the price goes up they make out. And when the price falls (it was under $10 a barrel in the 1980s) they lose money.

And the oil companies aren't responsible for "buying up all the solar patents". Even if they did, patents have a 17 year life. So the patents would be up. Where are the miraculous new solar inventions? Solar energy costs money for cells, the power is intermittent, can't be stored easily, and solar energy is relatively diffuse. Not a conspiracy, just reality.

Ideally, people would move toward conservations, new sources of energy - nuclear, electric cars or plug in hybrids, etc. etc. People won't conserve without gas being $5 a gallon and no one wants gas taxes. So here we sit.
 

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Discussion Starter #6
kennyb said:
Ideally, people would move toward conservations, new sources of energy - nuclear, electric cars or plug in hybrids, etc. etc. People won't conserve without gas being $5 a gallon and no one wants gas taxes. So here we sit.
Ah yes, here we sit. But only for just a little bit longer. $2/gallon will very soon look like the good ol' days. :?
 

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The oil company's are energy companies. What they are doing is thinking about the future. Because if they don't invest they could be litterly left out in dark. Because as oil sales decline they can shift into solar more easily. They had made the necessary capital investments for product devopment, and manufacturing infostructer.
 

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Oil companies

Everyone for some reason has this idea that oil companies are just huge vacuums on their wallets and that money is all they want. Wrong. Yes they do reap good profits such as Exxon's, but they don't make as much as other companies like Google, who make 200 million in a QUARTER.

I'm only a student on minimum wage and I hate shelling out $40 dollars for a tank on my cavalier, but it's market fundamentals and not some bigwig CEO wanting to increase his paycut.

I really find america confusing sometimes. We say no to foreign oil, yet our oil production is in decline because we don't want to see a few rigs off the east coast (10 billion barrels untouched last time I checked) and we refuse to let oil companies use new technologies to tap ANWR, apparently not knowing all they need to do is place a few derricks, pipelines, and a road or so.

Personally my stance is the people who complain about this stuff, then go and complain as they fill up their SUV's or inefficient sedans. Reduce your demand, and you create extra supply.
 

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Re: Oil companies

ConservingConservative said:
Everyone for some reason has this idea that oil companies are just huge vacuums on their wallets and that money is all they want. Wrong. Yes they do reap good profits such as Exxon's, but they don't make as much as other companies like Google, who make 200 million in a QUARTER.

I'm only a student on minimum wage and I hate shelling out $40 dollars for a tank on my cavalier, but it's market fundamentals and not some bigwig CEO wanting to increase his paycut.

I really find america confusing sometimes. We say no to foreign oil, yet our oil production is in decline because we don't want to see a few rigs off the east coast (10 billion barrels untouched last time I checked) and we refuse to let oil companies use new technologies to tap ANWR, apparently not knowing all they need to do is place a few derricks, pipelines, and a road or so.

Personally my stance is the people who complain about this stuff, then go and complain as they fill up their SUV's or inefficient sedans. Reduce your demand, and you create extra supply.
well, google made 600 million in Q1 of 2206. see http://finance.yahoo.com/q/is?s=GOOG

But exxon made 11 billion in a single quarter, or about 20 times as much. And nearly 40 billion dollars in 2005.

Assume there are 150 million people in the US taht drive. 36 billion in a year is about 250 dollars per person. ASsuming

1. the average person drives 15,000 miles a year at 20 mpg, that's about 112 billion gallons of gas.

2. exxons profit was about 1/2 of total oil profits for the US that year, which means about 75 billion in oil company profits

3. about 1/2 of oil company profits are from normal people driving, thats about 37 billion in profits off of you and i

then thats 30 cents a gallon or more, or 10-15% of gas prices in 2005.

In other words, they are completely rolling!

Noneo f the above is researched, but i'd wager its not entirely unreasonable. Oil companies profits are exorbitant at this time, completely ridiculous, and part of our gas prices (a very significant part) are those profits. Copmanies should profit, and i don't condemn anybody for making a buck. I'm a capitolist pig. But this is a bit ... well, its a bit questionable.
 

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Exxon Mobil is a huge international company.

According To Exxon Mobil 2006 1st quarter report.
All numbers are in millions.

88,980 Total Revenue.
73,521 Opperation Cost.
15,459 Taxable income.
7,400 Income Tax.
8,400 Net income after taxes.

Exxon Mobil made 9.4% profit on their income after taxes.
This proffet was paid to it's stock holders.

Net production of crude oil and naturial gas world wide is 2696 Thousand barrels per day. Or 246 million barrels in the 1st quarter of 2006. This is oil that Exxon Mobil pumped out of the ground. The rest they had to buy on the open market .

Petroleum product sales.
USA 2714 thousand barrels per day.
World wide 7865 thousand barrels per day.
Or 34.5% of their petroleum sales are in the US.

A barrel of oil contains 42 gallons. After refining, it makes about 19.5 gallons of gasoline in addition to numerous other products such as heating oil that can be sold.

Exxon mobil earned 28 cents on every gallon of gas sold. While the government took 46 cents in taxes on every gallon o f gas sold.

Why do do some oil companies make more profit when crude oil prices go up. The more oil a company pumps out the ground the more profit the oil company will make. Since the cost of the oil the company gets out of it's own wells is fixed let's say at about $40 a barrel. And if the open market price of a barrel of oil is $60 a barrel. The oil company will make about $20 dollars profit on every barrel of oil it pumps from its own wells. Now Exxon mobil get's 34.5% of it's oil from their own wells. This means they have to buy 65.5% of the oil on the open market.
Companies that have to buy more of it's oil on the open market will have smaller profit margins.

Prices of oil are determined by supply and demand.
Supply is tight prices go up.
Supply is high prices go down.
 

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Jeffand said:
Prices of oil are determined by supply and demand.
Supply is tight prices go up.
Supply is high prices go down.
You forgot the converse:

When prices go up (due to whatever forces have caused the rise in prices; government, low supply, high demand), then eventually people will modify their behavior and demand will go down.

If the price is too high, then people will eventually drive less. They will become more travel-conscious. They will consolidate their trips, and cut out unnecessary travel. This is what happened after the hurricanes in Florida and the South. This is extremely important, because it is the market's self-defense mechanism that prevents SHORTAGES.

Temporary shortages, due to hurricanes, earthquakes, or other extenuating circumstances, well that's one thing. Sometimes they are unavoidable.

But long-term shortages denote that something is fundamentally BROKEN and preventing the market from functioning as it should. A broken market will in turn prevent the economy from functioning as it should, thereby exacerbating the suffering. My evidence is the food lines in non-capitalistic countries. Tuesdays you wait for bread. Wednesdays, you wait for "meat." It's never fresh, and it's never prime rib, either.

You can also see the same thing happening in countries such as Bolivia, where the government simply stole gas stations and other properties from the rightful owners, or Zimbabwe, where Robert Mugabe stole the farms from those rightful owners, the people who also knew how to farm.

The situation is particularly dire in Zimbabwe, where poverty and starvation are rampant.

Back to Florida...when the hurricanes came (and when some of the prices naturally but temporarily rose due to drawdown of gasoline supplies), we DID respond by driving slower and less often. I was here, driving 50 MPH WITH the flow of traffic on the freeway! I witnessed it. That controlled the demand. It nipped the demand in the bud, before it became a supply problem, before painful shortages could happen. As a result, there was plenty of fuel for emergency services and evacuations.

I only wish all cars had autostop, so that they wouldn't burn gasoline when stuck in traffic!
 

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I also wish that we can move more towards renewable energy, but I agree that the oil companies aren't going to sit quietly while the whole world changes. They'll make as much money as they can right now before solar energy is a lot more prevalent. And it makes sense that they'll buy the solar companies because they will want to transition. I don't think they're going to buy them and then stop all research and development just to make more from oil. That's really backwards thinking, but may be a reality.
 
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