Oil Companies Intentionally Limited Refining Capacity

[CRuth]

Of course they're taking advantage of us while they can. Theres only so much oil in world. What I don't understand is why we don't have a crash program on alternative energy supplies. If we invested half what we've wasted in Iraq we'd be a long ways towards a real solution. Instead we give the oil companies more tax breaks.



It's going to be real interesting to see what happens to our society as the rich get richer, the middle class disappears, and the poor get poorer if we continue on as we are right now.

 

[dawall]

He made some good points on some other issues but the comparsion of oil prices to housing is a real strech at best. One is a finite commodiity and the other is an asset. Last time I checked there were more than a handful of realtors controling the worlds supply of houses.



Dan

 

[hammersley]

What I'd l;ike to know is are these guys ??????

The OIl folks - Dems or Republicans - I'll bet I know???????

 

[DragonflyDriver]

The OIl folks - Dems or Republicans - I'll bet I know???????

Oil owns both parties. Always has, always will (oil supply and demand willin').

 

[Coolslice]

Whats interesting is that most companies deal with increasing demand by providing more product to meet demand. . Oil companies are different. They know demand will rise, so they have decided to cut supplies in order to create higher prices. . That is a fact. The companies have worked together to ensure that supply stays well below demand, thus raising prices and fueling speculation that we are gonna run out, because they can't meet demand, thus further raising prices. .



Whats the reason for higher prices in the last month? Hurricanes shuting down refineries, right? If we had more refineries, the effect would not be as great, right? Why did oil companies start closing refineries in the mid 90's, over 50 in all?? Because they were over suppling the market and prices were low. They realized that and promptly fixed the problem while working together to do so.



It has been calculated that going by past ratios of crude price vs. gas price, that oil should be at approx $95 a barrel today for gas prices to be where they are... Oil is approx $65 a barrel. Thats roughly 33% higer than years past... ... And we're not getting screwed by a monopoly? Sure we're not. .



http://wyden.senate.gov/leg_issues/reports/wyden_oil_report.pdf

 

[FATCAT]

W.t.f!!!!!!!!!!

http://www.wusatv.com/news/news_article.aspx?storyid=42960

Here's the cure. :-laf

Hey ... thats not funny!!! I'd never put my fatcat in the tank.



Anyway ... like the old saying goes "If you can't beat them, join them".

Take some $$$$ and call your stock broker and buy some oil stocks then sell them in 366 days.



You might as well make some $$$ from all this misery.

 

[CRuth]

Only problem with the woodcutter story is, as soon as he demanded top dollar for his product, joe schmoe would see what was going on and started logging the trees on his land as would a few others. Supply increases, price goes down.



And with the housing analogy. Why no big uproar on the huge spike in housing prices? Could be because there is no monopoly going on there. The overall price has increased, but unlike a gallon of gas, you can find a million dollar house or $75k house in just about any market.



I'll grant that the oil companies have things to deal with wood sellers and house sellers don't. Theres no world trade market for those, and they don't have to worry about what the Saudi's are going to do, or the impact of the next hurricane.



Still, if there was only one oil company worldwide, I don't think you'd see much difference from what we have now. Why compete when you don't have to.