Senater Schumer & Breaking up Big Oil into smaller companies.

[Big MAK]

That's hilarious...



the same idiotic politicians that have allowed the small phone companies to be re-absorbed into one large monopoly while keeping all the regs on the one small remaining baby bell -- while at the same time the new big phone monopoly is free of those regs?



AND



The one small remaining baby bell has all those regs AND has to sell access to ALL COMPETITORS AT LESS THEN COST!



The one small reamaining baby bell is Qwest (was US West; was Northwestern and Mountain Bell)

The new big monopoly is SBC/AT&T/Verizon/etc (they're all one now)

 

[nps]

The new big monopoly is SBC/AT&T/Verizon/etc (they're all one now)

Actually Verizon is the combination of Bell Atlantic, Nynex and GTE. Recently they merged (bought out) MCI. They have nothing to do with ATT/SBC (other than compete).



So we have SBC and ATT together. Sprint is still out there providing local service in many areas. Verizon has alot of coverage. Qwest has alot of coverage, although in less populated areas for the most part. We are still away from having 'one big monopoly'.



Qwest had invested in quite a bit of long haul fiber before they took over US West. So they are a bit different of an organization than the original 'small' Baby Bell.

 

[GHarman]

NY Sen. Schumer wants probe into 'whether or not we should break up the big oil companies. Enough is enough'...

I distrust COMRADE Shumer even more than I distrust Big OIL.

 

[Huskerman]

Not that Gary is necessarily interested in facts, but here are some:



The oil industry had invested $100 billion in "emerging energy technologies" over the last five years, while all other industries and the federal government combined have invested just $35 billion.



Huskerman

 

[RustyJC]

You have little problem with your argument about world supply of crude oil, there is no shortage of supply.

That wasn't my question. To restate, do you think the policies of OPEC and its member countries such as Iran and Venezuela have anything to do with the worldwide price of crude oil?



Rusty

 

[Hitec.Redneck]

Supply and Demand, and what people are willing to pay

Big Oil does not set the price of oil, the market sets these prices. As long as the people keep speculating on Iraq, Venezuela driving these futures up, oil will keep going up. They estimate the price to build a refinery is between 2 and 8 billion dollars, take 5 years to complete, and then there is the unbelievable red tape that goes along with it.



Until the demand goes down, and the speculations stop, the price wont go down. Have you noticed anyone driving slower? I commute 90 miles a day, I still see people driving 70+ on the freeways in Houston. I drive 60 and in the last two week I have passed 4 cars. Until people start slowing down or driving cars that get better fuel economy, the demand will stay high and you and I will keep paying these high prices.





I for one dont want the government involved, all they do is mess it all up, and we will pay pay for that over and over and over. They should investigate the folks that do the speculation and trade the gas and oil futures, that is where the high prices are coming from.



Thats my 2 cents.

 

[Huskerman]

Have you noticed anyone driving slower? I commute 90 miles a day, I still see people driving 70+ on the freeways in Houston. I drive 60 and in the last two week I have passed 4 cars.

I couldn't agree more. Spot on! The problem is that there are some hillbillies that will argue vehemently that if they don't do 70+ while pulling their 30 ft 5ver they "get run over". Yes, I have actually read that comment on this board more than once.



Huskerman

 

[Rman]

We're under construction on the interstate here (who isn't right?) so I've been trolling along at the posted 55, most of the time is congested so 40 is the norm I've noticed an extra 2 mpg so far. We're still weeding out winter fuel, mpg has been gradually increasing. I'm game for slower speed limits, maybe there wouldn't be such horrific accidents?

 

[PKitzman]

We're under construction on the interstate here (who isn't right?) so I've been trolling along at the posted 55, most of the time is congested so 40 is the norm I've noticed an extra 2 mpg so far. We're still weeding out winter fuel, mpg has been gradually increasing. I'm game for slower speed limits, maybe there wouldn't be such horrific accidents?

I posted this on a different thread, but here it comes again:



At 75 mph I get 16 mpg.

At 54 mph I get 23 mpg. (It's hard to drive this slow, but interesting to see good mpg numbers)



Try it and see what you get. If everybody drove a LITTLE slower the consumption and price of fuel would drop a bunch.

 

[EDunford]

I said it in another post. Why don't the government lift some of the taxes on fuel. After all they collected MORE in taxes than "Big Oil" collected in profits... But we hear nothing on that...

 

[RGardner]

The government is proposing a 60 gas tax holiday. The thing that I would like to see is the commodities market stop being a speculative market but a hedging market like it was designed to be. If you had to deliver or buy the actual product you are trading in then I think some of these wild fluctuations would stop.

 

[RustyJC]

I said it in another post. Why don't the government lift some of the taxes on fuel.

If they did, people would then be complaining because their roads don't get built or repaired.



Rusty

 

[HRDROKN]

One thing to keep in mind when speaking of crude prices is that regardless of whether a barrel is valued at $72 (and that is for the good stuff)... Oil companies are pulling crude from their own sources (upstream products) at a much lower $/barrel as it is somewhat fixed cost. So as the market value goes up... upstream profits go up as well (as they sell it at the going rate... even to their own refineries, well at least on paper). Only a percentage of the crude oil used in the refineries was purchased at the current value of $72/barrel. In addition refineries are always looking for good deals on heavier/high sulfur crudes, providing the refinery is equipped to handle such crudes. These crudes certainly aren't going for the current market value.



Funny thing with this is the refineries don't actually make huge profits and are often times losing money on paper. It is the upstream and the downstream (marketing) that make the money... . especially during a refineries labor contract year (usually every three years)... when they can't afford to pay the workers more because refining isn't making any money!

 

[SNiebaum]

people would then be complaining because

I think that says it best right there... .

 

[john3976]

I distrust COMRADE Shumer even more than I distrust Big OIL.

Yes, but maybe the communist would not be so bad, I hear the first thing they do is shoot all the Attorneys and CEO's!



That would cure a whole bunch of Americas problems right there.

 

[RustyJC]

Yes, but maybe the communist would not be so bad... .

Glad to finally know your agenda.



Rusty

 

[AMink]

--------------------------------------------------------------------------------

NY Sen. Schumer wants probe into 'whether or not we should break up the big oil companies. Enough is enough'...

Let's put him in charge of gun control too . There are very few good politicians (at the national level), a few good ones, and lot's over blunderbusses like Schumer. He'd find a way to, um, foul up turning on a light switch.



If I understand correctly, most of our oil comes out of the ground somewhere that Big Oil doesn't own. Those people say, "Ok, our barrels cost x today. " Pay it or don't, but that's what it costs. We want gas, Big Oil pays x. They're cost goes up and is passed on to us. Their earnings go up because we are paying more, but don't they end up with a relatively steady % per unit profit after paying x, y, and z? If we said (and meant it), "We are going to drill on our land and water, and in 4-5 years we will be self sufficient. We are going to build new refineries so we have the capacity to make the final product, and we WILL HAVE ONLY ONE BLEND OF GASOLINE FOR EVERYONE EVERYWHERE", would that not at least stabilize the cost per bbl? Or would they jack it for the next few years to make money while they can?



Back to the topic, Schumer investigating? Is he up for reelection this year?

 

[Shrimpy]

WILL HAVE ONLY ONE BLEND OF GASOLINE FOR EVERYONE EVERYWHERE",

That alone would drop prices quickly... ... .



Jim

 

[HRDROKN]

If I understand correctly, most of our oil comes out of the ground somewhere that Big Oil doesn't own.

Hmmmm... "Big Oil" :-laf is invested in all aspects of oil production and refining. This is what one of the Big Oil companies has to say about their upstream business:



"We are the top crude oil and natural gas producer in Kazakhstan and the top crude oil producer in Indonesia. We are one of the largest crude oil and natural gas producers in the United States, West Africa, Asia-Pacific and Latin America. "



"Our exploration activities are focused on the U. S. Gulf of Mexico, Nigeria and Angola. We are the largest holder of deepwater acreage in Nigeria and among the top in the deepwater Gulf of Mexico. In Australia, we are the largest leaseholder of undeveloped natural gas resources. "



So I think that it is safe to say that Big Oil :-laf owns and produces millions of barrels of crude oil per day!

 

[RustyJC]

So I think that it is safe to say that Big Oil :-laf owns and produces billions of barrels of crude oil per day!

That isn't what it says at all. Holding the production rights in these countries (usually in partnership with the state-owned oil company) doesn't change the fact that the country itself generally owns and gets paid for the oil that comes out of the ground.



Rusty