Re: Unofficial poll of gas prices - I told you so.


Lee Bell a écrit :

> "Froggy" wrote
>
> > > How many millions of gallons are held as strategic reserves? What
> > > strategy
> > > are we holding them for?
>
> > Let's see. Coordinated oil embargo from Gulf countries as part of an
> > Israelo-Arab conflict, for instance? Islamist uprising in Saudi Arabia?
>
> It may come as a surprise to you, but we pump our own oil out of our own
> ground too.

IIRC US domestic production now covers less than 50% of domestic
consumption. I very much doubt that you could double production, or
half consumption, in a heartbeat.

And you strategicresreve now covers 2 months of imports only, as
opposed to 4 months in the 80's.

> > > Isn't a crisis like what we're experiencing right
> > > now, exactly what we reserved that fuel for?
>
> > > How many millions of gallons of oil could have been pumped, but weren't
> > > because the oil companies wished to control production and price?
>
> > Well, being private companies that's their call, no?
>
> No. They are not a free market enterprise.
>
> > Actually, if like the US we were lucky enough to sit on petrol I would
> > much rather see my government restrict its exploitation for the time
> > being (while imports are available, at relatively cheap prices) and
> > save it for future (probably tougher) times.
>
> My government is already doing that.

Restricting its exploitation? By opening natural reserves for oil
exploration, for instance?

> The problem is, the controls that are
> supposed to keep the supported industry in check, aren't working.

> In addition to the heavy taxation of fuels,

That's a relative concept (if you compare with most European countries
for instance).

> including an additional surcharge for marine fuels,

There are less boaters than drivers...

> the oil companies have raised their margins substantially,
> both absolute and as a percentage, while claiming that supply and demand
> forced them to. It's hard to claim supply problems while selling just as
> much gas as you ever did, at a substantially greater margin than you ever
> enjoyed before.

Well, your initial point was that there was no significant change in
the supply/demand balance. Now you are stating that demand went up
despite significantly higher prices (suggesting that it would have been
higher still without the price hike).

And regarding the supply side, I think that it was normal to fear
problems considering that the affected areas are key to the import and
processing of oil for the US market.

Now there is certainly some speculation involved, but why should it be
frowned upon?

> > > How many refineries are operating with decades old technology and/or
> > > poorly
> > > maintained equipment because those that run the companies put their
> > > personal
> > > profit above the needs of the public they serve?
>
> > Welcome to deregulated markets.
>
> Ours is not deregulated.

It certainly is much less regulated than was the case previously
(before Reagan).

Now the fact that now refinery was built over the last 20 years despite
growing demand suggests that there is a problem. But it seems that
cumbersome regulation is mostly at the state/county level. That's OK,
we'll blame Bush another time.

> > > I guarantee you that, were the oil companies to find themselves in
> > > financial
> > > trouble, Bush and the entire US population would be right there to bail
> > > them
> > > out.
>
> > That's called privatizing the gains, socializing the losses. Tried and
> > tested.
>
> Perhaps in France.

You seem quite confident that it would work in the US too.

What about the air transportation sector?

> > > Why is it that they aren't expected to do the same when it's the US
> > > population that's in trouble?
>
> > You'd be a good social democrat here ;-)
>
> Not damned likely.

OK, maybe you'd have to leave your guns at the door, but otherwise...

Cheers,

Froggy

.

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