T or F? This report by Sen.Ron Wyden(D) & article seems to suggest that the oil companies have too much oil..?

Question

...not too little oil like they are claiming? And that, according to Texaco's and Chevron's internal memos, the oil companies themselves to be saying that their supply of oil exceeds demand (which means that were weren't overly consuming)? And that to keep profitable and keep prices up, they need to find a way to either increase demand dramatically (SUVs) or find a reason to reduce their production (refinery closures, peak oil/scacity scam, etc.)?

Could this be why we suddenly went from smaller cars to large SUVs (and larger cars overall) and now to this peak oil/global warming conservation scheme?

http://wyden.senate.gov/issues/wyden_oil_report.pdf

http://www.commondreams.org/news2005/0907-04.htm

Answer 1

While watching members of congress interview oil company executives some holes became apparent in the views of the democrats and republicans.

I would agree that in 1999 oil companies made statements concerning excess oil reserves.  What has happened though is that within a few short years other countries have increased huge demands for the available oil.  Also in that testimony, before congress,  it was stated that oil refineries where closed because of costs to update and lack of the ability to increase them in size due to government regulations.

Now going back to supply exceeding demand.  Few new oil reserves are come online in the last 5-10 years while world demand has increased and has for the first time exceeded production. The good news is there is plenty of oil still out there but the ability to go get is not there.

As far as the profits of big oil companies, look at the fact that the profit margin remains at 6 - 7% for the companies.  The dollar figures have changed but the percentage has remained the same.  The math is easy when you consider Shell was buying oil from the middle east for $30 a barrel in 1999 and today is paying $120 for that same barrel, at an average of 6.5% in profit Shell's dollar income grew 4 times while that profit margin remained the same.

As long as the US gets over 60% of it's oil from outside this country we will have no control over what we are being charged for it or how much is produced.  So let's tax the oil companies more so they can pass that on to everyone of us as a cost for the product.  Get ready for $ 12 gas.

Answer 2

TRUE!  We currently have more reserves than we did in the early 1990's...something that people who are pro big oil don't want to acknowledge!  Good point about the SUV's being pushed out...they have gotten to be nothing more than a statement on how "rich" that you are...or at least THINK you are.

You bring up a very valid point.  I wish the sheeple would WAKE UP!

EDIT:  Oldboy, this has ZERO to do with Rep. or Democrat.  They are BOTH, I repeat BOTH in it together.  I am speaking AS AN AMERICAN.

This has zero to do with "Supply and Demand" BS because if it did, you know what?  The price would be going down.  The US has too LARGE of a supply currently and the price has not gone down at all, even though the demand certainly has.

When you CUT refining capability and then base CURRENT price on the FUTURE prices 2 or 3 months down the line, it is price fixing.  THIS is ILLEGAL, and OTHER corp. have been investigated and fined big time for this.  There should be no exception for the oil companies...of course you need to have court judges who don't have ties with these companies and politicians who want to stand up for AMERICANS.

Answer 3

Uhhh, is that document from 11 yrs ago?  OK, there are more cars on the road then there were in 1996, everybody has more elecronic gadgets than in 1996, and crude is now at what, $127/bbl?  It's difficult to argue something from over a decade ago.  Oh yeah, if the raw is material is costing $127/ 42gal, that's about $3.02 per gallon.  If you can pay that much the raw materials to make something, sell it for a nickel, and still make a profit after the government adds their $.45 to it, I want to know how to do that.  It's a great idea, but it sounds kinda fishy to me.