Re: "oil wil be capped at $40 per barrel"

Ya know bob, like all socialists, you are quite full of beans. Obviously you
have never been out here where the rubber meets the road solving energy and
environmental problems and overcoming the myriad of obstacles already placed
by the monsterous and quite stupid government bureacracies that tax and
regulate this nation's oil and gas industry.

Look at how much of their profits these capitalist American oil companies
are putting back into research and new reserve development. Far FAR more
than any governments in the world are. It's an incredibly more intelligent
and efficient system than have a gaggle of government nitwits try to
regulate it like they did in the Jimmy Carter era as you seem to advocate.

Don't forget that is was capitalist's like Standard Oil's Rockefeller, Henry
Ford and Thomas Edison who created the middle class and the very high
standard of living that the American middle class enjoys today -inspite- of
an ever growing big fat and quite stupid government bureaucracy getting the
way.

And as you well know, our best, brightest and most ambitious go into the
private sector, including our quite challenging and rewarding energy
industry. Only those who don't have the education, ability and/or ambition
to make it in the private sector become government bureaucrats, and if for
no other reason than that, it will be much better and more efficient to keep
this great nation's energy development as much in the capitalist private
sector as is possible.

You are a government employee or some kind of an insurance salesman right?



"Bob Eld" <nsmontassoc@xxxxxxxxx> wrote in message
news:J%d2g.70554$Jd.57195@xxxxxxxxxxxxxxxxxxxxxxxxxxxxx

<jefft0@xxxxxxxxx> wrote in message
news:1145653988.540007.66620@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
A few years ago, when oil prices had been under $30 per parrel for a
long time,
analysis wrote off gasoline synthesis (from methanol, coal, etc.)
because of cost.
This posting from 2003 was typical:

http://groups.google.com/group/sci.energy/browse_thread/thread/1b9d35a39fd27
0d1/10cf29c9c4cfc4b4

"The business types I'm aware of who have invested in this enterprise,
have admitted its a long shot, because oil would have to be $40 per
barrel or more - over an extended period - for this system to be
profitable."

Because cost of synthesis was assumed to be around $40 per barrel,
people
said that this would cap the effective price of oil. (Do you remember
this talk?)

So are these conversion technologies going to "kick in" with oil now
above $70 per barrel?

It's not that simple because it's not text book supply and demand. While
tight supplies and high demand are the trigger, there is a lot of
collusion
and monopolistic practices involved in the recent run up of prices. In a
simple text book case, tight supplies would squeeze everthing including
profits and everybody would be scrambling to increase supply. Under the
present system, there is little incentive to increase supply including
synfuels and alternatives because profits are increasing even faster than
raw petroleum. There is little competition and in some cases, oil
companies
are buying each other up. Look at the recent $400 million retirement
package
for an Exxon executive as an illustration of the greed and excesses in
that
industry. OPEC is a monopoly that sets crude prices. While American
companies are not a part of OPEC they, none the less, benefit from OPEC's
price fixing and are only too happy to throw up their hands and say "what
can we do?" while they laugh all the way to the bank.
What we see is unfettered, laissez-faire, do what the hell you want,
screw
the public, capitalism. What is needed is a few rules and regulations with
taxing policy to encourage companies to be good corporate citizens. We
need
to revisit and enforce the anti trust laws originally placed against
Standard Oil in 1912 because we've been down this road before. We need a
government that cares about the general public as much as it cares about
it's corporate friends in high places. Corporations should be allowed to
make money but they should not be allowed to screw the public while
certain
politicians deal out special favors to them and write blatant giveaway
energy bills. And, we need a government that is more interested in helping
forward the development of alternative fuels than it is in waging war.





.

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