Quote: (12-07-2011 03:36 AM)Samseau Wrote:
BEFORE this gets into the whole free-market debate....
See, I don't think this is free-market issue here.
But there are two arguments, for and against; are markets being manipulated or not?
FOR:
If it was a free-market, the surplus gasoline would be sold to American consumers, no? Only government interference could prevent the gas from being sold to Americans despite record prices.
AGAINST:
Even though Americans are paying sky-high gas prices today, other countries are paying even more money for gas. Therefore it's in the interest of oil companies to ship their gas overseas.
As for Obama:
No matter how you look at the situation, there is high demand for gas. There should be more refineries built to meet this demand, but there are not. Since Obama is directly in charge of agencies which allow refineries to be built, I'll place the blame at the Executive branch's feet.
You can't fault Obama on this. Or the market. The Gas industry has set things up this way.
There are no 'gas surpluses' Refineries are running at full blast, each drop is being used. Gas companies have scaled back refining, to below the 115% they we're doing when prices we're sky high. Now they are at about 85%, and use this to fudge around prices.
How can you demand to sell something to Americans that is not theirs? It isn't American oil that is being refined its Exxon, Suncor, etc. Does the Chinese factory worker have to be sold Nike shoes even though they make it? No. It is still Nike product at the end of the day and they sell it where they please.
The price of gas is the same across the board. There is a market price set at the exchange. If the price of petrol is cheaper in one country vs. the next it is because it is either taxed or subsidized. In Countries where the Gas/Oil companies are state run they offer subsides to locals which makes gas dirt cheap. America was just like this, when stuff was exploding out of the wells all over the Country, and Big Oil mostly serviced the American market. Those days have passed though, America ate through all of its own large oil wells in by the 70's.
Refineries are extremely expensive to build. The old beasts on the Gulf Coast should of been replaced a long time ago. But no funds exist for this. Plus there is little money to be made in refining this - is why the private corps have been capping capacity and slowing selling off plants. There is little to no net gain to build a new plant. This is where the Government F-ed things up. The same issue that is present with refineries exists with nuclear technology also. Government roadblocks and regulations has made these two projects some of the most costly ventures to take on.
The large oil crops started cutting capacity to meet with American loss of demand. The recession/contraction of the economy caused a disappearance of demand for energy.
Plus its difficult to simply "ramp up" production. My buddy who worked at a up-grader would work their "ramp ups" or "shutdowns" when they would re-organize things and tinker stuff to get going for a big run or a scale back.
And yes Big Oil does have us by the balls. Tenderman, you even stated it yourself. The Economy = Energy. With no energy you have no capacity for growth. Energy facilitates the expansion of credit because you need surplus to entice investment* (*speculation).
Big Oil knows this and will continue to rape, they are so arrogant and behind they don't even have any new technologies ready for when oil starts to dry up (this has been known for 20 years), the nose dive will be their biggest pay day and they are just waiting to cash in. How messed.