Saturday 20th of April 2024

oils ain't oils .....

oils ain't oils .....

“ALARUM, ALARUM: oil prices hit record levels

Too many consumers

John, why would a reduction in the $250billion profit by the oil companies lead to a reduction in oil price.
It does not compute on my computer.
If capitalists take $250billion in profit, do you think that if that profit was reduced it would go to consumers? No. It would go somewhere else.
Price goes up because not enough oil is being produced for the number of consumers. There are too many consumers, and more are coming on line with China and India.
Those profits need to be investigated. Are they going straight to sharholders or are they going into new technology?
More questions need to be asked.
Now away from capitalism to communism. Russia is sitting on huge oil reserves under the Caspian Sea.
Capitalists take the profit and spend the money, communists sit on it and do nothing..

oils ain't oils / Too Many Consumers

Hi Len.

I agree that more questions need to be posed viz a viz the current "alleged" shortage. As you acknowledge, there are enormous reserves under the Caspian & Venezuela has the largest in the Americas.

Whilst there are doubtless more consumers, directly & indirectly consuming more of the available resource, my point is that the "shortage" isn't necessarily driven by the depletion of reserves but more through the oil companies having put their feet on the neck of refining capacity, thereby inducing an "artificial shortage", which they use to justify their price increases [US$250 billion in price increases & US$80 billion in incremental profits]. I call this profiteering.

Your contention about capitalists spending money & communists sitting on it doesn't wash in this instance eg: there has been no additional refining capacity created in the US since the mid 70's & this goes to my point about the industry putting a choke hold on supply to justify its pricing [profiteering] strategies.

Governments, including our own, will never make an issue of the behaviour of the oil companies, given the automatic windfall revenue benefits they enjoy by simply sitting on the sidelines.

The other day, our "little johnnie" told Alan Jones & his neanderthal audience that the current bowser prices in Oz were lower than what they would be if it wasn't for the high level of competition existent amongst the petrol retailers. If you believe that, you'll believe anything.



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