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HOUSTON — As giant oil companies like Exxon Mobil and ConocoPhillips get set to report what will probably be another round of eye-popping quarterly profits, just where is all that money going?
The companies insist they're trying to find new oil that might help bring down gas prices, but the money they spend on exploration is nothing compared with what they spend on stock buybacks and dividends.
It's good news for shareholders, including mutual funds and retirement plans for millions of Americans, but no help to drivers already making drastic cutbacks to offset the high cost of fuel.
The five biggest international oil companies plowed about 55 percent of the cash they made from their businesses into stock buybacks and dividends last year, up from 30 percent in 2000 and just 1 percent in 1993, according to Rice University's James A. Baker III Institute for Public Policy.
The percentage they spend to find new deposits of fossil fuels has remained flat for years, in the mid-single digits.
The issue has become more sensitive as lawmakers and Americans frustrated by high gas prices have balked at gaudy reports of oil industry profits. ConocoPhillips is scheduled to kick off the latest round of Big Oil earnings reports Wednesday.
Oil prices are set on the open market, not by the oil industry. But that hasn't stopped public protests, a series of congressional grillings for top oil executives, and a failed attempt by lawmakers to slap Big Oil with a windfall profits tax.
In the first three months of this year, Exxon Mobil Corp., the world's biggest publicly traded oil company, shelled out $8.8 billion on stock buybacks alone, compared with $5.5 billion on exploration and other capital projects.
ConocoPhillips has already told investors that its stock buybacks for April to June of this year will come to about $2.5 billion — nine times what it spent on exploration.
Stock buybacks are common throughout corporate America, not just for Big Oil. They shrink the amount of stock on the open market, essentially increasing its value and giving individual shareholders a bigger stake in the company.
But some critics say Big Oil focuses too much on boosting stock prices, in an industry that sometimes ties executive pay to stock price.
And in focusing on buybacks and dividends over exploring for new oil, some critics say, oil companies jeopardize its already dwindling share of world supply.
"If you're not spending your money finding and developing new oil, then there's no new oil," said Amy Myers Jaffe, an energy expert at Rice University who's studied spending patterns of the major oil companies.
Investor-owned companies like Exxon Mobil and Chevron hold less than 10 percent of global oil and gas reserves, way down from past decades. And finding new oil has become harder and more expensive.
State-run oil companies, like those in Saudi Arabia and Venezuela, control about 80 percent of oil reserves — and at today's prices, it's not surprising they're keeping a tight grip on what they have. Scarce equipment and hard-to-find labor also pose problems.
No one questions that Big Oil is rolling in cash. The cash the biggest oil companies bring in from running their businesses, or operating cash flow, is four times what it was in the early 1990s.
"It becomes a management decision," said Howard Silverblatt, a senior index analyst at Standard & Poor's. "It's not like they're going to the board and saying, 'Well, I can do one or the other or the other.' The balance sheets are flush with cash."
So what's Big Oil to do?
The companies say they are doing what they can to find more fossil fuels around the world, but the easy oil is gone. Exploring these days may mean expensive projects in thousands of feet of water in the Gulf of Mexico or costly ventures pulling petroleum from Canada's vast oil-sands deposits.
TransCanada Corp. and ConocoPhillips Co. just said they'd spend $7 billion to nearly double the amount of crude flowing through a pipeline from Canada's tar sands to the U.S. Gulf Coast.
And analysts point out that because there's no guarantee oil prices will stay in the stratosphere, oil companies should approach exploration projects with caution.
"There's only so much money you can throw at it without being ridiculous," said Joseph Stanislaw, a senior adviser to Deloitte LLP's Energy & Resources practice. "I think they're doing what they can."
It's also important to remember it can take several years before a company produces the first barrel of oil from a new field.
One example is an oil field in the Gulf of Mexico called Thunder Horse. Operated by BP and partly owned by Exxon Mobil, the platform only last month began producing oil and gas — nine years after the field's discovery.
At its peak, the multibillion-dollar project is designed to produce 250,000 barrels of oil and 200 million cubic feet of natural gas each day, which would make it the Gulf's largest producer.
"When you look at the spending that's going on, the companies are bringing on a lot of long-term discoveries," said John Parry, a senior analyst with John S. Herold Inc.
At ConocoPhillips, the capital spending budget for 2008, which includes exploration and production, is $15.3 billion, more than double the spending of five years ago.
"Could we spend $20 billion or $25 billion? Absolutely," spokesman Gary Russell said. "Could we do it effectively, in a way that provides ultimate value to our shareholders? Probably not."
Exxon Mobil, known for its disciplined approach to investing in energy projects, has drawn criticism for its reluctance to invest in alternative energy sources like wind and solar power.
The company expects to spent $25 billion to $30 billion on capital and exploration projects each of the next five years. Last year, it spent about $32 billion on share buybacks.
"You fund your investments that make sense," said spokesman Alan Jeffers. "You have criteria, and you have to meet that to be a good investment for the shareholder. And then if you've got cash that's left over, you're going to return it to the shareholder because it's theirs."
Exxon Mobil often touts its $100 million contribution to Stanford University's Global Climate and Energy Project. By contrast, BP says it plans to spend $8 billion over the next decade developing alternative energy using wind, hydrogen and other means.
Big Oil isn't alone buying back large amounts of stock, but the companies are certainly some of the biggest indulgers.
A boom in stock buybacks has been under way in corporate America since 2004. In the first quarter of this year, Exxon, ConocoPhillips and Chevron were all among the top 10 companies for share buybacks in the S&P 500.
In Washington, one Democratic proposal would impose a 25 percent tax on "unreasonable" profits of the top five oil companies, which together made more than $120 billion in 2007, and put the money toward a trust fund for investment in alternative energy sources. Republicans say it's a gimmick that won't help at the pump and will discourage domestic oil production.
But Sen. Charles Schumer, D-N.Y., said the fervor for stock buybacks is a clear sign Big Oil isn't interested in new production or alternative energy.
"When you hear that," he said, "it screams out for a windfall profits tax."
© 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
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{"commentId":2246623,"authorDomain":"Defektiv"}
by "exploration" they mean "paying private groups to act like scientists and contradict global warming principles on television and radio."
the execs in those companies are huge shareholders. the money goes back into their pockets. this is all smoke and mirrors. they have the legal right to do what they do, but they shouldn't sit there and expect us to believe they are good people for it.
{"commentId":2246623,"threadId":"317098","contentId":"1684194","authorDomain":"Defektiv"}
- 1 vote
#1 - Mon Jul 21, 2008 6:14 PM EDT{"commentId":2248709,"authorDomain":"blbjmyers123"}
Global warming is unproven and highly disputed. Not to mention Al Gores' life line. Lets throw the whole economy in a tailspin because the north pole is receding while the south pole is expanding. And, lets put animals that are not endangered on the endangered species list as to stop drilling in areas inhabited by polar bears.
Anyone hear of solar flairs from the sun and the earth wobbling during its rotation...etc?
{"commentId":2248709,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2299697,"authorDomain":"accrew4"}
You do not hear anything about the number of active volcanoes that have been discovered under the north pole. I'm sure that this has nothing to do with the melting of the ice. Ha! Ha! see "http://www.ibdeditorials.com/IBDArticles.aspx?id=299718849952830"
{"commentId":2299697,"threadId":"317098","contentId":"1684194","authorDomain":"accrew4"}
{"commentId":2246825,"authorDomain":"randylainejetsurf"}
Where are the discussions about the WINDFALL PROFITS the U.S. Government are receiving for doing NOTHING which are THREE TIMES greater than the actual oil profits.
Government Taxs are three time the actual profits the Oil Companies receive and no one is complaining?
Lets require the Government 'waive' all oil taxs for 10 years for a solution
{"commentId":2246825,"threadId":"317098","contentId":"1684194","authorDomain":"randylainejetsurf"}
#2 - Mon Jul 21, 2008 6:35 PM EDT{"commentId":2246943,"authorDomain":"frankgormlie"}
We need to think outside the box here. We need to begin having discussions about the nationalization of American oil companies. Yes, it's time to do that. Instead of these profits going to shareholders, they could be the down payment for a universal health care system for all Americans, they could help fund our struggling schools, they could fund college education for many. The list is endless. Nationalize the oil companies is not a weird-out-in-left-field idea, it is a solution to an unconscionable situation.
{"commentId":2246943,"threadId":"317098","contentId":"1684194","authorDomain":"frankgormlie"}
- 2 votes
#3 - Mon Jul 21, 2008 6:49 PM EDT{"commentId":2247197,"authorDomain":"bborland"}
you're not smart
{"commentId":2247197,"threadId":"317098","contentId":"1684194","authorDomain":"bborland"}
{"commentId":2247912,"authorDomain":"moesee1051"}
I agree it's time to nationalize energy. We are the only fools in the world that spend the kind of money we do financing our enemies. When are we going to wake up and recognize that we are only making greed and gross (sic) profit seem acceptable forms of public policy. It is so sad that the few with money are not going to lift a finger to lift the country unless they can benefit financially themselves. Where did we go wrong I ask you?
{"commentId":2247912,"threadId":"317098","contentId":"1684194","authorDomain":"moesee1051"}
{"commentId":2247988,"authorDomain":"blbjmyers123"}
Where does Nationalization stop once it has started? A capitalistic free market made this country what it is today. If you owned a company would you want someone telling you what to do with your money? I sure wouldn't. I don't like whats going on any more than you but your answer will put too much control in politicians hands. Just look at the decisions the make now. They are more interested in partisan bickering and one ups-man-ship. Government regulation made this problem and nationalization will take away civil liberty quicker than President Bush ever could my friend.
{"commentId":2247988,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2248056,"authorDomain":"montelw"}
Why in the world would you trust our government to do any better managing oil than they do with income taxes or the military. It's all based on politics. Nobody wants to step on anybody's toes. BS it's time to stand up and act like men or women and represent us the U.S. citizen's that have elected them to office. Maybe we should stand up for our rights and send alll the elected home and start over.
{"commentId":2248056,"threadId":"317098","contentId":"1684194","authorDomain":"montelw"}
- 1 vote
{"commentId":2248433,"authorDomain":"blbjmyers123"}
Cool, another smart person!!!
{"commentId":2248433,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2249244,"authorDomain":"awake"}
Nationalize the oil industry and watch every single dollar of foreign direct investment book a trip to London or Dubai. Do you have any idea how much money is flowing in to our country to fund alt energy development tech? This money would be gone overnight if we begin to nationalize industries "critical to American energy independence".
America was founded on capitalistic principles. I have yet to see a legitimate challenge to the belief that undermines my faith in pure, unbridled capitalism.
{"commentId":2249244,"threadId":"317098","contentId":"1684194","authorDomain":"awake"}
- 1 vote
{"commentId":2249324,"authorDomain":"blbjmyers123"}
DIDO!
{"commentId":2249324,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2251733,"authorDomain":"hmm"}
Brian Myers says:
"Where does Nationalization stop once it has started? A capitalistic free market made this country what it is today."
Nice false dichotomy, Brian.
Free market advocates conveniently ignore the fact that businesses receive huge tax breaks, program subsidies and protection and still argue that free markets alone are responsible for the success of the U.S. Nothing could be farther from the truth.
Take a look at history. Pure unbridled capitalism is what brought people to their knees during the industrial revolution. The economy in the late 1800's was far less regulated. The living wage was virtual slavery. The businessmen maximized profits by working their laborers in horrible, dangerous conditions for endless hours and for terrible pay. Children, as young as 5, were working. Was this problem solved by the free market? Did businessmen find they would actually be more successful by giving workers a decent life? Nope, a small elite class were making gains at a huge expense to other people's well being.
Now, other companies could have started with less exploitation and tried to steal all the workers, but they didn't. The reality is that the elite were rich and powerful, and exploitation allowed them to undersell other companies through predatory pricing and the like.. so, the only ones with the power and money to change the system were the business owners, and since they were also the ones benefiting from the free market through the exploitation of workers they weren't about to give it up.
Human greed shows no bounds.
One of the reasons the U.S. is so successful is because of state-funded or subsidized education, welfare, and health systems. Wealth sharing policies such as the 8 hour day, progressive tax policies, wage guarantees etc. have helped tame the abuse by the Gordon Gekkos of the world.
These benefits help businesses as well as workers by creating a more literate, competent and healthy workforce which at least partly insures people against failure and so allows them to take risks.
Regulations were placed on the market by society. And I'd say we're much better off because of it.
{"commentId":2251733,"threadId":"317098","contentId":"1684194","authorDomain":"hmm"}
{"commentId":2247028,"authorDomain":"ross-1"}
I don't think anyone is against a company making profit; however, when the average citizen is choosing between gas to get to work and their food bill, there is a big problem. One hates to see more government officiating and posturing, but these companies are making more money than seems reasonable. What's more infuriating is that combined with these huge windfall profits, there is the consideration of raising the gas tax by .10! My guess is that these companies and the government know alternative fuel means are quickly on their way and are trying to line the coffers knowing this may be the last of the great energy profit possibilities.
{"commentId":2247028,"threadId":"317098","contentId":"1684194","authorDomain":"ross-1"}
- 2 votes
#4 - Mon Jul 21, 2008 6:59 PM EDT{"commentId":2247281,"authorDomain":"tp-lin-stu"}
{"commentId":2248270,"authorDomain":"jdcromwell"}
If you don't want to live in a capitalist society and want your gasoline subsidized by the government then move to China. Instead of demanding all the money that Exxon Mobile has made then maybe you should think about how much Saudi Arabia has made. Then maybe try and come up with a real solution that lessens our dependence on foreign oil and decisions made by OPEC. There are answers like subsidies for electric vehicles, nuclear power, wind power, CNG vehicles. But no one wants to talk about solutions to supply and demand problems - they want to hang all the blame on big oil and speculators. No...that would mean that politicians would have to take some blame instead of doling it out. You people are uninformed and it doesn't cease to amaze me.
{"commentId":2248270,"threadId":"317098","contentId":"1684194","authorDomain":"jdcromwell"}
- 1 vote
{"commentId":2248404,"authorDomain":"blbjmyers123"}
I like a person who is smart and loves his/her country. Great post my friend!!!
{"commentId":2248404,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2248498,"authorDomain":"blbjmyers123"}
We just need to vote out all incumbents...clean house. Send the right massage, "You work for us and we are paying attention (again).
{"commentId":2248498,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2247101,"authorDomain":"pookacris"}
lets face it, our government stinks. too many career politicians that don't give a rip about the u.s., just themselves. just think how many senators retire after 1--that is 'one'--term in office? retire with a
pension that within a couple years is 100% plus what their salary was in office. remember n.r. coming out and saying everyone could work until they were 70 before they retired? social security? oh hell no, that is for illegals ONLY. god forbid the people who worked and put it there for retirement should
get it. politicians stink, stink, stink.
{"commentId":2247101,"threadId":"317098","contentId":"1684194","authorDomain":"pookacris"}
#5 - Mon Jul 21, 2008 7:07 PM EDT{"commentId":2247126,"authorDomain":"koolmover2006"}
Now Now! Don't get upset. what did you expect? A man with a million $ is gonna worry about us little folks.........or how much gas prices go? com on now!!!!!!!!!
{"commentId":2247126,"threadId":"317098","contentId":"1684194","authorDomain":"koolmover2006"}
- 2 votes
#6 - Mon Jul 21, 2008 7:11 PM EDT{"commentId":2247203,"authorDomain":"tp-lin-stu"}
{"commentId":2247250,"authorDomain":"tp-lin-stu"}
{"commentId":2247251,"authorDomain":"mkingston"}
It would not bother me so much, the oil companies having such obscene profits, but they use them to encourage our addiction to more oil. I can imagine the price will magically fall somewhat, so that our addiction continues. I believe the oil companies are simply being irresponsible. If the government would tax these "wind fall profits" and use those tax dollars to promote the development and use of renewable energy sources, I believe it would be much more fair. However, for the government to simply use such taxes to feed more pork barrel spending, would be just as irresponsible, because the oil companies would simply keep their profits high and help to maintain our addiction.
I listened to Al Gore this weekend, on MTP and, even though his plan is extremely ambitious, I believe it is possible to get ourselves off of the fossil fuels. The result would be brand new industries, which would employ thousands or possibly millions of workers. It would also make US industries the leader in renewable energy technology. The rest of the world would, once again, have to come to us. It would have the added advantage of reducing the role oil companies have to control our lives. Make no mistake about it... the oil companies are a monopoly. We could break that monopoly and free ourselves from the turmoil of the middle east. We are providing funding for the very people who wish to destroy us. I would be very willing, even happy, to incur whatever hardship is required to eliminate our dependence on people who hate us.
{"commentId":2247251,"threadId":"317098","contentId":"1684194","authorDomain":"mkingston"}
- 1 vote
#9 - Mon Jul 21, 2008 7:25 PM EDT{"commentId":2247269,"authorDomain":"kevinbitz"}
It is amazing... when oil was going up... the pump prices went up 3 or 4 times per day... of course, now that oil is down $20 do you see the gas prices going down? It seems oil goes up.. they price gas at the replacement cost of the oil sold... and when gas goes down... they price gas at the inventory price of the oil.... I don't mind them making a profit... just not the way they seem to be doing it...
{"commentId":2247269,"threadId":"317098","contentId":"1684194","authorDomain":"kevinbitz"}
#10 - Mon Jul 21, 2008 7:27 PM EDT{"commentId":2249318,"authorDomain":"awake"}
gas prices at the pump lag oil prices on the spot market by approximately 6 months. The correct chain of production goes Oil Exporters ---> Ship to Refiners in America ----> Transport via Truck to your distributor ---> Transport via truck to your local gas station.
so you haven't even seen what $140 is going to do to your pump prices. trust me, the gas stations aren't making a lot of money off of the gasoline they sell.
{"commentId":2249318,"threadId":"317098","contentId":"1684194","authorDomain":"awake"}
{"commentId":2247368,"authorDomain":"in-halfdotcom"}
Banging the drum here.
Boom Boom Boom
How about we just simply conserve?
Supply and demand.
Basic economics.
They want our business.
They just think they have us by the scruff of our wallets.
Let's show them different.
Anyone have any ideas on how to to get drastic fuel conservation into the mainstream? I would love some thoughts on the matter.
Thanks,
Pete
{"commentId":2247368,"threadId":"317098","contentId":"1684194","authorDomain":"in-halfdotcom"}
#11 - Mon Jul 21, 2008 7:39 PM EDT{"commentId":2247399,"authorDomain":"tp-lin-stu"}
{"commentId":2247690,"authorDomain":"lsmith16"}
they are manipulating the market , along with all the speculators they probably pay , its a cult , world wide , big oil needs to be shut down , and the markets need discipline , they will ruin this country with there un bridled greed , this all started with this presidents big oil special interest campaign promises , if you believe that all of a sudden the worlds consumption of oil doubled , i got swamp land for sale , its market manipulation period dot, the market pertaining to oil needs to be up graded to protect this countries security and economy from the cooperate greed thats infested it...
{"commentId":2247690,"threadId":"317098","contentId":"1684194","authorDomain":"lsmith16"}
{"commentId":2248052,"authorDomain":"moesee1051"}
Unfortunately this isn't a viable supply and demand problem. The reason it isn't is because when the supplier can control the supply to raise the price of the commodity then you can't answer the demand in the common form. The other problem is the greatest amount of supply is not controlled by anyone that cares about our well being.
For that reason this is not a true supply and demand scenario. Think of this hypothetical; let's say big oil says the more supply we keep off the market the more the price goes up, and even better than that suppose the US oil companies think let's let the OPEC sell all the oil until they run out and then we'll be the only ones left with really expensive oil. What motivation do they have to pump more oil ZERO! The only time a true supply and demand market can exist is when the rewards for maintaining the supply sufficiently to meet or exceed the demand can keep the price affordable. When an every day staple and life threatening commodity cannot be afforded it becomes a luxury. That doesn't work for America.
{"commentId":2248052,"threadId":"317098","contentId":"1684194","authorDomain":"moesee1051"}
{"commentId":2249899,"authorDomain":"in-halfdotcom"}
Maurice- I don't know. I think I get what you are saying. My own personal experiences with supply and demand are more rudimental. I recall many instances with material suppliers from various business ventures. The one recurring theme was that "suppliers" and landlords charge as much as they can get away with.
I'm going to stick with my hypothesis. Big oil is riding the profit wave of our apathy.
We demand the right to consume as much as we want, when we want it.
They supply the oil to fill that "need" and are charging as much as they can get away with.
Now, let's talk about pollution.
{"commentId":2249899,"threadId":"317098","contentId":"1684194","authorDomain":"in-halfdotcom"}
- 1 vote
{"commentId":2256818,"authorDomain":"in-halfdotcom"}
http://cnnwire.blogs.cnn.com/2008/07/22/supply-demand-explain-oil-prices-regulators-say/
Proves my point.
{"commentId":2256818,"threadId":"317098","contentId":"1684194","authorDomain":"in-halfdotcom"}
- 1 vote
{"commentId":2247471,"authorDomain":"in-halfdotcom"}
I love a good zinger that leaves me speechless.
lol
Thanks Stu
{"commentId":2247471,"threadId":"317098","contentId":"1684194","authorDomain":"in-halfdotcom"}
- 1 vote
#12 - Mon Jul 21, 2008 7:52 PM EDT{"commentId":2247530,"authorDomain":"ecowiz"}
Where do big oil profits go? My guess, Bush and Cheney.
{"commentId":2247530,"threadId":"317098","contentId":"1684194","authorDomain":"ecowiz"}
- 1 vote
#13 - Mon Jul 21, 2008 7:58 PM EDT{"commentId":2247575,"authorDomain":"qualitytimelord"}
dubai..........over two thirds of the worlds construction cranes, five of the world's tallest buildings etc google dubai is crazy
{"commentId":2247575,"threadId":"317098","contentId":"1684194","authorDomain":"qualitytimelord"}
#14 - Mon Jul 21, 2008 8:04 PM EDT{"commentId":2247603,"authorDomain":"newvistaschool"}
This would eliminate the oil companies and the problems altogether - But where is our government? In bed with these people I presume because we can be free of all this nonsense if our congress would just act on something like the following.
United States Energy Independence Plan
9 Directives for a New Declaration of Independence!
Let's give American's something to be proud of:
D-1 – All New residential buildings built after January 2010 must be fitted with Wind & Solar Generators that provide at least 75% of Energy requirements.
D-2 – The country will be 100% converted to Wind, Solar, Hydro, Nuclear, & Geothermal energy generation by 2020. Federal Government will pay for 50% of cost & state & Utilities will pay for the remaining 50%. Transmission Lines will be paid for by Billing surcharge to customers.
D-3 - Cars will be required to get 40 MPG by 2012 & 50 MPG by 2015
D-4 – All New commercial buildings after January 2010 must get at least 50% of energy requirements from Solar & Wind Generators.
D-5 - All existing (Pre-2010) commercial buildings must get 50% of energy requirement by January 2020 from wind & solar generators.
D-6 – 50% of all new cars& Trucks must run on Natural Gas, Hydrogen or Solar , Wind by January 2018.
D-7 – The Federal government will start building the Evacuated Tube Transport System to Link Major Cities. Timetable: 10 Cities by 2015, 25 Cities by 2020, 50 Cities by 2025, 100 Cities by 2030. The ET-3 will be used first for commerce and later for personal transport. The ETTS must be fully functional and replace all Rail, Truck, & Domestic Air Transportation by 2040.
D-8 – All existing (Pre – 2010) residential buildings must be getting at least 75% of energy through wind & solar generators by 2025.
D-9– Oil imports will not be allowed after January 2035 except for use by Federal Government & Military.
{"commentId":2247603,"threadId":"317098","contentId":"1684194","authorDomain":"newvistaschool"}
#15 - Mon Jul 21, 2008 8:08 PM EDT{"commentId":2247730,"authorDomain":"mkingston"}
The unfortunate thing is that the oil companies put too much money in the pockets of our government representatives (elected and appointed). However, I applaud your ideas. If we had not had an oil man for a president on 911, some of these things would already be a reality. Unfortunately, it was more appealing to Mr. Bush and Mr. Cheney to start a war that was certain to cause the price of oil to skyrocket and further enrich their buddies. I don't have an answer to the political problem, but I am fairly certain nothing positive will happen, until we push our representatives and senators to do develop an energy policy that dramatically alters the playing field. WRITE YOUR CONGRESSMAN AND SENATORS!
{"commentId":2247730,"threadId":"317098","contentId":"1684194","authorDomain":"mkingston"}
{"commentId":2250423,"authorDomain":"Lulu124"}
Excuse me but Iraq was supposed to provide cheap oil to the US. And if it weren't for BUSH's inemptitude that might have happened.
{"commentId":2250423,"threadId":"317098","contentId":"1684194","authorDomain":"Lulu124"}
- 1 vote
{"commentId":2247709,"authorDomain":"blbjmyers123"}
I owned my own company a couple years back. Regulations drove me nuts not to mention the I.R.S. If I owned a company like "Big Oil" and strangle hold restrictions where getting in my way at every turn, I would teach people a lesson or two also (I think that this is what oil companies may be doing). Oil companies could make more money from volume. Politicians like Sen. Schumer need to focus more on the job and less on oil companies. Besides, oil companies are not in the "Alternative Energy" business. (What a control freak!)
READ THIS QUOTE: ("In Washington, one Democratic proposal would impose a 25 percent tax on "unreasonable" profits of the top five oil companies, which together made more than $120 billion in 2007, and put the money toward a trust fund for investment in alternative energy sources. Republicans say it's a gimmick that won't help at the pump and will discourage domestic oil production".
But Sen. Charles Schumer, D-N.Y., said the fervor for stock buybacks is a clear sign Big Oil isn't interested in new production or alternative energy.
"When you hear that," he said, "it screams out for a windfall profits tax.")
Fact, wealth redistribution is not allowed in the constitution! I don't like high gas prices any more than anyone else, but this proposal is a step towards nationalizing so called "Big Oil". We live in a Republic with a capitalist system allowing anyone to start a business at any time. Do you understand and/or want SOCIALISM. "Big Government" is the problem that put us in a position like we are in right now. If corrupt, small minded, short sighted politicians where voted out of office by "informed" citizens like me we wouldn't have self proclaimed elitists running "OUR" country. Please wake up, become informed of the facts and get involved. Making phone calls and writing letters to elected officials makes all the difference. Look back at history...government agencies, lobbyist, and special interest groups put this situation into play. Vehicle manufactures have a big hand in this mess not to mention oil speculators. Government by the people, for the people.
Well?! What are you waiting for?
{"commentId":2247709,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
#16 - Mon Jul 21, 2008 8:18 PM EDT{"commentId":2252388,"authorDomain":"hmm"}
Brain's "facts" are a riot!! LOL!! Where'd you get this stuff? Great entertainment!
BP Solarex is a division of BP Amoco and is the world's largest manufacturer of photo-voltaic panels. BP has invested $150 million into research and development of solar energy. Of course it's a measly $150 million –small potatoes for them , so they aren't exactly concentrating their efforts in this area. This co. is just one example and they get tax breaks for this research. One of them is called the Nonconventional Fuel Production Credit which totals between $769 to $900 million each year.
..and I guess since, supposedly, "wealth distribution is not allowed by the constitution" then the big 5 oil cos. can also give back the money they received through all of the program and protection subsidies that governments, and thus taxpayers, have given, such as :
The cost of military protection for oil-rich regions of the world, with a price tag of $96.3 billion per year. Local and state governments also provide protection services for oil industry companies police response to stealing gas (what other private industry gets their products protected by the threat of losing your driver's license should you steal from them?) These expenses add up to $27 billion annually. Program subsidies that support the extraction, production, and use of petroleum and petroleum fuel products which came to $114.6 billion this year.
I have many more examples should you need them.
Why should anyone spend another dime protecting, subsidizing or providing tax or royalty breaks for oil companies while they squeeze every last dime out of us? Since we are helping to protect and provide research dollars for this industry and its profits with our tax dollars, we have a vested interest in these companies, should they not also be controlled in some way by all of us who paid those taxes?
{"commentId":2252388,"threadId":"317098","contentId":"1684194","authorDomain":"hmm"}
{"commentId":2299868,"authorDomain":"accrew4"}
I'm not going to say anything about the environmentalist & NIMBY people that have prevented the energy industry from; opening more well sites, building new pipelines or refineries, etc for the last 40 years. Even when they and everyone else knew about the increasing oil needs of this country.
That is why I got out of the business 30+ years ago, too many restrictions. Stop crying about foreign oil dependence you caused it. And now the world is suffering because of it.
{"commentId":2299868,"threadId":"317098","contentId":"1684194","authorDomain":"accrew4"}
{"commentId":2247817,"authorDomain":"blbjmyers123"}
White Trash asks -Where do big oil profits go? My guess, Bush and Cheney
To answer your question; People like firefighters, police, teachers, etc. who have retirement accounts along with oil executives bonus programs. Not Bush and Cheney. "Hate and discontent only leads to stupidity. Come up with an intelligent comment please".
{"commentId":2247817,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
#17 - Mon Jul 21, 2008 8:30 PM EDT{"commentId":2247832,"authorDomain":"davnrita"}
To start, you are not going to get one word of objective reporting or analysis out of MSNBC, so if that is what you rely on, forget it. The three energy sources that we need today and will desparately need in the next 20 years is nuclear, oil and coal. Lets see you drive your car on wind or run your house on solar. What we are squandering to use for electric generation is natural gas. But the Dems say no nukes, no coal and no oil drilling. We are lemmings headed for the cliff and we have a congress with a 9% approval rating, but we will re-elect them anyway. We just pile it on ourselves.
{"commentId":2247832,"threadId":"317098","contentId":"1684194","authorDomain":"davnrita"}
#18 - Mon Jul 21, 2008 8:31 PM EDT{"commentId":2247838,"authorDomain":"davnrita"}
To start, you are not going to get one word of objective reporting or analysis out of MSNBC, so if that is what you rely on, forget it. The three energy sources that we need today and will desparately need in the next 20 years is nuclear, oil and coal. Lets see you drive your car on wind or run your house on solar. What we are squandering to use for electric generation is natural gas. But the Dems say no nukes, no coal and no oil drilling. We are lemmings headed for the cliff and we have a congress with a 9% approval rating, but we will re-elect them anyway. We just pile it on ourselves.
{"commentId":2247838,"threadId":"317098","contentId":"1684194","authorDomain":"davnrita"}
#19 - Mon Jul 21, 2008 8:31 PM EDT{"commentId":2247852,"authorDomain":"t-mccluskey"}
we are going to see the gas prices at the pump fall considerably right before the election ,,,and than john mccain and bush will be taking credit for it ..saying with the surge in iraq and with there willingness to repeal to drill ban ,, that their phycology is working , and unless Americans want to see a return of higher gas prices ? than they had better vote for mcsame. you remember in 04 when they raised the terror alert colors, and all that al quada chatter , secrete , secrete intelligence reports that in 05 after the elections and like the swift boating turned out to be a bunch of @!$%#. we need to remember just who we are dealing with here and how far they will go to protect themselves and their profits. electronic voting ? Hell No.
{"commentId":2247852,"threadId":"317098","contentId":"1684194","authorDomain":"t-mccluskey"}
- 1 vote
#20 - Mon Jul 21, 2008 8:33 PM EDT{"commentId":2300121,"authorDomain":"accrew4"}
I sure George Soros and his hedge fund sold all of the oil futures prior to the drop in oil price last week. You know the number two investment fund in oil futures and the Democratic poster boy.
see http://www.deanlebaron.com/ulitmate/chapters/hedge.html
{"commentId":2300121,"threadId":"317098","contentId":"1684194","authorDomain":"accrew4"}
{"commentId":2247917,"authorDomain":"mkingston"}
Want a little proof that we can invent our way out of using fossil fuels? Check out this link: The work is being sponsored by the British government. The US government should be supporting more of this kind of research and development.
{"commentId":2247917,"threadId":"317098","contentId":"1684194","authorDomain":"mkingston"}
- 1 vote
#21 - Mon Jul 21, 2008 8:41 PM EDT{"commentId":2247929,"authorDomain":"mkingston"}
Sorry, I guess it won't accept a link here. The article is on the front page of MSNBC.COM, titled "Scientists tap motion in the ocean for energy".
{"commentId":2247929,"threadId":"317098","contentId":"1684194","authorDomain":"mkingston"}
- 1 vote
#22 - Mon Jul 21, 2008 8:43 PM EDT{"commentId":2248109,"authorDomain":"jparana"}
George Bush and Dick Cheney caused this problem before those two idoits/traitors got into the white house there wasn't a problem. It started with Cheney's Energy plan (2000), which allowed for the first time Energy commodities to be speculated and also, Enron! Isn't it ironic that the people, who helped Cheney develop this plan were Big Oil. Next was the invasion of Iraq, which toke Iraqs oil of the world market. Thus, making Bush's cronies oil more valuable by decreasing the supply. Third, was Bush's large tax breaks he gave for buying large SUV's in the early 2000's which lead to the SUV boom! All the while Bush has turned more federal land over to oil and gas companies for drilling than any president in the history of our country! That is why we are in this and no other reason. He is paying back the people, who got him elected but on the backs of hard working Americans. There is no oil shortage! No place in the world are they running out of oil! Show me one picture of back up cars at a gas station because of a gasoline shortage like in the 70's! It doesn't exsist, it is all greed! We have suffered 7 and a half years of America's first dictatorship and have become a third world type county! The rich are getting richer everyday and the poor are getting poorer everyday, the middle class is vanishing! We are no longer are the greatest manufacturing country in the world and if China wouldn't send it's Walmart shipments over this country would grind to a stand still. I can't blame Bush for all of it but for 85% and the last 7 and a half years! The last time Americans had pride was after 9/11 and that lasted about 4 months! I am proud to be a American but I fear soon you will have to look in a history book to find out what they were, just like the Romans!
{"commentId":2248109,"threadId":"317098","contentId":"1684194","authorDomain":"jparana"}
- 1 vote
#23 - Mon Jul 21, 2008 9:03 PM EDT{"commentId":2248594,"authorDomain":"blbjmyers123"}
JWparana said, "Third, was Bush's large tax breaks he gave for buying large SUV's in the early 2000's which lead to the SUV boom!" and "All the while Bush has turned more federal land over to oil and gas companies for drilling than any president in the history of our country! That is why we are in this and no other reason".
Keep listening to Libs who have no moral fortitude like the ones found on "Three times bankrupt" AirAmerica Radio. Nothing but hate speech and spin. You get dumber every second you listen.
{"commentId":2248594,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2248899,"authorDomain":"jparana"}
Are you saying he didn't give big tax breaks to corporations and Americans on the SUV's and full size trucks? If you are, Mr. Myers, you are dead wrong, look it up because that is a fact! At the time, it was said to help the country get out of the slight recession we were in but he could have giving tax breaks if they bought hybrids but that wouldn't push his agenda! I have never listened to AirAmerica in my life for your information but I do listen to NPR!
{"commentId":2248899,"threadId":"317098","contentId":"1684194","authorDomain":"jparana"}
- 1 vote
{"commentId":2248139,"authorDomain":"blbjmyers123"}
Something to consider...
It's said that; "In order for capitalism to flourish it must have a moral compass".
What morals do Far-left Liberals have these days? Answer- "What ever they feel like doing".
Democrats (libs.) are the only ones talking about "NATIONALIZATION". Civil Liberties anyone?
{"commentId":2248139,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
#24 - Mon Jul 21, 2008 9:08 PM EDT{"commentId":2248642,"authorDomain":"PleaseSaveAmerica"}
Well, to be fair, the latest FISA bill was mostly a Republican effort (with some Democratic backing) -- civil liberties, indeed.
{"commentId":2248642,"threadId":"317098","contentId":"1684194","authorDomain":"PleaseSaveAmerica"}
- 1 vote
{"commentId":2248194,"authorDomain":"moesee1051"}
We lost our civil liberties after 9/11 and we are not gong to get them back until we decide that enough is enough. America is supposed to be the home of the free and the brave. Are we free? (Wiretapping Americans without cause )Are we brave? (Bomb a country from 40,000 ft.) We have our priorities all screwed up and we need to get back to being the shining example of the world not the world bullies!
{"commentId":2248194,"threadId":"317098","contentId":"1684194","authorDomain":"moesee1051"}
- 1 vote
#25 - Mon Jul 21, 2008 9:14 PM EDT{"commentId":2248357,"authorDomain":"blbjmyers123"}
Yeah!!! Just give government more control!!!, good idea Maurice-387309 (who ever you are?) Your ideas will take away civil liberty you and I now have. Wire tapping without cause is a talking point that the koolaid drinking leftists use. I know they are not listening to my conversations, what are you afraid of? Same with bombing from 40,000 ft. from a fighter. It sounds like you know a lot about liberals...say Ret. General Wesley Clark (another idiot who could have started another war when he ordered NATO troops to fire on the Soviets during the Bosnian conflict).
Stop hating my country. My country does more good by far than any other country on the face of the planet.
{"commentId":2248357,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2248651,"authorDomain":"PleaseSaveAmerica"}
Brian, you don't know jack squat if they are listening to your conversation or not. Prove it to me....you can't. All you can have is faith government. So you can't have it both ways -- either you take back your government like you claim, or you have faith in your current government.
....and before you say it, I am not a leftist by any stretch of the imagination. I am a cynic.
{"commentId":2248651,"threadId":"317098","contentId":"1684194","authorDomain":"PleaseSaveAmerica"}
- 2 votes
{"commentId":2248706,"authorDomain":"PleaseSaveAmerica"}
By the way, Brian. It is OK to call a 4-star general an idiot, but when someone calls McCain out for anything he does wrong, it is Armageddon? It seems like a double standard.
{"commentId":2248706,"threadId":"317098","contentId":"1684194","authorDomain":"PleaseSaveAmerica"}
- 1 vote
{"commentId":2248876,"authorDomain":"blbjmyers123"}
You may be right by someone Else's standards. As for me, it comes down to the lesser of two evils. McCain is not my choice and Obama is a joke in my humble opinion.
{"commentId":2248876,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2249010,"authorDomain":"blbjmyers123"}
I can have it both ways, both faith in my government and still take it back because of what it stands for. By the people, for the people. We are the government my friend. Getting involved makes a difference while complaining makes it worse. Elected officials work for us. Read all of my posts if you have time. Then refresh your memory on American history and read the declaration of Independence and the constitution. Only then, will you understand what I mean.
{"commentId":2249010,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2248202,"authorDomain":"GMGM"}
The oil companies referred to in this article have one basic responsibilty--to act in the interests of their shareholders. They are not obligated to engage in some type of social awareness agenda,unless to to so would maximize the return to their shareholders. If they choose to liquidate the holdings and distribute the wealth to their shareholders, that is their choice. If the profits of the firm are greater by producing oil than by producing renewable energy, the firm is free to produce the oil, and forgo the renewable energy option. The oil companies pay their taxes. They , acting in the exclusive interests of their shareholders, should attempt to minimize their costs. Since taxes are a cost, these companies should try to minimize their taxes. Where the profit motive leads these companies should go.
There is no secret to this formula--it is capitalism. If these oil companies do not choose to refine,but only produce because that is the way to maximum profits, then there is no obligation on them to refine.
One says that to reap significant profits is greed, when actually to take more from these companies in taxes, that is greed. This is capitalism. It is the engine that runs the economy. May it triumph over all.
{"commentId":2248202,"threadId":"317098","contentId":"1684194","authorDomain":"GMGM"}
- 1 vote
#26 - Mon Jul 21, 2008 9:15 PM EDT{"commentId":2248525,"authorDomain":"blbjmyers123"}
Well said Mr. Bob Jack. I agree.
{"commentId":2248525,"threadId":"317098","contentId":"1684194","authorDomain":"blbjmyers123"}
- 1 vote
{"commentId":2250353,"authorDomain":"jtmoy19607"}
which shareholders, what about the long term shareholders? aren't they violating them, by not spending more on drilling?
{"commentId":2250353,"threadId":"317098","contentId":"1684194","authorDomain":"jtmoy19607"}
{"commentId":2248450,"authorDomain":"GMGM"}
The oil companies referred to in this article have one basic responsibilty--to act in the interests of their shareholders. They are not obligated to engage in some type of social awareness agenda,unless to to so would maximize the return to their shareholders. If they choose to liquidate the holdings and distribute the wealth to their shareholders, that is their choice. If the profits of the firm are greater by producing oil than by producing renewable energy, the firm is free to produce the oil, and forgo the renewable energy option. The oil companies pay their taxes. They , acting in the exclusive interests of their shareholders, should attempt to minimize their costs. Since taxes are a cost, these companies should try to minimize their taxes. Where the profit motive leads these companies should go.
There is no secret to this formula--it is capitalism. If these oil companies do not choose to refine,but only produce because that is the way to maximum profits, then there is no obligation on them to refine.
One says that to reap significant profits is greed, when actually to take more from these companies in taxes, that is greed. This is capitalism. It is the engine that runs the economy. May it triumph over all.
{"commentId":2248450,"threadId":"317098","contentId":"1684194","authorDomain":"GMGM"}
- 1 vote
#27 - Mon Jul 21, 2008 9:47 PM EDT{"canLink":false,"threadId":"317098","isPrivate":false}
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