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http://news.yahoo.com/s/ap/20060618/ap_on_bi_ge/us_oil_production
A couple of interesting quotes:
"This is a global business, and it's not only that we need to add to supply, but we need to reduce demand," Mulva said. "In the United States alone, we have about 2 percent of world oil reserves, 5 percent of the population and yet we use about 25 percent of the world's consumption of oil."
Absolutely true. We consume far more petroleum products than we should. I don't see the government or the oil industry, any industry for that matter, encouraging conservation. For various reasons we traded in my 17 MPG Isuzu Rodeo for a 30 MPG Toyota Matrix. My wife's car gets in the high 20's. We're also turning off "standby" appliances so that they're no longer instant-on.
and
Though many consumers blame high pump prices on oil companies greedy for profits, the oil company chiefs blame global competition for supplies.
"If we didn't have this level of profitability, I don't think we could get the supplies to where they need to get to," said the president of Shell Oil Co., John Hofmeister. He emphasized that the companies are seeking greater access to federal lands and offshore waters for exploration.
There's a basic problem with the second paragraph. The simplified formula for calculating profits is: Profits = Income - Expense. Transporting the oil supplies to where they need to go is an expense that is already taken into account. It is a cost of doing business, granted, that cost goes up when oil prices increase. But lower profits does not mean they can't get oil to where it's needed.
I heard a great quote not too long ago, I wish I could remember from where. Quite simply it stated "Capitalism is not a system of government." Well, in the USA it's become one.
A couple of interesting quotes:
"This is a global business, and it's not only that we need to add to supply, but we need to reduce demand," Mulva said. "In the United States alone, we have about 2 percent of world oil reserves, 5 percent of the population and yet we use about 25 percent of the world's consumption of oil."
Absolutely true. We consume far more petroleum products than we should. I don't see the government or the oil industry, any industry for that matter, encouraging conservation. For various reasons we traded in my 17 MPG Isuzu Rodeo for a 30 MPG Toyota Matrix. My wife's car gets in the high 20's. We're also turning off "standby" appliances so that they're no longer instant-on.
and
Though many consumers blame high pump prices on oil companies greedy for profits, the oil company chiefs blame global competition for supplies.
"If we didn't have this level of profitability, I don't think we could get the supplies to where they need to get to," said the president of Shell Oil Co., John Hofmeister. He emphasized that the companies are seeking greater access to federal lands and offshore waters for exploration.
There's a basic problem with the second paragraph. The simplified formula for calculating profits is: Profits = Income - Expense. Transporting the oil supplies to where they need to go is an expense that is already taken into account. It is a cost of doing business, granted, that cost goes up when oil prices increase. But lower profits does not mean they can't get oil to where it's needed.
I heard a great quote not too long ago, I wish I could remember from where. Quite simply it stated "Capitalism is not a system of government." Well, in the USA it's become one.
