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Politics : View from the Center and Left
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To: quehubo who wrote (72282)6/14/2008 8:02:27 PM
From: Cogito  Read Replies (1) of 542073
 
>>Unfortunately you dont understand the business well. Billion dollar investments dont get made on today's prices. When they are made they are followed by years of expenses before any revenues. Basically, Once the project is developed the project will not stop production until management thinks marginal revenue is less than marginal expenses.

I was responding to your assertion that oil companies are doing nothing but sitting around getting rich and not motivated to produce more.<<

Que -

In fact, I do understand that about the oil business, and you have exaggerated what I said to the point where it is not representative of my views. If that's my fault for being unclear, then excuse me.

I said that I think the oil companies are happy with the current situation, which I'm quite sure they are.

I understand that they want to have really easy business decisions to make. They'd like to have huge deposits of oil that are two feet underground in a vast plain that nobody cares about where they can get a lease for a dollar a year.

Instead, they have to deal with the real world. So what?

It's up to them to make the business decisions they need to make, in the real world. There are people who have concerns other than easy oil company profits and cheap fuel for SUVs. That's part of the real world, and the oil companies have to deal with it.

They've had billions of dollars of tax breaks to enable them to explore and develop new sources of oil. That mitigates their risk. I just don't see how they have much to complain about.

- Allen
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