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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: elmatador who wrote (85734)	6/4/2007 9:30:27 AM
From: ChanceIs	Read Replies (2) \| Respond to of 206085

>>>Of all the errors Jimmy Carter committed,....<<< Interesting piece on Carter. There are perhaps a few factors left out: 1) The article suggests that Reagan's removal of the price caps caused hydrocarbon supply to surge. There is more than a little truth in that. One has to wonder if production wasn't already responding to the high prices. For domestic sales this would not be the case. If US production could be sold abroad on free market prices, then it would make sense. There are small pockets today where oil corporation sell abroad - Alaska to Japan may be one instance. 2) Reagan was well known to have induced Saudi Arabia to go to full production in order to clobber Russia economically. Russia basically couldn't sell above cost because there so so much oil on the market. I would have to look, but I think this happened a little later in Reagan's term, but it might have been '82. Regardless, domestic oil companies got pounded when the market tanked, and that took a long time to heal. I understand that refineries were basically losing money from about '82 until say '04. I think that whoever organized Valero took a risk around '99 that the independent refiners could/would become profitable, and bought as many as they could. We had slowly rising demand but I think even slower capacity additions. Valero did well.