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Politics : View from the Center and Left -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (72081)	6/14/2008 3:59:06 PM
From: Cogito	Read Replies (2) \| Respond to of 542147

>>The oil companies benefit from shortage.<< Bob - The oil companies benefit most from perceived shortage, and from actually having enough product to sell. That's the sweet spot for them. It helps that they can blame the Democrats and environmentalists for the supposed shortage. I'm sure they appreciate your support in that. - Allen

To: Bearcatbob who wrote (72081)	6/17/2008 3:37:21 PM
From: TimF	Respond to of 542147

Oil companies benefit from higher prices for oil if they are mainly suppliers of crude. OTOH higher oil prices cause refiners to have to pay more for their oil. The big "western" oil corporations own a declining portion of production and reserves of oil. The real beneficiaries of higher prices are the large national oil companies like Saudi Aramco, Petróleos de Venezuela, National Iranian Oil Company, Qatar Petroleum, Gazprom and LUKoil and Rosneft in Russia, Petrobras, PEMEX... Which isn't to say that XOM, Royal Dutch Shell, BP, Total, etc. don't benefit. They have their own reserves of oil, and the stream of production from these reserves is worth more with today's higher prices, but their reserves and production are a smaller and smaller part of the picture over time, and if new areas are not opened up to them it won't continue to be the case that they benefit from higher prices.