Re: 2004 GASOLINE PRICES

Apr 01, 2004 7 Replies


snipped-for-privacy@austin.rr.com (Ron M.) wrote in


> news: snipped-for-privacy@posting.google.com:
>
> >>Saw a interview with a oil man from Texas the
> >> other day and he stated that only when crude reaches $40 a barrel and
> >> stays there will it pay for him to start drilling again.
> >
> > I'm from West Texas, which at one time was pretty much the Oil Capitol
> > of the Universe. Then Saudi Arabia came along. Drive out there now,
> > and you see pumpjacks sitting dead, rusting, hundreds and hundreds of
> > them, because the price of oil doesn't cover the cost of pumping it
> > any more. That's a very critical ratio.
> >
> > It costs $30 - $40 a barrel to drill and pump oil in West Texas. In
> > the Middle East, it's so cheap you can practically scoop it out of the
> > ground with a teaspoon.
> >
> > The West Texas economy has been utterly devastated the last few
> > decades because of this. I travelled in that area recently, and small
> > towns like Crane, Big Lake, and Sterling City are dying, with
> > boarded-up storefronts everywhere. It's sad to watch. There are very,
> > very good, decent people in those towns.
> >
> > The West Texas oil industry itself has withered, as well. If you
> > wanted to drill a well out there tomorrow, it would take at least 6
> > months to even get started, because the support industry is all gone:
> > the roughnecks, the suppliers, oilfield equipment companies, etc.
> > There's just NOTHING left.
> >
> > What's happened to the American oil industry is really what's happened
> > to many other industries: production has shifted to foreign sources
> > because of lower cost. Why pay an American call center worker $25 an
> > hour plus benefits, when a guy in India will do it for $2 a day? Why
> > spend $30-$40 a barrel to pump oil from West Texas when you can pump
> > it in the Middle East for $8 a barrel? It's the same principle at
> > work. And the resources ARE here: there's enough oil under West Texas
> > to kiss the Middle East bye-bye forever, but it's not going to happen.
> > And all that oil is just SITTING there. Billions and billions of > > barrels of it.
> >
> > Now, of course, if you want to get fabulously rich, save the country,
> > and a bunch of other nice things, crank your brain up to "10" and
> > figure out a way to get that oil out of the ground cheaply. Any ideas? > >
> > Ron M.
> > 5th generation Native West Texan
> >
> Good Oil Industry Commercial. What is needed is for the our oil industry
> and automotive monopolies to be negated by a 10 year alternative fuels
> and power plant program using NASA and the patents held by the people and
> not given to the monopolies. If a serious government sponsored program
> without political corruption were started, you would find petroleum
> products suddenly fall in pricing and stable supplies reappear.

And what planet did you say you were from???

Just let this thread die!

--Mike

While you may think that government intervention would in some way cause prices to drop and supply to increase, NOTHING is further from the truth! Show me even ONE example of this idea being successful in history. As the previous poster alluded to, it is simply the laws of economics at work and left to themselves, they work very well.

Mike

Did anyone else notice that overnight every gas station you could find must have taken delivery of a taker full of higher priced gas? WTF?

Really??? Got proof??? I bet that these things would in fact happen but as long as big buisness continues to run the government, we will never know.

What is your definition of success? How about you show us even one example of deregulation doing anything for anyone but the owners of the company.

LOL, you are kidding, right?!?!?!?! Do you own a television or ever leave the house or are you so blind not to see what is happening to this country and its people?

Didn't pay attention to gas price but did notice that diesel dropped 2 cents a gallon at the local Flying-J station since about four days ago.

Jerry

The airline industry was deregulated, and now consumers can get cheap flights and the airlines are going broke.

Hey, I suppose it's just the price of pure capitalism :)

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