Sunday, April 30, 2006

There's this HUGE PR problem for the Oil Industry

It is that they cannot show that the "COST" of extracting, and refining oil into gasoline or other products has risen commensurately with the explosion in the "PRICE" of those products. Because it hasn't. Most of the world's oil today 'costs' today pretty much what it cost 5 years ago, before the Gibbering Chimp and his lackeys started their war against dandruff...errr, terror...errrr, truth.

Instead, they must pretend that mere, "wild speculations" (as the Gibbering Chimp exclaimed of news last week of Rummie's imminent replacement) about possible interruptions of supply, or possible disruptions in refining capability, or possible fluctuations in market conditions justifies their gouging consumers/citizens at the pumps...

But this is just that: a pretense, upon which record profits for the producers and distillers depends, and a pretense which will be amintained against all criticism for the conceivable, foreseeable future...

just sayin'


charley said...

i heard news of this new thing in the threadz. great name.

good luck in your new endeavor. and may you be wildly speculative, ah, i mean successful.

yes, i subscribe to the piss down my back tell me it's rain'n theory.

Anonymous said...

Four dogs?

Oil profits--Detroit Free Press during that last big run up in gas prices had a series of articles on why Big Oil was making such huge profits. Their main point was that, yes, the cost per barrel goes up, but the profits go up far more sharply as oil refiners have a percentage profit, not a fixed profit (or fixed within a range). Thus, when per barrel plummets (an unlikely event in the future), oil profits go way down, but when per barrl goes way up, the profit does the same.

Gas retailers, on the other hand, have a fixed profit--whether gas in 89 cents a gallon or $2.89/gal. Their carrying costs would, it seems, go up, however, and some go out of business.

Sound right to you?


Anonymous said...

Oh, congrats! jawbone

zid said...

hey WGG don't worry i have seen the future... every thing is beautiful baby... it's all good... $4.85/.5 gallon...Don't you just love that new car bomb smell.... oh yeah heavilly uninsured mutually assured destruction komplex gotz ya back worries.... Ribs and spaghetti in the suicide desert... freedom is on the march madness... who should we kill today for texas tea... got to keep the christmas club credit cards a melting... satan why ya wait'n? Show your cards... I know your pulling from the bottom... this message has been funded in part from a grant from the NSA. We are listening!!!!!!... truth and light to ya WGG... look forward to further postings from the bunker busters ball in NM.... peace

alberich said...

I love how the oil company executives and their lackies in politics and the media blame things like the addition of ethanol to gasoline for the increased cost.

Somebody (I think it was David Kean of the Conservative Union) was claiming that adding ethanol increases the cost of gasoline by $0.50/gallon because of there is not the refining nor mixing capacity to make as much gasoline/ethanol mix as our system really demands.

Now I am no chemical engineer, but I am now officially a highly trained scientist (so kids, don't try this at home), and it seems to me that ethanol refining is something that we are quite good at (mmmm ... vodka ... gurgle, gurgle) and mixing the stuff with gasoline, unlike making the gasoline itself which is a dirty, smelling process involving a big refinery, doesn't really involve much more than a big mixing bowl (with plenty of grounding so you don't create a spark and the thing doesn't go kablooey!).

So why should what used to be called gasohol cost so much more than plain petrol? It sounds to me like an excuse more than an explanation.

Yet, I don't see anyone in the media questioning Mr. Kean when he speaks ...