PDA

View Full Version : What would you ask Big Oil?


Donger
03-31-2008, 11:59 AM
http://money.cnn.com/2008/03/31/news/economy/oil_hearing/index.htm?cnn=yes

NEW YORK (CNNMoney.com) -- Under the backdrop of record gas prices and record profits, Congress is set to grill executives Tuesday from the world's five biggest oil companies.

Lawmakers are expected to focus their questions on why the cash-rich industry needs $18 billion in tax breaks over ten years with some in Congress looking to take them away and use them to subsidize renewable energy projects.

Beyond the tax breaks though, congress is sure to raise issues surrounding the industry's record profits. But it shouldn't be just lawmakers that get to ask the questions. So CNNMoney.com asked the general public and some industry-watchers: If they could ask oil executives anything, what would they ask?

"Are they going to tell the citizens why gas prices are so high?" said Maryann Mancino, who drove into Manhattan from New Jersey to attend the New York auto show.

High gas prices were also on the mind of Mark Cooper, research director at the Consumer Federation of America a consume rights watchdog.

Cooper said the industry is misusing its massive profits, underinvesting in refineries and failing to keep supplies adequate when entering the high-demand summer driving season and driving gas prices higher.

"We're talking hundreds of billion of dollars," said Cooper. "Where do all the profits go?"

Others wanted to know about Big Oil's plans for expanding alternative energy initiatives.

"I don't really feel bad about the oil companies making large profits," said Rich Landy, stepping out of a cab in Manhattan's Columbus Circle. "It's really more of a question of what we can do together to figure out how we can reduce our dependence on oil."

Environmentalists were a bit more forceful.

"They've done a great job of marketing, but a pretty poor job of showing what percent of their overall budget goes to the development of alternatives," said Deron Lovaas, an energy analyst at the Natural Resources Defense Council.

Some people wanted to find ways to increase the domestic supply of oil.

"Why do we have to rely on foreign sources for petroleum," asked New Jersey resident Pete Rogers. "Why can't we do a lot of the producing ourselves?"

The industry has long argued for greater access to domestic oil and gas resources. A lot of oil lies in the waters off the East and West coasts but it's currently off limits to drilling.

The oil industry also says the tax breaks Congress is seeking to eliminate are essential to increasing domestic production, and that they're not specifically aimed at oil companies.

"These are not specialized tax breaks specifically for the oil industry," said John Felmy, chief economist at the American Petroleum Institute. "All industries get these."

responding to questions of high gas prices Felmy said they're high largely because crude oil prices are so high - a factor Western oil companies have little control over.

Oil prices are set in a worldwide market and Western oil companies control a small fraction of the supply. Most oil comes from nationalized oil companies from countries like Russia, Saudi Arabia, or Mexico.

Explaining what oil companies were doing with their record profits, he said the industry was either reinvesting them in exploring for more oil, or returning them to shareholders in the form of stock buybacks and dividends. He noted that 41% of oil company stock is owned by pension or retirement funds.

And he said the industry has been expanding refining capacity at existing facilities to help ease the refining crunch, but that building new refineries was difficult.

"We'd love to see a new refinery, but people simply don't want a new refinery near them," he said.

Still, oil is a basic commodity that everyone must use, and the fact that it has gotten so expensive and the oil firms are making so much money from it, made one person ask if profit should be part of the equation at all.

"It seems silly, to ask people 'well, did you make the most profit you could make?'" said Brooklyn resident Mei Campanella. "Well, that's what a business does. Maybe it shouldn't be a for-profit business."

The hearing is set to begin at noon Tuesday before the House Select Committee on Energy Independence and Global Warming. Senior executives from Exxon Mobil (XOM, Fortune 500), Chevron (CVX, Fortune 500), ConocoPhillips (COP, Fortune 500), BP (BP) and Royal Dutch Shell (RDSA) are scheduled to appear, although no CEOs are expected to testify.

Tuesday is just day one of oil on Capitol Hill. On Thursday a Senate committee is expected to hear testimony regarding the role investment money is having on oil prices.

BucEyedPea
03-31-2008, 12:01 PM
I'd ask why is oil slick?

StcChief
03-31-2008, 12:04 PM
Can More synthetic oil be produced.

Iowanian
03-31-2008, 12:06 PM
Why don't you increase refinement capacity to reduce the stresses of production for winter, summer, vacation, holiday and every other excuse to raise prices due to lack of supply?

Why can't a solvent/additive be created/used the "cuts" gasoline and deisel fuel like koolaide-water? 10 parts petroleum 10 parts something else...

How much research and legitimate consideration is being given to "producing/creating" petroluem. I've heard and read of refining processes that take chicken guts, dairy cow/hog manure/other carbon bases and create a product very similar to sweet light crude.

Donger
03-31-2008, 12:10 PM
Can More synthetic oil be produced.

Cost. IIRC, synthetic costs about four times as much as crude, although I'm sure that has narrowed.

Donger
03-31-2008, 12:13 PM
Why don't you increase refinement capacity to reduce the stresses of production for winter, summer, vacation, holiday and every other excuse to raise prices due to lack of supply?

They would if it made fiscal sense.

Why can't a solvent/additive be created/used the "cuts" gasoline and deisel fuel like koolaide-water? 10 parts petroleum 10 parts something else...

You mean like adding ethanol? Quite simply, gasoline is a wonderful power source. Very efficient.

How much research and legitimate consideration is being given to "producing/creating" petroluem. I've heard and read of refining processes that take chicken guts, dairy cow/hog manure/other carbon bases and create a product very similar to sweet light crude.

From what I've heard, billions annually. The energy companies aren't going to left behind on any new (viable) alternative energy source.

Radar Chief
03-31-2008, 12:14 PM
Cost. IIRC, synthetic costs about four times as much as crude, although I'm sure that has narrowed.

Donít the majority of synthetics come from the castor bean?

Donger
03-31-2008, 12:22 PM
Donít the majority of synthetics come from the castor bean?

I don't think so, but I'm not sure. They do make some from feedstock and hydrogen, I think.

patteeu
03-31-2008, 12:45 PM
What would you do if you actually had the control over our government that paranoid Bush haters say you do?

tiptap
03-31-2008, 12:50 PM
Do you ascribed to Hubbert's peak oil production for the US, the world? Have or when will these points be seen? Has the internationalization of oil mean a reflection of the interest of the producer or the customer is optimized?

Easy 6
03-31-2008, 12:55 PM
How about, would you mind fukking off & dying???

If they find that option unpalatable, maybe i would ask them to set aside 25%??? of their yearly budgets...towards developing renewable energy technologies.

That way, they can monopolize 2!!! different sectors of our energy production...thereby remaining filthily, disgustingly rich.

Adept Havelock
03-31-2008, 12:58 PM
Donít the majority of synthetics come from the castor bean?

I remember reading about a process the Germans used back in WW2 to create oil out of coal, but I have no idea about its efficiency.

patteeu
03-31-2008, 01:12 PM
How about, would you mind fukking off & dying???

If they find that option unpalatable, maybe i would ask them to set aside 25%??? of their yearly budgets...towards developing renewable energy technologies.

That way, they can monopolize 2!!! different sectors of our energy production...thereby remaining filthily, disgustingly rich.

Did you know that Big Oil stock can be purchased by just about anyone? You can get a piece of the action if you're so bullish on the industry.

Deberg_1990
03-31-2008, 01:15 PM
How about, would you mind fukking off & dying???




So you want to ride your bike everywhere??

Easy 6
03-31-2008, 01:16 PM
Did you know that Big Oil stock can be purchased by just about anyone? You can get a piece of the action if you're so bullish on the industry.

If i thought they would use my $$$ the way i intended it to be used, i would.

As it is though, i have O faith, or trust, in their aims.

Easy 6
03-31-2008, 01:17 PM
So you want to ride your bike everywhere??

C'mon, i'm no genius...but dont turn me into an idiot.

RedDread
03-31-2008, 01:19 PM
I'd like to ask them if the elderly, dead, and dying could be turned into a viable source of future oil if they were properly embedded into the ground. This could save us money and a lot of land currently used for graveyards.

jiveturkey
03-31-2008, 01:33 PM
Can we have the tax break back?

BucEyedPea
03-31-2008, 01:39 PM
Did you know that Big Oil stock can be purchased by just about anyone? You can get a piece of the action if you're so bullish on the industry.

mama's oil well

patteeu
03-31-2008, 01:43 PM
mama's oil well

See scott free, BucEyedPea is on the gravy train. All aboard! :)

morphius
03-31-2008, 01:46 PM
How much influence and money are the oil companies dumping into the commodities market to drive up the price of oil, so that they can reap the gain on both sides?

Iowanian
03-31-2008, 02:36 PM
Tell them the govt is about to step in build refineries to offset their failures for the benefit of the American People. It makes fiscal sense for the American citizen, tax payer and business.

How do you like them apples?

Donger
03-31-2008, 02:40 PM
National retail average is now $3.29/gallon.

Donger
03-31-2008, 02:41 PM
Tell them the govt is about to step in build refineries to offset their failures for the benefit of the American People. It makes fiscal sense for the American citizen, tax payer and business.

How do you like them apples?

Their failures? How have they failed the American people?

Donger
03-31-2008, 02:42 PM
Do you ascribed to Hubbert's peak oil production for the US, the world? Have or when will these points be seen? Has the internationalization of oil mean a reflection of the interest of the producer or the customer is optimized?

No.

Pretty much every thing the oil companies do reflect their interest in the their shareholders.

Radar Chief
03-31-2008, 02:54 PM
I don't think so, but I'm not sure. They do make some from feedstock and hydrogen, I think.

Iím getting this second hand from an Amsoil dealer so take it with a grain of salt.
But he told me synthetics originated by using oil from the castor bean and is literally where Castrol got their name.
While trying to Google this, I couldnít find anything to verify it BTW, I did find an article on a subject Iíve asked about before, the origin of crude oil.
As Iím sure you know the Russians have had this theory for a while that crude doesnít really come from dead dinoís and ancient forests but is a mineral that is a natural byproduct from the earths molten core. This article is claiming to have found proof of that.

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59991

Radar Chief
03-31-2008, 02:59 PM
I remember reading about a process the Germans used back in WW2 to create oil out of coal, but I have no idea about its efficiency.

I believe thatís true and is a fall back process since we hold the worldís largest deposits of coal.

tiptap
03-31-2008, 03:39 PM
Iím getting this second hand from an Amsoil dealer so take it with a grain of salt.
But he told me synthetics originated by using oil from the castor bean and is literally where Castrol got their name.
While trying to Google this, I couldnít find anything to verify it BTW, I did find an article on a subject Iíve asked about before, the origin of crude oil.
As Iím sure you know the Russians have had this theory for a while that crude doesnít really come from dead dinoís and ancient forests but is a mineral that is a natural byproduct from the earths molten core. This article is claiming to have found proof of that.

http://www.worldnetdaily.com/news/article.asp?ARTICLE_ID=59991

I am not going to look up when it was exactly, but there have been several deep test wells about oil being a natural byproduct. None have come through. And here is the deal. A Petroleum Engineer would be looking for the structures that trap oil and Natural Gas. Otherwise the material would not be concentrated. So we should see the return of oil and gas to those already known underground structures on a time scale that would suggest that oil and natural gas could be eternal. No existing oil field is filling compared to the removal of the material.

tiptap
03-31-2008, 03:43 PM
I believe thatís true and is a fall back process since we hold the worldís largest deposits of coal.

Of course this is true. Indeed the Energy Department financed a pilot program during the 70's oil shortage. But it doesn't make sense to do so if you can burn the coal for electricity and run electric cars more efficiently. Use lignite coal.

tiptap
03-31-2008, 03:45 PM
No.

Pretty much every thing the oil companies do reflect their interest in the their shareholders.

So existing oil field decrease could be made up with new undiscovered fields within the US and its territories? (follow up questions)

Donger
03-31-2008, 03:48 PM
So existing oil field decrease could be made up with new undiscovered fields within the US and its territories? (follow up questions)

I don't believe that we are anywhere near maximum rate of production, no. Perhaps near the maximum rate of very economical production.

Chiefmanwillcatch
03-31-2008, 03:57 PM
The problem is that prices can go up to $500 dollars a gallon and people still would pay it.

a1na2
03-31-2008, 05:11 PM
I would ask why they feel that reinvestment in more refineries is not worthwhile. I work in the industry and at best they are maintaining the existing refineries. When a small refinery has a fire, one that supplies 1% of the gas for the nation, the price sky rockets.

If their profits were marginally ahead of the costs of refining I could understand their position but when an oil company makes billions over the "expected" profit and there is still no growth in refining capacity it seems as if they are all for raping us without a conscience.

Even a half-assed attempt to show some increase in capacity might help but there isn't even that.

Supply and demand. They have the supply and we have the demand, basically they have us by the balls. As long as we drive vehicles that don't get decent mileage they will continue to have us by the balls.

Makes you wonder how much influence the big oil companies have in snuffing out new technology that will curtail the need for gas?