IIRC, the primary Mexican oil company is nationalized. I don't think they would like an American-based oil company on their turf. Besides, we already import something like 15% of our supply from Mexico.

Now, if something like this plan is executed...

"Saudi Arabia says it has foiled a plot by militants to carry out suicide air attacks on oil installations and military bases."

In a nutshell, it entails the supposition that at some point, the worlds total barrels per day production would peak at a certain level as a planetary maximum output.

At the same time, the demand for oil would continue to grow thereby causing prices to skyrocket to obscenely astronomical prices like 9 dollars per gallon for gas, and 200 dollars per barrel of crude.

Thoughts?

I say, drill for oil in Alaska, drill it deep, just in case the "oil regenerates itself" people are correct.

Peaks at a certain level because of lack of supply (geologically-speaking) or because of not enough E&P? I'd agree with the latter, not the former. Oil wasn't created overnight and then stopped. I believe there's more out there, a LOT more. Harder to find and harder to reach, but it's there.

We should also increase the fuel efficiency of our automobile fleet to delay the demand side of this theory from exacting its toll on prices.

You really notice how stupid people drive when you are driving a loaded truck that takes time to speed up and lots of breaking distance.

Running up to a red light, fools will blare by you at 65 mph because the red light is "way in front" of them, then they have to light up their brakes and get down to near zero, and it finally turns green. Then they are packed in a line of cars, and I catch back up to them while cruising at 50 mph the whole time. Did I mention that I didn't have to light up the brakes. Dummies, every time you push the brake pedal you are burning up your brakes, the less you use them, the longer they last. That is just an added bonus to not driving aggressively.

I'll bet they could do it if they wished to. There are lots of American factories down there.

I'm hopeful that people will change their driving habits. Smart driving can decrease fuel consumption considerably.

I honestly don't know.

I can partially understand what you said but what kills any credibility regarding that is the fact regarding the excessive, or obscene, profits they have seen over the past year. With the profits margin over the expected profits they can pay for a new refinery with the money they made from that one quarter. $39 B is one hefty excessive profit. Granted the upper management probably got $15 B to share. ;)

Could they? Sure. Will they? Probably not.

Here's a good explanation: http://www.gasandoil.com/goc/news/ntn12966.htm

I totally understand the issues, it's just that if they really wanted to build they could and they would be immediately profitable and the ROI would be not tens of years but a few years based on the current rate of profit acceleration maybe as few as 5 years.

Right, so it's a 5-10 year ROI. That's not acceptable to them. Throw in the other issues, and it's a no-brainer.

I understand that they won't do it, what I don't understand is the fact they want to figure in an ROI when the new operation would be paid for before it's built. The profit margin has been excessive, they are upgrading existing refineries, that's what keeps me working. I program equipment for the abatement of toxins they create. The millions they are spending to upgrade refineries doesn't even come close to the amount of money they have taken from all of the consumers.

I do know that if my company made the profits these guys made we would benefit from the profit sharing. Even at a 0.1% distribution I could retire!

Actually, their profit margin is comparable to other industries. In some cases, considerably less.

How the f(*& do you know...Do you work in the industry or just have to much time on your hands? Oh wait...how many posts do you have?

Seriously...

The way you write one would think everyone is on the same playing field and it is what it is...

I hate to tell you but your dead wrong...

The price of fuel will tip the scale...EVERYTHING will be affected. Construction, food, shipping...It's not just about me car pooling with the neighbor or using my scooter.