A lot of the oil they import is from their own foreign operations in Canada, various African countries, Malaysia, and other Asian countries, etc. However, the time for this is running out as more and more countries either jack up the royalties they extract or nationalize their whole operation. Venezuela, Ecuador, and Bolivia are good examples.
The big US and European oil companies are running out of new areas to explore and develop new supplies.
Exxon also pumps a lot of its own oil. Those that only refine oil aren’t doing nearly as well.
If you really want better control and government oversight of fuel pricing and speculation Google H.R. 4066, the Close the Enron Loophole Act.
This is a bill presently being sponsored by Peter Welch and co-sponsored by Christopher Shays : http://www.govtrack.us/congress/bill.xpd?bill=h110-4066
H.R. 4066 would close the so-called “Enron loophole” and require government oversight of the trading of energy commodities by large traders to prevent price manipulation and excessive speculation. The bottom line is the Trading Facilities (ETFs) should comply to the same standards as other futures exchanges regulated by the Commodity Futures Trading Commission (CFTC).
If you really want some action on fuel price speculation, directing your support at that bill would have a positive effect. There is a lobbying website, I’ll see if I can find the URI.
Exxon also pumps a lot of its own oil. Those that only refine oil aren’t doing nearly as well.
According to Exxons annual report I got last year…Exxon only pumps 15% of their own oil. That means they buy 85% of the rest of their oil.
What do I do if I want less “government oversight”?
So in your mind, people have only themselves to blame if they live more than 20 cycleable miles from their workplace ?
When did I say that? Scudder, I suppose if you put words in my mouth, it could come out as drivel.
I believe that city governments have done a disservice in many cities by not establishing good public transportation. If you chose a house in a suburb that is 60 miles away from your workplace and you commute alone in a Chevy Suburban or a full size pick-up truck, I have a hard time sympathizing with your plight. If the leaders in your area didn’t have the foresight to plan for high fuel prices and implement quality mass transit, it might be time to elect some leaders with vision.
So the answer to your question is no, not everyone has themselves to blame, but some do. They could have demanded quality mass transit in time to have it running well BEFORE fuel got so expensive. Look at places like Dallas, Texas, for example. Fuel is relatively cheap in Texas and Dallas isn’t a liberal tree-hugging town, yet they had the foresight to build light rail mass transit more than a decade ago. In Dallas you can live 60 miles from your workplace and commute at a park-and-ride station. Dallas’ light rail mass transit serves all of its suburbs. If Dallas can do it, any city can do it. It just takes the will of the people and enlightened leadership.
In response to VDCdriver and MikeInNH, growing up in Western New York state, I often rode a mountain bike to school in the snow and ice, uphill both ways. If you dress for it, it isn’t so bad. You can always use the car on rainy days when necessary. Also, if you bought your house 15 years ago, I suppose you had no way of knowing your local government would let you down, but in a democracy, whose fault is that?
What do I do if I want less “government oversight”?
Then don’t complain when gas prices reach $10/gal by next year.
He has a point. Riding a bicycle in sub zero temperatures isn’t that different from riding a motorcycle in 30 degree weather when you consider the wind chill factor. I have riden a motorcycle in temperatures less than 30 degrees, and if you are wearing the proper apparel, it isn’t bad at all. It isn’t that different from riding a snow mobile. I would expect anyone who lives above the Mason-Dixon line to know that.
I’m not complaining, something needs to happen to reduce consumption. I would prefer higher prices to any type of government mandates. It will probably take closer to 5 years to reach $10/gallon.
Also, if you do have municipal utilities where you live, your city government can raise utility rates instead of raising taxes. It becomes a venue for hidden taxes.
I have no problem with Government mandates for COMPANIES. I do have a problem with Company Mandates for consumers. Which seems to be the alternative.
No US government agency can control or regulate the international price of oil. Profit margins fluctuate from year to year in refining and marketing.
Even OPEC members say they essentially cannot set a price.
Years ago we had a “posted price” that OPEC set. Sort of like a “manufacturer’s suggested list price”. Various members would sell oil at a dicsount from this posted price.
As long as we have an unstoppable growing demand and a supply that, while adequate now, shows no sign of increasing very fast (no matter how much exploration), we have a pricing mechanism that now pays $132 for July 2008 oil. The same mechanism works for natural gas, coal, uranium, potash, and other commodities.
Congress is having hearings this very moment about oil prices; four US oil presidents are testifying that they do not set the prices, and compete with each other at the retail end. No congressman has mentioned Americans drive too large and thirsty cars, and if we all shifted to smaller cars, we would need to import very little oil.
Like many times before, they will find no US villain, lots of foreign speculators, and the overall laws of supply and demand working as they should. And nobody is cooking his books, Enron-style!
Converting oil companies to public utilities by government fiat, Venezuela, won’t do a thing for crude supply. Currently, Canada, Saudi Arabia, Mexico, Nigera and Venuzuela are, in order, top suppliers and are 2/3 of crude requirements. Recall, you were solidly for no drilling USA or offshore for any reason any time. We are buyers not in control of the world petroleum market. USA previously enthusiastic buyers of gas hogs when gasoline was $2.50 per gallon now in the hurt locker at $4.00 and rising. Then comes Dog and Pony Shows in Congress with the oil companies. Designed to give the Fools reason to vote for “energy” independence based on Photovoltaic and Wind. Cars, SUV’s and PU’s USA 2007 consumed 136,000,000,000 gallons of gasoline 2007. You need to be an MIT grad to get the picture? America - Land of Fools.
You didn’t say, you implied.
Read your own post with a slightly broader vision. Regardless of what you mean’t your post looks like something published by some pompous theorocrat.
Apologies if I was mistaken, but it appears I’m not alone.
It is time for petro to put in punlic domain. We are being taken for a ride by companies who “claim” the right to drill in ANWR is cramping their style just to shift the blame to public policy instead of their own greed and energy domination which is why they hoard thier profits to buy out alternative energy sources.
They have had the right for years to drill in nearby “National Petroleum Reserve-Alaska” which has millions of acres of land and contains over 9 billion barrells of researve…much more than in ANWR. They have not drilled one well in this oil rich area.
Holding vast quantities of oil gives them more leverage on the world oil market.
The reluctance of congress to issue a pass to the oil companies has more to do with “politics” played by oil corp. supporters than the actual truth. They want to add ANWR TO THESE RESEARVES. We’ll not see the oil in the US. When they do drill, it will go into the world market add we will be no more independent then they deside…the govt. is you and me.
MORE oil is available off the coast of Florida as well that is restricted.
Thanks Roger for stating so eloquently that, energy-wise, Americans are living way beyond their means. With still the cheapest gas in the developed world, and 60% of fuel based on imports (over $350 billion/year), Americans are still being told by politicans that they can have their cake and eat it too. Some politicians actually believe that if the Saudis would only ship more oil, the prices will go down. Dream along!
four US oil presidents are testifying that they do not set the prices, and compete with each other at the retail end.
And four US oil presidents have all LIED. They don’t set the price for oil they buy…but they sure do set the price for the gas they sell. They all testified that they didn’t know what their annual salary was too. Which then one congressman said “Must be nice to make so much that you don’t know how much you made.” It reminds me of the congressional hearings when they had the Tobacco CEO’s before congress…where they all swore under oath that they believed that Smoking was NOT bad for you.
Like many times before, they will find no US villain, lots of foreign speculators, and the overall laws of supply and demand working as they should. And nobody is cooking his books, Enron-style!
That doesn’t mean the public isn’t getting screwed. If oil was a FREE market (which it clearly is NOT) then the supply and demand could work. But because it’s NOT a FREE MARKET…we the consumers are at the whim of big oil. They are showing the world who’s in CONTROL. It’s akin to the UAW going on strike and shutting down the Big Three…showing everyone who’s in CONTROL. Big oil has a stranglehold on the US (the world for that matter) economy. They are proving that. And as consumers…there is almost NOTHING we can do about it. I HAVE to buy gas for my vehicles…and oil for my furnace from them. The market is closed and there is NO COMPETITION. They no longer compete against each other. There’s no need to. They’ve sliced the country up to their own regions. Prices are set and profits are the highest in the world (Exxon - 33B the first quarter of 2008, they are expected to reach 100b in PROFIT by the end of the year…the first company in the WORLD to ever do that…and total sales are DROPPING).
They have had the right for years to drill in nearby “National Petroleum Reserve-Alaska” which has millions of acres of land and contains over 9 billion barrells of researve…much more than in ANWR. They have not drilled one well in this oil rich area.
Holding vast quantities of oil gives them more leverage on the world oil market.
As long as PROFITS are SOARING there is NO incentive to do any drilling.
As for the refineries…It’s the OIL companies who do NOT want to build new refineries. They also do NOT want to spend one dime in UPDATING their existing refineries. They are now making $10m in profit PER DAY at their oil refineries. Shut down ONE refinery for a couple months to update and they could potentially loose a few hundred million in profit. The shareholders won’t allow that.
I agree, the oil companies primary responsibility is to their shareholders, as it should be. The are going to take whatever action maximizes their return on investment, just like every other company.
The fact remains that U.S. energy prices are much too low and consumption is much too high. It is unlikely that the government will take action to increase the prices (as they probably should), but they certainly shouldn’t take any actions to reduce prices. Maybe we will see an impact on consumption if/when the gasoline/diesel prices reach $5-6/gallon, but I’m afraid the speculation “bubble” will burst before prices reach a reasonable level. I think we will need a decade of high prices to reduce consumption and encourage investment in production capacity. The trick is doing it without driving up inflation (and wages) and further devaluing the dollar. In an ideal world, ten years from now energy prices will be 50% higher, consumption will be down 20-30%, domestic production will be up 10-20%, energy imports will be down 50%, and the dollar will be starting to recover (I’m not holding my breath, it’s more likely the government will interfere with their usual efficiency and energy imports will be increased).
The fact remains that U.S. energy prices are much too low and consumption is much too high. It is unlikely that the government will take action to increase the prices (as they probably should), but they certainly shouldn’t take any actions to reduce prices.
This is where I disagree. I may agree with you that prices are too low…but the problem is this sudden increase. This is very very hard lower income people. In fact it’s DEVASTATING. Their margins are far far less and when you drastically increasing what they spend on gas and heating oil…it becomes a MAJOR problem.
And I’ll agree that the oil companies are out to make as much profit as they possibly can. But that doesn’t make it MORAL…In fact what they are doing to the hard working people in this country and others…is A-MORAL. They are no better then the scum who run these scams on the elderly milking them out of every penny they own…the only difference is…it’s perfectly legal…And considered good business.