And what happens after SPR is depleted? I never knew in today's age with all the wealth of information out there that we produce such idiots in society.
And what happens after SPR is depleted? I never knew in today's age with all the wealth of information out there that we produce such idiots in society.
Queasy
Moderator<br>Console Gaming
- Aug 24, 2001
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Which would only be good for a couple of months and solves none of the problems that price controls create.
Better solution - open up ANWR and the coasts of Florida and California to drilling to increase the supply and lower prices on a more permanent basis. Cuba has already given China drilling rights 50 miles off the coast of Florida why shouldn't we? We won't even allow drilling for natural gas off the coast of Florida.
Let's say you are a board member of XYZ Oil Company and the US has just cut you off for 2 months and cost you billions of dollars. Would you want to wait it out and see if they come crawling back or would you rather take 10% GP instead of the 20% that you were robbing them for?
As for the insult....maybe you should be a little less quick on the draw with them and actually use some critical thinking skills to realize that the greed of the business man is only controlled by one thing, the greed of other business men with whose money he is messing with. If you did that, you might not sound like a societal idiot yourself.
How DARE they make a profit. Don't you think somebody should limit that so they don't steal all this money from poor consumers?
- Jul 19, 2001
- 38,572
- 2
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Workers Comp insurance companies in FL are limited to a certain percentage of profit. If they make too much, they have to give it back to their clients... I've never heard of this occurring in any other area, but it's not unheard of.
First of all they are already on 10% profit margin. Secondly, if I were the board of XYZ Oil co, I would wait until SPR is depleted and then jack up my prices to recoup my temporary loss.
You are obviously the one that lacks critical thinking skills.
Do you think that OPEC is going to put all oil sales to the US government on permanent hiatus? They will continue to sell to the US and the reserves will continually be replenished. As it stand currently, we only have two months' supply. That can be extended and the losses will too.
We are not on the same page. You still didn't understand what I was trying to say, but I will leave it at that.
Also, before you start getting all pissed off that people with different POVs than you have a right to vote and insult them you might want to consider that there are a lot of people (like myself) that discuss these things on the net in hopes of learning more about the topic so that they don't run off and make shitty voting decisions. I claimed that I wasn't an expert. I told you that all I was showing was an idea with a theory. Did I claim it would work for certain? Of course not. Did I say that there is no other better way? No.
Next time, if you want to influence people to vote and make decisions which you approve of you might want to try to be less insulting and more informative. Stop typing with your middle fingers.
In the end, I still believe that there is a better way to regulate this system without resulting in the problems you suggest. I don't know all of the details on how to do it, but I am convinced it can be done and the only people who would lose out on it would be those Americans who benefit the most from the current profit margins.
The US government can't unload SPR at a loss to perpetuity. What are we even talking about? You have a complete ignorance of the world markets. I don't even know why i'm "debating" about nothing with you.
Specop 007
Diamond Member
- Jan 31, 2005
- 9,454
- 0
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The post you quoted wasnt directed at you per se, but as a general whole.
The problem is far too many have an opinion and DONT want to research it, but just assume they are right and deny any logic of facts given to them.
For what its worth, I dont really care. I'm prepared for the eventuality some group votes in some politician who decides to piss off the oil companies and we have shortages. While I'm sure others will be mad as all hell, I will actually get some level of amusement from it.
The US can unload SPR at a loss short term and they wouldn't have to do it perpetually. They would have to do it long enough (my guess would be 1Q) until the oil companies would cave.
Once the earnings statement reflected the loss and the stock takes a huge hit (see example of financials for proof), the board/mgmt would be forced to act to stop the bleeding or face even more of a downward spiral.
I'll wait for your worldly rebuttal to tell me that I am wrong.
We are definitely seeing eye to eye on this subject. Screw those people. I wish they would take a little time to research things they vote on or just choose not to vote on the matters which they are not familiar with. I accepted that will never happen a long time ago though. I used to drive myself nuts being angry about it only to realize that it was pointless stress.
Specop 007
Diamond Member
- Jan 31, 2005
- 9,454
- 0
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What part of "global commodity" are you not understanding? While America does represent the largest purchaser of oil, they are certainly not alone in purchasing it. And really, all OPEC has to do is turn down the spigot a bit and guess what?
Same ole price, no oil for America.
I never even hinted that they would go bankrupt or would post zero profits. What you and JS80 aren't grasping is even a global market competitor cannot loose their biggest customer for very long and still expect to not have heads roll. Anyone suggesting the "Just wait them out" plan would be the ones on the out.
The financial strain of a single quarter's loss of US revenue wouldn't put them on life support....but it sure as shit would put them on crutches once the earnings statement was released and their stock took a nosedive.
The shareholders would bail quicker than a supermodel at an ATOT meetup.
Look at a current day case in point: Venezuela. Their democratically elected dictator is enacting price controls on certain commodity items and guess what? There are massive shortages. You can't manipulate the market.
Specop 007
Diamond Member
- Jan 31, 2005
- 9,454
- 0
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Whatpart of "reduce production" is confusing. Big Oil can pump 1 barrel of 100 beelion barrels of oil a day if they want to. I'd bet a paycheck that Big Oil wouldnt keep production levels where they were if the US stopped buying.
The world has shown it can absorb $100 barrel oil. Why overproduce and cut your profits when your demand shrinks??
Are you serious?
The markets are being manipulated on a daily basis. What do you think that whole futures market is?
The biggest players are constantly manipulating the market to either take advantage of a short or long position. Hell, here's Kramer telling you how he manipulated markets.
When the government is trying to bolster the economy....they cut rates. When they want to slow it down...they raise rates.
If things are going in a way they don't want, a news release comes out that pushes public sentiment one direction or another. The news media then follows with story after story.
Hell, even constant advertising/marketing is a tool to manipulate.
Maybe you should read up on market makers a little.
Specop 007
Diamond Member
- Jan 31, 2005
- 9,454
- 0
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