Total investment plans of 50 leading oil and gas companies

The problem is that this industry is OVERregaluate around the world, Not the other way around. The level of regulations around those nationalize oil companies is what create this level of production/price inefficiencies since the late 60s' in the first place.

You have to be naive or extremely stupid to think that a nationalize oil industry is the best for this country. Ask Chavez if he want cheap oil. What makes you think that a Nationalize oil industry in the US will not look to profit big time?

Did you know that 90% of oil companies are nationalize? Did you Know what happen in russia after putin Oil companies takeovers?

Do you know how the international Oil trading market works?? Did you know about the corruption levels on those nationalize oil companies around the world? What about The freight market, you have any idea of the importance of that in this industry? Political problems around the world? the operating cost every time the gas goes up???

The Government tried that (price control) back in the 70's and it was a total disaster for the country and Every nationalize Oil companies around the world has become a joke over the past 50 years, look what happen to PDVSA after they became nationalize back in the 60's.

let’s look at the financial consequences. Let’s say that the taxpayers would pay market prices for the top oil companies and pay off their debts - for XOM, CVX, and COP - that would be about $900 billion to $1 trillion to nationalize. If this means that oil prices and those pesky “excessive windfall profits” would decline, then the US taxpayer would be overpaying for assets and cash flows at their peak for an industry that the socialists want to put entirely out of business.

the US oil industry is just a part of the global energy industry. That means we’d have to renege on commitments to foreign companies who have drilling rights in US territory or compensate them for taking those as well. Please remember that much of the “obscene windfall profits” of the 5 oil companies interrogated by Congress came from outside the US. So does much of the exploration and production of those companies. If their businesses were nationalized, the new US national oil company would be restricted to current US production and revenues and we’d have to get rid of the non-US operations just as we would have to kick out the non-US companies operating here. As a result, we would almost certainly end up in a serious shortage situation.

In the end, the US dollar - it would be worth less than worthless. Oh and never mind the inflation that would result. Yep inflation - sadly making gas is not free and even if you price it at nationalized prices - we will have shortages and inflation in other products. Just check examples like Venezuela. I know socialist dream worlds suggest that there are no negative consequences for nationalizing industries.

Oil price is set on a global market, and while a company can influence pricing, BP, Shell, Exxon compete heavily. Refiners certainly aren’t raking in any profit, and nobody is talking about the fallout in the industry just a few years ago. Where were the tax breaks then?

If the socialist US government would run the oil industry, where would they allow themselves to drill? Do they know precisely where the oil lies? If so, would they just tell us now? If there is no way to drill in an environmentally responsible manner in ANWR or the continental shelf or Florida or wherever else, then what would the socialists do to increase supply? Do Rep. Waters and the other socialists know how to explore, drill, transport, refine, and distribute oil in a sterile manner? If so, could they save the planet and just tell us now? Finally, by what mechanism do they plan to do all the work of the industry without having to raise taxes to pay for it, with or without 10% profit margins they call “obscene” and “excessive”?

Oil companies pay Tons of taxes, Exxon along paid over 128 Billion in taxes around the world, 30-40 Billions in the US alone.

On the Other hand You can buy oil companies stocks, with a nationzalize company you buy inefficiency.

If you buy Oil from PDVSA right now, You can get a basis of -$30 dollar below the NYmex spot price, Then, they'll charge the trader with a 50% ilegal commision on that profit, So If the International spot price of Brent Blend Crude is quoting at $63, Venezuela sell you the tia juana oil at $33, You as a trader makes a $30 dollar profit per barrel, then You pay $15 dollar to venezuela oil ministers on "commisions".

That's One the most corrupt scheme in the industry, and Who cares about that in venezuela?

 

I just called a friend of mine who works for a Physical Oil trading company, He just told me that PDVSA was quoting 2 month ago a -$26 dollar per barrel basis below the ICE Brent and at the same Time, Glencore was quoting the same crude oil from venezuela at -$37 dollar per barrel basis.

How In the hell this can happen? Only in a State-Owned company.

 

In 2500 years of recorded history wage and /or price controls have not worked a single time.... I can't think if a time when nationalization has worked either... I'm not saying you have really bad ideas, but I'm just saying...

 

I suppose it's largely the wars that drove up oil. The energy sector always has it's day at a certain point in the business cycle but this time they really outdid themselves... a lot of the taxes were there before W btw. Regulating the states is unconstitutional really and if they lose tax revenue they will have to get it from the Fed, so what you are essentially saying is that you want more centralized control of the economy. I can't think of a good example where that has worked, ever...

 

Right...I'm clueles...Just nationalize the shit out of the oil companies and keep oil prices lower than all hell. Great idea, problem solved...

 

I don't want lower taxes, and hence greater indirect taxation through inflation, I want less spending!

 

Do you want to know why your electricity bills are at reasonable levels? How about your water bills? Your land line phones? It's because they are price controlled by your state Public
Utility Commission. If they weren't the corps would be gauging those costs for you as well. Think before you type jackasses. You're nothing but a bunch of dinosaurs living in the past.

 

You'r wrong again.

Let's take NY state for example.
Before the state deregulated electricity in 1999 and forced Con Ed to sell its generators, its prices were controlled by the state Public Service Commission.

Now only the delivery charges are controlled by the state. The cost of electricity itself depends on Con Ed's deals with generating companies and auctions held by the Independent System Operator.

Con Ed was required to sell most of its power plants and customers were permitted to buy their electricity from private, unregulated companies instead of being forced to buy it from Con Ed. No matter which company supplies the electricity, however, Con Ed continues to deliver it through its wires. Eighteen companies now offer electricity to Con Ed customers, but only nine of them will accept residential customers. Most utilities are private companies, owned by their shareholders.

Do not be confused by the term "public" in the commission's title.
The term refers to the fact that the utilities which the commission regulates, even though private, must offer service to the general public. Typical privately owned public utilities are the local telephone, gas, and electric companies. Some water companies are also privately owned and publicly regulated.

Price regulation is a game governments play in order to appear protective of voters who also happen to be consumers. Government just thinks it knows a commodity's right price.

In fact, only the marketplace knows, through the experience of buyers' collective choices.

Charge too much and buyers flee. Charge too little and demand explodes, and companies quickly realize they are leaving profits on the table. When the market sets the price and supply meets demand. For example, The Texas Legislature's decision to get rid of regulated power prices and encourage competition among suppliers of power was utterly sound.

The thing is that deregulation isn't about low prices; it's about accurate prices - prices that reflect the realities of supply and demand.

Sometimes deregulation leads to higher prices for some and lower prices for others. That's because a price-controlled system always undercharges - and, hence, subsidizes - some groups and overcharges others. Or the price controls are set so low that no one benefits and rationing and shortages ensue.

Now, it's true that deregulation, when there is strong competition, often leads to lower prices, especially in the long run. But more importantly, it leads to adequate supply.

BTW: You can freely trade electricity futures at the Nymex/ICE.

 

That is not what happened last year. The entire " the world is running out of oil !!!" fiasco was cause by paper trading. Not once did you go to a station and they were out of fuel, like in the 70's.

Look at things now. They have actually had to throttle things back to help stop the glut. There is plenty of oil NOW ! They are only trying to keep the stranglehold of high prices on the average Joe. And I don't mean that Werzlebocker guy or however you spell his name.

Right now with unemployment at close to record levels and tankers which are full and parked off shore with oil.

What happened to Caribou Barbie and the "Drill Drill Drill" BS that was going around last year???? They only wanted to "Drill Drill Drill" the average hard working taxpayer in the rectum with outrageous costs to go to work and help pay taxes.

Anyone who does not think that $5.00 and upwards for a gallon of gasoline is not one hell of a "tax burden" should stand back and be observant.

I hope for the day when alternative sources are reasonable and a choke hold is placed on carbon fuels.

 

Sadly, I think you actually believe this.