Oil Companies Balk At Following Obama's Green Lead

New York Times:

The Obama administration wants to reduce oil consumption, increase renewable energy supplies and cut carbon dioxide emissions in the most ambitious transformation of energy policy in a generation.

But the world's oil giants are not convinced that it will work. Even as Washington goes into a frenzy over energy, many of the oil companies are staying on the sidelines, balking at investing in new technologies favored by the president, or even straying from commitments they had already made.

Read the whole story: New York Times

Comments

[PhilipTaylor]

$18 Billion Oil Subsidies and the Nation’s Energy Future

On Tuesday, Rep. Ed Markey, D-Mass., chairman of the House Select Committee on Energy Independence and Global Warming, held a well-publicized hearing with five of the nation’s top oil executives. The theme: Explain why the nation’s taxpayers should extend $18 billion in tax subsidies to an industry whose top five companies posted profits of $123 billion last year.
__________­__________­__________­__________­__________­_______

If demand for Oil and Gas falls then GUESS WHAT? Price goes DOWN!

Also, if we use conservation by switching from 12-20 MPG to 40-65 MPG demand goes down and GUESS WHAT? Gas and Oil Prices go DOWN!

Also, if we use alternative fuels and demand for Oil and Gas go DOWN then GUESS WHAT? Gas and Oil Prices go DOWN!

Anything that reduced DEMAND for any Product also Reduces PRICES!

So Cap&Trade will reduce Oil Demand and therefore Prices!

Of course, if you get lobby money from the Oil and Gas Industry I guess you DON'T want that!
Dick Armey,

[PhilipTaylor]

http://www.addisonindependent.com/node/1268

[Carolab]

New York, October 30, 2007 - JPMorgan announced today that it has hired 50 people for its global Commodities business this year, further expanding the investment bank's capabilities.

Blythe Masters, global head of Commodities at JPMorgan said: "We have an extremely talented, well-established team with aggressive, but attainable, long-term growth plans. Our ability to advise, structure and execute for clients across the globe is second to none and it's why we are attracting some of the best people in the industry."

JPMorgan's Commodities business is focusing specifically on the build-out of five major businesses: power and gas trading; oil and distillates trading; carbon and environmental products; energy sales and marketing; and commodity-linked structured products.

http://www.jpmorgan.com/news/jpmorgan/investbk/news/globalcommodities

By the way Tony Blair is now working for JP Morgan as a senior advisor to Jamie Dimon.

[Carolab]

The more things change the more they stay the same. Not only was JP Morgan the prime cause for the crashes in 1907 and 1929 and the chief reason why the Fed was created (Morgan was the U.S. agent for the Rothschilds), JP Morgan got into oil in 1902.

http://query.nytimes.com/mem/archive-free/pdf?_r=1&res=9F05EEDE143BE733A2575BC2A96F9C946397D6CF

Oil gains as traders cheered by jobs data, J.P. Morgan
April 16, 2009

NEW YORK (MarketWatch) -- Oil futures moved higher Thursday as traders drew some optimism from fresh U.S. jobs data and better-tha­n-expected earnings from J.P. Morgan Chase.

"Crude is following stocks again," said Phil Flynn, vice president at Alaron Trading. "This market is more choppy than chopped salad. It is so indecisive."

http://www.marketwatch.com/News/Story/Story.aspx?column=Futures+Movers

[TxAggie]

Phillip-Thank you for the link to the article but what is your point? Are you against (1)deduction of IDC's which has been in effect since 1913, (2) the % depletion allowance which has been in effect since 1926, is limited to domestic production, ind., producers and is not available to Big Oil, (3) G&G Amortization which is 7 year write off, (4) Marginal well tax credit which supports the most fragile production, (5) the enchanced oil recovery tax credit which aids secondary and tertiary techniques to get the last bit of production from a field, (6) the manufacutirng tax credit enacted in 2004 by Congress to create jobs-the oil ind. is limited to a 6% deduction while other industires get 9% and there are others which I can't cover in this space. These tax treatments encourace DOMESTIC production which we need more than ever, create jobs, provide tax and royalty revenues for states, the nation and private mineral owners. It also decreases imported oil and halps grow our economy. Which of these do you not like?

[JnrNorman]

USE 25% LESS GASOLINE;
Halo Spark plugs $10 each
Pulstar plugs $25 each
FITCH FUEL CATALYZER $200
Turbinator $40
20% more tourque
70% less NOX

[TrooAmerican]

All while Heavily increasing the amount of they stole from us, being used to Advertise their "Green-ness" back to us, to fool the gullible.
Those who are gullible enough to believe the Oil and Energy companies are no less gullible than those who were fooled into fraudulent mortgages by lying agents of lending companies.

[TJCole]

Until America Nationalizes all Major Energy, it will not move forward and enter the 21st Century...

Imagine the economic boom we would create by cutting costs by 30-33% and then sending $50-60 billion or more to alternate energies, renewable energy, new technologies, infrastructure...

We are still operating under a 19th century model...it's ridiculous our own corporations are bleeding us dry for such a nationally essential asset...and on top of that it is subject to huge price swings at any time not even based upon supply demand but speculators gouging prices crippling our industires and economy..!

[TxAggie]

So you know how to save 30 -33% by cutting costs (of what?), amazing, where have you been? what is your expertise and why haven't you stepped up to the plate before now, whoops, sorry rhetorical question.

[super]

Exxon is tomorrow's GM. This is exactly the strategy Detroit had been following until very recently.

[TxAggie]

Exxon is one of the best run and most profitable companies in the world, there is zero correlation to GM.

[PackyJ]

Well.
THAT'S a shocker.

[rf-hawaii]

We're surprised the oil companies have been lying ... again?

[UtahLiberal435]

Since the oil companies won't invest ANY significant funds in alternative energy research, the U.S. Government should fund and produce that research. Then the processes should be patented.

And when the oil companies all stroll up to receive the unearned benefits to their lack of research, they should be charged up the wazoo for access to those patented technologies (i.e. far more than the research would have cost them.)

Gotta luv overfed business execs. They're always the same: Banks, automakers, newspapers, the music industry, now oil companies....again.

Maybe we can bury them all alive, then dig them up in 150 million years for the oil?

[TxAggie]

And what are YOU investing in alternative energy research?

[stondem]

If anyone on this blog can produce an alternative energy source at a reasonable competitive price, DO IT! Oh yea, it can't be done! This is getting so boring..... I grew up with an old saying..... "spit in one hand, and wish in another, see which one fills up faster"? Oil will be here for a LONG time, until a breakthrough in energy production is reached! IT WILL NOT BE REACHED BY FORCING ENERGY COMPANIES TO PRODUCE ENERGY AT A COMPETITIVE DISADVANTAGE. Once this new energy breakthrough is reached, who do you think will be there to market it? The evil energy companies! The technology just isn't there yet guys!

[Sepulchre]

We have the ability to reach it, but it won't be reached as long as oil companies keep shelling out huge amounts of cash to politicians to keep it from happening. The would rather watch the world burn as long as they are making money, instead of help it turn the corner.

[BUTCHER111]

It’s funny how they don’t balk when they got their hands out for taxpayers money.

[cyoohoos]

This falls under ... "no s^^%$&t Sherlock"

[RandyMan7027]

Like most drivers I've been programmed to think I should change my cars oil every 3,000 miles. I recently read my owners manual (you know, the thing written by the mechanical engineers who designed my motor) whic says "change your oil every 5,000 miles."

So how many millions of other drivers are similarly brainwashed into discarding 40% of the usable life of their oil? Google "3000 mile oil change myth":

"It’s been a misconception for years that engine oil should be changed every 3,000 miles, even though most auto manufacturers now recommend oil changes at 5,000, 7,000, or even 10,000 mile intervals under normal driving conditions." And...

"Only about 60 percent is recycled. Used motor oil poses the greatest environmental risk of all automotive fluids because it is insoluble, persistent, and contains heavy metal and toxic chemicals. One gallon of used oil can foul the taste of one million gallons of water."

Another big oil conspiracy!!!

"The long handed down concept of the 3,000 miles oil change was the brain child of Jiffy Lube and propagated by oil industry officials."

So nearly 75% of drivers are changing their oil sooner than necessary. We live on a planet that is heating up at an alarming rate. We also live in a world where we invade countries and prop up others for the sake of cheap, plentiful oil ---- only to waste billions of barrels for no reason than corporate greed. I think this is an abomination.

[conniec]

Excellent point.

[econ1]

Well, like many things, it depends. If you do mainly highway driving, with a fully warmed up engine and use a synthetic oil then 10,000 miles is likely to be fine. If you do short, stop and go trips to the office or store and the engine barely warms up, then 3000 is a much better bet.

The owners manual was written by the car manufacturer who would love to sell you a new car when yours hits 150,000 miles rather than 250,000. Think of the "lifetime lubrication" of suspension points....lifetime to them is 100,000 miles, where if you had a lubrication capability it could last twice that.

We have a "disposable bent" that it would be wise to change. It takes a lot of energy to build a car. An extra 40 oil changes over 200,000 miles (200 quarts of oil) would seem ecological.

I change my Chrysler Mini-van's oil every 3000 with dino oil (it gets lots of short hops). I change the BMW 633's oil once a year (maybe 4000 miles) with synthetic. I always recycle.

[RRoadrunner]

This article is a good example of why the oil companies should be prohibited by law (use an anti-trust law or create one) from being in the green or alternate energy business. They will drag this out until their lobbyist can buy off enough politicians to stop the entire alternative fuel implementation.

[Kungfublood]

Oil companies have but one commitment and if you think it involves helping any one or any thing other than themselves in the most shortsighted and craven terms, Ha ha ha ha

[LDnearthesea]

And they could care less if people get lung cancer or asthma or the air is polluted from their greed for corporate profits.

[Cambridge9]

Is it any wonder these Big Oil companies don't want to produce anything other than oil. They've made outrageous profits over the last few years which they would lose. Besides, think of things in our daily lives that rely on an OIL base - from which they obviously also make profit).

We would need new technology to produce things like plastics, chewing gum, linoleum, dish detergent, petroleum jelly, parachutes, medicines, water pipes, artificial turf and wax paper, just to list a few of the things used in our daily lives that we would have to do without. Yes, these new technologies can be done - in time, but how many of the companies which produce these items would be happy having to spend money on R & D?

I look forward to the day when plastics (which also pollute our world) can e replaced with alternatives.

[TxAggie]

"Outrageous profits" . Easy buzz words. Hard earned profits is closer to the truth. Do you consider the difficulty and risk involved in finding, producing, refining and marketing our products?

Just what return on investment % is outrageous?

[Cambridge9]

When supply was at par, but demand was down, prices went up above $4.. And during the last quarter of 2008 the oil companies made the biggest profit of any company, anywhere, anytime - ever. Do you really think that making $48 billion profit in three months is OK? There is a correlation to supply vs. profit under these circumstances.