The KGB Oracle Forums General Public Discussion (PUBLIC) The Pub Who is your choice for US President?

Wow i didn't know that 5050. Yea for us we live far enough out of town but there isn't anywhere that we'd drive where the speed limit is below 40.

On a side note, ethanol is not a very good answer. It takes more ethanol, energy wise, than gas to travel the same distance so you end up burning more ethanol than gas to go the same distance... doesn't make much sense. Then there is the grain issue for feedyards, bread etc.... Ethanol is at best political fodder....

A pleasure to help Elph!

Not sure what you mean Elph. Farmers farm the same way they do for feed corn or the bio fuel. And yes I know this for a fact. The only difference is the type of corn they grow, which is better for the end product one way or the other.

Also corn fuel takes more energy to make then it will give,I risk my life saying this where I live, and will in the end be given up. The farmers love it due to the fact that corn prices have gone up. They havent seen a increase in decades till biofuel hit.

Now here's a thought:

Company X makes a profit from selling Gasoline. As all good
companies do, they like to see their profit lines either
maintain a steady level or increase. ( Shareholders usually
demand the latter over the former )

Now, with that in mind, what do you think will happen if
magically we started using 50% less gasoline tomorrow ?
The magic car fairy works overtime one night and replaces
everyones vehicle with one that gets double the gas mileage.

Since we just cut our consumption in half, all of a sudden
Company X is now selling half the gasoline it used to. The
profits also cut in half much to the dismay of the
shareholders.

What's the fix ?

Why to raise gas prices of course. If they have the
capacity to do so, they can also try to mass produce
enough of it cheaply to undercut the other companies
who also sell gas. With Crude Oil checking in at record
prices though, it's nearly impossible to produce gas
cheap enough to be able to undercut the other guy by very
much.

The theory is gas prices will actually rise due to Company X
trying to maintain the same profit they've enjoyed for
years. It's the only way they can continue to make money.

Thoughts ?

Its basic supply and demand... China especially, as well as other rapidly developing countries have played a large part in huge increases in demand.

Another aspect is our weak ass dollar, which is losing value to to 6 or so years of massive overspending. We've been printing way to much money to pay for various foreign adventures, and other ill-advised spending practices.. as a result, our dollar isnt worth as much. We would have crashed into massive depression already if an extremely high portoin of the worlds debt wasnt held in dollars in the first place.. but as debt flees to other currencies, we will have to clean up or act or face economic annihilation.. but I digress.

A third part is taxes, and royalties... the article Helemoto linked was a very good one, go back read it , even there it says that the oil companies would be paying 100b in taxes/royalties for a 40b profit.

When you think about it, thats a tax/royalty rate @ 250% of profit. Frankly, judging by that metric, I'd say the amount of profit is absurdly low. The US govt only accounts for part of that figure, part is royalties paid to say, the Sauds ( Bushes friends.. and what excellent examples of liberty loving enlightened folk..... lawls) but still, US taxes are still going to be eclipsing the profit totals by a wide margin.

Imagine the price of gas, if the taxes were gone, and oil could be had from alaska and other domestic sources, and as such no royalty paid. The price would drop by a large margin, even though profits would also rise.

Moral of the story : instead of blaming big oil, and expecting a government to somehow forcefully lower prices - place blame where its deserved - on our own government. Our gas prices are our own fault, for electing the F-class government we have been electing, and supporting the retarded policies we have been supporting as a society.

The real culprits are US voters.

That's assuming that their is a magical car fairy. Which I know, to everyone's dismay...unfortunately there is not. Sad but true. Just like their isn't a tooth fairy, CUZ I STILL HAVE MY TOOTH AND NO MONEY, or maybe I just had neglecting parents when I was young. lol.

I think that the scenario would go like this, say Company Y starts mass producing higher mpg cars, along with Company P, N, F and probably D. A single company pumping mpg cars probably wouldn't be enough to hit the broader side of the market. You would also need Advertising Companies like H and S to pump consumer bases into such a realm with "VOTE OR DIE" type of messages. Enough to have them dump their cars that they currently use. Even if they started doing this now, it would be a couple of years before this actually kicked in depending on the rate of deterioration of all cars being used at this point in time along with a broadly accepted philosophy of marginalism when they were purchasing cars; sublimed into these advertising projects to come of course. And let's not forget the all powerful and demeaning state of trust between consumers and the economy. If they somehow managed to green all these things, that's still say what? Five, Ten years. The effect of gas usage and price would be like slicing the tip off a cake every year, and with the media the way it is now. We will be in a red gas alert for years to come and then some.

Heck in reality we could be using less gass now then we have in years, quantitively speaking; but we wouldn't know it because the price of oil serves as an index to the average consumer's perspective and they are manipulating this to their hearts content.


So what can we do? We're screwed, practice power walking or riding a bike....





Actually, after the fifth year of oil price misindeminity, and once it has become apparent to the international public of the existence of it, rally up the Department of Commerce along with the Department of Energy have them and all their peons along with certain representatives from other countries lobby the U.N to construct a temporary establishment of the International Sanctum of the Common Welfare, have them disband OPEC, OECD along with any other Multi-Corporate Guised Monopolies occupying the International Stage.

If they fail to comply find ways to embargo them of needed resources. Personnel, Electricity, or even Sewage. Place pressure on the countries housing these oil companies to comply with the aspects of this project at the stake of international financial claim as deemed evitable by the ISCM.

Once these oil-monopolies are disbanded, disband the Department and reconstruct it as seen fit in the event of a similar incident. Not all the oil companies need to be demoralized at least more then half, this would leave room to avoid World War III, and stubborn countries could be ignored and addressed at a later date. However in the event that a country decides to rescind their promise to the cause, any countries that decide to follow that country will have to be demonstrated with a delicate show of force so as much to give the impression of all seriousness without causing other countries to rally together. It would be important to keep these countries apart therefore the process would have to be done painstakingly slow so as to provide a time lag and keep them from shrouding together.

Once all countries have agreed, impose obscene taxes on the import of oil for companies that are on the roster for these giant international monopolies and wait for it all to crumble. The department will be kept active for five years after which it will be disbanded and kept in the pockets of the U.N. These activities would have to be kept in total darkness and at the under the table of all major countries and the U.N, once the smoke has settled, remove everyone that participated from the U.N chair and delete all records. That would probably be the biggest help in solving this problem. Oil wise...



I will probably be assassinated by oil spies in the later part of tomorrow or the day after. But my legacy lives on.



Long live KGB, Comrades.

I was listening on the radio and some PH.D guy was saying the same thing, that if taxes were removed then oil prices would go down about 50 cents if not more, but what if the these oil companies raise the price or Bush's buddies want more from the cake now that their arn't any taxes? I don't like giving Bush's friends any money. Heck now that they have realized that people are willing to pay that much for oil then....

First, your only thinking of the immediate pump-taxes for that 50 cents. Throughout the chain, there are plenty of other tax burdens.

As long as there is sufficient supply, a decrease in the cost of bringing you the fuel will result in a decrease of the cost of fuel. As long as competition is able to fulfill supply, and therefore is real competition, prices tend not to skyrocket if costs dont skyrocket.

And though Bush is indeed a failed oilman, and assuredly the oil industry kisses his ass like so many other industries... just because some of them may be his friends, still , if applied uniformly - the capitalistic mechanisms that are good for oil are good for everyone else.

If govt wasnt meddling so much in our business, business wouldnt be meddling so much in govt. Since our govt doesnt really respect Capitalism anymore, unfortunatly business has to gain as much govt influence for their own protection. Unfortunatly, like any power attained - by nature it will be misused, hence all the cases of leechers using the govt as a competitive tool in one form or another, but it is misguided govt that makes it happen in the first place.

That's assuming that oil companies arn't evil...but I see what you mean.