Sun Country follows suit

[bleagle]

I thought this thread was about SunCountry.

Oh well, since we're on the creep, let's talk about the real SunCountry, er, I mean Iraq, where the easily accesible, HUGE deposits of oil are.

Everyone knows that the reason we are really in Iraq is to control the oil that comes out of there, and for US and Euro oil companies to profit from it in PSA's (production sharing agreements). It is the large Elephant in the room that no one is talking about, we talk about the high price of gas instead.

Iraq hasn't been able to increase production substantially enough to counter the increase in worldwide demand and control prices because (1) The Iraqi National Congress hasn't passed the Oil Law (stipulates and boilerplates the PSA's) and (2) The oil piplines, wells, and other equipment infrastructure are sabatoged frequently by insurgents, preventing an increase in production.

Demand won't go down, and supply won't go up until this Oil Law (one of the 'benchmarks', originally written under the 'guidance' of major US oil companies) is revised and passed, and the oil production infrastructure is secure and protected. This won't happen under a Republican administration IMO. We need an Oil Law that favors Iraq and it's people more ('oil revenues will pay for rebuilding Iraq', right?) and contracted civilian troops (did I write that?) protecting the oil production infrastructure, and a stable government as well.

This is tough info to swallow, you won't find it on CNN. This info is what the internet is for folks.

Instead of enduring the price of this war, the lies that have been perpetuated, and the loss of our country's reputation and respect, it would have been much easier to make Sadaam our friend again, and buy our oil from him (like we do from Saudi Arabia) while our Halliburton buddies help them increase production. He wouldn't have gouged the world, he would've been happy for the business.

Crossky,

But BUSH said that it was about "terror" and now "democracy"....

the only thing I disagree is on Saddam... after serving in Desert Storm/Desert Shield, Saddam and His boys were Madmen. Killing/controlling your own people to protect your interests, hiding millions of dollars, killing women and children, and if he had the capability to attack America....he would have! Don't forget that Saddam had a bounty out for the Death of BUSH sr.

 

[HA25]

I need to expand a bit on the oil comments. Some of the price of oil is true supply demand, but as we all know much is speculation based. We all see that bad news drives prices up, but no or good news doesn't bring it down as much.

It is much like the diamond business- prices stay high on the PERCEPTION of scarcity as much as reality.

So, a new refinery is bad for an oil company. Even if in theory it could produce more oil which is still sold at a profit, the risk to the oil company is that prices will fall too much based on the perception that new refined crude is finally available. Lots of potential downside, few upsides. Plus, it would cost lots of money regulation or no regulation.

They are good businessmen, and they know their market. Too bad the airlines, and all of us are taking the hit.

One other note: the low interests rates are dropping the dollar, another reason oil is going up, totally separate from the refining issue.

You are very astute my friend.. I just posted this onto another forum:


[rant]

Oil prices are artificially very high according to a lot of analysts and OPEC. The additional demand from China and India can explain $60/barrel but the reality is that with real estate in the dumps, the equity market sideways, and the dollar on par with the Peso as an investment (due primarily to us interest rates and trade imbalance).. the investment speculators are now in commodities... such as Gold, Silver and yes.. oil.. Add to this the weak dollar which is trying to buy oil in a global commodity market, and a instability in the Middle East and you've got a recipe for $100+ oil..

Solution:

-aggressively seek alternative energy for cars, and other sources of demand
-re-stabilize the middle east, starting with ending the aggressive foreign policy of this current administration, making real and lasting peace in Israel, and sitting down with Iran about the nuclear program (stroke their ego).
-prop up the dollar by balancing the trade deficit with countries like China
-work to stabilize Nigeria and the government there

and I'm sure there is more that can be done by people a lot smarter than me.

But I'm sure that the will to do something is just a little hampered by the fact that "Big Oil" is making record profits ($40B) last year alone.. and more expected this year. Democrats & Republicans need to be held accountable.. Republicratic policy needs to be more focused on what is good for the people of the US, not the defense contractors and oil companies.

[/rant]

 

[inline]

Its hilarious when you see the like of Spinproof, shrek, inline and the like talk> They make no sense and really think ALPA is all to blame.

Then you hear the voice of reason>They sensibly point to objectively verifiable facts to make a supposition which is entirely correct.

And the facts are BUSH and his narrow minded administration is to blame.

Look we need some brave actions to change people behaviors. Put a large gas tax out there for private automobiles. Gas at 8 dollars whould actually be gas at 2 dollar when you compare a Turbo diesel eocono box compared to a Yunkon SUV. Therefore bring down demand and airlines get to buy cheaper gas.

Get your facts straight. I've never blamed alpa. I've blamed your party, the democrats for high fuel prices. Your party has resisted attempts to develop domestic oil reserves and has led the fight to thwart any attempts to build for refineries. Now thanks to your party, we are importing gasoline.

 

[HA25]

Get your facts straight. I've never blamed alpa. I've blamed your party, the democrats for high fuel prices. Your party has resisted attempts to develop domestic oil reserves and has led the fight to thwart any attempts to build for refineries. Now thanks to your party, we are importing gasoline.

I've been a life long republican (until about 3 years ago), but to say that oil prices are a result of the democrats is beyond laughable.. Seriously?

 

[Smarta$$]

Oil is a world commodity. Big oil could build refineries anywhere in the world, if they actually wanted too. They import the oil, they could import refined oil just as easy. They don't want to. They are making to much money the way things are. Why should they spend money to make the price of oil go down?

Drilling in north america would be a very temporary solution anyway. It might buy us another 20-40 years of cheap"er" oil, but in our lifetimes, we would just be back to where we are now.

Lets deal with this now, instead of just giving this same problem to our kids or grandkids.

The current oil fields that have reached their half life were HUGE at one time. Since they have begun extracting oil from them, world oil demand has exploded and is expected to continue to grow dramatically. What that means is that any new oil field, regardless of how big it is will just be depleted faster than the previous ones. It is a temporary solution. We use oil thousands of times faster than the earth makes it. It doesn't make sense to disturb some of the most pristine land in the world for another 20-40 years of supply.

 

[HA25]

smart man smarta$$.. Even the arabs have to buy oil in the same market... it's not like anyone pumps into right into their cars or planes..

I hope this crisis leads to a real solution to energy.

 

[Crossky]

Crossky,

But BUSH said that it was about "terror" and now "democracy"....

the only thing I disagree is on Saddam... after serving in Desert Storm/Desert Shield, Saddam and His boys were Madmen. Killing/controlling your own people to protect your interests, hiding millions of dollars, killing women and children, and if he had the capability to attack America....he would have! Don't forget that Saddam had a bounty out for the Death of BUSH sr.

Poor justification!! I have a visual on W saying "after all, he tried to kill my daddy" at a Texas political get together. You made it too easy!

Sure, Saddam was bad. But he was 'good' when Rummy (Donald Rumsfeld) took pics with him when we were selling Iraq weapons, F-14's, and WMD, to fight Iran with. Sadaam enforced an uneasy peace, a 'la Russian style, between the Sunnis and Shias and other groups in Iraq. But at least someone was in control, and the infrastructure was still there.

Our wonderful Country and Empire (yea, I'll state it that way) has both supported and opposed/deposed (coups etc.) of both dictators/totalitarian rulers, and democratically elected presidents. It depends on what they got that our rulers deem that we need/want. And Iraq has got da cheap OIL BABY!

I agree about the falling dollar making oil more expensive.

 

[HA25]

the saddest part is that the war was basically about oil, and oil today after the war is 2.5 times as expensive..

We can't win!

 

[climbhappy]

the reality about the runup in oil is not about party label and the iraq war... worldwide demand and a weak dollar have caused the spike. the weak dollar means it would take alot more to buy the same barrel. if the dollar had not taken its plunge due to the recession, then oil would be in the low 70s right now. this what has caused a runup in commodities

this from a finance/economics professor.... is he right?

 

[Smarta$$]

I think the dollar has lost about 30% of its value. Oil has gone up at least 100% in the last year. It is not only the dollar.