Re: Motivation for the Oil Barons

On Jun 7, 12:25 pm, tg <tgdenn...@[EMAIL PROTECTED]
> wrote:

> Yes, this is hardly rocket science but basic economic theory.

You always have to chuckle when Tiggy makes any claim to understanding
"basic economic theory".

> Soros pointed out in his testimony....

Oh, well, if MoveOn.Org contributor Soros said it, it must be true.

>... that *not* pumping oil was a much better
> investment than turning it into dollars, since the value increases in
> the first case and decreases in the second.

Than why sell anything (non-perishable)? For that matter, why sell
*any* oil? Keep it all in the ground.

And where is all this oil which is "not being pumped" - I mean, other
than the obvious, like ANWR?

I thought we were at "peak oil" and the problem was that there was a
declining amount of oil to pump in the first place.

So, are you now saying there really is plenty of oil out there? It's
just that the evil oil companies are keeping it in the ground for some
mysterious insidious reason - and furthermore all colluding in it?

>Why spend money even on increasing refinery capacity when there is more
profit to be made from
> increased prices driven by demand?

Because if you don't sell the oil and take advantage of the "increased
prices", you don't make a profit?

Just a wild guess....or perhaps just "basic economic theory".

Also, since oil has a history of wild swings in price, you could miss
this spurt and then be forced to sell into *declining* prices.

Ask any homeowner who delayed selling his house because he was sure
that prices were just going to keep going higher and higher.

Fred Weiss