7/13/07
Following the major oil money trail
Editor's note: Part three of three
By STEPHEN H. SUTHERLAND
Does anybody out there really believe there is an energy shortage, either internationally or domestically? If you think so, call me because I have a special this week on several bridges and some really great swamp land.
There is more than enough oil internationally to last many years. OPEC meets often to decide on the level of production required to meet the needs of their clients. Canada is rich with oil, Mexico is rich with oil, many countries out there are rich with oil, including the United States of America.
Enough oil is not the problem—the problem is who has and controls it. The problem is the energy policies of the U.S. and the country's politicians, who are too weak to stand up for the oath they took. The problem is also American consumers with short attention spans.
OPEC does not control our supply. It's the organization from which the major oil companies purchase their oil. Major oil companies control our oil. They have entered into supply contracts all over the world.
Yes, it's a big job to meet the energy needs of the American people. But let's face the facts. Major oil companies control our supply. They set up their own supply contracts and determine the prices for the products they control.
Now before you tear up the paper, try to understand what I am saying. I am not against the major oil companies. Major oil companies did not grab this responsibility. Our government, and our way of life, made it so. Small oil companies could never meet the needs of the U.S. and I certainly would not want the government controlling our energy supply.
But the problems we have today started many years ago when our government gave the oil companies control over our supply. Remember power corrupts, and absolute power corrupts absolutely. Is corruption too strong of a word? OK, then try greed.
America is a capitalist society, a free society. Large portions of our population still believe that we have God-given rights "" freedom of speech, freedom to bear arms, freedom of choice. I fully subscribe to these beliefs. But with choice comes responsibility. Our system works because most businesses show restraint, and those who overcharge die off.
During the past few decades, I feel there has been a change in America and although we remain the most powerful country in the world, all changes are not for the better. Come on people, wake up and follow the money. In a normal business if your equipment fails, you lose money. Bad weather at the golf course and it loses money. If a farmer's crop fails due to drought, flood or locusts, he loses money.
But not so with major oil. Again, follow the money. Hurricanes strike our oil rigs and the major oil companies make record profits! Refineries go down and the oil companies make record profits.
Threat of hurricanes, or a threat of war? Yes, record profits.
For many years major oil has been synonymous with major money, but it's different today. Today it seems the restraint and the responsibility are gone. Today it's all about the profits. The delicate balance of supply and demand has been broken. Major oil companies have the supply, and only they can meet the demand.
I'm really torn here. I'm against the government stepping in and making things even worse, yet someone needs to return the restraint and responsibility back to our energy policies.
That brings me back to the comment about consumers' short attention spans. The demand comes from you and me. Quite often when the price is high, the public gets angry and starts to demand action and the politicians take notice. But as soon as the price backs off a little, Americans lose interest.
Like I said in my last column, after $3.50 per gallon, $2.98 looks pretty good. Even after the price backs off we need to keep our focus and continue creating an energy policy that will take us out of the hydrocarbon era.
We need to appeal to the CEOs to show restraint. When America is strong and trouble-free, take the profits but in moderation. When America is suffering, this is when they really need to show restraint and not kick us when we're down.
Please tell me if I'm wrong. Is restraint and responsibility too much to ask for?
Now from you America, I ask you to do your part. Additives and tune ups will reduce consumption up to 15% while saving you money.
Take some action—don't just complain.
Questions or comments? Keep them coming.
The GasMan -