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Thursday, June 19, 2008

Yesterday vs. Today

posted by on June 19 at 12:08 PM

Yesterday:

As the presidential election revs into high gear, President Bush drilled the “Democratic-controlled Congress” for opposing White House energy policies, which he said has resulted in the rise of “gas prices to record levels.”

Bush also inserted himself in the middle of the heated presidential race by reversing a long-held executive position on offshore oil drilling.

Shorter: There’s an oil shortage, and high prices are the the Democrats’ fault.

Today:

Exxon Mobil, Shell, Total and BP — the original partners in the Iraq Petroleum Company — along with Chevron and a number of smaller oil companies, are in talks with Iraq’s Oil Ministry for no-bid contracts to service Iraq’s largest fields, according to ministry officials, oil company officials and an American diplomat….

It is not clear what role the United States played in awarding the contracts; there are still American advisers to Iraq’s Oil Ministry.

In all cases but one, the same company that had provided free advice to the ministry for work on a specific field was offered the technical support contract for that field, one of the companies’ officials said.

The first oil contracts for the majors in Iraq are exceptional for the oil industry. They include a provision that could allow the companies to reap large profits at today’s prices: the ministry and companies are negotiating payment in oil rather than cash. The impact, experts say, could be remarkable increases in Iraqi oil output.

Shorter: There’s lots of oil, but high prices are Bush’s and his oil-industry cronies’ fault.

RSS icon Comments

1

Quelle surprise!

Posted by umvue | June 19, 2008 12:23 PM
2

yeah, because oil drilling in ANWR would contribute a .50-$2 reduction in gas prices *over the next 30 years.*

meanwhile, oil has gone up $100 a barrel under Bush's, ahem, leadership.

Posted by brett | June 19, 2008 12:34 PM
3

This is EXACTLY what happened with Enron and the "brown-outs" in California. There was never a shortage of electricity but Enron made it seem like there was to increase the price of power.

The oil speculators are going to keep jacking the price of oil up until it can no longer sustain itself. Expect $200.00 by the end of the summer.

Posted by Cato the Younger Younger | June 19, 2008 12:44 PM
4

I thought "Progressives" were in favor of high oil prices to curb oil use. Or is that only if the price increases are the results of increased taxes?

Posted by You_Gotta_Be_Kidding_Me | June 19, 2008 12:49 PM
5

@4 - no, we want those higher prices to come from taxes used to pay for the massive debts rung up by the neocons over the last decade, not going to oil barons pockets.

See, it's cause we're fiscally prudent.

You remember what that is, right, YGBKM?

Posted by Will in Seattle | June 19, 2008 12:53 PM
6

I blame dinosaurs for this problem!

Posted by Bellevue Ave | June 19, 2008 1:14 PM
7

@5 Okay, just wanted to be sure I understood... High prices = good. High profits = bad. High taxes = good.

Gross profit per dollar of sales:
Oil Companies = about 8.3 cents per dollar
Electronics = 14.5 cents
Computer Equipment Makers = 13.7 cents
Microsoft = 27.5 cents

So now who's making high profits?....

Posted by You_Gotta_Be_Kidding_Me | June 19, 2008 3:14 PM
8

The question isn't should gas prices be higher and shift America away from oil as an energy source, it's where that EXTRA money goes.

In the CEO trough of Exxon-Mobil (XOM), or Conoco-Phillips (COP), or Shell (something like RDI), or Texaco - no. And I say that as a former direct shareholder (and through mutual funds a current holder).

WE HAVE A FRICKIN BUDGET DEFICIT, you moron! Thanks to your buds in the White House!

Now go enlist.

Posted by Will in Seattle | June 19, 2008 4:09 PM
9

@8

But if we are going to go after the oil companies with profit windfall taxes (as the Democrats are advocating) for a 8.3% profit, shouldn't we be going after every industry with a similar or greater profit in the same way?

Posted by You_Gotta_Be_Kidding_Me | June 19, 2008 4:22 PM

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