OT: Oil companies

[jdbubb at verizon.net (Dan Bubb)]

Well, Spewey, you're absolutely right. There are a lot of abusive regimes out there and a hell of a lot of human suffering and some incredibly stupid alliances brought about by the most incredible of circumstances. Which all goes to point out that by and large government, if not genuinely restrained, is NOT your friend!

I totally agree with you that oil is a global commodity, but I'm not talking about oil here. I'm talking about one company. One company that is effectively owned by a dictator, that only operates in one country that it is not friendly with and last year took home a profit from operating this company that is sufficient to pay 2/3 of the bill for all the weapons this little dick-tator ;^) wants to buy.
Keep in mind this company is wholly owned by a Venezuelan state owned company and all the profits go to that country.

He's already bitching that he's not making enough money from Citgo and I'd like to make Citgo less profitable. His prices will go down if nobody buys his products. Simple supply and demand, if nobody's buying something you want to sell you need to lower the price to move it. Lower prices, less profit. I alone can't make a difference and that's why I brought it up on the list even though it's OT.

Another complication for Chavez is that Citgo operates three refineries in the US that are specifically suited for the heavy, high sulfur crude that Venezuela exports. Right at a time when the world as a whole is limiting the sulfur content specifically in diesel fuel. The US is one of the more lenient countries right now. The point is Venezuela's crude is worth less on the world market because it takes more effort or equipment to refine it to meet various government standards. If he has to refine a significant portion of his crude in the US because that's where he has the equipment best suited for the task but can't sell it here at a profit because he's being boycotted, then he'll make even less money shipping it somewhere else.
that's my .02
Dan


 From: "Spewey" <spewey@comcast.net>
Sent: Wednesday, July 26, 2006 4:04 PM
Subject: Re: OT: Oil companies

 
> Dan Bubb wrote:
>> Now if you don't mind supporting a socialist dictator...
>
> Let's look at another list:
> http://tinyurl.com/7ldt
>
> Do you like Angola's government?  Bush does:
> http://en.wikipedia.org/wiki/UNITA
> Better hope the Marxists don't get uppity like Bolivia.
>
> What about Saudi Arabia?  They cut off your hands if you steal and flog 
> their gays.  I'm against that but I still use their gas because I can't 
> help it.
> http://en.wikipedia.org/wiki/Human_rights_in_Saudi_Arabia
>
> While you're at it, send some war planes to Nigeria, the natives are 
> getting restless:
> http://en.wikipedia.org/wiki/Conflict_in_the_Niger_Delta
>
>> I think it's well worthwhile to try to cut his profits as much as
> possible by not buying from him and perhaps having his prices drop
>
> How does not buying make "his prices drop"?
>
> Oil is great big giant mess in the world because you want the oil and they 
> have you over a barrel.  Use less if you want to make a difference.
>
> God bless Canada.
>
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