Monday, August 18, 2008

Oil Executives Motives?

Here's a thought for the day, top oil executives are claiming that they want access to offshore drilling to lower gas prices, for the benefit of everyone. The problem with this logic is that oil executives aren't employed by the public, they're employed by the oil company. If they weren't striving for something that made the oil companies, and the stockholders thereof, more money then they'd be fired.

Keep that in mind the next time you see an oil exec telling you that drilling here, and drilling now will make you pay less. That statement isn't true, at the very least it will take longer than anyone yapping that soundbite into a camera is admitting. What is true, however, is that the oil companies doing the drilling will see bigger profits, that's why the top executives want to get the OCS opened.

Last time I checked the oil companies were doing ok, but I'm not blaming them for wanting to make more money. I'm also not blaming the oil execs for trying to get us to buy into their scheme. It's capitalism, everyone has their motives, and they aren't always what they say they are. But I am blaming the public for buying into their scheme, we should be able to see through it and urge our elected officials to do what's best for the public, not big oil's shareholders.


  1. If the statement "drilling here, and drilling now will make you pay less." isn't true and oil companies won't be getting oil from these sources for a dozen years or more how can you make the argument that they are doing it in order to see "bigger profits"?

    They'll invest millions now to get the drilling going but won't see a return on the investment before the new product begins to hit the market and increase the oil supply.

    Aren't you trying to have it both ways here?

  2. No, actually.

    I believe what Craig is saying here is that the CEO's are full of shit, and those that are buying the "Drill Here Drill Now" meme aren't thinking with all cylinders firing.

    It's not rocket-science.

  3. You're isn't rocket science. It is basic economics.

    You can't argue that off shore drilling is a bad idea because it will take a decade for the oil to start coming and at the same time argue that oil companies are doing it to pad their bottom line.

    One argument has to be wrong.

    Sorry Jason and Craig but hatred for the oil industry in itself isn't an effective argument. In this case it is just incoherence.

  4. Never once have I argued it'll "take a decade for the oil to stop coming" as you put it. What I've always argued on this blog is that it'll take a decade (or more) for the oil produced by drilling to have even the slightest impact on the world market it will be dumped into, and then it will take even longer for that small effect to have even the tiniest of effects on gas prices.

    But that's not to say that oil execs don't have an interest in producing that oil and storing it. Or using the leases granted once the moratorium is lifted as a "security" pad with investors.

    But you see the difference in what they will do with the oil and the leases, and what they are saying lifting the ban will do for Americans?

    It's not about gas prices, and those who believe that are being duped.

    Is that spelled out plainly enough for you "Anoymous"?