Thursday, June 10, 2010

Oil Economics

Now I don't think my economics is that brilliant, but the stuff coming out of America is in the funny if it wasn't serious category. I mean suddenly all for regulation - even Sarah Palin, who BTW I agree is definite MILF material, but not sure about much beyond that. I must say the glasses and tight t-shirts do work for me though. That sexy librarian look...

But it gets even wackier...I like the sieze BP stuff. Err unless my history is wrong, isn't siezing public companies what the communists did? Not to mention that it is not even a US company, and that it is owned by - get this - shareholders around the world. You know people like your parents, your nieghbours - hmmm probably yourself. I mean what do you think happens to the money in that superannuation/ (401K) retirement accounts?

The boycot stuff is just as amusing, oil is used for far more than "putting gas in the tank", you know like nearly every plastic, your nylon socks for example. I mean if you can get rid of all of that, sure go for it. Don't forget to take the paint off your house also. Even your kids paints also.

Then there are all the wacky theories, ignoring the fact that you just have an oil company doing what oil companies do. That is get away with as much as possible. Why? Because they are answerable to the shareholders, not the white house. And shareholders want profits right?

The Bankcruptcy idea, seems logical in theory...if BP has to pay x amount they will be broke. The trouble is, in the real world who really thinks they are going to pay? Case in point Exxon, also didn't they just settle something on Bopal the other day? almost 30 yrs later...This is just typical stuff in the corporate handbook, make it look like your doing stuff, then get the Lawyers in. In truth alot of the people suing BP today will be dead before they get anything beyond the 5k handout. In that way BP was lucky they screwed up in the US, one of the worlds weirdest legal systems...Not to mention they were working with Halliburton and Transocean, so even deciding who is responsible will take 5 or 10 years.

Not that it is really an issue, but legally it is a cool move. Since nothing can be done until you even figure out who is liable.

They also have government on their side, beyond the kick ass stuff "did i sound angry for the cameras?", the oil industry generates about 12 trillion in revenue for the US treasury, so no they are not going to want to mess that up. If they crucify BP then other companies will stop doing the drill baby drill thing there also. After all they don't have to drill in the US. At best they add sensible regulation, which increases pump prices and basically drop the soap in shower block A on the pseudo US recovery.

Really the Lawyers must be thinking all their dreams have come true here. Even all those southern legal dudes that were quick to get their billboards up...on a no win no fee basis, how many of them are going to stick out 10+ years of legal hacking for no fee??? They are better of concentrating on the chick that slipped on a french fry...

And it gets a bit nuttier, since the US has some of the cheapest gasoline prices in the world - alongside the radical communist states... Which means that of course things can be done cleaner and safer....but do people really want to pay more for it?

And lastly turning up at your local BP and slagging them off, or boycotting them...how connected to BP do you really think they are? Do you really think the other oil companies are so much better?

So yeah I really do feel sorry for the people along the gulf, they are just going to get charmed, screwed, then dumped. Worse they will get DP'ed by the oil industry and the government. Everyone going around..."but they said they would call..." There is simply too much money involved to let a few fishermen and Pelicans get in the way. Even Disneyworld in Florida is expendable on the scale of the oil industry.

This is one of those things were the average person is just too small. It is in nobody elses interest to actually do anything. The white house just wants it to fade out of the living rooms, the oil company couldnt really care less other than shutting people up and stalling, and the lawyers and brokers will happily go along for the ride.

Of course I could be completely wrong, and sensible regulation is introduced, oil continues to flow - cleanly, everyone is compensated fairly, and the oceans and coasts are cleaned up...and they all lived happily ever after....

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