Oil Profits Article

These were for 2004. 2005 numbers were a bit worse for oil companies, but they (2005 numbers) were from the "Journal of Petroleum Engineers" so I'm assuming people would not regard that as an unbiased source.

I'm aware of the net energy argument about corn. It depnds on how deep you want to go (fertilizer takes energy!/war takes energy! type calculations):p

A lot of the problem is chicken or the egg type stuff. Why would oil companies invest in new fuel research if auto manufacturers don't make cars that can use it? Why would consumers buy flex-fuel cars if there's no place to buy the fuel? Why would farmers grow the crops if there's no one to buy them and produce alcohol? It boils down to simple economics and that is controlled by our INDIVIDUAL choices. Laws can be passed, research can be done, but at the end of the day which product will be made is determined by you and me.

As for job losses during the low years, they really were across the board. I knew chemists with 25 years experience and 6-figure incomes who were tossed out along side the minimum-wage broom-pushers. Whole levels of management were dropped including vice-presidents. Then when the mergers started to keep the companies viable presidents ghot the axe. Sure, it was a nice golden axe that sang and made cookies, but it was still an axe.

On the topic of "why don't oil companies invest in alternate energy sources (wind/solar/blue kryptonite)". Again, it's simple economics. The oil companies have only a certian amount of money available for such research. They can either a) look for ways to produce oil more cheaply or b) look at new energy sources. The companies already have legions of researchers trained in oil chemistry, formation geology, petroleum engineering, etc... Why dump them and their tremendous amount of knowledge/experience?! It'd be like Kodak suddenly trying to come up with a new soft drink. Also, think about it this: oil companies are not dumb. They've crunched the numbers and the answer they get is that solar/wind/tidal/etc power ISN'T the answer. Those things may play a part, but not a big enough part to be a threat or a profitable investment other than as a PR stunt.

The Environment:
I grew up in a small Minnesota farming community. My 20 year high school reunion was this summer. The town has grown from 2500 when I left to over 14,000 now. All the crop land has been converted into housing. <img src="/images/graemlins/tongue.gif" alt="" /> What is more likely to be converted farmland to grow more crops, houses or the forests that surround them? Plowing under forests does not sound like it'd be better for the environment. <img src="/images/graemlins/crazy.gif" alt="" />

Unfortunately, I won't be able to continue this thread for a while. I'm going to be out in the field for the next week trying to stop a bugger of a corrosion problem. Wish me luck. <img src="/images/graemlins/smile.gif" alt="" />

-Blast, who has a great deal of respect for Massacre.