Is it time to nationalize US oil?

[I AM NOT THAT GUY 5,715]

Is it time to nationalize oil?

I paid $4.00 per gallon this morning to fill up my car in Shepherdstown, West Virginia. Yikes. Despite the expected Republican 'who-cares-about-the-truth' talking points, the recent price hikes in oil and gas have nothing to do with President Obama.

They are the consequence of world crude oil prices -- not reliance on foreign oil. The much ballyhooed increases in domestic oil production that began under Bush and have been accelerated since Obama came to office have had virtually no effect on prices, because U.S. oil reserves are only two percent of the world's known reserves (while we consume over 25 percent of oil production).

Like me, millions of Americans take immediate and sharp notice of gas prices since, due to the paucity of public transport in the country, there is no other way except the internal combustion automobile to get to work, get the kids, get the groceries, get supplies -- in other words -- to live!

Now -- that is not exactly true in the scientific or technical sense since -- as my truck driving neighbor can demonstrate -- its been possible for 60 years to build a car that gets 60 miles per gallon of diesel fuel and lasts for 20 years. But -- the business model of auto corporations won't allow that: they can't maximize profits unless they produce "durable" goods that fall apart in five years, or less.

One thing is for sure -- all kinds of folks who normally do not like to think at all about politics get very political when gas rises. It is, of course, the equivalent of a direct pay cut, and there is nothing like a pay cut to make you want to find out who to blame!

So why are world crude oil prices rising? Because, 1.) demand is rising faster than supply; and 2.) the conflict with (and sanctions on) Iran -- the worlds second biggest supplier of highest grade oil is stimulating market speculation and hedging. Long-term, there is no solution to the rising cost of oil.

National energy and transportation policy must more aggressively develop alternatives, as well as green economic development programs that sharply reduce wasteful and inefficient consumption. Short term, lowering the temperature in the Middle East would provide some relief. But the disaster of Iraq, the utter failure to resolve the Israeli-Palestinian crisis, and the confrontational policy towards Iran -- all make this a very difficult challenge.

A big -- perhaps the biggest -- factor blocking both long- and short-term progress is the oil lobby -- Exxon, BP, Chevron, etc -- who are spending millions upon millions to obstruct any loss of privilege and power, and to divert any energy diversification efforts away from initiatives solely under their private control. In the last presidential cycle the oil and gas industries (not counting coal and nuclear power) spent $212 million on contributions and lobbying efforts (according to Open Secrets) and promise to spend even more in the current cycle.

I do not know if outright nationalization of the oil industry giants is the exact correct course -- but bringing their actions under strict public control -- like almost all states have done with public utilities -- is an absolute necessity. This included outlawing their criminal -- in my view -- political corruption on the political process. In other words, the ability of today's oil barons to buy their way through Congress.

http://peoplesworld.org/is-it-time-to-nationalize-oil/

Edited March 19, 2012 by ☼

[Obama 2012 1,714]

technically speaking oil prices have been quit calm in comparison to what the price of oil has been doing. It's quite interesting really. The author should compare/contrast this with past times.

Also the US Dollar and oil prices usually go hand-in-hand which is not happening this time around either.

There are plenty of factors that are making gas separate.

Demand is one. Closing of refineries is another.

The truth is, Obama is to blame just as Republicans and Democrats are to blame as well.

Build new refinereies, open up ANWR, the keystone pipeline, etc... The STUPID argument that these aren't solvent for 10 years should be OVER. They've been arguing that same thing on ANWR for the past 20 years... Stop and think about that. We could have had oil from there already had people stopped fighting the BS against it.

Drill off our coast where CHINA is drilling and we aren't allowed to. That's the worst part of it. China wants oil, we don't. Go figure. Yet we wonder why a lot of oil companies take their business overseas....

There's plenty of blame to go around, but the author is wrong about wanting to nationalize the oil industry. Our problem is the oil industry is too nationalized already. "Big oil" can't blink or do anything without congressional approval first.

[웃 910]

How come we can clone sheep but can't clone oil?

[luckytxn 2,264]

I want a Federal bureaucracy running the oil companies

[Usui Takumi 1,562]

technically speaking oil prices have been quit calm in comparison to what the price of oil has been doing. It's quite interesting really. The author should compare/contrast this with past times.

Also the US Dollar and oil prices usually go hand-in-hand which is not happening this time around either.

There are plenty of factors that are making gas separate.

Demand is one. Closing of refineries is another.

The truth is, Obama is to blame just as Republicans and Democrats are to blame as well.

Build new refinereies, open up ANWR, the keystone pipeline, etc... The STUPID argument that these aren't solvent for 10 years should be OVER. They've been arguing that same thing on ANWR for the past 20 years... Stop and think about that. We could have had oil from there already had people stopped fighting the BS against it.

Drill off our coast where CHINA is drilling and we aren't allowed to. That's the worst part of it. China wants oil, we don't. Go figure. Yet we wonder why a lot of oil companies take their business overseas....

There's plenty of blame to go around, but the author is wrong about wanting to nationalize the oil industry. Our problem is the oil industry is too nationalized already. "Big oil" can't blink or do anything without congressional approval first.

I could be wrong but I think the author is assuming by nationalizing US oil it takes it off of the global market. Therefore as we ramp up production in the US, we would operate under a different supply / demand curve. China's oil demand would then not affect us directly (assuming we could reach 100% of US oil demand)

Anyway, thats where I am.

Edited March 19, 2012 by Sousuke

[Bad_Daddy 2,209]

technically speaking oil prices have been quit calm in comparison to what the price of oil has been doing. It's quite interesting really. The author should compare/contrast this with past times.

Also the US Dollar and oil prices usually go hand-in-hand which is not happening this time around either.

There are plenty of factors that are making gas separate.

Demand is one. Closing of refineries is another.

The truth is, Obama is to blame just as Republicans and Democrats are to blame as well.

Build new refinereies, open up ANWR, the keystone pipeline, etc... The STUPID argument that these aren't solvent for 10 years should be OVER. They've been arguing that same thing on ANWR for the past 20 years... Stop and think about that. We could have had oil from there already had people stopped fighting the BS against it.

Drill off our coast where CHINA is drilling and we aren't allowed to. That's the worst part of it. China wants oil, we don't. Go figure. Yet we wonder why a lot of oil companies take their business overseas....

There's plenty of blame to go around, but the author is wrong about wanting to nationalize the oil industry. Our problem is the oil industry is too nationalized already. "Big oil" can't blink or do anything without congressional approval first.

:thumbs:

[Ban Hammer 13,195]

I want a Federal bureaucracy running the oil companies

exactly. like that bunch is well grounded in reality to begin with.

[luckytxn 2,264]

exactly. like that bunch is well grounded in reality to begin with.

I would like a bureaucracy to run it just like the one that handles our visa applications.

[Usui Takumi 1,562]

Think more along the lines of the post office....

yes I know, they aren't doing well, but thats more down to technology changes than mismanagement.

[james&olya 1,121]

Nationalizing is not a good idea! But we can stop subsidizing the oil companies! They are making obscene profits and whenever the talk of war in the mideast increases, so does the price of oil and the profits of oil companies everywhere! Hmmm.... do you think....? No, they couldn't possibly be THAT evil, could they?

Since oil is a world-wide market of which we make up 20-25% of the consumption and less than 5% of known reserve to produce it will make virtually NO difference if we can marginally increase production for the few years that ANWR or possible off-shore oil discoveries would be active. The same with Keystone. If we leave that oil in the ground for now it will still be available in the future. If we drill like the crazy tea-partiers want and build tar-sand oil pipelines without regard for the potential catastrophic damage to sensitive land they cross we will rapidly deplete our remaining oil reserves and at the same time risk very long term harm to our environment. And without any reasonable chance to significantly lower crude oil prices!

What does hold promise to lower gas prices would be a high tax on speculator's profits! Why are we allowing wall street to pocket huge sums from each of us as the penalty we must pay for their being allowed to drive up the price (and their profits) by speculating?!!! We should tax it as has been suggested at 70% of profits with all the proceeds going to pay down the debt. Lets see the repubs try arguing why they must protect the profits of the parasitic oil speculators rather than reduce our deficits!

[Bad_Daddy 2,209]

Nationalizing is not a good idea! But we can stop subsidizing the oil companies! They are making obscene profits and whenever the talk of war in the mideast increases, so does the price of oil and the profits of oil companies everywhere! Hmmm.... do you think....? No, they couldn't possibly be THAT evil, could they?

Since oil is a world-wide market of which we make up 20-25% of the consumption and less than 5% of known reserve to produce it will make virtually NO difference if we can marginally increase production for the few years that ANWR or possible off-shore oil discoveries would be active. The same with Keystone. If we leave that oil in the ground for now it will still be available in the future. If we drill like the crazy tea-partiers want and build tar-sand oil pipelines without regard for the potential catastrophic damage to sensitive land they cross we will rapidly deplete our remaining oil reserves and at the same time risk very long term harm to our environment. And without any reasonable chance to significantly lower crude oil prices!

What does hold promise to lower gas prices would be a high tax on speculator's profits! Why are we allowing wall street to pocket huge sums from each of us as the penalty we must pay for their being allowed to drive up the price (and their profits) by speculating?!!! We should tax it as has been suggested at 70% of profits with all the proceeds going to pay down the debt. Lets see the repubs try arguing why they must protect the profits of the parasitic oil speculators rather than reduce our deficits!

Any project you put off today for tomorrow will come back and cost you 10x's more. It's called inflation and it's a mother. Not only that but China is already tapping oil from that field. Do you want China to get Canada's oil or the US?

[james&olya 1,121]

Any project you put off today for tomorrow will come back and cost you 10x's more. It's called inflation and it's a mother. Not only that but China is already tapping oil from that field. Do you want China to get Canada's oil or the US?

I could not care less whose sand the oil was under that becomes the gasoline in my car! Nothing special about it being from Canada. It is a global market! You need to understand that concept! And it will not cost 10x's more unless enough time has passed that inflation has gone up that much! And if you invested that money wisely it will have grown FASTER than the rate of inflation and you will have money left over!

[Bad_Daddy 2,209]

I could not care less whose sand the oil was under that becomes the gasoline in my car! Nothing special about it being from Canada. It is a global market! You need to understand that concept! And it will not cost 10x's more unless enough time has passed that inflation has gone up that much! And if you invested that money wisely it will have grown FASTER than the rate of inflation and you will have money left over!

A direct pipeline from Canada means no oil tankers...as in less hazard and less cost to get that oil from Canada to here then from somewhere like the middle east. Build now while you can. Those who wait shoot themselves in the foot more times than naught. As far as investing that money goes? lol ya right. When did the government ever invest tax payer money? They spend it faster than they can get it from us. Market crash? np, just give them bail out money. Build that line now, and develop ANWR. No reason at all for this country to sit on their ####### and watch the world pass them by.

[james&olya 1,121]

A direct pipeline from Canada means no oil tankers...as in less hazard and less cost to get that oil from Canada to here then from somewhere like the middle east. Build now while you can.

If there is less cost how exactly does that benefit the poor guy at the gas pump? They are not going to charge ANY less just because they could ship it to the refinery cheaper! Again, it is a GLOBAL market! This concept is crucial to understand! The ONLY ones who benefit are the owners of the crude oil, and they are highly unlikely to feel like sharing any of that with us! No, just the opposite, they are likely to use some of their increased profit to buy more shares of Congress, Inc.!

As to less hazard, why are you concerned so much about the hazards to the countries of the mideast rather than hazards to pristine ecosystems and water supplies here in the US that the Keystone pipeline may threaten?

And why, exactly, do you imply that it is only now that we can build? Is their something going to happen in the future that will not allow any building? Why the false sense of urgency? These oil sources are piddling compared to the overall world market and as such are not going to lower the global price. Especially since much of the world's oil is controlled by a cartel that deliberately drives up the price by with-holding supply! It makes more sense to burn their oil for now as there is no way we can actually achieve energy independence by relying on domestic sources of crude oil! What we don't pump now will stay there waiting for the right moment.

[Bad_Daddy 2,209]

If there is less cost how exactly does that benefit the poor guy at the gas pump? They are not going to charge ANY less just because they could ship it to the refinery cheaper! Again, it is a GLOBAL market! This concept is crucial to understand! The ONLY ones who benefit are the owners of the crude oil, and they are highly unlikely to feel like sharing any of that with us! No, just the opposite, they are likely to use some of their increased profit to buy more shares of Congress, Inc.!

As to less hazard, why are you concerned so much about the hazards to the countries of the mideast rather than hazards to pristine ecosystems and water supplies here in the US that the Keystone pipeline may threaten?

And why, exactly, do you imply that it is only now that we can build? Is their something going to happen in the future that will not allow any building? Why the false sense of urgency? These oil sources are piddling compared to the overall world market and as such are not going to lower the global price. Especially since much of the world's oil is controlled by a cartel that deliberately drives up the price by with-holding supply! It makes more sense to burn their oil for now as there is no way we can actually achieve energy independence by relying on domestic sources of crude oil! What we don't pump now will stay there waiting for the right moment.

First off how is opening up ANWR and creating jobs while making money for the government (fuel tax/oil tax) going to hurt anyone? And how is the Keystone Pipeline going to negatively effect the environment? It's a "pipe" and nothing more. Keep it above ground and maintain it and your good to go. How do you think we get our oil from the very top of Alaska to the bottom of the state? It runs through a "pipe". We maintain it and we have no problems.

No matter how small the resources are we have them up here and we want it out of the ground. Why should someone else have a say in what we want? If peeps don't want to use that oil from ANWR and Keystone then they don't have to. They can peddle bikes, whatever. But the rest of us want that oil and we want those jobs.

Saying people don't benefit from that oil is complete nonsense. Everyone makes money...workers, state government, feds, oil support companies, oil companies, etc.... it's a win win situation.