[quote]tGunslinger wrote:
lixy wrote:
Extracting oil isn’t black magic. Any half-decent country can get it done.
Wrong. Dead wrong.
It is extremely difficult and costly to extract oil. Drilling is incredibly expensive, and it’s a total crapshoot as to where you should drill.
You can do geological and gravitational surveys, and you can even set off some underground explosives and listen to their echoes, and most of the time you still only have an educated guess as to whether there’s oil in the ground or not.
Is there oil? How deep is it? How much is there? How much can we extract? How long will it take? Is it worth gambling hundreds of millions of dollars to see if there’s oil down there?
Truth is, Oil Corps don’t get answers to these questions. They have to go out on a limb in order to find the oil.
Compared to nearly every industry, “Big Oil” is almost literally a giant poker game. It’s a huge gamble.
Even if you know there’s oil below you, it’s still difficult to extract it. Even the “Big Oil” corps currently do not have the technology to extract more than a small fraction of what is down there.
You can do some more research on your own lixy, but to imply that all it takes is a shovel and a dowsing rod is patently false.
lixy wrote:
Look at the profits your oil companies make out of it. It’s INSANE. They’re always in the top 5 of the Fortune 500 and their revenues double each year.
Look at oil companies books. Their profits are more than reasonable for the costs they pour in and the risks they assume.
ExxonMobile profited $39 billion in FY 2006. That sounds like a lot until you see that they poured in $310 billion in costs.
That’s $310,233,000,000.
The profit margin on that is merely 13%. That means that ExxonMobile is profiting 13 cents for every dollar they spend, and that’s not much.
And no, their revenues do not double every year.
lixy wrote:
The only people who benefit from the meager compensations the country gets for the explotation contracts are the ruling elite. Those are always some kind of absolute monarchy or dictatorship.
Sounds like a problem with the Middle-Eastern countries moreso than a problem with the oil corps.
Maybe you guys should fix that, eh?[/quote]
Excellent post!
Savages often regard capitalism, industry, production, and so on, as some sort of trickery or magic. They think somehow they are being exploited, if the capitalist hands them a shovel and a job, never realizing everything that goes into the process.
How many people realize the tremendous amount of hard work and thought that went into putting that loaf of bread on their table where it is? To savages, its MAGIC! Anyone can do it!
For about a lousy $3, I can drive 20 miles. Think about walking that, Lixy, and then come and complain about the oil companies.