Friday, April 4, 2008

From the PMAA News

The PMAA is the Petroleum Marketers Association of America E-Newsletter.

The reason I posted this up was the last paragraph which states that there are three factors affecting high energy prices:

US Monetary Policy
Geopolitical Events

All adding as much as 30 to 40 percent to the cost of crude oil.
Think about that. That would mean that oil should be below $70 a barrel given the economics of the pre-Bush Presidency. See the actual release below.


On Tuesday, the House Select Energy Independence and Global Warming Committee held a hearing to address oil companies’ profits, current gasoline prices and alternative energy. Testifying before the committee were: Mr. J. Stephen Simon, Senior Vice President of Exxon Mobil Corp; Mr. John Hofmeister, President of Shell Oil Company; Mr. Robert A. Malone, Chairman and President of BP America, Inc.; Mr. Peter Robertson, Vice Chairman of Chevron and Mr. John Lowe, Executive Vice President of ConocoPhillips.

As in the past, the hearing served as political theatre to criticize major oil companies. Members asked oil companies to invest ten percent of their profits in renewable energy and biofuels. Currently, House leaders are trying to repeal $18.1 billion in oil production tax incentives to create tax breaks for alternative energy companies.

PMAA applauds Representative John Larson (D-CT) for focusing attention on the futures markets. Representative Larson argued that, “speculators are driving energy costs,” and asked oil executives if they agreed that excessive speculation has artificially raised energy prices. Mr. Simon, Senior Vice-President, Exxon Mobil Corporation explained that there are three factors affecting high energy prices: U.S. monetary policy, geopolitical events, and speculation which may add as much as much as 30 to 40 percent to the cost of crude oil.

1 comment:

Anonymous said...

The one item I have now seen is the conspiratorial meeting among Bus, Cheney, and the oil execs early in the first stolen term.