I don’t see how Lindsey Williams’ conspiracy about elite oil executives withholding oil and waiting for the price of oil to rise $200 till they sell the 2 trillion barrels of it in Prudhoe Bay is anything more than a savvy business decision.
From a business perspective, it makes sense that they would wait until the price of oil is $200 to pump the oil out of a 2 trillion barrel reserve if would mean that the price of oil would drop dramamtically. Furthermore, it makes sense that they wouldn’t tell anyone about such huge reserves since that information alone could drop the price of oil.
Also, if these elite oil executives were omnipotent, then why would they allow the growth in the alternative energy industry, after all, wouldn’t such grow dirve down the price of oil?
I personally feel the Western oil companies aren’t exactly the best business models around. They allowed (had to allow?) Chinese oil companies in Iraq and rolled out a nice red carpet for them in Sudan when Chevron fled the country, leaving the door open to Sinopec and CNPC. Also on Saturday the first tanker left “rebel-held” oil terminals in Eastern Libya carrying 80000 tons of crude. Guess where it was headed for? If you said “China” step up and collect your prize. In the meantime Exxon & c sent President Obama hat in hand to the Brazilians to “share” their vast offshore oil reserves. The Brazilians treated him to a good dinner, listened politely but pretty much ignored him.
It seems like being so mired in politics for so long has clouded their capacity for judgement and turned them into lumbering behemoths: terrible to behold but terribly slow to move. Last year Lukoil bought the huge twin refineries in Priolo (Sicily). They moved swiftly and outbid France’s Total-Elf and others before they could react. Now the largest refining complex in the Mediterranean (until the new ultra-modern plants in Morocco are operational) belongs to Mother Russia. Does this sound like the action of an omnipotent conspirancy? Or like the action of a large industry which has grown so sclerotic it gets regularly beaten by more dynamic competitors?
Western oil companies have come to rely very heavily on inflation and speculation fueled oil prices to turn out large dividends. Most refineries in the Western world are crumbling to pieces (leading to reduced refining capacity and efficiency) but building new ones is completely out of question. Again would an omnipotent conspirancy have issues obtaining the necessary permits if only they wished them?
Last month I bought a nice packet of stocks, funds etc. Oil companies featured prominently but you won’t find Exxon, BP or Shell in them. Instead I opted for CNPC, Sinopec, Rosfnet, Sasol etc. I know they carry higher risks but these risks reflect the fact they are dynamic companies, not fossilized dinosaurs.
Of course that’s what they’re doing, the oil supply is completely monopolized by governments. In a competitive market you put out that oil or your competitor will, but with control over the market the best strategy is to restrict supply to get high prices. Most people got their asses so far up in the environmentalist mythology they learned at school that they don’t even consider the obvious supply-and-demand causes for high oil prices.