[MLUG - DISCUSSION] Oil policy (was Unfolding Universe (discovery channel))

["(8?»" <EMAIL:PROTECTED>]

Wanted to add a couple things I missed on the first pass.

Here was a large trigger for the coup,
Venezuela
president sacks oil executives (I'm sure there were others, but I
can't believe that oil wasn't at the root of it.). You see Chavez is
trying to change the flow of oil profits, by making sure that their
national oil company is acting in the interests of the nation, and not US
oil companies. This results in a less stable economy in the US,
therefore, it is in our national interest to correct the situation. This
same logic holds true for every oil supply. 

Our "just in time" economy requires that raw materials be
tightly scheduled for maximizing efficiency. Since all raw materials are
dependent on oil for transport, it becomes critical that the supply is
maintained. Even small producers like Argentina become important in this
scenario, as the least bit of disruption could cause the entire structure
to crumble. (the spark that starts the prairie fire)

Also, I failed to reply to one of your comments. (Sorry, was not my
intent to use diversionary tactics)


> > This
> > is just nonsense.  Of the 3 countries you have just mentioned,
> > only
> > Venezuela has petroleum reserves that are (at present) even a little
> > bit
> > interesting in terms of "controlling" world oil markets. 
> > There is no
> > doubt that oil and energy companies exert undue influence at home
> > and
> > abroad, but to claim that US oil interests have had anything like
> > control
> > over the situation is just silly.  I mean, unless you'd like to
> > argue that
> > they went out of their way to lose their shirts in the 80s when OPEC
> > set
> > production targets at a level where prices collapsed (to name one
> > stupendous debacle).

First, OPEC represent the nations that possess the oil, not the companies
who are trying to obtain "cheap natural resources", or the US
government. So the 'they' above is two different groups.  

I would say that the price collapse was a result of the friction that
results between maintaining a "gentlemen's agreement", and the
individual pursuit of greed. (or in other words, everyone cheats for
their immediate benefit, even though they could all profit more
collectively if they didn't.) This is merely a break-down of trust (that
doesn't really exist anyway). This has always been a problem in cartels,
and has been with OPEC since day 1.





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