Dave (courier_iii) wrote,

Once There Was a Prudent Tailor......,

He was in the business of making men's suits. One day he found a very nice bolt of cloth locally, at a reasonable price, and he bought it. He had other bolts of cloth on hand, so this one went on a shelf.

A couple of years passed and then a customer came in. He liked the pattern and ordered a suit. The tailor made a nice profit. Other orders came in and soon the bolt was gone. The tailor began to shop for more cloth.

But, a not very funny thing happened. His supplies weren't there any more. When he went to look for another source, his government told him that he could not search locally. There were sources available in other countries, but there he had to compete with other tailors. The other countries gave preferential treatment to their tailors and charged him more then theirs. Worse still, their tailors were selling their finished clothes in his market.

The final insult came when his own government decided that he made too much money on the suit that he had sold, changed the rules, and charged him a windfall profits tax.
This is a fable of course......
But, we do all need clothes,
And gasoline.

Alternative energy would be nice to have, but you can't legislate technology or infrastructure, you have to grow it, and that takes time. [....and, an all electric car means that you are burning fossil fuel at a powerplant [[or using an atomic reactor if you want to go there.]] instead of on the road. With the losses involved it's actually much less efficent.] For now, and for the foreseeable future, we need oil. If we don't find it here, we have to buy it there, and they know both that we don't have any and that we are hungry.

In this last quarter, Exxon Mobil made record profits. So did Chevron. In both cases though it was entirely on the markup of previously discovered reserves - which now have to be replaced - and not on their refining and distribution. A year ago, they were making a profit of $28/55 gallon drum of oil refined. Right now that number is less then $6. Chevron did not have enough reserves to meet it's refining needs. They purchased crude in the open market. They took a loss of over $700,000,000. on their refining efforts in three months time. Exxon did make a profit, but it was $500,000,000. less then in the similar quarter from a year before.

Think about that.
Does your politician understand the economics of supply and demand?
Can he realistically reduce demand, and I do mean NOW?
If not, can he increase supply?
Idealistic words are nice, but concrete plans are what's needed.
For myself, I need a tank of gas.

I do vote, and will, and as do most Americans, I tend to let my wallet have a voice in the decision.

I saw a quote today, "They are promising chicken, but we'll be lucky to get feathers."

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