Quote:
Originally Posted by hotair2
Envy implies that I am unhappy that they have it and I don't. Not the case. IIt is simply an injustice that needs to be rectified. Oil companies have a monopoly. Monopolies stifle competition. Your anti-capitalism is showing.
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Oh?
Um, so what exactly was the UNOCAL Conglomerate?
Oh, that was just UNOCAL
and Amoco
and Chevron
and British Petroleum banding together to do what?
Bring more natural gas to the world market.
And why did they have to band together?
Because none of them individually had enough profits/Capital to do it alone.
I'm still waiting for you to explain where oil companies will get the money to bid on an exploration contract.
And then you can explain where they will get the money to for the royalty rights.
And then you can explain where they will get the money for the development rights.
And then you can explain where they will get the money for development, once they bid on the contract and get the right to develop.
Since you cannot explain it, I will. That money comes from profits.
You scream at oil companies that you want lower gasoline prices, and then when oil companies use their profits to acquire exploration rights, royalty rights, development rights and development capital to get more oil to lower the price fo gasoline you scream "Foul!"
And then you whine and cry about how processed foods taste so horrible, oil companies take profits and to research and development to find new chemicals to use for artificial colorings and artificial flavorings, and then you get made because they're making profits.
What do you think companies do with profits? They use it as a pool to attract additional investors and bring more money to the table so that the companies can reinvest their profits in their employees, and equipment and facilities, and develop, test and market new products, acquire a larger sales base etc etc etc.
By the way, Norwegian Statoil is a monopoly and it does just fine. Of course if Statoil wants to out-bid Chevron on an exploration contract, or a royalty contract or a development rights contract or development, then it just gets the freaking Government of Norway to pony up the money.
What does Chevron get?
One of the reasons US oil companies are dwindling, due mostly to mergers (like Chevron acquiring UNOCAL and British Petroleum acquiring Amoco) has to do with
1] US oil companies pay more in taxes than foreign oil companies
2] Foreign oil companies have limitless financial resources through their governments, while private US oil companies do not.
Marathon is another oil company that will "disappear" soon. Marathon's fields are depleting and they don't earn enough in profits to acquire new sources of oil.
You're a little weak on your business theory.
Justifiably...
Mircea