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High oil prices. would you consider the situation similar to war profiteering?
Asked by: Briquetaverne
from Paris, France
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Reasonable profits are never a problem in a capitalistic system, however when windfall profits create economic havoc worldwide and show no signs of ever returning to normalcy, is it time to consider seizing control over those who are putting the world in danger of economic collapse?
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No, because the oil companies are making the same margins in percentage as they did when prices were lower. If they were gouging the margins would be higher. Remember, they are going to have to spend much more money to get more oil as it becomes more expensive to get the remaining oil in the wells. Thus, the oil companies need more money for operations.
Source: extensive reading on oil
Answer Date: 02:17am 08/17/08
Best Answer Comments from Asker: Briquetaverne
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I agree in part with you but the objectives back in 1988 were that instead of looking for more oil wells to exploit, the oil companies were charged with creating "New Energy" for a new evolving world. They have done very little in that direction as it would mean closure for their domain. |
