John Steck wrote:
$36.13 billion total profit for 2005, highest of all time.... second
highest of all time? Exxon again with $25.3 billion in 2004.
Kenneth Deffeyes pointed out that part of the reason oil companies
are making record profits is because they are not investing in new
refineries, tankers and other capital equipment. They are not
investing because they know there is no more oil in the ground, so
there is no point to expanding production capacity. In fact, in 20
years they will not even need present capacity. In other words, they
are dismantling their own industry by attrition. Why build a new
sawmill when you are on the verge of cutting down the last tree?
When a company is in the midst of liquidating its assets, it has a
lot of cash on hand, but that is not a sign of good corporate health.
In my book, I predicted they would dismantle by attrition after cold
fusion makes it obvious will soon go out of business. I did not
realize they already knew their days are numbered. I thought they
were ignoring Deffeyes.
If they had any sense they would be investing in other energy
sources, such as wind and cold fusion, but companies on the verge of
extinction seldom have any sense. They are doing and says exactly
what I would expect, based on the history of other companies in their
predicament. See:
http://blog.wired.com/cars/
ExxonMobil's Future Lacks Alternatives
ExxonMobil also has no interest in solar or wind energy. [ExxonMobile
statement:]
"In our view, current renewable technologies do not offer near-term
promise for profitable investment relative to attractive
opportunities that we see in our core business. Therefore, we have
chosen not to pursue investments in renewable energy options."
Translation: We have no clue what to do with our money. We cannot
imagine a future without oil, even though we see it is coming. We do
not want to think about anything beyond 'short term' next-quarter strategies.
The only conspiracy I see here is a silent and unconscious conspiracy
by oil companies to destroy themselves.
- Jed
