Saturday, May 1, 2010

Gulf Oil Rig Disaster Will Reap Windfall Profits

Now it is unlikely that BP will be able to turn this horrible disaster to their advantage but you can bet your bottom dollar the other oil companies do. The reality is that this spill is right in the heart of America’s oil region. The slick and its cleanup and containment will create some delays in shipping oil into the Gulf refineries. This will create a delay and possible shortfall in gasoline production just as the summer driving season begins.

This very real problem will soon be portrayed as a huge one. The oil companies will complain about the Herculean efforts that are required to get raw oil into their refineries. They will explain how nobly they are trying to keep production up. But they just cannot. So the only thing left to do is raise prices. Otherwise profits may fall and that is not ever allowed no matter how much fault lies with the oil companies. Profit is sacred – employee salaries can fall and prices can rise but holy profit must ever increase. Gosh darn it we are sorry but it’s not our fault.

Well I could explain more – but gee we have all been through this drill before. So get ready for a big spike in gasoline prices. Oh and if by chance the crisis in the gulf gets resolved – they will certainly need to patch up some infrastructure and close a few pipelines here and there. Oh yes, this is going to put them price back up to $4.00 a gallon before it is over. Hide and watch as the great American meltdown reaches into your back pocket again.

No comments:

Post a Comment