posted on May, 3 2006 @ 09:39 PM
I really don't know how this actually works...
i heard on the news today that Exxon is producing bbls of "domestic oil"
at $18.00 on the spot market...
i guess thats what the free market(whatever that means) is paying for the tax-advantaged and subsidized oil extracted from American soil reserves.
the OPEC cartel charges $72.00 plus for their same bbl of 'Arabian Sweet Crude'
which means that Exxon, & every other domestic producer is in effect,
buying their own product(oil) at $18.oo then selling the refined product to fellow Americans/Domestic Consumers, at the equivelent of the OPEC cartel
price of $72.oo or whatever....
i think that's whats happening, & the resulting outrageous profits realised by the domestic oil producers!!!
i also think the path of oil related price, tax consessions, exemptions, exploratory deductions, depreciations, capital expenditures, venture
intrests, holdings to offset retirements & pensions....
are so convoluted that the thought of re-vamping the present system is unthinkable!!