Bail Out the Oil Companies Next?

[Tom Paine 1949]

Extended unemployment for laid off oil workers is appropriate. The new West Texas oil industry will return only when the price rises substantially to make credit-fueled fracking profitable once again. It could be years, or never.

The main oil companies going bankrupt (not speaking about speculative traders — screw them) are the thousands of artificially propped up small companies whose high production cost made them impossibly non-competitive. Ditto the U.S. oil export LNG industry. Without our armies and proxies in the Middle East destroying Libya and Iraq, our sanctions stopping oil production in Iran, the chaos in and sanctions on Venezuela, our pressure on allies (Germany and Nordstream2), the oil glut would have been obvious years ago. The safety net of U.S. “oil independence” step-by-step transformed into an actual motivation for imperialist trade war, not to get oil resources, but to restrict others from getting them. Watch for conflict between the U.S. and even our long-term despicable Saudi allies.

Trump can throw billions to big oil but it is money wasted on one of the most corrupt sectors of our military-industrial complex. He will probably introduce high tariffs, which will not be enough to save our small bankrupt oil companies, but will hurt consumers. The only real solution is another imperialist war shutting down the Persian Gulf and destroying production there. The ostensible target may be Iran, but the real targets will be Saudi Arabia and China.

Sounds grim. Of course, any attack on Iran will sure lay waste to the Saudi oil infrastructure. I rather believe that's the main reason why it will not happen. No one can be so mad as to start a war on behalf of a measly 150k oil workers, and risk crude prices going through the roof, with attendant consequences. Not even to deny the Chinese the crude. Nope, don't think so.

Hope you are right. But I've been predicting something like this for quite awhile, and of course there are many different actors, and "accidents happen." The Israelis want war. The Saudis learned their lesson and are backing off a bit in Yemen, but MBS is out of his mind. Also the Saudis are no longer the main player among Gulf Oil Kingdoms, are very fragile and economically overextended (even before the price war with Russia). Other powerful Kingdoms vary in their "political and religious views" from pro-Sufi "progressives" to pro-Muslim Brotherhood, really hate the Saudis, and would make better U.S. vassals. My own feeling is that Saudi butcher-dictator MBS's days are numbered.

P.S. Of course if somebody starts a war, it certainly won't be for U.S. workers. But rising oil prices saves U.S. oil as a whole, and gives the U.S. an opportunity to get its hands back directly on all the oil resources in the Gulf region. That means trillions over the long term and overwhelming leverage against China (and most everyone).

 

[KGB]

Nope just buy up all the excess to put in the Strategic National Reserve for pennies on the dollar...

 

[Tom Paine 1949]

Nope just buy up all the excess to put in the Strategic National Reserve for pennies on the dollar...

That will certainly happen. Actually, now they are considering treating the un-drilled oil and natural gas in the ground as part of the "Strategic National Reserve," so they can pay the companies that own the land for not drilling!

 

[Toddsterpatriot]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

This is very disturbing thinking.

Stop subsidzing them and let them fail if you're such a fan of pure Capitalism.

Oil is heavily taxed, not subsidized.

 

[westwall]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

Die commie die.

Ok, let the oil industry die then.

You do realize it is just brokers who got hammered...right?

The oil industry is doing fine.

Great, let's stop subsidizing them and get back to Capitalism.

We don't subsidize them dumbass. They get the normal equipment depreciation that every other company gets.

If those were taken away, the price of gas would go up, but that is all. If you take the subsidies away from your so called green companies, they all collapse immediately.

 

[Olde Europe]

Hope you are right. But I've been predicting something like this for quite awhile, and of course there are many different actors, and "accidents happen." The Israelis want war. The Saudis learned their lesson and are backing off a bit in Yemen, but MBS is out of his mind. Also the Saudis are no longer the main player among Gulf Oil Kingdoms, are very fragile and economically overextended (even before the price war with Russia). Other powerful Kingdoms vary in their "political and religious views" from pro-Sufi "progressives" to pro-Muslim Brotherhood, really hate the Saudis, and would make better U.S. vassals. My own feeling is that Saudi butcher-dictator MBS's days are numbered.

P.S. Of course if somebody starts a war, it certainly won't be for U.S. workers. But rising oil prices saves U.S. oil as a whole, and gives the U.S. an opportunity to get its hands back directly on all the oil resources in the Gulf region. That means trillions over the long term and overwhelming leverage against China (and most everyone).

Of course, the neo-connery had its sights on Iran since 1979, and, on the occasion of the invasion of Iraq they coined the phrase, "Real men go to Tehran." Thank the powers-that-be Bush's Iraq quagmire dashed their high hope. Trump had his "mistake" when he murdered Soleimani, but didn't use it to start that war. Israel is going to do what Washington tells them, unless they are truly, imminently threatened with extinction. MBS may be out of his mind and a case of narcissistic megalomania rivaling Trump's, but they seem to be amenable to U.S. influence. So, why change something that works, generally?

Whatever, all that doesn't really answer the question why an industry generating record profits and already heavily subsidized needs a taxpayer-funded bailout. That repugnant fracking industry should just plug their holes, and send folks home, and/or go through some form of bankruptcy. I really couldn't care less.

 

[HappyJoy]

Plenty of ways the fossil fuel industry gets away with not paying taxes through subsidies. .

Friendly policies keep US oil and coal afloat far more than we thought

Most energy subsidies go not to renewables but to producing more of the dirty stuff.

www.vox.com

 

[Crepitus]

Im against a govt bailout to oil and I work for one of the big three. Occidental owns anadarko now, btw.

I disagree. We should bailout the oil companies as long as we ban exports and imports with Canada being exempt. BUT, before we do, we need to bail out small business that meets the size standards.

• 
  
• Be a for-profit business of any legal structure
• 
  
• Be independently owned and operated
• 
  
• Not be nationally dominant in its field
• 
  
• Be physically located and operate in the U.S. or its territories

I disagree. No bailouts for large corporations. The small businesses across america and people who are laid off need help. I agree with a couple of your items.

So it would be better that they get wiped out (if it happens), all their employees laid off, their stock worthless (eliminating much value in people's 401k's and IRA's) and their assets bought by the highest bidder (which might be a foreign entity)?

We are going to need gasoline and fuel oil once the lockdown is lifted, and these companies have to be there. I doubt they will need a bailout, because they are used to wild fluctuations in their sales and their overall market.

Nationalize them.

 

[Toddsterpatriot]

Plenty of ways the fossil fuel industry gets away with not paying taxes through subsidies. .

View attachment 326329

Friendly policies keep US oil and coal afloat far more than we thought

Most energy subsidies go not to renewables but to producing more of the dirty stuff.

www.vox.com

Thanks for the chart.....but where are the subsidies?

 

[martybegan]

Im against a govt bailout to oil and I work for one of the big three. Occidental owns anadarko now, btw.

I disagree. We should bailout the oil companies as long as we ban exports and imports with Canada being exempt. BUT, before we do, we need to bail out small business that meets the size standards.

• 
  
• Be a for-profit business of any legal structure
• 
  
• Be independently owned and operated
• 
  
• Not be nationally dominant in its field
• 
  
• Be physically located and operate in the U.S. or its territories

I disagree. No bailouts for large corporations. The small businesses across america and people who are laid off need help. I agree with a couple of your items.

So it would be better that they get wiped out (if it happens), all their employees laid off, their stock worthless (eliminating much value in people's 401k's and IRA's) and their assets bought by the highest bidder (which might be a foreign entity)?

We are going to need gasoline and fuel oil once the lockdown is lifted, and these companies have to be there. I doubt they will need a bailout, because they are used to wild fluctuations in their sales and their overall market.

Nationalize them.

No.

Commies are gonna commie.

 

[LordBrownTrout]

Im against a govt bailout to oil and I work for one of the big three. Occidental owns anadarko now, btw.

I disagree. We should bailout the oil companies as long as we ban exports and imports with Canada being exempt. BUT, before we do, we need to bail out small business that meets the size standards.

• 
  
• Be a for-profit business of any legal structure
• 
  
• Be independently owned and operated
• 
  
• Not be nationally dominant in its field
• 
  
• Be physically located and operate in the U.S. or its territories

I disagree. No bailouts for large corporations. The small businesses across america and people who are laid off need help. I agree with a couple of your items.

So it would be better that they get wiped out (if it happens), all their employees laid off, their stock worthless (eliminating much value in people's 401k's and IRA's) and their assets bought by the highest bidder (which might be a foreign entity)?

We are going to need gasoline and fuel oil once the lockdown is lifted, and these companies have to be there. I doubt they will need a bailout, because they are used to wild fluctuations in their sales and their overall market.

I definitely don't want them to get wiped out. I've just always been against bailouts.

 

[OnePercenter]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

Die commie die.

Threatening the First Lady and her family will get jailed.

 

[martybegan]

Im against a govt bailout to oil and I work for one of the big three. Occidental owns anadarko now, btw.

I disagree. We should bailout the oil companies as long as we ban exports and imports with Canada being exempt. BUT, before we do, we need to bail out small business that meets the size standards.

• 
  
• Be a for-profit business of any legal structure
• 
  
• Be independently owned and operated
• 
  
• Not be nationally dominant in its field
• 
  
• Be physically located and operate in the U.S. or its territories

I disagree. No bailouts for large corporations. The small businesses across america and people who are laid off need help. I agree with a couple of your items.

So it would be better that they get wiped out (if it happens), all their employees laid off, their stock worthless (eliminating much value in people's 401k's and IRA's) and their assets bought by the highest bidder (which might be a foreign entity)?

We are going to need gasoline and fuel oil once the lockdown is lifted, and these companies have to be there. I doubt they will need a bailout, because they are used to wild fluctuations in their sales and their overall market.

I definitely don't want them to get wiped out. I've just always been against bailouts.

I doubt they will need it, but letting the oil industry collapse for any reason would be a bad idea.

 

[OnePercenter]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

This is very disturbing thinking.

Stop subsidzing them and let them fail if you're such a fan of pure Capitalism.

The oil and gas industry in the US employees 10.3 MILLION Americans. Do you want an industry that employees that many AMERICANS to fail?

 

[martybegan]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

Die commie die.

Threatening the First Lady and her family will get jailed.

Who the fuck do you think you are?

 

[OnePercenter]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

Die commie die.

Threatening the First Lady and her family will get jailed.

Who the fuck do you think you are?

An American. You?

 

[Crepitus]

Im against a govt bailout to oil and I work for one of the big three. Occidental owns anadarko now, btw.

I disagree. We should bailout the oil companies as long as we ban exports and imports with Canada being exempt. BUT, before we do, we need to bail out small business that meets the size standards.

• 
  
• Be a for-profit business of any legal structure
• 
  
• Be independently owned and operated
• 
  
• Not be nationally dominant in its field
• 
  
• Be physically located and operate in the U.S. or its territories

I disagree. No bailouts for large corporations. The small businesses across america and people who are laid off need help. I agree with a couple of your items.

So it would be better that they get wiped out (if it happens), all their employees laid off, their stock worthless (eliminating much value in people's 401k's and IRA's) and their assets bought by the highest bidder (which might be a foreign entity)?

We are going to need gasoline and fuel oil once the lockdown is lifted, and these companies have to be there. I doubt they will need a bailout, because they are used to wild fluctuations in their sales and their overall market.

Nationalize them.

No.

Commies are gonna commie.

Why should they be allowed to get rich off of national resources?

Fuck em. Nationalize it.

 

[HappyJoy]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

This is very disturbing thinking.

Stop subsidzing them and let them fail if you're such a fan of pure Capitalism.

The oil and gas industry in the US employees 10.3 MILLION Americans. Do you want an industry that employees that many AMERICANS to fail?

No.

We need to phase them out.

As we get green energy sources online

If we even stand a chance of avoiding a catastrophe a million times worse than COVID

Take the profit motive out of polluting the earth.

Nationalize it.

 

[Toddsterpatriot]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

This is very disturbing thinking.

Stop subsidzing them and let them fail if you're such a fan of pure Capitalism.

The oil and gas industry in the US employees 10.3 MILLION Americans. Do you want an industry that employees that many AMERICANS to fail?

No.

We need to phase them out.

As we get green energy sources online

If we even stand a chance of avoiding a catastrophe a million times worse than COVID

Take the profit motive out of polluting the earth.

Nationalize it.

We need to be more like India.
We can burn dried dung to power our economy.

No pollution, or profit, in sight.

 

[HappyJoy]

Let them go bankrupt, then nationalize them, then scale them down as we transition to green energy.

This is very disturbing thinking.

Stop subsidzing them and let them fail if you're such a fan of pure Capitalism.

The oil and gas industry in the US employees 10.3 MILLION Americans. Do you want an industry that employees that many AMERICANS to fail?

No.

We need to phase them out.

As we get green energy sources online

If we even stand a chance of avoiding a catastrophe a million times worse than COVID

Take the profit motive out of polluting the earth.

Nationalize it.

We need to be more like India.
We can burn dried dung to power our economy.

No pollution, or profit, in sight.

Then move there.