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My simple blog of pictures of travel, friends, activities and the Universe we live in.



Tuesday, September 17, 2013

Stupidity and corruption in America

I was thinking about how the US gives away all the oil that the people of America own. Yes give it away. If you have been following the oil industry or not, you may have heard of something called slant-drilling or directional drilling. Basically this means that instead of drilling straight down like the old days, they can drill a well in any direction and from one spot, they can drill out into many different areas.

Why is this important? The US government sells 'leases' to oil companies that give the right to drill and extract the oil from the federal lands (owned by American citizens). An oil company only needs to buy one lease (track) and drill there. They can from that one spot drain all the oil in the area. That is what they do in off-shore drilling. So for the small cost of one lease the oil company will get all the oil. What a deal for the company and what a rip off to Americans...

And the funny thing is that the average American will not do one thing to stop it. "We can't charge more for the oil lease because the gas price will go up" is the refrain from the corrupt politicians and the oil companies, as the make trillions in profit every year. This also show that the average American is too dumb to understand what profit means. Of course profit is, after you subtract all the cost of production, what is left is profit. So the cost of buying the lease, drilling the oil, transporting, paying the workers, exploration, refining, transporting the gas and selling the gas. After all of that you still make a trillion dollars, yet you complain that you need to have cheep leases and government subsidies to be profitable...

Really??? You see how stupid the average American is....

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