Wednesday, August 09, 2006

Cost-cutting Will Cost

Cost-cutting will cost you in the long run.
Cost-cutting will cost us in the interim.

In an astronomical clusterfuck, BP-Amoco has let cost-cutting burn them, as their stingecy on anti-corrosion additives to their Alaska pipeline has led to the breakdown of the pipeline, an oil spill, and now even higher prices at the pump.

So, while we wait for PETA and other environmentalist to take the oil industry out by the woodshed, I'd like to get back on my soapbox and rally some support for ideas with which we can grap our torches and pitchforks and chop up whatever the tree-huggers leave behind.

The Government
It is time for the government to get off their asses and take some action. George, fuck your buddies, if you want the Republicans to retain control of the Hill, you better do something-- because I have a feeling I can take this soapbox, use the platform of my energy plan, run as a Democrat in Nebraska (even though I'm an Independant) and still find myself in D.C. after November.

First of all, STOP PISSING OFF THE WORLD. When you fuck with the Arabs, they fuck with us by jacking up the price of crude. Right now they've got us by the balls, and suffice it to say their grip is tight enough to make testicle wine if they choose. Perhaps if we were nicer to them-- oh I don't know, not interjecting in matters that aren't ours-- they'd be a little more willing to work with us. Don't pick fights with Iran, Iraq, Afghanistan, or any of their allies. It might be tough, but it also means we need to stay out of the conflict between Israel and Lebannon-- getting invovled will only make more people mad. Israel will understand, they've taken the fight into their own hands.

Second, the government needs to invest subsidies more wisely. Why is the government putting $2.6-billion into businesses who are averaging over $5-billion in profits? There is absolutely no reason to be pumping money into a corporation that doesn't need it. I don't care if they are your friends, George-- you tactics, like you are nothing more than a crock of shit.
And then there are the airlines. George and his cronies have pumped over $3-billion into the national airlines. I agree with this to some extent. The airlines have taken a major hit since 2001, they need the money... but why are the railroads going without? Railroads (specifically commuter-passenger services) are an very attractive option as alternate transportation, except that Reagan, Bush I, Clinton, and Bush II have left them for dead. The airlines get $3-billion... and our primary destination carrier, which happens to be government-owned and operated has a working budget of $100-million. You can see the problem. Instead of looking for solutions, we are just throwing money at the problem, hoping the ship will right itself. In the words of Bush I: "Not gonna do it."

The Oil Companies
This is what blows my mind. BP took cost-cutting measures in Alaska, which led to the recent problems with the pipelines. So, you'd think the oil companies are hurting, right? But I just said they're averaging over $5-billion in profits (BP's actual figure was $5.59-billion)-- so, where is the money going? Why are we not seeing a return on our investments?
I wouldn't mind paying $3 per gallon at the pumps if the producers were struggling to stay afloat. But that simply is not the case. ConocoPhillips reports that they make a $0.10 per GALLON profit. Considering the mass quantities in which they sell petro to us, dropping the profit per gallon wouldn't kill them. And think about it... the first company to drop gas prices, is going to see a run on their business, and would see the highest profits of the group. Seriously, first one to blink wins.

But here is where they are bitch-slapping us. They claim they have to raise prices to keep up with the prices overseas. Not so. At least a quarter of their off-shore drilling units are currently out of service. FIX THEM. You can find more product for us, and lessen our need for foreign oil. Also, a third of the oil refineries in the United States are out of commission (not to mention another quarter are committed to producing Ethanol). FIX THEM. You have $5-billion you don't know what to do with... invest in your own operations. Spend the moeny to fix the infrastructure, which will in turn allow you to produce more product, and bring in more revenue. It's that simple.

We need to let the government and the oil barons know that we are fed up, and that we won't stand for cost-cutting measures among companies turning record profits. We also need to make it known that the ineptness of our government is known and needs to be corrected. Domestic issues before foreign-- how can we solve the world's problems when we can't even solve our own?

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