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My family has a little perspective on this. My grandfather built a fairly successful small domestic oil production company. They were doing quite well until Jimmy Carter (complete idiot, probably the worst President of the 20th century after Harding) got a tax passed which taxed oil pumped at the well head -- essentially forcing small companies out of business and forcing refineries to buy cheaper oil from overseas.
We had to sell the company due to that tax.
The fact is that the oil business is cyclical. Eventually, production will catch up with supply and we'll start to see some pretty major surpluses. Or perhaps people will start to notice the fact that the situation in Iraq is pretty well in-hand right now. In either event, the market will correct itself.
Most of the revenue the oil companies have been realizing is being pumped right back into more production, R&D and things of that nature. I'm seeing really good returns right now on all of my energy-based investments, but I know it won't last.
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SN -SINCE 1869-
"EXCELLING WITH HONOR"
S N E T T
Mu Tau 5, Central Oklahoma
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