Honey Harlotte
Jerkmate

Not left, not right, numbers about Iraq war

JFK

New member
Oct 16, 2002
133
0
0
It has been a lot of discussions about if the war was right or wrong and people calling each other names. Here is some numbers about the war and I let you decide what you think about it.

According to energi information administration (a goverment office, no left organisation):

"During 2003, the United States produced around 7.8 million barrels per day"

According to telegraph the price of oil before the talk of war could be described as follows:

"When he indicated on Wednesday that war in Iraq was all but inevitable, the oil price climbed 48 cents a barrel to $28.27, a third higher than at the beginning of the year. The $18 to $25 a barrel range is considered ideal."

If we consider that the production will be the same and take that the price would have been in the higher range of $25, and today price at $50(it is higher, today price is at $55) Then a simple math shows us the war is generating:

(50-25)*7.8mil=$195 million extra profit every day just in domestic production or $71,175,000,000 /year for oil companies.

even the energy department acknowledges this for 2004 report:

"Financial Performance

Twenty-four major U.S. energy companies reported overall net income (excluding unusual items) of $16.7 billion on revenues of $213 billion during the second quarter of 2004 (2Q04). This level of net income represented a 67% increase relative to the second quarter of 2003 (2Q03) (see EIA's "Financial News for Major Energy Companies "). Domestic upstream oil and natural gas production operations accounted for $6.3 billion of net income, with domestic refining and marketing operations also earning $6.3 billion. Foreign upstream oil and natural gas production operations accounted for $5.0 billion of net income, with foreign refining and marketing operations at $1.3 billion.

Independent oil and natural gas producers, oil field companies and refiner/marketers reported a sharp increase in net income (up 75%) during 2Q04 compared to 2Q03 (see EIA’s "Financial News for Independent Energy Companies"). This increase in net income was due primarily to large increases in the prices of natural gas and crude oil, and a rise in gross refining margins of 49% year-over-year. "

I don't think there is any need to quote any information about the relationship between Bush family and oil industry and I don't even say anything about the profit from weapon industry. Here are the numbers, draw your own conclusion.

Sources:

http://www.eia.doe.gov/emeu/cabs/usa.html

http://www.telegraph.co.uk/news/main.jhtml?xml=/news/2002/09/06/wirq506.xml
 

BC visitor

New member
May 2, 2004
235
0
0
Blue guy in red state
USD in toilet...

What impact does the fact that the USD is in the toilet and has lost what, a third of its value overseas since 2003 have on the price of oil?

I wonder what the change is in say, Euros?
 

JFK

New member
Oct 16, 2002
133
0
0
BC visitor said:
What impact does the fact that the USD is in the toilet and has lost what, a third of its value overseas since 2003 have on the price of oil?

I wonder what the change is in say, Euros?
The price of oil has been always in dollar but even if you considerin Euro, since the price increase has been 100% and decline toward Euro about 20%, you still end up with net profit of about 80% for oil compaines if they compare their wealth against international standards.

This has been probably one of the biggest transfer of wealth ever, to move about $70 billion /year (only from domestic production) from consurmer (people) pockets to the oil companies pockets.

On top of that, you must consider because of the war and decline of the dollar, the American workers in effect got 20% decrease in pay, which makes the labour cost lower for the industry and help them to sell their products.
If they just told the American workers that everybody was suppose to get 20% pay cut, would they accept it?