[sharpie]

Hey, I was wondering if I can recuit some help from you guys to deflate an ego. This is my first post, I've visited a few times before but I can only handle so much peak-oil before my hopes and dreams and concepts of security fall apart and I go crazy. But you folk all clearly know your stuff.

Anyways, I got into a discussion with a professor of mine about the "windfall profits" being made by oil companies. My point was cost is going up because availibility is becoming scarce and we'll be short of what we need in the future. I'm sure you all know when you first spring the whole peak oil thing on somebody, their first reaction is "What are your sources for this?"

His opinion (which he formed moments after hearing mine) is it's industry misinformation to spike profits and screw us out of our well deserved money at the gas tank.

I'm pretty well versed with all the theories. I just need some undeniably credible sources to shoot down his arguements. Like geological surveys, reports citing exspenses, and primary sources. (Not that I consider Matt Savinar crazy, but he reads like a doomer which isn't good to convert skeptics.)

Also, I vaugely remember seeing some hilarious chart from the government where the projected oil line goes up the chart into the future instead of down. Do any of you know what I'm talking about? Any other misinformation would help.

Thanks for the help.

(Also, sorry if this is in the wrong forum or was asked before. I really tried searching, but there's so much and I have a couple deadlines staring at me.)

[rockdoc123]

Probably the best relatively recent look at this can be found on the American Petroleum Institute website.
They did a comparison of company profit after expenses for various industries and noted that oil and gas companies get about 7 cents returned on a dollar invested compared to banks at 19.5 cents, pharm at 18.6 cents, software companies at 17 cents...etc.

second qtr comparison

[coyote]

Growing Gap

Growing Deficit

Dr. Albert Bartlett: Arithmetic, Population and Energy

House of Representatives Peak Oil Resolution

Countdown

Shaky source, but gets the concept of backdating across:

Backdating Reserve Discoveries

Dept. of Energy report:

Hirsch Report

Cheney Admits

Royal Swedish Academy of Sciences

Compare all that with what the IEA says:

IEA Future Production

The Imminent Peak of World Oil Production

If you need, I've got quite a few articles from mainstream news sources like CNN, AP, Reuters, etc.

[sharpie]

Brilliant, thanks guys.

Just remind him that crude oil is sold in an open international market and that prices are set by commodity future traders. Not oil companies.

The price you pay at the pump for refined gasoline is a different story and is a function of geography, distribution, regional markets and monopolies, etc. and the refinery that made the gasoline.

Do you have more about this? I don't really have a good grasp on how the industry functions.