Peak Oil Revisited....Back with More Graphs!!! | 8 comments (8 topical, 0 hidden)
Hate to say this (none / 0)

But at the risk of causing mass anuerisms or the nubification of troll fingers I am starting to think we should nationalize the oil industry.  If all this is true and it is as vital to our country as we all think it is just too damn important for the outcome to be "LARGEST PROFITS IN HISTORY!!!"

I say this with all due solemnity.  My grandfather was an accomplished Exxon pipeline engineer and much of my family's wealth is tied up in Exxon.  Just a reaction I start to have when I get scared by the future of oil. 

by ProfRich on 03/31/2008 12:14:56 AM EST

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Diversify (none / 0)
If as you say much of your families wealth is in exxon I would consider some diversification.  Exxon will do well, but as you said eventually angry americans who are sick of $4, 5, 6 gas will come for their head (and their profits) even though they have nothing to do with the problem.  These types of actions of course are counter productive as they reduce the money avaliable for reinvestment into energy infrastructure. 

The other problem with Exxon, Shell, Bp, Chevron..ect. is that they are now way too big to replace their reserves.  They can't be bothered to go after the small bits of oil that remain so they are in effect in the process of liquidating their asset base.  You are much better off investing in mid-ter exploration/produciton companies that can capitalize on the smaller average size of discoveries. 

by alphasigmookie on 03/31/2008 02:04:58 PM EST

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Sadly not a choice (none / 0)
Exxon bonused my grandfather in stock for decades.  Now he has millions in Exxon stock and has zero interest in owning anything else.  They gave it to him and he won't touch it.  He is a (great) old man and set in his ways.  So, while I completely agree with you, I have no choice here.

by ProfRich on 03/31/2008 04:44:16 PM EST

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Taxes (none / 0)
Gotcha...however he may also want to keep an eye on tax policies if the democrats take office.  Current long term capital gains are only 15% but may raise if Obama or Hillary roll back the Bush tax cuts.  Could cost you (your family) hundreds of thousands of dollars in inheritance. 

by alphasigmookie on 03/31/2008 05:37:04 PM EST

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Yep (none / 0)
On one side I have a grandmother who is obsessed with avoiding the inheritance tax and maximizing what she leaves and on the other I have a grandfather who is unwilling to do anything.  That is the way it is.  But then again none of it is mine so I can't say anything.

by ProfRich on 03/31/2008 06:09:01 PM EST

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Peak Oil Revisited....Back with More Graphs!!! | 8 comments (8 topical, 0 hidden)