Thursday, June 26, 2008

There Is No Private "Big Oil"

“The trouble with our liberal friends is not that they’re ignorant: It’s just that they know so much that isn’t so.” - Ronald Reagan
When I hear the left's arguments about energy prices I'm reminded of the above quote. So much that they know just isn't so. That's not a knock on Democrats alone as there are lots of Republicans that fit that quote as well. I can think of one, the GOP standard bearer as a matter of fact, who has railed about "big oil" and "excess profits" just like his Democrat pals. The above graphic shows just how off base that thinking is. There is no such thing as "Big Oil" in terms of private enterprise and its control of crude oil reserves. Every minute and dollar spent attacking our domestic integrated oil industry is time and money taken away from productive enterprise.
In tangentially related news... GM stock closed at $12.81 last night. As recently as October 12, 2007 it hit $43.20. This morning it gapped down at the open to a level not touched since 1955.
Ford closed at $5.22/ share last night. It too hit its recent high on October 12, 2007: $9.24.
Like GM, Ford gapped down at the open.
Bad policy, whether driven by big government or big labor, is a destructive force. And I'm not talking about creative destruction.
The above visual comes from today's Investors Business Daily. For active traders IBD is the single indispensable tool. As an added benefit the IBD Issues & Insights pages are excellent. Even IBD non subscribers can read most of Issues and Insights here.