America - A Stupid Period

A friend of mine from China asked me if America's strategy was to save their off-shore oil while they consumed the oil from the rest world -- presumably until oil got really expensive, like $1000 a barrel. Well, if we are that smart, it is a well kept secret. On the outside, we are going through a stupid spell in America.

We want to blame everyone for high oil prices. Blame is something that people do when they don't want to deal with reality. Guess what percentage of the oil in the world is controlled by private oil companies like Exxon. Hint, 10%. Of course, our friends in the Middle East, Russia, Kazakastan, Venezula, Mexico, Norway, and Canada, etc. control the rest. Guess what, we are short on friends on this list, especially the ones that really have any real oil reserves left.

Does that mean Exxon et al are dealing with reality better than America in general. Yea, they are trying to make a buck, two ways: one by being the most efficient oil company on the planet, and two by cannibalizing themselves (stock repurchases). Of course, somehow this comes out as greed when their profits for this success is viewed by Americans, especially politicians like Old man McCain, promise everything-Obama, and witch Hillary.

But, Exxon has a blind spot, too. They have been the best at "oil technology." But, the "oil age" is ending. Exxon dreams of the U.S. opening off-shore and national park drilling and her glory days returning. Ain't going to happen soon enough or fast enough for the glory days to return. Meanwhile, Exxon waits eating itself more of itself every year. There is an alternative -- one that Exxon and America have not chosen.

If Exxon could figure out where the future Energy was coming from instead of moaning about the good old days, they could start spending their money to go there now. Is that the best use of their money from an MBA, maximize the dollars viewpoint. Nope. What they are doing, is the best route for now. But if Exxon, and to a lesser extent, America is to have a tomorrow, we must answer where our next breakfast of Energy is going to come from ...