Talkin' trash to the garbage around me.

25 October, 2007

Reading between the lines

In a WaPo article in which oil experts speculate that an attack on Iran is unlikely because of the turmoil it would cause in the oil markets (like that scenario stopped the last few wars), this little snippet caught my eye:
"Certainly when you lose 2.5 million barrels a day of Iranian production, which is the most likely case scenario, that will literally just make the market go berserk," al-Awadi said. Asked whether the companies he worked with had contingency plans, he said, "The oil industry does not have contingency plans. We are not military people."

The senior executive from the European oil company said that his firm does not have contingency plans, either. "You come to a point where you say it's indefinable," he said. "You sit around and ask, 'What would we as a company do differently?' The answer is nothing. You deal with it at the time."

Given that the demand for oil is famously inelastic, am I wrong for reading those comments as "Contingency plans? It's you sorry fuckers who are going to need a contingency plan! When all hell breaks loose, we plan on locking the gates, pouring the margaritas, kicking back with our feet on the desk, and watching those petro-profits roll on in!"

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