Under Questioning by Cantwell, Exxon CEO Estimates Oil Should Cost $60-70 Per Barrel

Lame ass speculators are inflating the price of oil to line their pockets. They should force people who are buying to take delivery of the oil. Lets see how long they speculate then.

On May 12, 2011, when questioned by U.S. Senator Maria Cantwell (D-WA) at a Senate Finance Committee hearing, Exxon Mobil Chairman and Chief Executive Officer Rex Tillerson said that oil should cost between $60 and $70 per barrel, if the price of oil were based on supply and demand fundamentals. Oil was trading at $98 per barrel on Thursday morning, after inexplicitly plunging 5.5 percent yesterday.

I dont know how this thread did not get more attention, but I also found they admitted the average cost of oil production was $11/ barrel

- The average cost of producing 1 barrel of oil was $11; the average price of the oil in the marketplace: $72 -- some 6.5 times the cost of getting the oil out of the ground.

link

reply to post by kaleshchand


$11 a barrel? i dont about that, but it probably isnt that far off IMO.

During the BP spill here in NOLA, reports came out that BP was doing 2 billion in profit monthly...24 Bill a year in profit.

I do know they spend a ton of money during the drilling the process, but at 2 bill a month, it probably doesnt cost much more than 20 bucks to produce a barrel, an honest mark up of 200% and they are making 40 bucks a barrel in profit. Multiply that times what, 100,000 barrels daily the US uses and i dont know how they are not making a ton of money and speculators are laughing all the way to the bank.

There also is not a bottle of wine made in the WORLD that costs more than 5 dollars to make, but if you try to get your hands on a bottle of Robert mondavi select, you will upwards to 200 dollars for it.