High gas prices persist despite US oil boom

Originally posted by marg6043
reply to post by bjax9er

 

Sadly that is just an excuse for prices, the poor, poor oil barons are wealthy beyond believe while reaping the profits of oil consumption by the consumer they gouge.

Yes it cost money to get that oil and refine it, but guess what if they were losing money they would not be reaping insane profits for decades and getting richer. They are not losing a penny.

So no, the fallacy that they are spending so much on getting that oil doesn't match their increasing profits.

Beside they get no only tax incentives and deductions but they do not give it back to the consumer either, they keep it as profits.

no it's fact.
elementary economics.

again, oil companies don't exist to produce cheap affordable products for you.
the don't exist to pay taxes.
they exist to make MONEY!
AKA PROFITS.

oohhhh quit whining! If you lived in europe you'd have a stroke everytime you'd have to fill your tank

lucky lucky americans... I wish I had your overpriced gas over here

reply to post by bjax9er


And that is my point, they are making their money and they are not taking any loses.

BTW Venezuela is US 4th in the list of exporters to the US and Iraq is number 6.

So they are on the top 10,

Even 4 dollars per gallon would be extremely cheap compared to most of the Europe. Most of the countries pay over 6 dollars per gallon.

reply to post by FraternitasSaturni


US is an oil producing nation big difference from those nations that rent the rights to explore and drill from US in the gulf and Alaska.

Originally posted by marg6043
reply to post by FraternitasSaturni

 

US is an oil producing nation big difference from those nations that rent the rights to explore and drill from US in the gulf and Alaska.

You know... one day, us silly humans, will think above those stupid man-made things such as "borders" and "nations" and will finally realize that the planet's natural resources are for the benefit of those who inhabit the planet, and shall be used for cooperation, prosperity and development of an entire species.

reply to post by marg6043


so you want them to produce oil, at a loss?
whats the point?


or do you just want them to pay their marxist fair share?

People look at mega-giants like Exxon and complain about "record profits", but they are failing to keep perspective and think rather fluidly.

First off, it's not your average corporation. Yes, they are making billions, but what percentage of their cashflow is actual profits? BigOil makes a very low percentage profit, compared to practically all other industries.

Not only this, but you have to realize that Peak Cheap Oil makes the EROEI lower as the years pass. We must use shttier sources for the production of the fuel, put in more resources for discovery, put in R & D to even make these new discoveries, realize that the finds are lesser in size (and quality) than in past decades, AND deal with fluctuations in the price of the barrel in face of wild economic changes, speculation and a ton of other factors combined.

So they must have a buffer to keep their selves from going bankrupt, and keep the globe adequately supplied with oil. Without it flowing as well as it does right now, tensions rise, people complain, politicians get desperate, and militaries activate.

Our cost at the pump is cheaper than most other countries. We should actually be thankful for the position we're in.

I keep hearing that Europe has higher gas prices.

While that is true, they also have a very good rail system and bus system pratically all over the place that is very cheap.

I would gladly pay European gas prices if we had their public transportation.

On topic. Obama did say during the town hall debate with Romney that gas prices are high because of how well the economy is doing.

I shutter to think what we will be paying when the economy actually starts to do well.

We mankind MUST NEVER, never make the mistakes of the past.

When oil was discovered, it was cheap as it was believed to be in abundance. Then came along the middle east vast oilfields and inflation as there was as much oil as cash was awashed in new industrialized nations.

When oil died down, with knowledge and fears that oil MAY not last forever, and the lie of PEAK oil, production slowed. Then politics came into play, thanks to the new Iranian mullah who cunningly realised oil can be weapon, prices shot to the roof, and then our world became dependent on middle east oil, at their beck and call.

UNFORTUNATELY, the middle eastern states only SQUANDERED such blessings. They used it to pay off its citizens, but spent most on themselves, their self glorification agendas and their retention on power.

A nation CANNOT depend on oil as its economic wealth, for oil will not be forever. It is only a mineral resource. The GREATEST RESOURCE on planet Earth is HUMANS, NOT resources with may end.

It is humans, whom if taught and educated, will be the ones to properly manage and husband such resources to its fullest potential, as well as to identify other areas for diversification of the economy, for when educated, he knows the truths of sustainability of resources, competition and evolution in science and tech of mankind.

Unfortunately, the rich shieks of the middle east failed to comprehend the need for all rounded education, equality, etc - needs for a civilisation to progress. They stagnated, while the rest of the world progressed and expended into new science and tech to meet energy needs, such as solar, fracking, etc.

Hugo Chavez was a fool, and Putin another, whom had not learnt the lessons of the past and the limited wealth that oil can bring. Despite Venuezela's oil wealth, it only ended up Hugo's mismanagement with debts, for he spent and misused the oil, demagoguerically bribing the foolish citizens with cheap oil for their support to stay in power. As a result, its economy floundered, and will fail, for NO diversification of meaningful use of its oil wealth to empower and uplift his citizens.

America MUST NOT fall into the same trap just because it discovered new blessings. It only needs to sell gas at market rates, following HONEST market forces and not manipulated ones. Many more nations are discovering oil and gas wealth today, at negligible new technology driven low costs, and energy costs will only go on downward trends as the market will only become competitive.

As our population expands, so too needs, and eventually, inflation. We only need to use our naturally gifted intelligence to find ways, out of the box, to meet those needs to leave none behind. Science, tech and resource management will be the critical skills for mankind's evolution next step, not wars or personal greed self induced wars for resources.

2) It takes about a year and a half for a modern Bakken oil well to pay for itself. The well cost $9.5 million.
That means no profit until then.
3) They pay severance taxes, state taxes and federal taxes.
4) They do not get free oil from federal lands...they lease.

Do a little research yourself. How much money is North Dakota making off these oil companies?
Also, find out what the price point is for Saudi oil. What they need as a minimum to fund the social programs promised to their people. Oil is a global commodity. Why would anyone sell it for $10 a barrel when there are people buying and selling it for $100? Would you sell your home for anything much less than "market value"?

But if I had one real solid piece of advice for anyone that didn't want to come off as knowing next to nothing about this topic.....it would be.........stop thinking that a barrel of oil is a barrel of gasoline.....that the price of oil has a 1:1 ration with gasoline......

It is like thinking that because the cost of the materials to build a Lamborghini is a certain price, you can say how much the car should or does cost.

reply to post by CommanderCraCra

First off, it's not your average corporation. Yes, they are making billions, but what percentage of their cashflow is actual profits? BigOil makes a very low percentage profit, compared to practically all other industries.

When you are making so much money you can buy governments then something is wrong.

I was reading an article at: oil-price.net...
which goes into some reasons for the prices of oil to rise and fall.

I know it seems sort of obviose, but among the reasons for the price of oil to fall was given as:

Lesser energy consumption by private companies dependent on US Government spending. With money earmarked for these companies drying up, many of their projects will slow down leading to lesser energy consumption. Of course, it would have been preferable to have companies that use less energy without the enforced 'sequester' doing the trick, but as things stand this is how economy moves in the world dictated by oil. From a tangential point, remember: the United States is the world's largest consumer of oil.

Of course, the reasons for a price increase included:

Oil companies get a lion's share of Federal energy subsidies. In fact, it's hard to give oil companies more subsidies than they already get, either directly or through preferencial fiscal imposition. There's a silver lining to this: partly thanks to government subsidies, US consumers have enjoyed the lowest gas prices in the western world for decades. European consumers often pay twice as much as US consumers for the same gallon of gasoline. So as you've guessed, these subsidies will only go down. In order to secure the same profits, oil companies will have to increase prices. If the company is involved in the extraction then this increase will affect oil prices. If the company is involved in the distribution then this will rather influence gas prices instead.

Take a little time to read this article and it may help explain some points which are not widely understood. many of them I had not even thought about.

Originally posted by Becoming
I keep hearing that Europe has higher gas prices.

While that is true, they also have a very good rail system and bus system pratically all over the place that is very cheap.

I would gladly pay European gas prices if we had their public transportation.

On topic. Obama did say during the town hall debate with Romney that gas prices are high because of how well the economy is doing.

I shutter to think what we will be paying when the economy actually starts to do well.

It would be extremely hard to implement very strong public transportation in US, especially due to the "freedom"-mentality.

As far as I can see, then there would be a lot of people saying: " It is my freedom to choose, whether I drive a car or take the public transport and why should I pay my hard-earned taxes for public transport, if I do not use it?"

I remember when even bicycle roads got negative attention in the same form. "I do not drive a bicycle, why I must pay for making the roads, extra tax on bicycles?".

Idiotic mentality in my opinion. I do not say all Americans are like that, although many are.

reply to post by FraternitasSaturni


Yes, sadly that will be the dream Utopia but when you have private interest and a few elite controlling the earth resources border less nations are only for nations like US immigration of human resources, slavery in cheap labor.

reply to post by bjax9er


Is not lost in producing oil in the US, dear, Oil barons are reaping outrageous profits for decades.

Where have you been, you can pull out their profit chart anywhere in the net, along with all the tax dollars been give away for incentives that never are given back to the consumer.

all I know is it's obama's fault

j/k

big oil will never let the price go down

never

reply to post by CommanderCraCra


Here, here, the so call poor oil barons billions. Oil prices are controlled by the US markets speculators

3 Oil Companies Posting Massive Profits Again

Oil companies have a long history of making large profits and increasing revenue, and 2011 was no exception. Exxon-Mobil (XOM) is the world's largest company, after Wal-Mart (WMT). A look at Fortune magazine's top 100 companies in the U.S. will show you that three of the top four corporations are large cap integrated oil companies. The list is ranked by revenue, and lists Exxon as bringing in a total of over $354 billion in 2011. Exxon is ranked second, with Chevron (CVX) and ConocoPhillips (COP) in third and fourth. The 3rd and 4th runners up on the list have a combined revenue around $380 million, only about 7% more than their larger cousin Exxon

seekingalpha.com...

Big Oil's $38 billion defense

The first three months of the year were good to the oil industry -- although American drivers and their elected leaders are not offering congratulations.

This week, the world's six largest publicly traded oil companies reported a combined $38.1 billion in first-quarter profits. Of the so-called supermajors, only BP (BP)'s earnings declined from the year before.

money.cnn.com...

reply to post by syrinx high priest


Yes, Obama in 2011 tried to take away 4 billion of the about 14 billion a year in incentives and taxes but congress could no agree on that because after all this is the same money that goes back into their pockets in campaign money for most of the whores in congress.

you don't bite the hand that feeds your pocket book. The irony, we the tax payer paying incentives to big corporations like oil, big pharma and insurance crocks that makes its way into the pockets of the crocks in Washington as campaign donations, what a scam business.

reply to post by marg6043


There are fundamentals which must be speculated on, so the statement is only partially true.

The billions in profit are still a small percentage of operating capital.

Industrial civilization runs off petrol. It's no wonder they are the top companies.