[DeTomaso] Kinda' NPC: Why does oil cost so much?

Charles McCall charlesmccall at gmail.com
Fri Jun 1 10:37:19 EDT 2012


You may be right, Gray, as I don't have any facts or numbers - I just
remember the news talking about the fact that the price at the pump
was at an all-time high, and Big Oil had record profits. I don't know
if they were talking about % or absolute profit.

People complain about it, and I admit that I'm the first to bitch
about the fact that filling up the Pantera costs me nearly $200 these
days, because they are constantly reminded of the cost. Every time you
fill up you are forced to think about the oil companies. You buy a new
Apple and it's a toy, you only think once "wow, that was $1000, which
was kind of a lot of money". But you fill up your car every week, and
every time you look at the pump and see a triple-digit bill it ticks
you off knowing that someone is making money on you. I think that is
probably partly human nature...

On 6/1/12, Gray Gregory <rgg at gregorycook.com> wrote:
> Charlie,
>
> Oil company profit margins have remained fairly stable at about + or + 10%.
> Don't fall victim to the media hype that only report the actual dollars of
> profit. I'll never understand why we applaud company's like apple when they
> make huge profits but when it's an oil company it's somehow a bad thing?
>
> Gray
>
> -----Original Message-----
> From: detomaso-bounces at realbig.com [mailto:detomaso-bounces at realbig.com] On
> Behalf Of Charles McCall
> Sent: Friday, June 01, 2012 3:14 AM
> To: shawkins777 at comcast.net
> Cc: Pantera List
> Subject: Re: [DeTomaso] Kinda' NPC: Why does oil cost so much?
>
> I've read other reports and heard that production costs continue to climb,
> which justifies the high cost of gas, but I don't remember the last year
> that Big Oil not only didn't lose money, but didn't have gazillion dollar,
> record profits.
>
> If price at the pump in the US was only in direct relation to the cost of
> production, profits would remain stable.  They don't, which means that this
> isn't the only reason for higher gas prices...
>
> On 6/1/12, shawkins777 at comcast.net <shawkins777 at comcast.net> wrote:
>>
>>
>> I would disagree, the market should set the price, if it cost more
>> than you want then don't buy it just like anything else.  But most
>> don't want to do that because it may be an inconvenience, let the high
>> price create the incentive for inovation of other forms of energy, not
>> the government because then they will try and use it to control you.
>>
>>
>>
>> Steve
>>
>>
>>
>> ----- Original Message -----
>>
>>
>> From: "michael at michaelshortt.com" <michaelsavga at gmail.com>
>> To: "Kirby Schrader" <kirby.schrader at gmail.com>
>> Cc: "Pantera List" <detomaso at realbig.com>
>> Sent: Thursday, May 31, 2012 2:23:48 PM
>> Subject: Re: [DeTomaso] Kinda' NPC: Why does oil cost so much?
>>
>> I agree with you in principle. I have always been fascinated with the
>> refining process and wondered how Gas could be sold cheaper than a
>> gallon of milk as it was for over 100 years.
>>
>> The real problem is that it is treated as a commodity, bought and sold
>> on paper, in futures, etc.
>>
>> The price of 1 gal of regular in 2002 was approx 1.35 Even as your own
>> chart shows, the 2002-2004 cost per barrel was anywhere from
>> 20-30.00
>>
>> yet, in 2009, when the price fell sharply, the retail price to
>> consumers did not follow back down to the corresponding retail levels
>> of around 1.50 per gallon.
>>
>> In my book, that's gouging, plain and simple.
>>
>> I eggs were a quarter and an egg sandwich cost a 1.00, I understand
>> that, if the price of an egg rises to .50, I could see the sandwich
>> costing 1.30, but when the eggs drops back drop to a ,25 and you're
>> still charging 1.30, you're gouging your customer.
>>
>> I eschew Socialism, Communism, Marxism, etc., but if ever there was a
>> product that needed to have a world council set a price point on the
>> wholesale and retail level, gas has to be at the top of the list.
>>
>> Set a cost for the product at every level and leave it alone, keep it
>> away from spectulators and wall street.
>>
>> So much of the hoopla and price fluctuations seemed to be based on
>> politics and not the cost of actually finding it, drilling, getting it
>> out and processed.
>>
>> Meanwhile, the worldwide "working man" is held hostage.
>>
>>
>> Michael Shortt
>>
>>
>>
>>
>>
>> On Thu, May 31, 2012 at 3:06 PM, Kirby Schrader
>> <kirby.schrader at gmail.com> wrote:
>>> Needless to say... I wondered whether I should really do this or not,
>>> but I'm throwing caution to the wind.
>>>
>>> I work in the oil industry. I have since 1974. I spent most of the
>>> time overseas.
>>>
>>> Many times, the price of gasoline and why it costs so much comes up
>>> on the list.
>>> When offshore drilling rigs cost $1,000,000 a day to run and when the
>>> easy to get oil is long gone and it's tough to find new reserves,
>>> it's easy for the people working in the industry to understand why.
>>>
>>> But there are other reasons.... Politics, too! Would you believe it?
>>>
>>> I feel this article sums up the current scenario very well from an
>>> investor point of view.
>>> You don't have to know anything about the oil business to understand.
>>>
>>> Thought some of you might appreciate it. Some won't.
>>>
>>> http://www.caseyresearch.com/cdd/big-oils-cost-revenue-tightrope
>>>
>>> Now, I will run quickly back into my hole....
>>>
>>> FWIW,
>>> Kirby
>>> _______________________________________________
>>>
>>> Detomaso Forum Managed by POCA
>>>
>>> Archive Search Engine Now Available at
>>> http://www.realbig.com/detomaso/
>>>
>>> DeTomaso mailing list
>>> DeTomaso at list.realbig.com
>>> http://list.realbig.com/mailman/listinfo/detomaso
>>
>>
>>
>> --
>>
>>
>>
>>
>>
>>
>>
>> Michael L. Shortt
>> Savannah, Georgia
>> www.michaelshortt.com
>> michael at michaelshortt.com
>> 912-232-9390
>>
>>
>> This email is protected by the Electronic Communications Privacy Act,
>> 18 U.S.C. Sec. 2510-2521, is confidential and may be legally
>> privileged.  If you are not the intended recipient, you are hereby
>> notified that any retention, dissemination, distribution or copying of
>> this communication is strictly prohibited.  Please reply to the sender
>> that you have received this message in error, then delete it.  Thank
>> you _______________________________________________
>>
>> Detomaso Forum Managed by POCA
>>
>> Archive Search Engine Now Available at
>> http://www.realbig.com/detomaso/
>>
>> DeTomaso mailing list
>> DeTomaso at list.realbig.com
>> http://list.realbig.com/mailman/listinfo/detomaso
>> _______________________________________________
>>
>> Detomaso Forum Managed by POCA
>>
>> Archive Search Engine Now Available at
>> http://www.realbig.com/detomaso/
>>
>> DeTomaso mailing list
>> DeTomaso at list.realbig.com
>> http://list.realbig.com/mailman/listinfo/detomaso
>>
> _______________________________________________
>
> Detomaso Forum Managed by POCA
>
> Archive Search Engine Now Available at http://www.realbig.com/detomaso/
>
> DeTomaso mailing list
> DeTomaso at list.realbig.com
> http://list.realbig.com/mailman/listinfo/detomaso
>
>
>



More information about the DeTomaso mailing list