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

Fri Jun 1 10:43:47 EDT 2012

Methinks there is a correlation to marriage here, lest I be quiet,
perhaps I have said too much already.

Michael

On Fri, Jun 1, 2012 at 10:37 AM, Charles McCall <charlesmccall at gmail.com> wrote:
> 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
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>>>
>>>
>>> --
>>>
>>>
>>>
>>>
>>>
>>>
>>>
>>> Michael L. Shortt
>>> Savannah, Georgia
>>> www.michaelshortt.com
>>> michael at michaelshortt.com
>>> 912-232-9390
>>>
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Michael L. Shortt
Savannah, Georgia
www.michaelshortt.com
michael at michaelshortt.com
912-232-9390

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