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

Fri Jun 1 11:53:51 EDT 2012

Jim, I'm sorry to say, but Texas has become "Yankeeized!"  You never hear you'll, you'all, ya'll, etc., anymore.  It is You Guys!  I used to correct waiters who said that to us:  "I am a guy, my wife is a gal."  I hate it!  But, I will be dead soon and it won't matter.  --Bill Lewis

> Date: Fri, 1 Jun 2012 07:42:11 -0700
> From: grayjim at att.net
> To: kirby.schrader at gmail.com; shawkins777 at comcast.net
> CC: detomaso at realbig.com
> Subject: Re: [DeTomaso] Kinda' NPC: Why does oil cost so much?
> 
> Kirby,
> 
> That's no way for Houstonian to end a message!
> 
> It should have said "Y'all have a nice day now, Y'hear?
> 
> 
> 
> ----- Original Message ----
> From: Kirby Schrader <kirby.schrader at gmail.com>
> To: shawkins777 at comcast.net
> Cc: Pantera List <detomaso at realbig.com>
> Sent: Fri, June 1, 2012 9:10:50 AM
> Subject: Re: [DeTomaso] Kinda' NPC: Why does oil cost so much?
> 
> PS:
> 
> Question: An oil company lives and dies by the 'reserves' it can book.
> i.e., prove that they have a future.
> 
> I ask you - What is the largest oil company on the planet based on the
> reserves it can prove it can produce in the future?
> 
> No googling.
> 
> 
> 
> 
> 
> 
> You all immediately blurted out Exxon-Mobil, right?
> 
> Bzzzzzztttttt. Wrong. Not even close.
> They are 11th on the list.
> 
> There are 10 more companies that have more reserves that Exxon Mobil.
> They are ALL national oil companies.
> And dang it... Wouldn't you know it.
> Number 1 is INOC (Iranian National Oil Company).
> Number 2 is Saudi Aramco.
> 
> No. Oil is not a commodity whether you like it or not.
> 
> Stirring up the pot.
> Y'all have a nice day now, hear?
> Kirby
> 
> 
> On Fri, Jun 1, 2012 at 7:46 AM, Kirby Schrader <kirby.schrader at gmail.com> wrote:
> > The market _should_ set the price, but it only does so partially.
> >
> > Too many countries subsidize oil. That distorts the 'market'.
> > So oil is a commodity... but it isn't.
> >
> > If you look at the drilling rig market in North America in the last
> > few months, you'll see a very large percentage of them shifting over
> > to oil drilling. They were drilling for gas.
> > New technology (efficient horizontal well drilling, fracturing
> > techniques, downhole flow control like I'm working on) made going
> > after stuff like the Bakken, Eagleford, and Barnett shales, etc.
> > lucrative. It was economic.
> > They made money.
> >
> > But now, there's actually a glut of natural gas and the price has
> > dropped and stayed there.
> >
> > And something else.... people always say the oil companies make too
> > much money. After all, look at the billions they made last year.
> > Well, yeah.... but look at the billions they spent. Their profit
> > margins actually suck on average.
> > There are a lot more lucrative businesses out there.
> >
> > And... the big internationals (usually called IOC's) are under very
> > heavy pressure from the national oil companies (NOC's). Countries can
> > now buy the expertise and equipment they need to have their own oil
> > companies and they keep the IOC's out of the loop. Brazil is a
> > opposite to this though.... They have realized their own company
> > Petrobras won't be able to develop the huge offshore fields they've
> > discovered (Tupi is HUGE!), so they've let other companies in. Even
> > Norway's state oil company Statoil is in Brazil now. Statoil has all
> > their oil offshore. They have become experts in deep subsea drilling
> > and production.
> > Statoil is in Canada now, too.
> >
> > I find that grand waves of the hands summing up the 'oil business',
> > which most people don't know anything about, to be downright wrong and
> > it misleads others. Because of oil's importance economically and
> > politically, it is a big stick that is waved around when an excuse is
> > needed.
> >
> > Typical BS is the media saying that gas prices will drop if the
> > government releases stock from the strategic oil reserve. What a bunch
> > of bull pucky... Take the entire reserve and compare it to the daily
> > use of the US.
> > A drop in the bucket.
> >
> > Anyway, back to designing, testing and selling technology that keeps
> > oil and gas flowing.
> > It ain't easy to make a valve that will open and close 500 times with
> > 15,000psi differential across it.
> > Oh, by the way, you have to do that at 300 degrees F.
> > If we pull this off, we're shooting for 17,500psi and 340F.
> > I double dare you to try it.
> > :-)
> >
> > Later.
> > Kirby
> >
> >
> >
> >
> >
> >
> > On Fri, Jun 1, 2012 at 2:21 AM,  <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
> 
> _______________________________________________
> 
> 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