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

Fri Jun 1 11:59:21 EDT 2012

Charlie,

    I don't have the numbers, but I think the taxes are a lot higher than the profits on gas.  If that's the case, we should be pissed off at the politicians, not the oil companies.  The worst monopoly is government, see what happens if you try to not pay taxes.

Ken

From: Charles McCall <charlesmccall at gmail.com>
To: Gray Gregory <rgg at gregorycook.com> 
Cc: "shawkins777 at comcast.net" <shawkins777 at comcast.net>; Pantera List <detomaso at realbig.com> 
Sent: Friday, June 1, 2012 7:37 AM
Subject: Re: [DeTomaso] Kinda' NPC: Why does oil cost so much?

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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