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Oil Workers in U.S. on First Large-Scale Strike Since 1980

buck said:
through stocks only. But it's not me saying that, it's analysts and members of OPEC who see the decreased invesment due to the lower prices curtailing supply in the future leading to higher prices.

The oil workers had a propserous bunch of years with oil companies willing to meet many of their demands due to the high oil prices/profits. Prices being down now, means the profits aren't there to meet their demands. This will change, and oil workers can get their demands met then.
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But oil company profits are still high, which is why people ask for raises, they have needs too.
 
AliHajiSheik said:
Wrong about oil profits: http://www.nytimes.com/2015/02/03/business/energy-environment/exxon-mobil-q4-earnings-decline.html?_r=0
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From your link;

net income fell to $6.57 billion from $8.35 billion in the same quarter last year.
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Still highly profitable.

And I might add, not very many new refineries have been built either. None by any of the large oil companies, most are aged, and probably meet bare minimum EPA requirements.

When was the last refinery built in the United States? - FAQ - U.S. Energy Information Administration (EIA)
 
Declan said:
They are taking the Hostess Approach--demand more money when your company doesn't have any because then they cannot afford to wait out a strike. Worked out well for the bakers as best as I recall :3oops:
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Well, they could fire everybody who works for them too. Maybe they should do that and try to pay every new hire federal minimum wage, and see how that works out for them?
 
AJiveMan said:
But oil company profits are still high, which is why people ask for raises, they have needs too.
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Their margins will be decreasing a lot.. which will not leave much money left for increased spending - which is why they are cutting back on their invesments.
 
AJiveMan said:
Well, they could fire everybody who works for them too. Maybe they should do that and try to pay every new hire federal minimum wage, and see how that works out for them?
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I agree. They should export all their jobs to South America.
 
Edited for warning above.
 
AJiveMan said:
So you're an oil speculator, I see,
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Oil is inevitably going to go up, however, going up to that high an amount is something I'm not sure of.

But it will go up.

The reality is that Saudi Arabia isn't going to over-produce forever. Once foreign companies lose a ****-ton of value Saudia Arabia will most likely buy a few out, stop producing as much, and their investments then grow significantly in value.

It's simple, but it's pretty genius, gotta give em some creds for that. Takes out some of the competition while at the same time make some money off your investments.
 
AJiveMan said:
But oil company profits are still high, which is why people ask for raises, they have needs too.
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High is relative, at the end of the day their valuation and profits are decreasing at a rather high rate.
 
AJiveMan said:
From your link;



Still highly profitable.

And I might add, not very many new refineries have been built either. None by any of the large oil companies, most are aged, and probably meet bare minimum EPA requirements.

When was the last refinery built in the United States? - FAQ - U.S. Energy Information Administration (EIA)
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Saying something is highly profitable without mentioning their profit margin is meaningless.

As for refineries: From your link:

Ground was broken in March 2013 for construction of a new refinery in Dickinson, North Dakota. The 20,000 barrel per stream day (bbl/sd) Dakota Prairie facility is scheduled to open in December 2014. Kinder Morgan plans to start up a 50,000 bbl/sd condensate processing facility on the Houston ship channel by the end of 2014.

Capacity has also been added to existing refineries through upgrades or new construction. The most recent examples include

In 2012, Motiva upgraded its refinery in Port Arthur, Texas, making it the largest refinery in the United States with a capacity of 600,250 bbl/cd.
In 2009, Marathon upgraded its Garyville, Louisiana refinery. As of January 1, 2014, the capacity (bbl/cd) is more than double its original 1977 capacity.
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buck said:
Their margins will be decreasing a lot.. which will not leave much money left for increased spending - which is why they are cutting back on their invesments.
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I don't call profit loss of a couple of billion $ as decreasing a lot.

If the oil companies couldn't see a downward turn because of higher fuel economies and lackluster demand because of that, that's too bad, what's worse, is that it's mismanaged.

Increased spending in what? Infrastructure repairs to outdated refineries?

What investments? Do you see any new refineries recently?

You wait. If and when Keystone is built, we'll see how much of that profit goes into oil company profits in the USA, right now, OPEC is cutting American oil exploration and oil production like splitting hairs, it's a cutthroat business. Oil exploration and oil production in the USA is so bad right now, oil companies are laying off workers in the USA.

If and when OPEC decides to raise crude prices, America might be competitive again.

I recall the sales package the oil people sold Americans when the trans-Alaska pipeline was in it's infancy, they claimed America would be oil independent, and it never happened.
 
AliHajiSheik said:
Saying something is highly profitable without mentioning their profit margin is meaningless.

As for refineries: From your link:
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Exxon took around a $2B loss. so what?

Decreased demand is highly attributive for this.

People are driving less, and have more fuel efficient vehicles.

If top level managers and CEO's of oil companies couldn't see this coming down the pike, they're really stupid.

Looks like Kinder Morgan might have bitten off more than they can chew at this point in time

5 Facts All Kinder Morgan Investors Need to Know That Will Affect Its Dividend (KMI)
 
AJiveMan said:
IWhat investments? Do you see any new refineries recently? .
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Do some research about hte oil companies curtailing their future investments due to the low prices.. Then you will know and not have to ask.
 
buck said:
Do some research about hte oil companies curtailing their future investments due to the low prices.. Then you will know and not have to ask.
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Wait a minute here,
Their margins will be decreasing a lot.. which will not leave much money left for increased spending
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Increased spending in what?
Must be something other than the cost of labor.
 
AJiveMan said:
But oil company profits are still high, which is why people ask for raises, they have needs too.
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Yet unions sign contracts. they got the raises per their last contract.
their contracts define how big of a raise they give over the course of the contract.

so if the company makes 100b in profit and the workers get a 3% increase that is due to the contract that they agreed on.
 
AJiveMan said:
Wait a minute here,


Increased spending in what?
Must be something other than the cost of labor.
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yes because oil companies spend hundreds of million dollars a year in exploration. well tests engineering plans and other regulations
that they have to follow.
 
AJiveMan said:
Wait a minute here,


Increased spending in what?
Must be something other than the cost of labor.
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They are reducing their invesment and future spending... They are being asked to increase their labor costs. Not sure why you find that confusing...
 
BP reports quarterly loss of $4.4 bln amid oil price drop

BP sounded a somber note on the oil industry Tuesday, saying producers may have to adjust to an extended period of lower prices, as the company reported a fourth-quarter loss of $4.4 billion and announced spending cuts
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BP plans to cut costs by as much as $6 billion this year, reducing exploration expenditures and postponing some projects, including development of the Mad Dog field in the Gulf of Mexico.
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AJiveMan said:
Exxon took around a $2B loss. so what?

Decreased demand is highly attributive for this.

People are driving less, and have more fuel efficient vehicles.

If top level managers and CEO's of oil companies couldn't see this coming down the pike, they're really stupid.

Looks like Kinder Morgan might have bitten off more than they can chew at this point in time

5 Facts All Kinder Morgan Investors Need to Know That Will Affect Its Dividend (KMI)
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Again, you look at a straight profit number and ask so what. Fine, I suggest you look up what a profit margin is and then find out what it is for the oil companies year on year. I doubt you will because again, you don't care, it doesn't fit your narrative. Unfortunately, you are also posting links without reading their contents. There is more to understand than just a headline which you assume is a negative affect on their dividend.

I'm done with you.
 
AliHajiSheik said:
Again, you look at a straight profit number and ask so what. Fine, I suggest you look up what a profit margin is and then find out what it is for the oil companies year on year. I doubt you will because again, you don't care, it doesn't fit your narrative. Unfortunately, you are also posting links without reading their contents. There is more to understand than just a headline which you assume is a negative affect on their dividend.

I'm done with you.
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I am so happy, I'm :2dance:
 
I think the oil companies will eventually work out a deal with the unions , the unions have a weak hand . Foolishly over played it. A smart oil company can lock in a great deal for their future with this union just give em 3 or 4 weeks...
 
shortstackone said:
I think the oil companies will eventually work out a deal with the unions , the unions have a weak hand . Foolishly over played it. A smart oil company can lock in a great deal for their future with this union just give em 3 or 4 weeks...
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I agree. Company has the upper hand this go around.. I believe, they only agree to 3 year contracts and one company (The union picked Shell to negotiate against) is negotiating on behalf of all of the companies - which seems very odd to me.

http://news.yahoo.com/strike-u-refi...6--finance.html;_ylt=A0LEV1qFi9FUtpAAPoJXNyoA

Executives have made clear they will try to hold firm, saying they cannot afford to lift wages because crude prices have sunk 50 percent since June, eroding their profits.

Other executives have suggested Shell, acting as the lead negotiator for oil companies, gave away too much in negotiations held in years past.
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