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Thread: Oil rises above $90 amid US crude supply drop

  1. #821
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    Re: Oil rises above $90 amid US crude supply drop

    Quote Originally Posted by j-mac View Post
    Is profit a bad thing?


    j-mac
    No, not necessarily as long as they are legitimate and not a result of artificially created shortages, fixing supply, monopolies or price fixing.
    "This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."" GWB

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    Re: Oil rises above $90 amid US crude supply drop

    Quote Originally Posted by USA_1 View Post
    Are you still trying to argue that oil companies want lower prices? And lower profit margins?
    The greatest enemy to oil companies is surplus.
    Up to today we really don't know what path oil companies would take if they were allowed to explore, and drill more sources. Whether they would artificially restrict this on their own is speculative at best on your part, and relies on demonizing the oil companies as greed fueled, heartless entities. Yes, their motive is to make money, any businesses is. But right now you have an artificial crisis manufactured by government regulation, and enviro groups that place more emphasis on the life of a polka dotted snail darter than they do human kind.

    j-mac
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    Re: Oil rises above $90 amid US crude supply drop

    Quote Originally Posted by USA_1 View Post
    No, not necessarily as long as they are legitimate and not a result of artificially created shortages, fixing supply, monopolies or price fixing.
    What is a legitimate profit for an oil company to make in percentage? Who is creating this artificial shortage? Fixing supply? Monopolies, and price fixing? Who is really at the bottom line on that right now?

    j-mac
    Americans are so enamored of equality that they would rather be equal in slavery than unequal in freedom.

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    Re: Oil rises above $90 amid US crude supply drop

    Quote Originally Posted by j-mac View Post
    What is a legitimate profit for an oil company to make in percentage? Who is creating this artificial shortage? Fixing supply? Monopolies, and price fixing? Who is really at the bottom line on that right now?

    j-mac
    http://www.api.org/Newsroom/us_june08_oil_demand.cfm
    Opec hawks want to cut oil production to keep up price - Times Online

    http://www.bloomberg.com/news/2010-0...y-markets.html
    U.S. Refiners Cut Oil-Processing Rates, Analysts Estimate: Energy Markets
    By Margot Habiby - Aug 10, 2010 4:17 PM CT

    Aug. 6 (Bloomberg) -- Francisco Blanch, head of global commodities research for Bank of America-Merrill Lynch, talks about the outlook for crude oil and gasoline prices. Blanch, speaking with Deirdre Bolton on Bloomberg Television's "InsideTrack," also discusses Russia's ban on wheat exports and the impact on the market. (Source: Bloomberg)

    U.S. refiners probably cut back on crude-oil processing last week as profit margins sank to the lowest level in five months, a Bloomberg News survey showed.
    If you believe the oil industry's response to Katrina, you'd think demanding environmentalists are to blame for $3 per gallon gasoline because the tree huggers shut down refineries with tough new rules. President Bush even mimicked the industry excuse by waiving environmental standards in the wake of Katrina. Well, the industry's own internal memos show the intentional shrinking of American refinery capacity in the 1990s was the oil companies' own idea to pump up profits.

    Take this internal Texaco strategy memo: "[T]he most critical factor facing the refining industry on the West Coast is the surplus of refining capacity, and the surplus gasoline production capacity. (The same situation exists for the entire U.S. refining industry.) Supply significantly exceeds demand year-round. This results in very poor refinery margins and very poor refinery financial results. Significant events need to occur to assist in reducing supplies and/or increasing the demand for gasoline." The memo went on to discuss a sucessful campaign in Washington State to shrink refined supply by removing other additives in the gasoline that filled gas volume.

    Another Mobil memo shows the company promoted tough regulations in California to shut down an independent refiner. A Chevron memo acknowledged the industry wide need to shutter refineries and discussed how refiners were responding in kind.

    Large oil companies have for a decade artificially shorted the gasoline market to drive up prices. Oil companies know they can make more money by making less gasoline. Katrina should be a wakeup call to America that the refiners profit widely when they keep the system running on empty. It's time for government to regulate the industry's supply. The fact that President Bush received $2.6 million from the oil industry for his reelection in 2004 should make regulation of the nation's gas supply one of the Democrats' most important talking points.
    Prices drop, they cut production to get prices to rise.
    Last edited by USA_1; 03-30-11 at 01:44 PM.
    "This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."" GWB

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    Re: Oil rises above $90 amid US crude supply drop


    Love the Times demonizing article to which they only claim to have these memo's, but fail to publish them....Why do you think that is?

    In any case could you answer my questions that I posed please?

    j-mac
    Americans are so enamored of equality that they would rather be equal in slavery than unequal in freedom.

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    Re: Oil rises above $90 amid US crude supply drop

    I am pretty sure that the oil companies have leases in the millions of acres that they are not drilling on now. Why would they lease land that hasn't already been determined to have oil? Why aren't they drilling on their existing leases?
    They should drill, or lose their leases....
    Oracle of Utah
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    Re: Oil rises above $90 amid US crude supply drop

    Quote Originally Posted by UtahBill View Post
    I am pretty sure that the oil companies have leases in the millions of acres that they are not drilling on now. Why would they lease land that hasn't already been determined to have oil? Why aren't they drilling on their existing leases?
    They should drill, or lose their leases....
    Bill, you are a very smart guy, and I have come to respect what you have to say in this area, until this statement....Allow me to ask, just because a company holds a lease to the land, does that mean that they can start drilling the next day?

    Consider:

    Based upon geologic formations and other modeling, energy companies identify potential areas for production and then obtain leases to explore for oil and gas. But because these resources are not evenly distributed, many of these leases do not (and cannot) lead to production. Assuming all currently leased acreage can produce oil and gas is like assuming you can pump water out of every well, whether it’s filled with water or bone dry.
    In addition, many of these leases targeted by the Obama administration have not been held long enough to reach the production phase. Once a lease is obtained, it can take years until production begins. In addition to costly investments in exploration technology, companies must navigate the circuitous leasing and permitting process inside the EPA and the Department of Interior, paying millions or even billions of dollars often just to hold on to what little acreage the government has kept open for production. Under a ten year lease, it’s not uncommon for companies to need nearly all of the time allowed just to reach the production phase.
    The idea that a company would spend five years and $3 billion, as in the case of Shell in Alaska, just to keep its operations idle is a concept that could only be formulated by people with appallingly little business acumen.
    Contrary to the beliefs of “use it or lose it” proponents, drilling for oil is quite a bit more complicated that jamming a straw into a Big Gulp. And as long as the current administration and its cheerleaders in Congress willfully ignore the facts in the pursuit of political gain, America’s broken energy policy will remain broken, and the millions of jobs to be gained from expanding domestic energy production will never be created.

    Obama Wants to Tax Energy Companies for Not Drilling
    j-mac
    Americans are so enamored of equality that they would rather be equal in slavery than unequal in freedom.

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    Re: Oil rises above $90 amid US crude supply drop

    Quote Originally Posted by j-mac View Post
    Love the Times demonizing article to which they only claim to have these memo's, but fail to publish them....Why do you think that is?

    In any case could you answer my questions that I posed please?

    j-mac
    When prices drop oil companies cut production to get prices up. When prices are low they cut exporation. Big oil has bought up dozens of refineries and shut them down since 1984 to keep gas supplies where they want them. They have 11 refineries sitting idle, yet you folks scream we don't have enough refineries. Answer my question: Do you honestly believe oil companies want lower prices?

    http://www.eia.gov/pub/oil_gas/petro...nt/table15.pdf
    Last edited by USA_1; 03-30-11 at 02:00 PM.
    "This Administration will constantly strive to promote an ownership society in America. We want more people owning their own home. It is in our national interest that more people own their own home. After all, if you own your own home, you have a vital stake in the future of our country."" GWB

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    Re: Oil rises above $90 amid US crude supply drop

    Quote Originally Posted by USA_1 View Post
    When prices drop oil companies cut production to get prices up. When prices are low they cut exporation. Big oil has bought up dozens of refineries and shut them down since 1984 to keep gas supplies where they want them. They have 11 refineries sitting idle, yet you folks scream we don't have enough refineries. Answer my question: Do you honestly believe oil companies want lower prices?

    http://www.eia.gov/pub/oil_gas/petro...nt/table15.pdf

    I still have yet to hear you answer my chief question USA, why are you dodging it?

    What do you consider a fair profit for a corporation to make in percentage terms?

    Now I have another question on this post,

    How much of that $3.65 gallon of gas is actual cost of the product, and how much is tax?


    j-mac
    Americans are so enamored of equality that they would rather be equal in slavery than unequal in freedom.

    Alexis de Tocqueville

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    Re: Oil rises above $90 amid US crude supply drop

    Quote Originally Posted by j-mac View Post
    Bill, you are a very smart guy, and I have come to respect what you have to say in this area, until this statement....Allow me to ask, just because a company holds a lease to the land, does that mean that they can start drilling the next day?

    Consider:



    j-mac
    OK, what is stopping them from exploring on their leases? And this issue of holding leases and not exploring and/or drilling is not new. It has been going on for a long time. Surely you don't think that Obama is the only obstacle for the last 10 years? Or that ALL of the leases are being held up by the current administration.
    BTW, I was watching the Presidents speech on his energy policy this morning, and CNN cut it off. I had to find it on the internet to watch the rest of it.
    Seems that CNN thinks there are more important, or more "entertaining" issues to spoon feed the public....
    Oracle of Utah
    Truth rings hollow in empty heads.

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