Oil all time High

Superfreak said:
The point US was profitability. You and many others continue to bitch about the "record profits" of oil companies, but turn around and ignore the fact that their "record profits" are not an indication of them taking higher margins from the public, but rather are produced as a direct result of higher demand for their product. Thus the DOLLAR figures are at record levels, but the profitability really hasn't changed that much.
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So what? Mo money is mo money in the pocket, that IS the bottom line.
 
Superfreak said:
The point US was profitability. You and many others continue to bitch about the "record profits" of oil companies, but turn around and ignore the fact that their "record profits" are not an indication of them taking higher margins from the public, but rather are produced as a direct result of higher demand for their product. Thus the DOLLAR figures are at record levels, but the profitability really hasn't changed that much.
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well one would hope that as economies of scale set in there is not a need to maintain the same profitability but because its a nessesity the oil companies can continue to collect same percent profits. personally I think its a grey zone here and borderline unethical. any other industry (thats not a basic nesesity) the economies of scale would kick in.
 
uscitizen said:
And how much oil has the 3rd (?) largest reserve been supplying since we invaded ?
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1) just for clarification they are at best 4th and more likely 6th now that Venezuela and Russia are able to tap oil fields that were previously economically unviable to tap. Saudi, Canada and Iran all have proven deposits larger than Iraq and it looks like Venezuela and Russia are now ahead as well. Not that this is a vital difference, but just because you like to nitpick shit, I thought it should be included.

2) While Iraq oil production is still below pre-war levels, the remaining OPEC countries have made up for the differences in supply. As Iraq produces more, countries like Saudi will slacken their production so that overall OPEC production remains at/near the current levels.
 
1. why I put the question mark there SF.

2, Yeah made up the difference in the supply, but not amde up the difference in supply for the increased demand...And the increased demand for them to fill in for Iraq raised their prices.. Supply and demand you know.
 
Chapdog said:
well one would hope that as economies of scale set in there is not a need to maintain the same profitability but because its a nessesity the oil companies can continue to collect same percent profits. personally I think its a grey zone here and borderline unethical. any other industry (thats not a basic nesesity) the economies of scale would kick in.
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The problem Chap is that it is a FOR-profit company. You want your company (and the companies you invest in) to make money... because that means more job security and wage increases. I want my company to be profitable for the same reasons. AS do the employees and stockholders of the oil companies.

There is not a "need" for any company to maintain ANY profitability. It is a function of the free market.

I disagree that it is unethical given that the profitability of the industry is not out line. Under 7%? That is minimal. EMC... profit margin of 10%. As a stockholder of EMC.... are you going to say they shouldn't earn that extra money (which increases your portfolios value)???

I also disagree because every investor is capable of taking part in the profitability of the industry. Not to mention the funds that our government gets from the oil industry. What has been the greater cause of increase in gas prices over the last couple of decades.... profitability of the oil companies... or increased taxes from the government????
 
uscitizen said:
1. why I put the question mark there SF.

2, Yeah made up the difference in the supply, but not amde up the difference in supply for the increased demand...And the increased demand for them to fill in for Iraq raised their prices.. Supply and demand you know.
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1) Which is why I said for clarification.

2) Obviously you are not aware of how OPEC operates. If they say they are going to produce "x" barrels per day, that is their target. If one country is not going to be able to produce their quota, another steps in and fills it. OPECs production did not change due to Iraq not producing as much. Thus the oil prices have increased due to increases in demand.... AS I STATED.

Thus, the escalation in oil prices had little to do with Iraq.
 
Superfreak said:
1) Which is why I said for clarification.

2) Obviously you are not aware of how OPEC operates. If they say they are going to produce "x" barrels per day, that is their target. If one country is not going to be able to produce their quota, another steps in and fills it. OPECs production did not change due to Iraq not producing as much. Thus the oil prices have increased due to increases in demand.... AS I STATED.

Thus, the escalation in oil prices had little to do with Iraq.
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The rising price of oil is also linked to the weak-dollar policy Bush has pursued ever since he's been in office.
 
Superfreak said:
The problem Chap is that it is a FOR-profit company. You want your company (and the companies you invest in) to make money... because that means more job security and wage increases. I want my company to be profitable for the same reasons. AS do the employees and stockholders of the oil companies.

There is not a "need" for any company to maintain ANY profitability. It is a function of the free market.

I disagree that it is unethical given that the profitability of the industry is not out line. Under 7%? That is minimal. EMC... profit margin of 10%. As a stockholder of EMC.... are you going to say they shouldn't earn that extra money (which increases your portfolios value)???

I also disagree because every investor is capable of taking part in the profitability of the industry. Not to mention the funds that our government gets from the oil industry. What has been the greater cause of increase in gas prices over the last couple of decades.... profitability of the oil companies... or increased taxes from the government????
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yes i know what your saying and agree for most part. but is a grey zone when your customers need your service and are going cold because they cant afford it meanwhile your making 45Billion in profits for a year. I mean lets face it. our tax dollars are going towards the protection and support of oil companies to provide us the oil. its not totally private now is it.
 
Yep we have paid 1/2 trillion so far in credit card debt for oil security....
And thousands of lives and tens of thousands maimed. Just on the US side of things.
 
Chapdog said:
yes i know what your saying and agree for most part. but is a grey zone when your customers need your service and are going cold because they cant afford it meanwhile your making 45Billion in profits for a year. I mean lets face it. our tax dollars are going towards the protection and support of oil companies to provide us the oil. its not totally private now is it.
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If you want to truly be pissed off... be pissed at the government. The government that refuses to tap our own resources. The government that blocks attempts to add to our own refining capacity. The government that turns around and wastes our revenues year after year increasing our debt load and showing little for it. The government who spent next to nothing during the 80's and 90's to promote alternative energy sources. Despite the greates bull market our economy has ever seen. It is the politicians that have failed us. Not the oil companies. That $45 billion in profit is NOTHING compared to the amount of money the US government wastes that could also very easily be diverted to helping those who cannot afford their energy payments.

You are correct in saying that the oil industry isn't totally private. It is heavily regulated by the government. Yes, the government also spends money protecting the life blood of our economy. Until we regain control of our own energy needs, they will have to continue to do so.


Side note: You could just as easily ask other industries that are more profitable than the energy companies to "not be as profitable" and kick money back into the the pockets of consumers so that they could afford their energy payments.
 
uscitizen said:
Yeah with Repubs controlling congress most of that time SF....
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True, they controlled it through the 90's, but take a look at who continues to be the party that blocks tapping our energy sources. It is predominantly the Dems with some Reps thrown in there. Bottom line, both parties are bad at attempting to run things. Time and again we have seen them fail, yet we continue to elect the same types of idiots and then expect different results.
 
uscitizen said:
the answer is simple, Big Oil controls a large part of our govt.
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For the love of god, give it a fucking rest. If big oil really controlled as much as you seem to believe they do, then why were oil prices kept arbitrarily LOW for decades?

Also... if they control so much of the government, then why hasn't ANWR and the coasts been opened up to them to drill?
 
the guy is a shit stirring moron who didn't go to college.
His GED education is what cause's one to believe those ufo type ideas.
 
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