Exxon record proift, again!
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Joined: Feb 1999
Posts: 2,947
From: Springfield,OH. U.S.A.
Originally Posted by Z28Wilson:
By using a smaller car, he is buying fuel less and therefore saving himself a lot of money. Now, of course his little "demand savings" doesn't register a blip on the world radar but he has actually done something to change his driving habits and therefore saved himself some money...rather than whining about how much he's paying while doing nothing. That's the point.
By using a smaller car, he is buying fuel less and therefore saving himself a lot of money. Now, of course his little "demand savings" doesn't register a blip on the world radar but he has actually done something to change his driving habits and therefore saved himself some money...rather than whining about how much he's paying while doing nothing. That's the point.
My father-in-law owns a '96 Civic, 5spd, and his Civic gets about 26mpg with 4 people, 32mpg with him alone.
BTW, my father-in-law's Lincoln Town Car gets 24mpg highway with 4 people onboard, weighing over 2 tons!...
That still does nothing about paying over $3/gallon of milk, with its "pass the buck" price increase b/c of higher gas prices.
Produce is expected to go out of sight this year b/c of gas prices...we all better buy a cow and plant a garden as well.
Last edited by 90rocz; Feb 3, 2008 at 03:54 PM.
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Joined: Mar 2005
Posts: 3,123
From: Melbourne, Australia
Man, there is indeed someone who is out of his depth in this conversation - you. The value of the dollar does indeed have a huge impact on oil prices. Let's walk through the basic steps that oil takes as it comes to market:1) Oil-wealthy nation-states either sign agreements with oil companies (such as the former Seven Sisters) or form their own national oil companies (Gazprom, Saudi Aramco) to produce oil. This oil can be purchased from the nation by the producing companies at agreed-upon prices, and when the transaction takes place in US dollars, you can damn well guarantee that inflation is factored into the going rate so that Sheik Omar can afford to buy his 15th Bentley.
The volume of oil provided by the nation-states can easily be manipulated via production quotas in order to adjust the price, because oil demand is so inelastic.
In the case of oil transactions between oil companies and the US, the transaction often doesn't take place in cash, but instead in contributions to the Strategic Petroleum Reserve.
2) The oil companies make the oil available to the market. Certain quantities are put up for sale for a given delivery window a few months in the future (thus forming a futures market).
3) Traders purchase this oil at whatever prices strikes their fancy and thus set the market price. If they think that oil demand in July of this year is going to be crazy, they'll be happy to put a large value on that barrel of oil. The oil which is sold over-the-counter (instead of through the markets) is sold at the spot price, which is set by a couple of organizations based upon the market price plus a small (sub-1%) markup. Note that the oil companies can't directly set the price, and thus it's more than a bit naive and immature to blame the oil companies for the price of oil - this isn't the same situation as slapping a price tag on a TV or car.
If indeed ExxonMobil is involved in some dramatic price-fixing conspiracy, they should be embarrassed by making only 10% margin on their nefarious activities
You have provided a statement which has no bearing on the US currency.
It's all conjecture and manipulation... the buyer is the one who has to pay for this adjustment in price.
I keep reading your posts regarding supply/demand but please explain all the other factors like 'Katrina', the oil additive, and any other excuse I keep reading.
Last edited by SSbaby; Feb 3, 2008 at 04:36 PM.
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Joined: Feb 2003
Posts: 439
From: Northern VA
My father-in-law owns a '96 Civic, 5spd, and his Civic gets about 26mpg with 4 people, 32mpg with him alone.
BTW, my father-in-law's Lincoln Town Car gets 24mpg highway with 4 people onboard, weighing over 2 tons!...
BTW, my father-in-law's Lincoln Town Car gets 24mpg highway with 4 people onboard, weighing over 2 tons!...
My TL gets 31mpg at 75mph with the AC on with 4 people and a full trunk- also over 2 tons at that point.
Supply & Demand, as well as the plunging dollar (thank you deficit spending!) are to blame. But to think that 2.5 Billion people in India and China, who have a per capita income of $250/mo, are all lining up for the world's gas is ridiculous. Yes, demand is certainly going up there, but it ain't the common folk.
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Joined: Aug 2001
Posts: 2,400
From: Michigan's left coast
You have provided a statement which has no bearing on the US currency.
It's all conjecture and manipulation... the buyer is the one who has to pay for this adjustment in price.
I keep reading your posts regarding supply/demand but please explain all the other factors like 'Katrina', the oil additive, and any other excuse I keep reading.
It's all conjecture and manipulation... the buyer is the one who has to pay for this adjustment in price.
I keep reading your posts regarding supply/demand but please explain all the other factors like 'Katrina', the oil additive, and any other excuse I keep reading.
At least you saved me the hassle of replying to it. Gasoline additives don't affect the price of oil - gasoline prices and oil prices aren't all that well linked, as the past couple of years should have demonstrated. I don't see where you're going with this criticism.
Katrina was a huge event price-wise because it took such a huge chunk of US pumping and refining capability off-line for weeks or months, and because it demonstrated the fragility of the supply chain.
Anyways, I'm done with you for now - you don't seem to understand basic economic principles, and so you're definitely not equipped to figure out what you don't know about the highly complex oil market.
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Joined: Sep 1999
Posts: 666
From: Stockton, Ca. USA
Wrong! This isnt just about gasoline. Its about energy usage. Those 2.5 billion people are now coming into the modern world and out of the 3rd world. They are working in factory's, which requires a lot of energy. A lot of that energy comes from the power from oil. They need to get to those factory's, which also takes a great deal of energy. 2.5 billion people coming into the modern world will absolutly have an effect on oil prices.
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Joined: Sep 1999
Posts: 666
From: Stockton, Ca. USA
Something must be wrong with his Civic or he drives like a jackass. My Civic is 95 EX 4 door with an auto. It has the Vtec engine and I can easily get 40+ mpg on the freeway. When I drove the car back from Texas to California I was averaging 45mpg. I have no idea what the EPA rating on my car is
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Joined: Mar 2005
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From: Melbourne, Australia
Nice edit of your original post At least you saved me the hassle of replying to it.
Gasoline additives don't affect the price of oil - gasoline prices and oil prices aren't all that well linked, as the past couple of years should have demonstrated. I don't see where you're going with this criticism.
Katrina was a huge event price-wise because it took such a huge chunk of US pumping and refining capability off-line for weeks or months, and because it demonstrated the fragility of the supply chain.
Anyways, I'm done with you for now - you don't seem to understand basic economic principles, and so you're definitely not equipped to figure out what you don't know about the highly complex oil market.
At least you saved me the hassle of replying to it. Gasoline additives don't affect the price of oil - gasoline prices and oil prices aren't all that well linked, as the past couple of years should have demonstrated. I don't see where you're going with this criticism.
Katrina was a huge event price-wise because it took such a huge chunk of US pumping and refining capability off-line for weeks or months, and because it demonstrated the fragility of the supply chain.
Anyways, I'm done with you for now - you don't seem to understand basic economic principles, and so you're definitely not equipped to figure out what you don't know about the highly complex oil market.
When Hurricane Katrina strikes, the global oil priceis affected and prices don't come back down. I await your explanation here once you work up the courage to respond back!
Besides, you haven't explained how Exxon made an extra buck from the higher prices as quoted in the article?
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Joined: Sep 1999
Posts: 666
From: Stockton, Ca. USA
Yep. MrKnowItAll says its all to do with economics. Basically you say Mr Sheik is greedy. The traders then set the price.
When Hurricane Katrina strikes, the global oil priceis affected and prices don't come back down. I await your explanation here once you work up the courage to respond back!
Besides, you haven't explained how Exxon made an extra buck from the higher prices as quoted in the article?
When Hurricane Katrina strikes, the global oil priceis affected and prices don't come back down. I await your explanation here once you work up the courage to respond back!
Besides, you haven't explained how Exxon made an extra buck from the higher prices as quoted in the article?
I am still waiting for a reply from you on how the profits on oil companies should be regulated and who should do it.
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Joined: Nov 1998
Posts: 3,252
From: Knoxville, TN
The below graph begins 25 July 2005, which is over a month prior to Katrina, and ends 25 Jan 2008.
It speaks for itself, and blows the hell out of the "prices don't come back down" idea. No courage needed.
Source: DOE Energy Information Administration (there's some real interesting stuff in there, for those that like to be informed)
It speaks for itself, and blows the hell out of the "prices don't come back down" idea. No courage needed.
Source: DOE Energy Information Administration (there's some real interesting stuff in there, for those that like to be informed)
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Joined: Mar 2005
Posts: 3,123
From: Melbourne, Australia
Yeah, Katrina apparently stores as much oil as China and India are consuming. The US has no other contingency oil reserve locations so we downunder are adversely affected as are other nations outside the US. Why in the heck should other countries by affected by a US specific oil reserve problem? It doesn't make any sense. Katrina is just a drop in the ocean compared to the rest of the world.
Mr Bryant seems to convince himself that the issue is just economics. But I reckon the issue is more to do with politics... and we are having to pay for the price of war, is my 'gut' feeling. Especially when the barons could artificially set the price as Mr Bryant alluded to.
PS Sorry its a bit hard to write code and respond in detail to posts here so I'm going to be shortish today.
Mr Bryant seems to convince himself that the issue is just economics. But I reckon the issue is more to do with politics... and we are having to pay for the price of war, is my 'gut' feeling. Especially when the barons could artificially set the price as Mr Bryant alluded to.
PS Sorry its a bit hard to write code and respond in detail to posts here so I'm going to be shortish today.
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Joined: Sep 1999
Posts: 666
From: Stockton, Ca. USA
Yeah, Katrina apparently stores as much oil as China and India are consuming. The US has no other contingency oil reserve locations so we downunder are adversely affected as are other nations outside the US. Why in the heck should other countries by affected by a US specific oil reserve problem? It doesn't make any sense. Katrina is just a drop in the ocean compared to the rest of the world.
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Joined: Feb 1999
Posts: 2,887
From: northeast Miss.
The below graph begins 25 July 2005, which is over a month prior to Katrina, and ends 25 Jan 2008.
It speaks for itself, and blows the hell out of the "prices don't come back down" idea. No courage needed.
Source: DOE Energy Information Administration (there's some real interesting stuff in there, for those that like to be informed)
It speaks for itself, and blows the hell out of the "prices don't come back down" idea. No courage needed.
Source: DOE Energy Information Administration (there's some real interesting stuff in there, for those that like to be informed)
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Joined: Mar 2005
Posts: 3,123
From: Melbourne, Australia
I'm sure the other nations could have used it, if that is what you are saying?
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Joined: Aug 2000
Posts: 6,165
From: Sterling Heights, MI
Uhh, yes. In case you were in a coma during that whole time and missed the news, the hurricane destroyed New Orleans and took a lot of the oil facilities offline in the Gulf.