We exported more oil then we imported in 2011

[Beentown]

Oil Company profits are less than 3% in general.

Specualtion is what is driving prices...on purpose.

 

[bowhunter1023]

FYI... We have nothing do with the price we get paid for oil outside of the fact that we can hedge prices for 2-3 quarters at a time. It's not the racket that everyone makes it out to be...

 

[Huckleberry Finn]

Phil is correct but their margins are usually between 5-8%. Which is well in the range is what most companies have as a profit margin. Both Walmart and Exxon have a gross margin of about 25%. But net for Walmart is 4% while it's 7-8% for Exxon.. So their gross profit margin is the same but Exxon is a little better at holding on to it than Walmart.

And Phil is also right about the governent. They make 4x what Exxon makes on a gallon of gas. By the time fees, permits, taxes, registrations, etc etc are all said and done a government body in some form makes up between 40-50% of the price of a gallon of gas.

Oh good Lord, that's a worse way to start the morning that gas jumping at the pump...

 

[hickslawns]

Oil Company profits are less than 3% in general.

Specualtion is what is driving prices...on purpose.

I agree completely here as well.

BH57- I am not going to say I completely disagree with you either. This is a combination of things which cause the huge swings. I don't think they need to be as drastic as they are. I also get tired of prices that jump $0.30 if the wind changes directions, but when things settle down they only drop a nickle. That is BS. Joe is correct though. The point I was making is in the fact the government is the true culprit for much of the gas prices. Might have to do a little searching. I had read somewhere profit margins were more in the 2% to fraction of a percent range. I could be wrong here.

 

[Ohiosam]

There was an economist named Ian Bremmer on PBS this winter discussing a book he had written about the competition between corporations and state capitalism. State capitalism is basically government owned corporations like in China. The reason I bring this up is because he claimed 13 of the 15 largest oil companies in the world were government owned. He didn't go into details about names he was just making a point about how a large segment of the world economy was in government hands.

Here is my take on that info, because of this so much of the world oil production is in the hands of foreign(friendly and unfriendly) governments the US is somewhat limited in it's ability to manage oil prices. The biggest thing our government can do is to stay out of the way of oil production in this country. My understanding of why NG is cheap while other petroleum products are high is because NG is harder to export so world supply and demand has less effect on it.

 

[Bowhunter57]

Specualtion is what is driving prices...on purpose.

I have to agree with this one too!

Sounds like we need to do some house cleaning....White House. :smiley_chinrub: While they set on their duffs making 6 digit incomes, with free health care and benefits for life.

I better stop now, before I go off the deep end...again. :smiley_depressive:
Bowhunter57