Gas Prices
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Well let's see, gas prices jumped nearly double under Biden. Quite a 'miracle' for the oil companies and for Biden I'm sure! I don't need a link to know that.
Ronald Nolette
Well-Known Member
You should learn the marketplace.
1.Production of oil is a pretty fixed cost/barrell. It is higher or lower depending how deep, if it is shale, offshore etc, but costs are pretty fixed for each type of drilling and getting oil out of the ground.
2. We are actually averaging pretty much the same production as we have since the end of 2020.
3. Oil is priced internationally, not nationally or locally.
4. With the Saudis and OPEC reducing production and the Russia/Ukraine war hurting production and distribution, buyers will bid the price up and up and up. So yes, oil companies will see higher profits for their cost of getting it out of the ground does not change no matter what the markets bid for a barrel of oil.
5. Gas costs more than a barrel of oil for it has to be processed and cracked and many additives put in. The price of gas/100gallons is also based on what the buyers bid up or down on gas. Same with diesel, jet fuel and home heating oil.
6. conclusion? Unless the oil companies are active buyers of their own product (which they are not), they do not set prices nor determine the level of profit they make per barrel.
TinMan
Well-Known Member
they make profit based on the price they set for their product.
Exxon made 8.5 billion dollars in profit in in May 2021- May 2022
Exxon made 168 billion dollars in profit in May 2022- May 2023
Profit is the gain exxon made AFTER they had harvested, purchased, refined distributed gasoline. Profit is determined by their sell price of their product. it is what is added on after they set price to cover their costs. It doesn't matter what their costs were because their costs don't impact the PROFIT of the sales of gasoline.
Say you are producing a product. the materials you use to create the product cost you $5 per unit, Additionally you have costs for over head and advertising and distributing, say that costs another $5 per unit. To break even you would have to sell your product for $10. Because you want a profit you price your product at $12.50 per unit. People like your product and lineup to buy it. you make $2.50 profit for ever item you sell. You sell say 10,000 units and make a profit of $125,000 Great. A year later the cost of materials goes up to $5.10 per unit and your workers want a raise so it's another $.10 per unit. and energy costs have gone up adding another $.05 per unit. So now your product costs you $10.25 per unit to make. To keep the same profit margin you need to sell your product at $12.75. You instead $150,000
Like Exxon your profits for the year had nothing to with any change in your production costs but everything to do with what you chose to price your product at.
It was such a remarkable coincidence that almost as soon as Biden 'TOOK' office the price of gas SOARED!
Like old mate tincan is so wrapped up in the profits ? like all such shallow morons, are that they can not see the big picture.
A Company may only be making 1% profit in fact but more to such is the profit for the year is not the real issue, such is over years of the investment put in. and Socialist Governments are total morons can be very destructive to investments,
Our QLD Government is insane Taxing Coal, Criminal in fact and working to drive investment away, long term very bad for the State future !
But we do have a totally corrupt State it's way out of control corrupt as Hell and the Premier is a total Socialist moron Evil as the Socialist VIC Premier the Nazi moron that shoots working people. They both have bleed the State dry, Sold it out and corrupted the youth and undermined the Police Service with Political Correct nonsense and that's why so many of the Police have abandoned such a Job, so now our State is getting people who come from India etc, Someone who is not a Citizen of our Nation in fact Becoming our Police ! Insanity ! but the State is only seeking for such as robots as cash cows. but that's just typical Socialist for you. Hair brain morons that only create more trouble, and that's the name of the game in fact and empowering Trash.
Joe Biden is anti cheap fuel in fact and has played it that way ! that's why the War was created by him in Ukraine.
If Russia could sell oil to the USA etc we would see the price of fuel come down in half like to when Trump was in power.
Trump was the greatest President the USA ever had by far. but the Satanic corrupt Socialist are hellbent on destroying the USA.
Just look at all the Hell Biden has caused and such is only going to get worse around the world because of such morons.
Biden has powered up the Terrorist, that's a fact and is working to power up Iran to attack the Jews, that's clearly his Mobs motive and to create WW3 and what that will bring about is the Socialist NWO and help save the planet by killing 80% of the worlds population and no more wealthy people ! like Communist Russia was, only the Party top dogs will be wealthy and the extremely wealthy like Rothschild will still dominate over everyone.
In Communist Russia Lord Rothschild could do as he pleased, because they created the Communist, they were not a threat, even W Churchill did not see Communism as a threat to himself. only WC was Rothschild's Dog. WC Dad was bankrupt but Rothschild balled WC out to become his Dog. The showed WC on a leash all of the time to Rothschild. WC even ran away from Rothschild once.
One has to understand how business works and what type of people are like. Opportunist are everywhere and outright deceptive TV adds freely peddle total nonsense that is outright deceptive. Huge TV Company's They have no morals at all, but play the man by stealth and deception. but the majority are hoodwinked by all such so easy.
TinMan
Well-Known Member
you may be right ?
A lot of underhanded things are going on with Biden and Putin's Russia underhandedly, but from the Media we would believe Biden has blocked off all trade with Russia ? How about Biden's underhanded deal with trying to get Iran Nuclear weapons deal from Russia.
I would say that it looks as tho Biden is setting up the State of Israel to be dominated by evil Islamic and evil Jews who are in bed with evil Islam. This will lead to War.
Biden is working to disrupt the whole world and He and such clearly only work too cause as much trouble as they can.
Ronald Nolette
Well-Known Member
You obviously do not have a clue how the oil markets work at all. If you did you would not write such false statements.
It is the oil commodity market that sets the price of all fuels. do not believe me, look it up for yourself!
Is It Fair To Blame Oil Companies For High Prices? | OilPrice.com
Oil companies are catching a lot of flack as prices remain firmly above $100 per barrel, but there’s a few details some finger-pointers may be overlooking
oilprice.com
Oil companies do not set the price of oil. The price of oil is actually set in the oil futures market, where an oil futures contract is a binding agreement that gives one the right to purchase oil by the barrel at a predefined price on a predefined date in the future. The market establishes the price based on available supply and the demand for that supply1. Likewise, oil prices are set on an open market by buyers and sellers23.
TinMan
Well-Known Member
No producer sets the price of the materials they have to buy or the cost of labor or production or transportation. But producers do set the price on the products they sell.You obviously do not have a clue how the oil markets work at all. If you did you would not write such false statements.
It is the oil commodity market that sets the price of all fuels. do not believe me, look it up for yourself!
Is It Fair To Blame Oil Companies For High Prices? | OilPrice.com
Oil companies are catching a lot of flack as prices remain firmly above $100 per barrel, but there’s a few details some finger-pointers may be overlooking
Oil companies do not set the price of oil. The price of oil is actually set in the oil futures market, where an oil futures contract is a binding agreement that gives one the right to purchase oil by the barrel at a predefined price on a predefined date in the future. The market establishes the price based on available supply and the demand for that supply1. Likewise, oil prices are set on an open market by buyers and sellers23.
Learned that in Kindergarten School did you? Your economic knowledge stinks to high heaven. Open another book and try again. Or you need to burn your economics comic books you bought. Told you before ....you don't have a 8th grade clue .....
Hint, you missed a lot of costs overall with your Bird House philosophy.
TinMan
Well-Known Member
it was meant to be illustrative not exhaustive. After pricing a product to cover all the costs what ever is added on after that is profit. And companies like Exxon doubled their profit last year to 168 billion.
He wont understand that. I also used to know a guy claimed oil companies made too much money. Was friends with him for years, then I found out he was a communist. I told him to hand over his bank account to me to share the wealth. He believed communism was the ideal government. Now this guy was well off too. He fanatically hated republicans called them evil. But democrats were good as they were socialists.
You are building bird houses ....They are drilling and refining oil to gasoline and diesel. In other words you are in the dark and they are battling dragons and demons ......You would lose your shirt, thinking you are making a profit while losing millions. You simply don't know what you are talking about.
Big problem is a lot of people think the same. Communists want to own and control the means of production, profits by companies is evil to them.
God's kingdom is not communism
God rewards some people over others when they excel.
11 Now as they heard these things, He spoke another parable, because He was near Jerusalem and because they thought the kingdom of God would appear immediately. 12 Therefore He said: “A certain nobleman went into a far country to receive for himself a kingdom and to return. 13 So he called ten of his servants, delivered to them ten [e]minas, and said to them, ‘Do business till I come.’ 14 But his citizens hated him, and sent a delegation after him, saying, ‘We will not have this man to reign over us.’
15 “And so it was that when he returned, having received the kingdom, he then commanded these servants, to whom he had given the money, to be called to him, that he might know how much every man had gained by trading. 16 Then came the first, saying, ‘Master, your mina has earned ten minas.’ 17 And he said to him, ‘Well done, good servant; because you were faithful in a very little, have authority over ten cities.’ 18 And the second came, saying, ‘Master, your mina has earned five minas.’ 19 Likewise he said to him, ‘You also be over five cities.’
20 “Then another came, saying, ‘Master, here is your mina, which I have kept put away in a handkerchief. 21 For I feared you, because you are [f]an austere man. You collect what you did not deposit, and reap what you did not sow.’ 22 And he said to him, ‘Out of your own mouth I will judge you, you wicked servant. You knew that I was an austere man, collecting what I did not deposit and reaping what I did not sow. 23 Why then did you not put my money in the bank, that at my coming I might have collected it with interest?’
24 “And he said to those who stood by, ‘Take the mina from him, and give it to him who has ten minas.’ 25 (But they said to him, ‘Master, he has ten minas.’) 26 ‘For I say to you, that to everyone who has will be given; and from him who does not have, even what he has will be taken away from him.
27 But bring here those enemies of mine, who did not want me to reign over them, and slay them before me.’ ”
.
That's why I stated originally ......Marketing economics means the most you make with each dollar you invest is about 1.5% ......Some days you look at that and wonder "Exactly why are doing this again?"
TinMan
Well-Known Member
Yes they are. And after paying for all that Exxon still managed to make 168 billion in profit
Exxon isn't loosing anything
TinMan
Well-Known Member
I don't think anyone here is saying profit is evil. I am however saying that current gas prices are set by as companies and these companies are making billions in profits. If you are mad about gas prices blame the ones actually responsible.
Biden economic chaos and energy disasters .....You need to study a little more. It's apparent that your socialist views have blinded you. That's why Scott Downey and I laugh every time you pretend while you post ....