Gas Prices

[Finfeatherfur]

Wag - my point on that comment is this - everyone complains about the price of oil, but no one does anything about it! How can the oil companies sell gas at 1.50/gal when it cost 2.90/gal to produce it? Let us drill, let us build refineries and you will have 1.50/gal gas!

Everywhere I go, people say man, ya'll must be making a killing - completely opposite! Quit fighting the oil companies and fight the government - who is killing the industry.

[Finfeatherfur]

Yak - i gotta tip my hat to you. I know your degree and background, so I gotta say, their is no way I could have sit through lectures from a liberal professor and still passed the class! Congrats and you will do well, as long as you know in your heart that not all oil companies are raping the world. We do our best to protect Mother Nature and put back all we can to make her heal and prosper. I just signed off on an extra $400K to get a platform water blasted before being reefed, even though it was not required by the Gov, I want to make sure it is clean before placing it as a artificial reef on the floor of the Gulf.

[yak'em-n-stack'em]

Originally Posted by Finfeatherfur

Wag - my point on that comment is this - everyone complains about the price of oil, but no one does anything about it! How can the oil companies sell gas at 1.50/gal when it cost 2.90/gal to produce it? Let us drill, let us build refineries and you will have 1.50/gal gas!

Everywhere I go, people say man, ya'll must be making a killing - completely opposite! Quit fighting the oil companies and fight the government - who is killing the industry.

really?
2.90 to produce

my figure may have been a little low, but 2.90 to produce is ridiculous



if oil companies arent making money please explain this

"Those higher oil prices have fattened oil company profits. Excluding BP PLC, the four other major investor-owned oil companies posted combined profits of $59.7 billion in the first nine months of 2010, a 49 percent increase from the year before.


Exxon Mobil Corp., Royal Dutch Shell, Chevron Corp. and Total SA are expected to earn $81 billion for the full year.
The fifth oil giant, BP, was held responsible for the largest offshore oil spill in U.S. history and booked $39.9 billion in charges related to the disaster. Excluding special expenses like the Gulf of Mexico spill, analysts say the company will still earn $20.2 billion in 2010."


from
http://mobile.sun-sentinel.com/wap/n...title=Business

[yak'em-n-stack'em]

i agree oil companies are not the big bad companies people make them out to be

we need oil companies and they do more than they require.

it just makes the middle class person hurt to see our costs of fuel go up to where we have to make choices that affect our lives and then seeing where oil companies made 49 percent higher profit on the money we HAVE to spend

[Montauk17]

Originally Posted by Finfeatherfur

Wag - my point on that comment is this - everyone complains about the price of oil, but no one does anything about it! How can the oil companies sell gas at 1.50/gal when it cost 2.90/gal to produce it? Let us drill, let us build refineries and you will have 1.50/gal gas!

Everywhere I go, people say man, ya'll must be making a killing - completely opposite! Quit fighting the oil companies and fight the government - who is killing the industry.

What exactly can the little man do to stop the government from killing the industry? I would like to know....

[Finfeatherfur]

Originally Posted by Montauk17

What exactly can the little man do to stop the government from killing the industry? I would like to know....

Elect officials and put them in office from the bottom up that support American drilling for American people!

[southern151]

Side note...Chavez is a pain in the arse and thought he was going to hurt the US. The facts, THE WAY I UNDERSTAND THEM, is that Venenzuela oil has such a high sulpur content that it isn't wanted for much more than heating oil. I know that in the Northeast, it is a big factor(heating oil) but, in fuel production, it is quite undesirable.

I agree 200% that we need to use our own oil and pull it from our OWN soils!

My understanding of this came from when I worked there before the reign of Chavez terror really took effect. We worked there in a Sunoco plant and you should have seen the HUGE piles of sulphur laying around and, even then, they couldn't sell it all! Now days, with even more strict regulation on sulphur levels in fuel, I agree that production costs have shot through the roof!

[Wag]

Originally Posted by Finfeatherfur

Wag - my point on that comment is this - everyone complains about the price of oil, but no one does anything about it! How can the oil companies sell gas at 1.50/gal when it cost 2.90/gal to produce it? Let us drill, let us build refineries and you will have 1.50/gal gas!

Everywhere I go, people say man, ya'll must be making a killing - completely opposite! Quit fighting the oil companies and fight the government - who is killing the industry.

But what people see is the the quarterly profit statements from these companies showing billions of dollars of profit per quarter and they can see that prices do not need to be that high...but like you said who cares what the prices go to, "shut up and pay!

[Finfeatherfur]

A BBL of cude oil is 42 USGAL. How much of that 42gals become 87 octane gasoline? Look at it that way!!!!!!!

[evis102]

The higher the price of oil the more profit they make. The more profit they make the more they have to spend. The more they have to spend the more jobs they create. The more jobs they create the better off the US is. We live in a state that lives or dies by oil. If oil stays around $100 a barrel for the next year you will see all kinds of projects starting up and turnarounds kicking off.

[Finfeatherfur]

Originally Posted by Wag

But what people see is the the quarterly profit statements from these companies showing billions of dollars of profit per quarter and they can see that prices do not need to be that high...but like you said who cares what the prices go to, "shut up and pay!

Wag - when it takes $600B in reserves to explore new deposits, you better make $60B a QTR in profits are you can't afford to drill! Their profits are high because of many reasons, but only short term gains!!! One of which, the frickin' GOM was shut down to drilling for most of 2010 and that money did not get spent - here in LA!

[BellPepperHead]

I can't believe that the value of our dollar has not been brought up in this conversation. A big part of the recent spike in gas prices are all these stimulus packages that are being released by our government. Foreign companies know that our dollar is worth nothing so they are charging us more for crude, which in turn causes the rise in gasoline prices.

[yak'em-n-stack'em]

a side note, the company my dad works for had a meeting a few months back with some of the big wigs that he had to attend.

They were upset because they werent making more money than the year before.
they based their standard on the year that had record oil prices and were cutting back the next year because they were not meeting the same profit margin.

its not that they arent making money.

its that they arent making the same amount of money they were making when oil was 140/BBL

[yak'em-n-stack'em]

Originally Posted by BellPepperHead

I can't believe that the value of our dollar has not been brought up in this conversation. A big part of the recent spike in gas prices are all these stimulus packages that are being released by our government. Foreign companies know that our dollar is worth nothing so they are charging us more for crude, which in turn causes the rise in gasoline prices.

i agree with you on this too.

[evis102]

[quote=Finfeatherfur;217539]A BBL of cude oil is 42 USGAL. How much of that 42gals become 87 octane gasoline?

One 42gal gallon barrel of crude oil yields:

19.5 gallons of gasoline
9.2 gallons of distillate fuel oil (diesel fuel and home-heating oil)
4.1 gallons of kerosene-type jet fuel
2.3 gallons of residual fuel oil (used in industry and marine transportation and for election power generation)
1.9 gallons liquefied refinery gases
1.9 gallons still gas
1.8 gallons coke
1.3 gallons asphalt and road oil
1.2 gallons petrochemical feedstock
0.5 gallons lubricants
0.2 gallons kerosene
0.3 gallons other (don't ask me, I have no clue )

* The total volume of products made is 2.2 gallons greater than the original 42 gallons of crude oil, representing a processing gain.

[all star rod]

Since I work for a company that designs and manufactures mass transfer equipment I love it when oil is 100 plus a bbl and gas it over 3 bucks a gallon. In turn, they will spend money to upgrade/increase capacity at their refineries. The average US refinery likely processes about 150K bbl a day. BTW, most run at 90 plus % of thru put. Also, does not mean the 150K is all processed to make gas. If a refinery can make 5-7% margins that are happy. However, with any large increase in price "2007" you will eventually have a large downfall in price "2009."

[all star rod]

Originally Posted by evis102

The higher the price of oil the more profit they make. The more profit they make the more they have to spend. The more they have to spend the more jobs they create. The more jobs they create the better off the US is. We live in a state that lives or dies by oil. If oil stays around $100 a barrel for the next year you will see all kinds of projects starting up and turnarounds kicking off.

Well said. But hey I can understand if you do not work in the oil industry that you would have an issue with the price of gas being 3 $ a gallon.

[Finfeatherfur]

[quote=evis102;217551]

Originally Posted by Finfeatherfur

A BBL of cude oil is 42 USGAL. How much of that 42gals become 87 octane gasoline?

One 42gal gallon barrel of crude oil yields:

19.5 gallons of gasoline
9.2 gallons of distillate fuel oil (diesel fuel and home-heating oil)
4.1 gallons of kerosene-type jet fuel
2.3 gallons of residual fuel oil (used in industry and marine transportation and for election power generation)
1.9 gallons liquefied refinery gases
1.9 gallons still gas
1.8 gallons coke
1.3 gallons asphalt and road oil
1.2 gallons petrochemical feedstock
0.5 gallons lubricants
0.2 gallons kerosene
0.3 gallons other (don't ask me, I have no clue )

* The total volume of products made is 2.2 gallons greater than the original 42 gallons of crude oil, representing a processing gain.

I see Google is your friend!!! Very good research. Now if we were trying to make PCMO, how much of a 55gal drum is crude? I'll save you the time - 35gals. - rest is additives.

Back to my point - do the math - $85/bbl for 19.5 gals of "product". Yes the sell the other stuff off, but their margins plumment on byproduct sales becasue the buyers know it is by-product! Also, the 0.3 gals that you are not sure about is the bad stuff -benzenes, tetras, etc.etc.etc.

[all star rod]

[quote=Finfeatherfur;217566]

Originally Posted by evis102

I see Google is your friend!!! Very good research. Now if we were trying to make PCMO, how much of a 55gal drum is crude? I'll save you the time - 35gals. - rest is additives.

Back to my point - do the math - $85/bbl for 19.5 gals of "product". Yes the sell the other stuff off, but their margins plumment on byproduct sales becasue the buyers know it is by-product! Also, the 0.3 gals that you are not sure about is the bad stuff -benzenes, tetras, etc.etc.etc.

Speaking of cost......Over the past 1-1/2 I have sold several MSAT projects.....where refineries have to reduce their overall benzene pool emissions. Basically, they have add or modify a process unit. Also, in the next several years your electricity bill will be going up due to Carbon Capture & Storage (CCS) projects. This will affect all the coal fired power plants we have in the US. Canada has already moved forward on one. However, here in the states our goverment still has not specified how much carbon needs to be captured. The same process equipment you use in a refinery, gas, or chemical plant is needed for this process.....

[Raymond]

We can all get ready to Grab Our Ankles if the new congress doesn't stop the new Cap & Tax administered by the EPA from coming to fruition. It "Cap&Tax" got squached in the last congress so Obammer did an end run with it through the EPA. The Demorats see these end runs as their only alternative to getting their Socaialist agenda implemented now that power is split. We must remember to vote Lame-dreiu out of office in 2012 and any other Demorat, they are all "Socialist" when you peel the skin back.