here comes the gas hike

Gixxer · Post by **Gixxer** » Thu Jul 30, 2009 3:59 pm

Exxon Profits Plunge on Lower Oil Prices

http://www.businessweek.com/bwdaily/dnf ... 219469.htm

JawZ · Post by **JawZ** » Thu Jul 30, 2009 4:58 pm

So why do you think there will be a gas hike?

Sava700 · Post by **Sava700** » Thu Jul 30, 2009 8:44 pm

Yep.. prices have been climbing over the last week. I saw as low as 2.09$ last Monday and as of this wed back up to 2.30$.... There isn't a damn thing else pushing the price even the market is still low. All we need now is a stupid hurricane to drive them back over 3$/gallon.

Gixxer · Post by **Gixxer** » Fri Jul 31, 2009 8:36 am

JawZ wrote:So why do you think there will be a gas hike?

because those fat cats won't let their pockets get smaller or grow slower.

brembo · Post by **brembo** » Fri Jul 31, 2009 8:59 am

JawZ wrote:So why do you think there will be a gas hike?

NPR announcer said that big profit slashes will effect R&D and exploration for sources and that could end up driving up prices and/or creating shortages.

Brk · Post by **Brk** » Fri Jul 31, 2009 9:31 am

brembo wrote:NPR announcer said that big profit slashes will effect R&D and exploration for sources and that could end up driving up prices and/or creating shortages.

Diiiiiiiiiiiiiiing.

This is what is affecting the oil and gas industry right now; natural gas is at such a low price per million cubic foot that even the big players have cut back on new wells, which in turn affects my job and others who do the same thing. The price goes back up, exploration and drilling ramps back up, supply increases, fuel prices then level out and eventually drop.

And on and on and on...

joecool169 · Post by **joecool169** » Fri Jul 31, 2009 10:10 am

The oil companies are rich and will continue to get richer. They make billions and don't care who or how many they hurt to make billions. They will continue to do this raise the price as high as the public will allow, and lower only when they have to, and on and on.

Brk · Post by **Brk** » Fri Jul 31, 2009 10:24 am

joecool169 wrote:The oil companies are rich and will continue to get richer. They make billions and don't care who or how many they hurt to make billions. They will continue to do this raise the price as high as the public will allow, and lower only when they have to, and on and on.

A very common and very naive view of how things work.

Yes, there are people who're concerned only with massive profits, but then again that is the job of every corporate type.

Oil and gas exploration, extraction, refinement and delivery is neither simple nor cheap; wells can cost tens of millions of dollars to drill and develop, not counting the expenditures made to research title, lease the interests, pay geologists, 3D seismic tests, and on and on.

Even with modern technology, there is no guarantees in exploration, either. Even more tens upon tens of millions are wasted every year on dry holes and poor wells. Multiply that many times over and the cost is enormous.

Does that justify obscene executive golden parachutes? Of course not. But as with any kind of reviled business, there is far more to it than greed.

JawZ · Post by **JawZ** » Fri Jul 31, 2009 10:41 am

brembo wrote:NPR announcer said that big profit slashes will effect R&D and exploration for sources and that could end up driving up prices and/or creating shortages.

We have record amounts of supply right now. BP said that they were hit hard, now they are only making 3.14 Billion a quarter and have to release 5,000 workers. Shouldn't exploration and R&D be made into non-fossil fuel sources?

Now that the airlines are on the chopping block, will we ever see a return of our demand for oil?

I see all of this as course correction. IMO, I think it's good that the folks that helped aid the collapse of the economy feel the pinch and are forced to cut some fat.

In any case, the paradigm is broken. How can we ever turn the tide when the oil companies HAVE to turn a profit for the shareholders?

joecool169 · Post by **joecool169** » Fri Jul 31, 2009 12:54 pm

Burke wrote:A very common and very naive view of how things work.

Yes, there are people who're concerned only with massive profits, but then again that is the job of every corporate type.

Oil and gas exploration, extraction, refinement and delivery is neither simple nor cheap; wells can cost tens of millions of dollars to drill and develop, not counting the expenditures made to research title, lease the interests, pay geologists, 3D seismic tests, and on and on.

Even with modern technology, there is no guarantees in exploration, either. Even more tens upon tens of millions are wasted every year on dry holes and poor wells. Multiply that many times over and the cost is enormous.

Does that justify obscene executive golden parachutes? Of course not. But as with any kind of reviled business, there is far more to it than greed.

I understand how things work, I did grow up in service stations and dealt with oil companies for years. I understand they have to spend money, I understand there are people that work hard for these companies and they deserve to be paid well. But that does not change the fact that they will make billions and don't care who they hurt.

I am not arguing with your statements, but they are as a whole greedy.

blebs · Post by **blebs** » Sat Aug 01, 2009 9:15 am

Gixxer wrote:because those fat cats won't let their pockets get smaller or grow slower.

That's right. Why spend your own money when you can spend everyone elses?

69.50 +2.56 69.74 64.96 69.45 Almost $70 a barrel again.

I think the cash for clunkers program was fish bait. They wanted to see who still has money out here. Now they know there are plenty of people, so it's time to turn the proverbial financial thermostat up.

Sava700 · Post by **Sava700** » Sat Aug 01, 2009 10:14 am

blebs wrote:That's right. Why spend your own money when you can spend everyone elses?

69.50 +2.56 69.74 64.96 69.45 Almost $70 a barrel again.

I think the cash for clunkers program was fish bait. They wanted to see who still has money out here. Now they know there are plenty of people, so it's time to turn the proverbial financial thermostat up.

the cash for clunkers idea has too many rules... they shouldn't have used a 25year old cap. There are many vehicles that waste gas, pollute way to much and are older than 25years old.

YARDofSTUF · Post by **YARDofSTUF** » Sat Aug 01, 2009 12:25 pm

Sava700 wrote:the cash for clunkers idea has too many rules... they shouldn't have used a 25year old cap. There are many vehicles that waste gas, pollute way to much and are older than 25years old.

They're also classics.

Sava700 · Post by **Sava700** » Sat Aug 01, 2009 4:16 pm

YARDofSTUF wrote:They're also classics.

if taken care of yes....but otherwise there are way too many junkers over 25 that are not and could be used in this program...but then you have to deal with the insured for at least a year. That rule is bs as well...this cash for clunker idea could remove many broken down vehicles out of yards and help clean up views for neighbors etc..

YARDofSTUF · Post by **YARDofSTUF** » Sat Aug 01, 2009 10:50 pm

Sava700 wrote:if taken care of yes....

No, if taken care of those are mint condition or restored classics