I think everyone is misdirecting their anger at the oil companies. Oil prices are set by NYMEX futures trading. Thank Hedge Funds, Goldman Sachs and the other IB's who are piling FED free giveaway dollars into commodities. That's what is great about the 200 billion announced today. The IB's will use the money to buy assets, they will not help the economy and make loans with it. They will help themselves. Exxon CEO said the other day he thinks the price of oil is insane. Scumbag Wall St. is to blame, as usual!
do you really think doing away with these will help us get more domestic oil and gas? Those breaks make it economical to drill wells. Without them, the wells will not meet investment return hurdles and simply won't be drilled. Either the royalty rates/burdens or the costs or the taxes were too high so the project just wasn't pursued. Now, would you rather give XOM a tax break and they invest in a $4 billion LNG plant/project, or they don't get the tax break, they don't do the project and natural gas prices in the US float up to about $12/MCF?? Firts Of all, 42 Billion is just 10% of their worldwide revenue. Exxon pays taxes at a rate of 41% on its taxable income, That's Over 30 Billion dollars just on that cap, They also pay over 40 cents per gallon of gasoline in taxes and they pay royalties also. One fact that seems lost on many here is that XOM doesn't make all of its money here in the good ol' US of A. And they don't make all of their money selling gasoline. In many countries, XOM produces oil and gas and sells it in raw form. So, a very large part of their income is derived in other sovereign countries. In other words, just one corporation (Exxon Mobil) pays as much in taxes ($30 billion) annually as the entire bottom 50% of individual taxpayers. Don't be mad at Oil companies for making a profit it's what there supposed to do - many people with 401k and other plans benefit from this. BTW, World goverments are the Big winners here. Probably, but what they can do besides the USD manipulation?.. they can't control china or india or russia growth! Are you a comunist?, almost every single technology you use today came from the war fields, even the sunglasses. BTW, Irak Is NOT the only factor in this Oil Boom, also the China 12% anual rate growth, India 10% anual rate growth, Brazil 10% anual rate growth, Russia growth, Venezuela turmoil, Nigeria war, a weak USD, etc etc. The Point is: 1. You are not entitled to anything... cheap gasoline included. 2. The point of setting up a for-profit business is TO MAKE PROFITS. 3. Exxon does not set the price of oil. in Fact, THE BUY OIL FROM STATE OWNED COMPANIES AROUND THE WORLD!. so every time the crude Oil goes UP, their operational cost also goes UP!. 4. Exxon's profit margins are 11%, not unreasonable when you compare it to Pfizer, which manages to make 17% on the backs of the sick and dying (who may not have an analogous option to number 4 below). 4. If you are dissatisfied with the price of gasoline, you may, at any time, take a train, ride a bike, walk, or ride the bus. All of these options will reduce your energy costs. BTW: The NYMEX and ICE exchange are just a drop in a ocean, the OTC market (Over The Counter) is 500 times larger. Nobody can control that, Not even the US goverment.
Excellent post- Limitdown- read every word of this post. It contains facts, not public opinion, not the reporting of a local ABC affiliate. I realize that this forum is anonymous, but I would recommend that you arm yourself with some facts. It will help others identify you as a somewhat intelligent, thoughtful person. As it is, I'm starting to feel a bit sorry for you. Please don't answer this post if you're going to tell us that "public opinion" is one way or another. That is irrelevant in an intelligent discussion.
Covert, Rubibond, others too, seems like this guy is seeing the same points too.. why not include him in your compliments, also, seems like others are no longer buying these well crafted arguements in support of higher prices that are manipulated... seems like those Saudi Oil Administrators, who are some of the most knowledgeable insiders in the game of Oil, Fuel and Refined products are also saying the same things..... seems like there's more people are no longer willing to accept what has been perpetrated for the last 8 years in America is all based on demand changes... me, worry, about what someone thinks, hey, who are you? or for that matter, me? in the greater scheme of things? hey, feel sorry for all the citizens of America and other countries too, honest souls all, going about their everyday choirs and being sucked dry from these prices that weren't this way ever in history,,,,, oil presently over $110 bbl off what? speculation?, supply / demand?, devalued US Dollar relative to the Euro?...... oh, is there any proof of these outsized tax payments to the US Gov't by these oil companies? ------------------------------- if the collapse of the valuation of the US Dollar ... relative to inflation, ... relative to the devaluation of US Mortgage Debt, ... relative to the other events of this so called consumer lead spending economy (all doped up on cheap credit), ... relative to the downward spiral we find in the US markets aren't enough to say they too don't agree with you and persons of thought like that too then, hey, let's all chant 4 more years
In times of distress, a certain group of individuals will look to whoever is profiting, and simply blame their ills on this certain group. All throughout history, this has happened. I understand these are desparate times for you, and alot of america, but playing the blame game is more an emotional response than anything. Maybe the gradually rising oil market is the greatest thing that will happen to the world...and more importantly the US, to finally convince people that they are living beyond their means...and they need to adjust if they plan on surviving. But then again, you can always blame the oil men, and continue on spending yourself into a hole....and ultimately losing as America gets fatter and fatter, lazier and lazier, until ultimately you begin to feed off your own fat, instead of other peoples. God I love this market.
Oil is only about 66 Euros a barrel, not so much when you consider the increase in demand and the futures speculation. It seems extraordinarily high only to those living in net oil importing countries with devalued currency. The effect is heightened by driving a Hummer, SUV, or monster truck. Those who choose to drive these gas guzzlers in countries with cheap currency have no right to complain.
you're right, as traders we take either side of a trade, as long as there's a trend..... actually, these are desperate times for most Americans, based on the news, financial news and other stories being floated. its good to have compnay like one's fellow citizens, even if we're all collective below the water line, thanks for your comments.....
"seems like there's more people are no longer willing to accept what has been perpetrated for the last 8 years in America is all based on demand changes" then people that don't accept supply and demand (namely chinese demand) are wrong. oil companies are price takers not price makers. most of the current profits are because FIFO accounting. they are currently selling oil at today's prices when they paid for the drilling rights back when oil was much cheaper. specualtors can't push oil prices up for very long. you can buy and take delivery of a bunch of silver or gold and hold it in a vault for a long time. you cannot do this with oil. storage facilities are limited and the contracts expire monthly. so you either take delivery or sell. speculators sell. that means the current price is legit whether you like it or not.
I think US oil companies have only about 15% of the world wide market...rest are country owned companies.... US oil companies pay more in taxes than they make on gallon of gas.... Barrel of oil is cheapest fluid of all fluid items sold in grocery store.. "Desperate Americans" !!!!......if so desperate why Disney doing so well....why every sporting event "sold out"....why every kid over 12 has cell phone.....waiting lines in restaurants....malls packed....traffic bumper to bumper.....why big screen TV selling like crazy.... Quit staring down at your dick and do some thinking..... SteveD
the generational change over from being a manufacturing society, to one of consumption and over dependence upon consumer goods, might be one basic ECO 101 (economics 101 entry level collegiate course) answer..... so much for thinking.... net, net, net, all these activities, from the perspective of (and I guess this is what you were trying to suggest) transportation, and how are all these people getting to and from those activities, might justify why we engage in consumption activities instead of manufacturing or blue collar production activities, might all equal the same amount of net demand for refined oil products (read gasolines, diesel and heating fuels)... now that analysis would have come from a class at the Eco 9101 level (grad school for those not familiar).... so what is your point?, other than trying to make things personal, crude (all jokes aside) or otherwise? in all respect to both myself, and the other intelligent contributors, and not to be offensive, but the objective in intelligent discussions is substantive thought and discussion, not otherwise.... your comments are welcome here too (just at a more refined level)