Oil drops IMMEDIATELY after offshore ban EO repeal

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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby RBarnes » Thu Jul 31, 2008 3:51 pm

The Today show this morning had a short piece on oil which I found rather interesting.

First off 45% of the cost associated with each barrel of oil is taxes paid to different countries around the world.

Secondly I noticed that when they talk profit they talk final dollars. The person speaking about the cost of oil (and I forget his name) pointed out that while Exxon Mobil is setting record profits the percent of profit compared to total cost is a lower profit percent then McDonalds makes.

One other point of interest regarding "record profits", Exxon-Mobil merged after being approved by the FTC under Clinton. When you put two large companies together the profits will increase because now instead of $X being made by company A and $Y being made by company B you have a total profit of $X + $Y which would be far larger then either made individually.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Ken Coleman » Thu Jul 31, 2008 7:25 pm

Rick,

I saw the same report. I think the reporter was incorrect. If you noticed there was no percentage for drilling, pumping or shipping. I think the percentages were of the gross profit of a barrel of oil, not of the total price as the reporter stated.

Ken
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby mglr536 » Thu Jul 31, 2008 8:14 pm

Just for a light hearted aside:

In 2006 Anheuser-Busch revenue per barrel was $143.20. Their gross margin was 44%.
During the same period, Inbev's gross margin was 60%.
In FY 2008, software company AutoDesk had gross margins of 90%.
And PC Connection headquarted in Merrimack was around 12%

Every industry has their ranges.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Michael Pelletier » Fri Aug 01, 2008 2:28 pm

...you have a total profit of $X + $Y which would be far larger then either made individually.

Basic arithmetic apparently escapes leftist demagogues, who want to raise tax rates even if it means lower revenues.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Jeannine Stergios » Fri Aug 01, 2008 2:39 pm

Michael

Just inflate your tires and be sure to get tune ups for your vehicles and that way we won't need to drill offshore.

http://www.youtube.com/watch?v=28WL9HeNysg
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby platypusman » Fri Aug 01, 2008 4:55 pm

The Democrats won't even allow a vote to lower gas prices through new domestic drilling. If this is change, I don't want it. Everyone when they fill up should know the Democrats are against lowering gas prices.

http://www.sfgate.com/cgi-bin/article.c ... ss.bayarea

Pelosi blocks offshore drilling vote GOP wants
Zachary Coile, Chronicle Washington Bureau

Friday, August 1, 2008

Pelosi blocking vote on offshore oil drilling:

For weeks, pressure has been mounting in Congress to approve more domestic oil drilling, but House Speaker Nancy Pelosi has held the line, using her power to block a vote on offshore drilling.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Jeannine Stergios » Fri Aug 01, 2008 5:07 pm

platypus

Blackout: Pelosi turns off the lights as GOP demands action on drilling;

http://hotair.com/archives/2008/08/01/b ... -drilling/

Good for them. It's about time the GOP shows some spunk.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby TCF » Fri Aug 01, 2008 8:24 pm

I agree, it is about time they showed some spunk. This should not be a conservative or liberal idea or agenda. The last I checked Democrats drive cars and use fuel as much as republicans. Albeit prius's hybrids.This issue alone could get back the house and senate if the so called conservatives of the Republican party wake up and continue this fight.
Just like back in the day "It's the economy stupid, Today "It's the oil stupid" Don't forget to inflate your tires. Tire Town must be booming with business now that THE ONE has spoken.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby RD » Fri Aug 01, 2008 9:02 pm

TCF wrote:The last I checked Democrats drive cars and use fuel as much as republicans. Albeit prius's hybrids

Good point. Not sure what you're getting at though, but you seem to forget that Prius' get substantially better gas mileage than SUVs.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby T Dutton » Fri Aug 01, 2008 9:48 pm

I doubt any politician would drive an economical car. They ususlly ride with at least 4 or 5 other gas hogs.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Michael Pelletier » Sun Aug 03, 2008 7:57 pm

AIR PELOSI - SPEAKER OPTS FOR WASTE AND ARROGANCE
By RICHARD MINITER

February 10, 2007

THURSDAY morning, House Speaker Nancy Pelosi stepped out of her Georgetown home and into a government-owned black Chevy Tahoe SUV. That gas-guzzler truck took her directly to the Rayburn House Office Building - where she was the lead witness at a Science and Technology Committee hearing on global warming.

This, the day after word broke of Pelosi's request for regular use of a U.S. Air Force C-32 - the same plane that flies the vice president and first lady.

She wants to travel in luxury. The Air Force jet is the same size and airframe as the Boeing 757-200, which carries about 300 passengers. The C-32 boasts 42 business-class seats - plus a wood-paneled state room, big-screen TV, full-size bed and crew of 16, including uniformed stewards who bring drinks and meals on request. Oh, and an open bar.

Cost to taxpayers? Some $15,000 an hour.

A round-trip to Rep. Pelosi's home in San Francisco could easily run $300,000. Meanwhile, the same flight on a commercial jet can run less than $300.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby RD » Sun Aug 03, 2008 9:56 pm

:lol: The New York Post? And an opinion piece to boot? :lol: Wow... you're reaching man. Just like most Republicans... credibility plummeting.
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Michael Pelletier » Wed Aug 06, 2008 3:20 pm

Not as fast as Obama's, thankfully. He described McCain as a "stooge of profit-soaked oil giants."

I searched the web and found a photo of one such "profit-soaked oil giant:"

Image

What, maybe 6'4", 250 pounds?
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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Michael Pelletier » Thu Aug 07, 2008 3:25 pm

Professor Morris Coates and another professor recently conducted a study to examine what the impact of opening up ANWR would be on today's oil prices. Their conclusions speak for themselves:

"We find that oil that is expected to reach the market some years hence has an immediate impact on oil prices," and that "if oil firms were allowed to drill in ANWR and many of the other areas that are currently off limits to oil production, it is possible that these areas together might have a significant impact on world oil prices."

That is, "will lower prices." When these two authors - both economics professors - submitted their findings for publications to a prestigious energy journal, what was the response from the rarefied world of economists? It was rejection -- but not for the reasons opponents of opening up new areas for oil and gas exploration would like to believe. No, their study was rejected because their conclusions were so obvious and so well-known - since the 1960s in the field of economics -- that the two authors were not offering up anything new that merited publication.

Letter from Energy Journal:
Although the referees, and I, are in agreement with your basic argument, I regret to say that we will not be able to publish this work. Basically, your main result (the present impact of an anticipated future supply change) is already known to economists.

If Hotelling didn't exactly spell this out in his original article, certainly Herfindahl and others had done so by the 1960s. It is our policy to publish only original research that adds significantly to the body of received knowledge regarding energy markets and policy.

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Re: Oil drops IMMEDIATELY after offshore ban EO repeal

Postby Wizard » Fri Aug 08, 2008 11:41 am

Michael Pelletier wrote:Bush lifted the executive order banning offshore drilling on Monday, July 14.

This did not end the ban on offshore drilling, as Congress still needs to act, but observe the response of the oil markets:

WTI Cushing, OK Crude Oil closing spot price per barrel:

7/9 - $135.88
7/10 - $141.47
7/11 - $144.96
7/14 - $145.16 - day of EO ban repeal
7/15 - $138.68
7/16 - $134.60
7/17 - $129.29

Oil has dropped $15.87 per barrel, dropping three straight days in a row, since the repeal of the executive order offshore drilling ban without a SINGLE new oil well in production.

People make fortunes studying the market psychology which Obama dismisses as political hokum, but apparently it's yet another thing of which he's unaware.


This drop in price per barrel of oil also coincided with the T. Boone Pickens public promotion of wind powered energy resources. Hmmmmm…. Coincidence? I’m not saying that his promotion was solely responsible for the drop in price, but I think it got the oil conglomerates attention and hence a drop in the price of crude.

How long do you think our economy can tolerate the outflow of billions of $’s for energy. A decade from now that outflow of cash will be in the Trillions of dollars. Couple this with the fact that we will still be fighting a war(s) somewhere in the Middle East and more trillions of dollars to fight them, we are screwed.
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