| Blogs > touch213 > Life is much, of many things. |
|
criminals in the midst now if anyone thinks that the criminals are not running the helm... then explain this. Oil giant EXXON makes corporate history by booking $11.7 billion in quarterly profit; earns $1,300 a second in 2007. PEOPLE.. IF YOU DON'T THINK YOU ARE BEING RIPPED OFF .. YOU NEED TO OPEN YOU EYES... better yet open your wallet and see how much is missing ... and you may see who's got your money. everyone related to Oil.. should be put in prison. |
|||
2/1/2008 5:26 pm |
I mean all the executives that handle the international trade and most certainly the companies, who raise yo yo the prices the ways they do... they do alot of playing, "put another pound on the mule's back" it's still moving, then it can carry more.
| ||
2/1/2008 6:47 pm |
I appreciate that pulling of the details into focus..  I think the thing that gets me is the quickness of the cost fluctuation's at the pump.. but what you say can and does ease that surface frustration. I watch a lot of the " how is is made shows, and I personally know the cost of equipment and the development of process and the expense involved in running and maintaining that process., so your viewpoints are most certainly correct..
| ||
2/1/2008 8:18 pm |
here they take the price up and then kick it back a pennies or so, to create the new balances and then promote the pennies drop as big news on the media and by then it's settled into people minds as acceptable and they actually thy they are getting a discount.  for me I just buy mine in fixed amounts.. either I'm going to spend 30$ or 50$.. unless I have some place that I want to go, My mother never let's hers get below 1/2 tank.. I tell her don't factor the pennies.. just use round numbers.. it's it's 2.90+ just consider that it's $3.00 because you can't do anything with the extra pennies.. except put them in a Jar..I have two jars on my dresser, and when they are full, they come out to about 170$.. I may start to just use the gas card, so I get a detailed monthly print out of what I actually use.. I see so many families that still have the big SUV.. and I find I see more of them that are not washed, and maybe even not kept as neat as they use to be, I think some people may be trapped into the lease or the contract and can't get rid of it. but when I think of the Porsche, which I rarely drive, I think I keep it mostly because I joined a auto club and I can enter it in auto shows, but most of the vehicles in the shows are antique cars, classic, trucks and muscle cars. but one thing I have noticed when I'm out, there's not as much just random cruising around by people, like it use to be.
| ||
|
Indeed I agree with goanna... I still wander how mining companies (I am more into the mining game than the oil one) actually make a profit out of mining dirt out of the ground, seeing all the infrastructure and services going with it... I am amazed... or else... the money to make them rich comes from somewhere else... say... the stock market... ? uhmm...   the flying squirrel strikes back       
| ||
|
Touch, Shell's CEO recently wrote a letter to all his employees. In the letter, we get a glimpse of what Shell does besides extracting crude with joint venture partners all over the world. I'm sure Exxon and Chevron are similar to Shell and do what Shell does. The shocking admission from Shell's CEO in that letter indicates that the current price of crude around $100 per barrel is too high to fathom. It is traded on the futures market, and analysts and speculators are thinking that crude will be harder to extract in the future, due to hostile geopolitics in oil producing regions and discoveries in more remote and harsher areas. Environmental concerns also contribute to more challenging and cost-intensive techniques to extract crude. Nonetheless, according to the letter, it shouldn't be as high as $100 per barrel. Shell isn't and shouldn't be complaining because they profit from high-price crude as they are directly involved in extraction. Most of the joint ventures with governments in OPEC have agreements where a gov earns 51% of the proceeds while the oil partners such as Shell, BP, Exxon or Chevron earn the rest. Cost of extraction, storage and production typically is way below $25 a barrel, even at current levels. With the weakening dollar, it would still be below $30 per barrel. And that's the cost of crude to the producer and refiner as they typically sign long-term contracts based on a fixed low price, not the futures market price or spot price that fluctuates with supply and demand. The margins are high obviously, thanks to the panicky futures market. What is more evident from the letter is that Shell, and perhaps Exxon and other big oil companies, prefer to go it alone at striking new deals with OPEC govs. Currently, the 49% minority proceeds are shared among partners. With more capital, higher profits, full professional services, extraction, and knowledge capabilities and a global workforce, each major oil company is getting even bigger and striking out on their own. They are also trying to prevent buy-outs and hostile takeovers. You will be seeing larger sums in years to come.
|
