Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Does anyone realize that this is cyclical and that the oil companies have and will suffer through record losses?
People, please do your homework!
Quote:
Record losses? The only thing I keep hearing and reading is about their quarterly record profits...when have they had a loss recently?
I've been researching that claim for the last 15 minutes and can't find those big losses. Not in the last decade at least and not from the big oil companies. There are smaller company losses on record but not from the top 10 big ones that I can find.
From what I can find so far the last time Exxon lost any kind of large monetary sums was after the Valdez spill and that was because they had to pay out a ton of money in lawsuits and in cleanup.
Lease - takes about 2 minutes to copy the last lease, change the address and sign
Build the platforms - you mean the ones they have sitting idle because they have no where to use them at cant be moved? (um, hint, yes they can, it takes about 3-4 months)
Find the oil? Noo, they know where it is, just not allowed to dig
Legal loopholes.. Now there is the problem, and liberals want to add more legal limits.
So excluding the legal issues, they can get from permisson to drill to my tank in a year, possibly two. And in those two years, we can draw from the federal reserves, and then fill it back up after the drills come online, thereby lowering the cost TODAY, and saving the taxpayers billions.
But lets just add more legal issues and then cry about how long it takes to drill.. ooh please..
And what makes you think that the oil companies will sell you that oil cheaper than what the world market price is. Do you really think that if China is ready to pay them $100 per barrel they well sell it to you for $50? Just because it came from Alaska or Florida’s coastline.
The first part is due to speculation which controls the price of oil per barrel oddly enough.
The continued drop is not because of lifting the ban however. The continued drop is because we are in a recession despite the fact that the WH still cannot admit we're in a full blown recession and not just a 'some states' are in a recession.
Danielle is right about drilling. The funny thing about all the drill, drill, drill is that the oil companies have had drilling & speculating rights all over the place in large quantities. But for whatever reason they haven't been exercising those rights. Even during the discussion of whether to lift the ban or not they could have been drilling in new places they have as yet left untouched but no.
I don't know about anyone else but I find it really freaking interesting, and wrong, that the oil companies post all these big profits yet WE, the taxpayer, pay for all their old wells that have dried up. Meaning they are subsidized every quarter/year for those old no longer producing wells. Why we do that is beyond me and maybe if we didn't they'd be forced to do a little more drilling. As it stands why put out all that high cost expenditure when they can instead continue to make money off that dead well as if it were still alive.
So what level of profit is acceptable? Should they only be able to make say 8 billion? Please define 'big profits' as opposed to 'reasonable profits'. I prefer the big profits and so do my retirement accounts.
The first part is due to speculation which controls the price of oil per barrel oddly enough
Yes, they speculate on the SUPPLY AND DEMAND... Supply UP, Demand DOWN.. Speculate costs go down..
Quote:
Originally Posted by SGrey
The continued drop is not because of lifting the ban however. The continued drop is because we are in a recession despite the fact that the WH still cannot admit we're in a full blown recession and not just a 'some states' are in a recession
So you went from its a speculation issue due to supply/demand to its now a WH issue? Odd, because the WH doesnt control oil costs in Russia, Africa, Asia, and their costs are rising and dropping right in line with ours. Try again..
Quote:
Originally Posted by SGrey
Danielle is right about drilling. The funny thing about all the drill, drill, drill is that the oil companies have had drilling & speculating rights all over the place in large quantities. But for whatever reason they haven't been exercising those rights. Even during the discussion of whether to lift the ban or not they could have been drilling in new places they have as yet left untouched but no.
And oil companies pay for those rights MONTHLY to "sit" on those lots. Those leases run for 10 years, and with every month that goes by, those leases lose 1/120th of their value while their liabilities continue. So now your speculating that the oil companies are paying billions to sit on leases only to turn them over in 10 years and not get a drop out of them, only to turn them over to the next oil company who will then drill the oil out? Your going in circles here because this would seem to contradict their "record profits" argument if they are turning over leases back to the government after spending billions sitting on them..
Quote:
Originally Posted by SGrey
I don't know about anyone else but I find it really freaking interesting, and wrong, that the oil companies post all these big profits yet WE, the taxpayer, pay for all their old wells that have dried up. Meaning they are subsidized every quarter/year for those old no longer producing wells. Why we do that is beyond me and maybe if we didn't they'd be forced to do a little more drilling. As it stands why put out all that high cost expenditure when they can instead continue to make money off that dead well as if it were still alive.
Wait, one paragraph your telling me that they are sitting on oil wells, next paragraph your telling me the wells have dried up. Which is it.
p.s. the oil companies pay leases to sit on those "dried up" wells, they are not subsidized by the governmernt. Learn how the bidding process works on oil wells if your going to post and sound educated about it.. Dead wells are a liability, not a money maker.. jees..
And what makes you think that the oil companies will sell you that oil cheaper than what the world market price is. Do you really think that if China is ready to pay them $100 per barrel they well sell it to you for $50? Just because it came from Alaska or Florida’s coastline.
I'm not sure what argument your trying to make. You understand that this is a WORLD market and they are free to sell it to China, or America if they wish right? If China was paying $100 and I'm only willing to pay $50, why would I expect them to sell it to me unless their costs to get it to me was $50 less then China?
So what level of profit is acceptable? Should they only be able to make say 8 billion? Please define 'big profits' as opposed to 'reasonable profits'. I prefer the big profits and so do my retirement accounts.
Depends where those big profits are coming from. If they are coming out from our pockets, I strongly object.
So what level of profit is acceptable? Should they only be able to make say 8 billion? Please define 'big profits' as opposed to 'reasonable profits'. I prefer the big profits and so do my retirement accounts.
Oh no no no no, do not misunderstand me. I have no desire to cap their profits. What I am saying is that I would like to see their profits done at at a straighter rate that takes out some of the gaping loopholes and subsidies that help those big profits along. Take out the ridiculous ones and I really could care less about how much they make after.
Quote:
Yes, they speculate on the SUPPLY AND DEMAND... Supply UP, Demand DOWN.. Speculate costs go down..
Agreed. I don't think anyone is arguing how supply and demand works. But it's been the economy that's continued to drive the prices down, not the lifting ban. As you said, supply up, demand down. Demand has gone down which drags the prices down with it.
Quote:
So you went from its a speculation issue due to supply/demand to its now a WH issue? Odd, because the WH doesnt control oil costs in Russia, Africa, Asia, and their costs are rising and dropping right in line with ours. Try again..
No, the WH was a side note and I believe you are smart enough to know that. If necessary I'll mark it specifically as a sidenote next time to help with your understanding.
Quote:
And oil companies pay for those rights MONTHLY to "sit" on those lots. Those leases run for 10 years, and with every month that goes by, those leases lose 1/120th of their value while their liabilities continue. So now your speculating that the oil companies are paying billions to sit on leases only to turn them over in 10 years and not get a drop out of them, only to turn them over to the next oil company who will then drill the oil out? Your going in circles here because this would seem to contradict their "record profits" argument if they are turning over leases back to the government after spending billions sitting on them..
And you're stating further facts to back up the issue then trying to say the don't mix. Yes, oil companies pay for those rights. No doubt about it. And they don't then drill on every lease, there are many they don't drill on at all for whatever reason. That's easy enough to look up and we're not even saying different things. What then is the problem? Do you not realize there were multiple points there or what?
The major problem you seem to be having is that you assume that the money they're paying on leases is hitting their profit margins when obviously that is not the case. Also, they don't turn over the leases to the government when they go unused but rather whoever owns the land.
Quote:
Wait, one paragraph your telling me that they are sitting on oil wells, next paragraph your telling me the wells have dried up. Which is it.
p.s. the oil companies pay leases to sit on those "dried up" wells, they are not subsidized by the governmernt. Learn how the bidding process works on oil wells if your going to post and sound educated about it.. Dead wells are a liability, not a money maker.. jees..
Oh please, you're just being combatitive for combats sake.
They are sitting on potential wells and not drilling. Check.
They also have old dried up wells they get money from the government on. Check.
The two can exist at the same time and frankly one existing doesn't stamp out the other. They are parts of the whole.
Let me put it another way for you. If you own a house and you rent it out, you get an interest rate deduction and a depreciation deduction.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
