To all you pro oil folks out there.

[Toddsterpatriot]

Taxes, ok, but the rest doesn´t apply.

Why Gas Is So Expensive During the Summer (And Especially in Chicago)

Every summer, gas prices go up. It's not just demand. Gas, like clothing, has to get lighter as temperatures rise, to prevent not just pollution but vapor lock. It's even pricier here in Chicago, one of America's

www.chicagomag.com

 

[there4eyeM]

/-------/ Net profits? What do you mean?
Is that a serious question?

Net profit definition: what is net profit?​

Net profit is the measurement of a company's profit once operating costs, taxes, interest and depreciation have all been subtracted from its total revenues. The term is often referred to as a company's 'bottom line' and may also be described as 'net earnings' or 'net income'. -- Capital.com

Those net profits come out to hundreds of dollars per second, and that is not just one company. That results in astounding economic and political power.

 

[Bleipriester]

Really? Transportation costs from refineries don't vary?
Chicago doesn't have a different gas blend than the rest of the country?

Well, I guess you are right with that special gas blend.
But why would it be harder to transport gasoline to Chicago than to Bismarck, the more so as the refineries are nearby?

 

[Cellblock2429]

Those net profits come out to hundreds of dollars per second, and that is not just one company. That results in astounding economic and political power.

/——-/ So?

 

[there4eyeM]

..."Power corrupts...", and those with so much money also succeed in corrupting politicians.

 

[KissMy]

Biden will soon set many new oil production records with the increasing number of operating drilling rigs.

 

[Toddsterpatriot]

Biden will soon set many new oil production records with the increasing number of operating drilling rigs.
View attachment 655420

He's really encouraging production with all his policies.

List your 3 favorite Biden pro-oil policies.

 

[YoursTruly]

They do it at the start of every bust cycle.

Right. Except you're claiming current high prices are the bust cycle.

Correct, It's part of the cycle. The bust cycle is initiated, and prices rise thereafter. Until they've the citizens have reached their breaking point.

Oil companies never lose money.

Never? Never ever? LOL!

Correct. The price at the pump is all overhead plus profit. Plus the store owners profits.

In 2020, their yearly NET profits were over $4 billion.

Net profits? What do you mean?

Net profit. After everything is paid out, what is left over is net profit.

 

[YoursTruly]

/-----/ No one ever accused Bloomberg of being a right-wing news org.

Bloomberg - Are you a robot?

The Biden administration has repeatedly pointed to the number of approved but untapped drilling permits on federal land when questioned about how U.S. production can rise, and what the federal government can do to help.

“There’s a fundamental misunderstanding of the administration as to how the process actually works,” Sommers said in an interview on the sidelines of the conference.

“Just because you have a lease doesn’t mean there’s actually oil and gas in that lease, and there has to be a lot of development that occurs between the leasing and then ultimately permitting for that acreage to be productive,” he said. “I think that they’re purposefully misusing the facts here to advantage their position.”

No sir, I'm not misusing or misrepresenting the facts. He's correct when he says "having a lease doesn't mean there's oil/gas on the least." They bid on the lease, then send in their geologist to determine if & where the oil is. After they've gotten their geological reports that show where exactly the oil is, then and only then do they get the drilling permit.
The drilling permit allows them to drill. They wouldn't even apply for a drilling permit unless the geo studies show there's oil. So the 9000 drilling permits that have been issued by Biden's BLM, means there's 9000 specific locations where geo studies say there's oil.
So why are the oil companies still sitting on 60% of the DRILLING permits? The drilling permits, again, are the OK to drill from BLM. Not explore, not do geo studies. Not oil leases. But simply to drill.

 

[YoursTruly]

Why haven't the monopolies set the price at $200? Or $300?
If the price is set, why does the chart move between $68 and $120?

View attachment 655363

Isn't the price "set by the monopolies"?

Oil companies can't price themselves out of a job. If they went to $300 per barrel, no one could afford gas/diesel. The EV and solar market would boom and put oil companies out of business.

 

[there4eyeM]

Correct, It's part of the cycle. The bust cycle is initiated, and prices rise thereafter. Until they've the citizens have reached their breaking point.


Correct. The price at the pump is all overhead plus profit. Plus the store owners profits.



Net profit. After everything is paid out, what is left over is net profit.

Anyone would have to know what "net profit" means. It isn't clear what game he's playing, but these oil apologists are a curious lot.

 

[Lesh]

Oil companies can't price themselves out of a job. If they went to $300 per barrel, no one could afford gas/diesel. The EV and solar market would boom and put oil companies out of business.

But they are now realizing that they can make a shitload of money without maxing out their production ability

 

[YoursTruly]

But they are now realizing that they can make a shitload of money without maxing out their production ability

They've known this for many decades from when OPEC used to do it before we found and produced so much oil/gas here. OPEC, when they hit their bust cycle, caused the price of our gas to up. So the government gave huge incentives, tax rebates and other things to allow US oil companies to find and produce more. And they did.
But now, they're doing the same exact thing that OPEC used to do to us.
It's no coincidence that OPEC and US oil companies started their bust cycle at the same time. And it's also no coincidence that Trump, in April of 2020, stuck a deal with OPEC to reduce production.

I'm not putting all the blame on Trump. He was just the president. He didn't force OPEC or US oil companies to initiate the bust cycle. That was their call, not his.

 

[Markle]

None of this would do anything for gas prices for a very long time

As you know, energy prices would start to drop the same day President Biden signed the executive orders. In fact, they would start BEFORE he signed them.

 

[kaz]

You say you make up lies for a living? Wow. Nice gig if you can get it I guess.

In reality he said "Thought demand was low during pandemic? Doesn’t that mean prices would go up?"

Can't fool me, you added "then as we recover demand will grow and prices will go up."

Nice Kaz, nice.

read the first sentence then passed on reading the rest. You're a useless sack of shit and you don't know shit. The blind dog sees better than you do putz

 

[kaz]

Bro, I can't stand Biden. And can only think of one democrat in my entire life that I respect. (Tulsi Gabbard). So don't even try this "you're pro Biden" crap on me.
I'm just giving unbias information with facts about how and why oil companies do what they do. Boom and bust cycles are a natural occurrence in the oil business.
Have you forgotten why the whole "drill baby drill" slogan came about? We were sick of OPEC's bust cycles, where we were forced to pay high prices at the pump for middle eastern oil. So the government gave HUGE tax incentives and corporate welfare to oil companies to "drill baby drill."
And now Americans are shocked to find out that US oil companies are doing the same exact thing that OPEC did to us for so long.
There's a financial reason for bust cycles. It's just business. It'll be over in a year or so, and prices will once again fall.

Here's a little advice: Remember this bust cycle. Write it down if you need to. Because there will be more in the future. About every 5 years or so. That way you won't be shocked when the next one hits.

Read a book on how capitalism works then get back to me. That you disagree with capitalism is dubous. But you don't even know what it is or how it works, so your opinion of it is useless.

Here's a simple quiz you'll fail. What keeps prices in check in capitalism? You don't know, do you? Be honest ...

 

[Markle]

Net profit is the measurement of a company's profit once operating costs

Yup.

Now what does the following mean?

Oil companies never lose money.
In 2020, their yearly NET profits were over $4 billion.

What were their gross sales over that period of time?

 

[surada]

OPEC is always cheaper than Texas intermediate or Brent.

Markle you disagree with hard facts. Don't you know anything about the oil business?

 

[Toddsterpatriot]

Correct. The price at the pump is all overhead plus profit. Plus the store owners profits.

That doesn't mean oil companies never lose money. Obviously.

Net profit. After everything is paid out, what is left over is net profit.

Right. So who had net $4 billion in profits?

 

[Toddsterpatriot]

Oil companies can't price themselves out of a job. If they went to $300 per barrel, no one could afford gas/diesel. The EV and solar market would boom and put oil companies out of business.

So when Dudley said, "No, the monopolies set the prices", he was lying?

Thanks!