Now that oil is $57 a barrel. . .

#1
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droski

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#1
can we put to rest the theory that the oil companies and bush can control the oil price? also can we put to rest this theory that speculators don't effect the oil price? you think without the hedge funds and commodity funds going into oil and then going out of oil that we would have these wild swings? no way.
 
#2
#2
I have never commented on bush or oil companies controlling the price of oil...but do you agree that the majority of oil companies levraged the recent rise and a higher rate to ensure all time high profits...

You are correct..they dont control oil prices...but they do overly adjust the final gas price that you and I pay....
 
#3
#3
no i don't agree. the gas price you pay has to do with the refiners who were losing money like crazy when oil was $140 a barrel. edit: in other words you were paying less at the pump than you should have been with oil at $140. the drillers were making a lot of money, but their margins still ran at 10% and they were receiving the market price. no more, no less. not exactly highway robbery.
 
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#4
#4
Someone please explain why a huge mega refinery couldn't be constructed on government desert land that would relieve the bottleneck of turning crude into gas/diesel...say in Nevada or Utah? Wouldn't this help supply and lower prices?
 
#6
#6
Prices will go back up considerably now that the election is over, hide and watch. I know I know, supply and demand....
 
#7
#7
i think the oil price goes up only because it has dropped too much. just as it was an overreaction to the upside it is now an overreaction to the downside.
 
#8
#8
droski said:
can we put to rest the theory that the oil companies and bush can control the oil price? also can we put to rest this theory that speculators don't effect the oil price? you think without the hedge funds and commodity funds going into oil and then going out of oil that we would have these wild swings? no way.
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Don't oil producers play into the price run upa as mcuch as speculators by hoarding supply and not selling futures contracts?
 
#9
#9
maybe 30 years ago, but today the producers need the money too much to hoard supply. look at dubai, venezuala, or brazil. these people need the oil money desperately to fuel their social programs and the economy. they aren't going to cut off that pipeline. as for not selling futures contracts how does that raise the price?
 
#10
#10
ChicagoVolFan said:
I have never commented on bush or oil companies controlling the price of oil...but do you agree that the majority of oil companies levraged the recent rise and a higher rate to ensure all time high profits...

You are correct..they dont control oil prices...but they do overly adjust the final gas price that you and I pay....
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where is that freaking laughing uncontrollably emoticon?
 
#11
#11
droski said:
can we put to rest the theory that the oil companies and bush can control the oil price? also can we put to rest this theory that speculators don't effect the oil price? you think without the hedge funds and commodity funds going into oil and then going out of oil that we would have these wild swings? no way.
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I wonder if gas will go back to the same price it was when a barrel of oil was $57 last time around. And if it does, I wonder how quickly it will happen.
 
#12
#12
lawgator1 said:
I wonder if gas will go back to the same price it was when a barrel of oil was $57 last time around. And if it does, I wonder how quickly it will happen.
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it can't go all the way back because there is more to the price of gas than the barrell price of oil. Transporting it now costs more, refining it costs more, etc.
 
#13
#13
dan4vols said:
Someone please explain why a huge mega refinery couldn't be constructed on government desert land that would relieve the bottleneck of turning crude into gas/diesel...say in Nevada or Utah? Wouldn't this help supply and lower prices?
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Have you noticed the location of refineries? They are either near oil or near where people use a lot of gas. To put a refinery in the middle of nowhere would be way too expensive because you have to build a pipeline for shipping the oil in and shipping the gas out. Pipelines cost billions. Good idea but would cost too much
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#14
#14
lawgator1 said:
I wonder if gas will go back to the same price it was when a barrel of oil was $57 last time around. And if it does, I wonder how quickly it will happen.
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why do you refuse to believe that the refiners are losing money when you have companies like tesoro on the verge of bankrupcy? if they are doing what you are implying they are doing they sure as hell aren't profiting from it. obviously you aren't going to see the price at the pump halve immediately when the drop has happened in a couple of months and they still have inventory. also the price of gas didn't double when the oil price doubled.
 
#15
#15
droski said:
why do you refuse to believe that the refiners are losing money when you have companies like tesoro on the verge of bankrupcy? if they are doing what you are implying they are doing they sure as hell aren't profiting from it. obviously you aren't going to see the price at the pump halve immediately when the drop has happened in a couple of months and they still have inventory. also the price of gas didn't double when the oil price doubled.
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A quick look at tesoro shows they are doing OK. Appears their homebuilding division is sucking up corporate resources. Many companies get into trouble when they venture into industries they don't know.
 
#17
#17
droski said:
why do you refuse to believe that the refiners are losing money when you have companies like tesoro on the verge of bankrupcy? if they are doing what you are implying they are doing they sure as hell aren't profiting from it. obviously you aren't going to see the price at the pump halve immediately when the drop has happened in a couple of months and they still have inventory. also the price of gas didn't double when the oil price doubled.
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It didn't? Save for the tax portion, it sure seemed to.
 
#20
#20
I'm not convinced it will stay this low for long, though we all would love that to be case.

To the initial premise that oil companies don't manipulate oil prices. Oil companies do have a monopoly on refineries. There are few who dispute that. When is the last time this country built a refinery? That's why they are able to manipulate oil prices to a small degree.
 
#21
#21
droski said:
tesoro (TSO) does not have a homebuilding division.
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Then what is this?

Port St. Lucie's Tesoro community faces financial problems : St. Lucie County : TCPalm

"The Ginn Cos. is a development company founded by Bobby Ginn in Celebration near Orlando.
The 1,400-acre community is a master-planned development that features luxury homes with lake and golf course views. In 2007, home sites ranged from $400,000 to more than $700,000 and home-only prices ranged from $1.2 million to more than $5 million."

The Ginn Cos. is the parent of TSO.
 
#22
#22
KentheOrange said:
Then what is this?

Port St. Lucie's Tesoro community faces financial problems : St. Lucie County : TCPalm

"The Ginn Cos. is a development company founded by Bobby Ginn in Celebration near Orlando.
The 1,400-acre community is a master-planned development that features luxury homes with lake and golf course views. In 2007, home sites ranged from $400,000 to more than $700,000 and home-only prices ranged from $1.2 million to more than $5 million."

The Ginn Cos. is the parent of TSO.
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they are a development company, they are not a builder...the property is in trouble because the builders can not buy the lots and build
 
#23
#23
Ginn has nothing to do with the refining company.

Ginn just happened to name its development Tesoro instead of something like Timber Trails or Meadowview. Ginn is the developer and Tesoro is the development.
 
#24
#24
oklavol said:
I'm not convinced it will stay this low for long, though we all would love that to be case.

To the initial premise that oil companies don't manipulate oil prices. Oil companies do have a monopoly on refineries. There are few who dispute that. When is the last time this country built a refinery? That's why they are able to manipulate oil prices to a small degree.
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most oil companies have been selling their refineries. there are some independent refineries too like tesoro and valero. and yes we haven't built many new refineries, but because of the technology most refineries can put out a lot more gas then they could even 10 years ago. i guess my premise is that the refiners (or lack of refiners) is not the problem it's the price of oil whose rise is directly related to the lack of new domestic supply.
 
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