Oil Tumbles as IEA Announces Release of 60 Million Barrels

[ricky023]

They live in a fantasy world of academic theory and hypotheticals.

I totally agree. They couldn't run a country if the democrats had running instructions. They mess up the reading of them. They are pitiful. RTR!

[cbbama99]

On a postive note gas prices are dropping. I paid $3.28 yesterday.

Oil prices rose this week. The 1/30th of a days consumption did not work to overcome the marked increase in demand brought on by the Independence Day increase in driving. OOPS. BTW, that amt. of oil dumped on the market will be used up by the time most of you get out of bed this morning. These people cannot implement anything. They live in a fantasy world of academic theory and hypotheticals.

"The government that governs best, governs least." -- Jefferson

Too many people on both sides of the aisle have ignored this sage advice from one of our founders. Washington, Jefferson and others from this time warned of allowing government to fulfill functions that it had no business being over, and now we are reaping the problems of it.

[pmull]

On a postive note gas prices are dropping. I paid $3.28 yesterday.

Oil prices rose this week. The 1/30th of a days consumption did not work to overcome the marked increase in demand brought on by the Independence Day increase in driving. OOPS. BTW, that amt. of oil dumped on the market will be used up by the time most of you get out of bed this morning. These people cannot implement anything. They live in a fantasy world of academic theory and hypotheticals.

"The government that governs best, governs least." -- Jefferson

Too many people on both sides of the aisle have ignored this sage advice from one of our founders. Washington, Jefferson and others from this time warned of allowing government to fulfill functions that it had no business being over, and now we are reaping the problems of it.

Excellant post. 

[BAMAWV]

There is really no reason that gas should be any higher than $1.50-$2.00 per gallon.

This fall I'll have 3 kids in college. In two years four tuitions. Is that reason enough?

BTW, next thing y'all will want is someone to pump it for you, check the oil, and get the windshield.

[BAMAWV]

Our economy is in the dumps and the most profitable businesses in the US are oil company's. I am all for free enterprise but I think gas prices should be regulated.

I believe this is the second time this week. Comrade Pmull?

[pmull]

Our economy is in the dumps and the most profitable businesses in the US are oil company's. I am all for free enterprise but I think gas prices should be regulated.

I believe this is the second time this week. Comrade Pmull?

I only posted this once and you grilled me then. Calm down and give Chech some of your crap, He's been off vacationing for 6-8 months, he needs a reality check.

[BAMAWV]

Our economy is in the dumps and the most profitable businesses in the US are oil company's. I am all for free enterprise but I think gas prices should be regulated.

Oil company profit margins are lower than most other industries. Also do not forget that the owners of oil companies are you, me, and your neighbors. Anyone with a pension plan, 401K, etc. is likely vested in oil. So by regulating prices, you are not only disrupting the supply/ demand economics, but giving Grandma a cut in pay.

[ricky023]

What about the Oil from South America do we invest in that? I am not sure and I would like to hear your thought please. RTR!

[pmull]

Our economy is in the dumps and the most profitable businesses in the US are oil company's. I am all for free enterprise but I think gas prices should be regulated.

Oil company profit margins are lower than most other industries. Also do not forget that the owners of oil companies are you, me, and your neighbors. Anyone with a pension plan, 401K, etc. is likely vested in oil. So by regulating prices, you are not only disrupting the supply/ demand economics, but giving Grandma a cut in pay.

I don't buy your theory that oil company profit margins are lower than most other industries. Exxon Mobile make more profit in 2010 than any other US company. They were #2 in the world. BP was # 4 in the world. Chevron was # 14 in the US and # 29 in the world. Looks like a pretty high profit industry to me.

[BAMAWV]

Our economy is in the dumps and the most profitable businesses in the US are oil company's. I am all for free enterprise but I think gas prices should be regulated.

Oil company profit margins are lower than most other industries. Also do not forget that the owners of oil companies are you, me, and your neighbors. Anyone with a pension plan, 401K, etc. is likely vested in oil. So by regulating prices, you are not only disrupting the supply/ demand economics, but giving Grandma a cut in pay.

I don't buy your theory that oil company profit margins are lower than most other industries. Exxon Mobile make more profit in 2010 than any other US company. They were #2 in the world. BP was # 4 in the world. Chevon was # 14 in the US and # 29 in the world. Looks like a pretty high profit industry to me.

No, no, No.Profit margin is the markup,-- the actual profit-- net profit. This is lower in oil because of the huge costs involved in exploration, leasing, drilling, production, transporting, refining,  and marketing. So the actual profit made per gallon, or per barrel, is very low compared to say a pair of shoes. Oil companies just  sell a lot of units. I'm way over simplifying but trust me on this, when the price is low, the oil companies lose huge-- when the price is high they win big-- it does balance out in favor of the oil companies, but not as much as the talking heads on TV would have you believe.

Then youy have to remember that the profits go to investors,-- not some Mr. Big. The investors are just about anyone with a retirement plan.

[BAMAWV]

Pmull is irate about his cost of gas (I don't blame him) but is brave enough to e-fight it out. You all should respect that.  That being said:

If you want a boogeyman to blame for he gasoline prices try this:

1 State taxes
2 Federal taxes
3 Drilling restrictions in the U.S. (Obama and the democrats)
4 Lack of tort reform (I throw this in at any chance).
5 Lack of more U.S. refineries and refinery space.

[ricky023]

What about the Oil from South America do we invest in that? I am not sure and I would like to hear your thought please. RTR!

Does anybody know for sure? RTR!

[pmull]

The "Big Five" oil companies are bringing in an obscene amount of profit at a time the economy is in the worst shape of my lifetime. They deserve a profit but not the amount of profits they are reporting. These huge profits are after big bonuses and salaries are paid to excutives. Gas/diesel is a commodity that is required for our economy to function. It is as important as utilities such as natural gas and electric power. If they can not report a more modest profit then I feel the government needs to take action. Gas is too important for supply/demand to dictate the market price.

[pmull]

What about the Oil from South America do we invest in that? I am not sure and I would like to hear your thought please. RTR!

Does anybody know for sure? RTR!

US Oil companies buy more crude oil from South America than Middle East countries.

[BAMAWV]

The "Big Five" oil companies are bringing in an obscene amount of profit at a time the economy is in the worst shape of my lifetime. They deserve a profit but not the amount of profits they are reporting. These huge profits are after big bonuses and salaries are paid to excutives. Gas/diesel is a commodity that is required for our economy to function. It is as important as utilities such as natural gas and electric power. If they can not report a more modest profit then I feel the government needs to take action. Gas is too important for supply/demand to dictate the market price.

OK. Let's try again. First no oil company unilaterally sets oil prices. This is a function of supply/demand on the world oil market. Further, these profits get paid to shareholders in the form of dividends. The shareholders are teachers, fireman, union members, the guy next door,--anyone with a retirement plan is vested in oil. So the oil companies do not get rich, the people who own stock might if they own enough. But in bad times for the oil companies, the shareholders don't make anything, or little.  So it balances itself out. I promise that if the govt. gets involved more than they already are, things will get worse. Try to find an example where that is not the case, involving private industry.

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