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Thread: And the gas prices keep going up why?

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    God/dess VenusGoddess's Avatar
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    Default And the gas prices keep going up why?

    http://www.comcast.net/news/index.js...27/251163.html

    Exxon Mobil 3Q Profit Swells on Prices
    By Associated Press

    35 minutes ago

    IRVING, Texas - Exxon Mobil Corp., the largest publicly traded oil company in the world, on Thursday said third-quarter profit surged, buoyed by higher crude-oil and natural-gas prices, even as the period's hurricanes hampered production.

    Net income ballooned to $9.92 billion, or $1.58 per share, from $5.68 billion, or 88 cents per share, a year ago. Excluding certain items, earnings were $8.3 billion, or $1.32 per share, versus $6.23 billion, or 96 cents per share, in the 2004 quarter.

    Analysts polled by Thomson Financial, on average, predicted earnings excluding items of $1.38 per share.

    Revenue grew to $100.72 billion from $76.38 billion in the prior-year period.

    The hurricanes slashed U.S. production volumes by 50,000 barrels of oil equivalent per day, down nearly 5 percent year-over-year, costing the company $45 million before taxes, Exxon Mobil said. Total daily production slipped to 2.45 million barrels of oil equivalent from 2.51 million barrels.

    "Following the hurricanes, Exxon Mobil maximized gasoline production from all of our refineries which were operating in the U.S., and increased imports from overseas affiliates to meet U.S. demand," said Chairman Lee R. Raymond.

    Earnings from U.S. upstream operations increased by $498 million to $1.67 billion, while U.S. downstream earnings jumped $548 million to $1.11 billion. In the U.S. and abroad, income from the company's chemicals segment declined by $537 million to $472 million, as raw materials costs squeezed margins.

    The company cautioned that reduced volumes and higher costs will also hurt the fourth quarter.

    Copyright 2005 The Associated Press. All rights reserved.
    Last edited by VenusGoddess; 10-27-2005 at 06:29 AM. Reason: clarification...bolding done by me.

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    God/dess kryssy's Avatar
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    Default Re: And the gas prices keep going up why?

    That is my question, with all that is in reserve.

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    Featured Member lunchbox's Avatar
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    Default Re: And the gas prices keep going up why?

    Gas here has been slowly dropping. I'm pumping premium at $2.79 and under a gallon. Diesel is ridiculous at the moment. Try filling up a semi, at least for the forklifts we don't have to pay the road and highway taxes.

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    Default Re: And the gas prices keep going up why?

    Why are they getting rich? *shakes fist at sky*
    I know someone was ...damn and making a profit from all of us. Its not like we can just stop buying gas. While Im getting reamed at the pump they are swimming in cash.
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    Member fl1rtyg1rl's Avatar
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    Default Re: And the gas prices keep going up why?

    Lets all buy bicycles!

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    Veteran Member bella622's Avatar
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    Default Re: And the gas prices keep going up why?

    Actually gas prices here have dropped a lot over the last two weeks or so...

    I filled up yesterday for $2.57/gallon.

    I can't believe I am so excited about $2.57 gas!!!


    I saw that report on the news this morning. It makes me sick that in the midst of gas price reports on the news everyday... Exxon releases this statement. RRRRRRRRRR!!!!!!! The rich get richer!!!!!!
    Hollywood is a place where they'll pay you a thousand dollars for a kiss and fifty cents for your soul... - Marilyn Monroe

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    Default Re: And the gas prices keep going up why?

    several factors ...

    A. they aren't allowed to 'reinvest' their money into new American oil wells, new American refineries etc. such that a higher share of their cash flow must be shown as 'earnings'

    B. costs of pumping oil out of the ground haven't changed all that much, while COMEX market prices for oil have skyrocketed, increasing profit margin on crude

    C. gasoline and distillate (heating oil, diesel etc.) demand continues to exceed actual operating US refining capacity's ability to meet it, resulting in the importation of gasoline and distallates at a higher than normal price to cover the shortfall ... and the US refiners that ARE operating are also able to charge the same imported refinery markup embedded in today's COMEX price of gasoline, heating oil etc.

    Bottom line is that if the USA must import gasoline, diesel, heating oil etc. to meet US demand, then somebody has to pay the price premium associated with those imported fuels. The oil companies who refine gasoline in europe as well as in America are thus making out like bandits at 'both ends'.
    Last edited by Melonie; 10-27-2005 at 10:18 AM.

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    Member fl1rtyg1rl's Avatar
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    Default Re: And the gas prices keep going up why?

    I keep hearing people on TV and radio blaming environmentalists for not allowing the oil companies to build refineries. But come on...it's in the oil companies best interest to not have enough refineries.
    Supply and demand.

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    Featured Member Lilith's Avatar
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    Default Re: And the gas prices keep going up why?

    Peak oil, opportunity, the nature of an inelastic consumable, greed, stupidity and peak oil.
    He who fights with monsters might take care lest he thereby become a monster. And if you gaze for long into an abyss, the abyss gazes also into you. ~ Friedrich Nietzsche

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    Default Re: And the gas prices keep going up why?

    Quote Originally Posted by fl1rtyg1rl
    I keep hearing people on TV and radio blaming environmentalists for not allowing the oil companies to build refineries. But come on...it's in the oil companies best interest to not have enough refineries.
    Supply and demand.
    Actually, the historical profit margin on refining in the USA has been pretty low. Part of the reason is environmental compliance, reserves against potential huge lawsuits (remember MBTE ?), processing inefficiencies when having to switch between small quantities of 40 different blends of gasoline mandated by different states etc. It has really only been since Katrina hit, and that 'designer' gasoline blend requirements were waived reducing the 40 formulations down to something like 6, and since extra refined products started being imported to meet US demand, that American refiners margins started climbing appreciably.

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    Default Re: And the gas prices keep going up why?

    Considering we have an oil man in the White House, it shouldn't come as much of a surprise that gas is so expensive.

  12. #12
    Sitri
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    Default Re: And the gas prices keep going up why?

    Quote Originally Posted by Melonie
    several factors ...

    A. they aren't allowed to 'reinvest' their money into new American oil wells, new American refineries etc. such that a higher share of their cash flow must be shown as 'earnings'
    Actually, earnings are earnings. Once you have the earnings, they go either to cash or capital investments, etc. Whether you reininvest or not, earnings are earnings.

    Quote Originally Posted by Melonie
    B. costs of pumping oil out of the ground haven't changed all that much, while COMEX market prices for oil have skyrocketed, increasing profit margin on crude.
    True, but this is somewhat of the tail wagging the dog. We import about 40% of our oil. This means that 60% of the oil comes out of OUR oil wells where the cost of transport and production haven't gone up as much as the crude oil price. Basically price gouging based on fear by an oligopoly.

    Quote Originally Posted by Melonie
    C. gasoline and distillate (heating oil, diesel etc.) demand continues to exceed actual operating US refining capacity's ability to meet it, resulting in the importation of gasoline and distallates at a higher than normal price to cover the shortfall ... and the US refiners that ARE operating are also able to charge the same imported refinery markup embedded in today's COMEX price of gasoline, heating oil etc.
    I think this says that they can gouge because the non-US refiners can.

    Quote Originally Posted by Melonie
    Bottom line is that if the USA must import gasoline, diesel, heating oil etc. to meet US demand, then somebody has to pay the price premium associated with those imported fuels. The oil companies who refine gasoline in europe as well as in America are thus making out like bandits at 'both ends'.
    And they don't even have the courtesy to use KY Jelly. Amen

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    Default Re: And the gas prices keep going up why?

    I agree with the idea that the lack of refineries in a "self induced crisis" and somewhat of a red herring. It is in the oil companies interest to keep this "lack of refining capacity" just as it is, also there have been more than a few instances in the last few years, when after a merger, Exxon/Mobil, Chevron/Texaco ETC. the new merged company has turned around and shut down refineries, saying that they now had "too much capacity"

    You can't have it both ways.

    The bottom line is they like the high prices, and will keep them high and going higher, every time we go through one of these cycles the price retreats and bottoms out about 20 cents higher than when it started, we get conditioned to it and learn to live with it, if some said 5 years ago that we would be thinking of 2.40 a gallon gas as a great deal you would have told them they were out of there mind, but here we are.

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    Default Re: And the gas prices keep going up why?

    Everyone here, raise your hand if you cared about oil company profits and solvency when oil was trading at $10 a barrel in the mid-90s and no one wanted to invest in either refining or production capacity. Come on, everyone who cared about the complete lack of long-term energy policy in the last 20 years raise your hand.

    People are only indignant because the market has finally corrected itself and people are feeling the pain. And in case any of you still cling to your disgust of oil companies, remember that a gallon of Poland Spring water still costs more than a gallon of Mobil Super+.
    Idealism is fine, but as it approaches reality, the costs become prohibitive.

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  15. #15
    Sitri
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    Default Re: And the gas prices keep going up why?

    And don't forget what a gallon of Starbucks coffee costs, or a gallon of antibiotics, or a gallon of liquid gold..or a gallon of air. People by and large have a choice on the water they purchase, but gas is needed to go to work or move goods or provide petroleum for a million products.

    It is not a market correction if it is an oligopoli. imho.

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    Default Re: And the gas prices keep going up why?

    I saw on a cable news network that to fill a 15 gallon tank with bottled water will cost anywhere from $160-$172 a tank.Puts water consumption in a whole new perspective,doesn't it???
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    Default Re: And the gas prices keep going up why?

    Quote Originally Posted by lunchbox
    Gas here has been slowly dropping. I'm pumping premium at $2.79 and under a gallon. Diesel is ridiculous at the moment. Try filling up a semi, at least for the forklifts we don't have to pay the road and highway taxes.
    My forklift is electric and gas is $2.51 here. I could live with it if it stayed at or below this price. Everything is going up we will just have to deal with it. I guess I'm lucky, my wife and I only drive about a mile to work. So it only hurts when we go out of town.
    "The ultimate measure of a man is not where he stands in moments of comfort, but where he stands at times of challenge and controversy."

  18. #18
    Jay Zeno
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    Default Re: And the gas prices keep going up why?

    I fill my water bottle with tap water. I make my own coffee. Yes, I'm aware that Starbucks has more cost into the paper cup than the actual coffee that fills it. So if a cup of coffee isn't worth two bucks to me, I don't buy it. That's why I don't complain.

    I have no choice but to buy gasoline. That's why I feel I can complain, although I don't. (And even then when I go to buy a fuel-efficient vehicle, I've been told I'm being bad for the economy. Yeesh.)

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    God/dess onlythebest's Avatar
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    Default Re: And the gas prices keep going up why?

    A friend of mine is going to buy a second hand Ford F-250 and making this conversion.Check this out.

    http://www.greasecar.com/
    One of woman's cardinal rule: Body parts can be fake,everything else has to be real.

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    Default Re: And the gas prices keep going up why?

    A friend of mine is going to buy a second hand Ford F-250 and making this conversion.Check this out.
    Agreed this is a very viable option ... as long as you live in a semi-warm climate or have a heated garage so the vegetable oil fuel stays 'liquid' enough to allow the engine to start, or add 'commercially powered' electric heaters to warm the vehicle's fuel tank while it's parked overnight.

    Also, the economics of vegetable oil fuel would change dramatically if the state gov't institutes an alternative method of assessing the 40-75 cents per gallon 'road tax' charged at the pump for diesel fuel on 'alternative' fuel vehicles as well - something which is being actively investigated by various states and countries as a result of 'hybrid' vehicle proliferation.

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    Default Re: And the gas prices keep going up why?

    Actually, BioDiesel and veggie oil make sense in any US climate...BD moreso but veggie oil is OK If worked with correctly. Financially, those options range from (production cost of) ZERO for the veggie oil (taken with permission from restaurants and filtered...it's free) and 60c per gallon (using free veggie oil as stock) for BD. Add 50c to either one, and it's not so bad. Heck, add good profit and licensing costs (if commercial BD, look for 2 something a gallon) and it's still OK.

    What you can do on BD but not on VO is start the engine. With pure VO you need to stop the engine (run a minute before shutting off) and start the engine on diesel or BD before switching over.

    I'm a partner in a community BD program....trust me.

    Starting to feel like a Poo discussion is coming

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    God/dess Deogol's Avatar
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    Default Re: And the gas prices keep going up why?

    Quote Originally Posted by proMarket
    Actually, BioDiesel and veggie oil make sense in any US climate...BD moreso but veggie oil is OK If worked with correctly. Financially, those options range from (production cost of) ZERO for the veggie oil (taken with permission from restaurants and filtered...it's free) and 60c per gallon (using free veggie oil as stock) for BD. Add 50c to either one, and it's not so bad. Heck, add good profit and licensing costs (if commercial BD, look for 2 something a gallon) and it's still OK.

    What you can do on BD but not on VO is start the engine. With pure VO you need to stop the engine (run a minute before shutting off) and start the engine on diesel or BD before switching over.

    I'm a partner in a community BD program....trust me.

    Starting to feel like a Poo discussion is coming
    On a homebrewed front, it might be zero ...

    But when it comes to major production - people need to be hired, big pieces of metal need to be fabricated for the process, etc. Add to that, some catalysts used are pretty nasty to handle so there is the whole "which catalyst is best economically vs toxic mess" question.

    Otherwise, I hope this country gets on board. I have thought that biodiesel generators or something like that would be a good idea. Useful, but small enough for the masses to experiment with. Imagine if a truck load of biodiesel generators came into camera range during a hurricane?!?!

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    Default Re: And the gas prices keep going up why?

    The business I was a partner in is a commercial operation...I'd be glad to share some of those costs....basically it is economically feasible.

    Yes, ingredients make the difference...

    BD is at best a "stopgap" measure...we need to move to truly renewable, non combustion centered energies that are (close or there) ready to be developed/deployed.

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