Oil companies, OPEC

[Rye Miles #13621]

Let me say first of all this is in no way getting our current POTUS off the hook for high gas prices, he's done his share of dumb moves but shouldn't some of this blame go on the GREEDY oil companies and OPEC? It was selling at over $100.00 a barrel yesterday. Really?? We only get 3% of our oil from Russia so what happened?

 

Just asking because I don't know much at all about oil production etc.

[Badlands Bob #61228]

Never let a crisis go to waste. $$$$$$$

 

Oil prices are set by speculating on the future supply and demand.  It doesn't take much of a decrease in supply to shoot the price through the roof.  There are several reasons why supply is being reduced, Russia being just one of them.  It's going to be painful at least through the Summer.  I predict it will be painful long enough to seriously to affect the November elections in the U.S.  It will be interesting to watch.

[Slapshot]

I don't know much about OPEC but I have worked offshore since 96 with 10 years of that overseas in several different countries. The drilling companies aren't the blame for any of the gas prices that I am aware of. Hell we just started getting a few contracts and "lets go Brandon" is still trying to put us all out of business. When you have a Brandon that kills domestic production to increase buying from countries like OPEC , Russia, and China then what do you expect the prices to be. When you kill the Keystone pipeline that could supply decent priced oil but approve a Russian pipeline well you should really see the vast majority of the problem right there. I wouldn't blame oil companies for the strangle hold that the "Brandon" has on our country. Its all part of Brandon's push towards the not so green electric cars. Why didn't he even say that the answer to high gas prices was to by electric.

Oil prices go up and down over the years. I remember when we was booming in the late 90's early 2000's and gas prices if I remember correctly wasn't this high. I can tell you we work a dangerous and thankless job offshore. But yet our profession gets blamed for the problem of high gas prices. But yet we have some if not the strictest rules and regulations for us to continue to work. So I wouldn't look towards the drilling companies many are just trying to survive like any other business under the strangle hold of the government.

[Rye Miles #13621]

2 minutes ago, Slapshot said:

I don't know much about OPEC but I have worked offshore since 96 with 10 years of that overseas in several different countries. The drilling companies aren't the blame for any of the gas prices that I am aware of. Hell we just started getting a few contracts and "lets go Brandon" is still trying to put us all out of business. When you have a Brandon that kills domestic production to increase buying from countries like OPEC , Russia, and China then what do you expect the prices to be. When you kill the Keystone pipeline that could supply decent priced oil but approve a Russian pipeline well you should really see the vast majority of the problem right there. I wouldn't blame oil companies for the strangle hold that the "Brandon" has on our country. Its all part of Brandon's push towards the not so green electric cars. Why didn't he even say that the answer to high gas prices was to by electric.

Oil prices go up and down over the years. I remember when we was booming in the late 90's early 2000's and gas prices if I remember correctly wasn't this high. I can tell you we work a dangerous and thankless job offshore. But yet our profession gets blamed for the problem of high gas prices. But yet we have some if not the strictest rules and regulations for us to continue to work. So I wouldn't look towards the drilling companies many are just trying to survive like any other business under the strangle hold of the government.

I'm not in any way blaming the oil workers, I'm thinking the oil executives, the fat cats! I know a guy who worked on an oil rig and worked his tail off so it's not about you guys!

[Slapshot]

1 minute ago, Rye Miles #13621 said:

I'm not in any way blaming the oil workers, I'm thinking the oil executives, the fat cats! I know a guy who worked on an oil rig and worked his tail off so it's not about you guys!

Thanks , I knew you didn't mean us.

 

I do beleive the vast majority of the problem is our Government. But I won't excuse the big oil companies we drill for. Shell, Chevron, BP and the list goes on. I do beleive they play a role in the prices. Just not as much as OPEC and the countries our Government forces us to import from to grease their greedy little paws.

[Buckshot Bob]

There’s no doubt the oil companies are greedy , but that’s just like any other publicly traded company. Their responsibility is to the stock holders . But if we’re talking who makes the most off of a gallon of gas , it’s the government. They truly are the greediest. They start at the permit to drill and go all the way to the pump . And also they are the ones to suffer the smallest penalty for their poor policies. If a oil company was run as poorly they would go out of business.
This train wreck is going to continue to get worse, it’s what the current administration wants . It’s the easiest way to make so called “green energy” seem affordable. 

[Slapshot]

Exactly and when the Government stops Federal leases then again you will have a increase in prices. 

[Pat Riot]

@Badlands Bob #61228 pretty much nailed it. It's oil speculators and forecasters that cause a lot of the price fluctuations. I seem to recall GW Bush saying he was going to do something about them. Apparently he didn't realize how Wall St. would react, as they make a ton of money off these speculator's calculations.

 

Add politics, world events, high winds and rabid butterflies and all hell breaks loose....and then you have the morons with hoarder mentalities or "my mommy didn't give me enough attention" in the media whipping things into a frenzy and things get a lot worse.

 

I stopped worrying about fuel prices a long time ago. If I want to go, I buy gas. Worrying about it just cuts your life short.

[Pat Riot]

25 minutes ago, Buckshot Bob said:

It’s the easiest way to make so called “green energy” seem affordable.

In other words..."Fox, here, guard this hen house". 

[LawMan Mark, SASS #57095L]

41 minutes ago, Pat Riot, SASS #13748 said:

I stopped worrying about fuel prices a long time ago. If I want to go, I buy gas. Worrying about it just cuts your life short.

Right at 100 miles to my nearest clubs. Current fuel prices, increases in ammo components, higher cost of living (food, utilities, property taxes)...I'm probably gonna rapidly become the grouchy hermit that only leaves the house to work.

[Tennessee Trapper Tom]

Once had a good friend in Texas that owned several layers of oil production. I was given the opportunity to work for him but decided to re-enlist in the military lost contact

 

anyway I know nothing of the business and a rudimentary understanding of speculations and futures.

 

however. Say I’m a wheat farmer with 5000 acres of productive ground. I wait as long as I can to get the highest possible price and lock in a contract. It’s gambling at the very least. I’m giving a guaranteed production I have to deliver. Anything can cause me not to meet the production I’m contracted for. When that happens I lose my hind end. 

 

Governmental regulation is part of this equation.  A farmer can have a banner growth, get a high price in futures and then lose their butt because of some new regulation. Oil is much the same way. Both are effected by activity around the world. 

 

It’s the biggest casino in the world. You can’t spend billions in production and then have to sit on refined oil. So I decide to invest in toilet paper for some reason and I buy $10000000 in futures. The government then comes out and says they are reversing some old law that guaranteed a set price for timber  to some country. Japan comes to mind. Suddenly the investors who where routing investments through japan to other countries for cheap lumber have to pull out. Lumber soars toilet paper jumps through the roof and my futures investment becomes a winner. Al least this is the way from a basic view that I learned when working for a CPA firm

 

please chime in and educate me some more lol

[Tennessee Trapper Tom]

https://time.com/5740290/trade-war-lumber-hardwood-environment-forests/

 

there are are many examples across the entire range of futures investments. I don’t sleep more than 2 to 4 hours a day and spend an inordinate amount of time reading and studying what’s going on. 

 

Thinking about installing a bidet. Just don’t like the idea of a hose spraying up there. Rather get in the shower.

[Ranger Dan]

Simple supply and demand. If you control the supply (federal gov) you control the price. Through a maze of gov regulations, the supply of fossil fuels in the US of A is ultimately controlled by the executive branch. This control gives the current occupant of the oval office the ability to change global prices. 2 years ago that occupant was able to drive prices into the dirt, to the point that OPEC was selling at less than production cost. Current occupant has reversed all the policies that caused that and we are feeling the result. It is no more complicated than that.

[Okie Sawbones, SASS #77381]

Follow the money...

[Buckshot Bob]

15 minutes ago, Okie Sawbones, SASS #77381 said:

Follow the money...

They make that very complicated to do for a reason 

[Sedalia Dave]

The entire world runs on oil. besides the obvious transportation costs there are millions of chemicals used in manufacturing that are derived from oil. Few people are considering the wide spread ramifications of this.  Know a couple of people that farm. Nitrogen fertilizer is made from petroleum. In the last year the cost of Nitrogen has doubled. So instead of spending $8000 to fertilize the crops it now costs $16000. The result is they are only applying 1/2 the fertilizer they normally would as this is all they can afford. This will cause a significant drop in amount harvested. Multiply this by every farmer in the world and the cost of food is going to go through the roof.

 

Gasoline and Diesel went up about 50 cents a gallon overnight here in East TX. Diesel is $5.19 a gallon. Gasoline is $4.09 a gallon. 

 

 

If you pay attention we are already experiencing shortages of various food stuffs in our local markets. Every week there is a different item that is out of stock. Local store hasn't had any Jimmy Dean Sausage for over 3 weeks. This week it is crackers. The Lunchables that are popular for school lunches go in and out of stock weekly. Needed some Ginger root. Went to three stores before I found some. ( All 3 stores normally carry it)

 

 

[Cypress Sun]

 

There are many reasons, some of them popular, some less popular and some that people have ostridge eyes for.

 

Russian invasion, the popular one among, is the Brandon and the green crowd that have their hand up Brandon's butt.

 

Greedy petroleum companies that didn't get what they wanted or felt entitled to but when haven't the oil companies been greedy?

 

American consumers, buy a vehicle that gets 8 miles to the gallon and then blame the more popular reasons.

 

 

Come on folks, it's a large tent of reasons but most of it is narcissistic greed, politics and denial. 

[Slapshot]

Buying a vehicle that gets 8 mpg has little to do with the prices that are being charged. Hell vehicles get little more mpg today than when I was a kid. Wonder why?

 

Greed , yes greed is correct. Greedy politicians and rich making dollars off of the citizens they supposedly represent. 

[Blue Wolf , SASS# 29424L]

It’s all about pay back. Russia gets paid back with Ukraine. OPEC gets paid back with higher oil prices. China gets probably gets paid back with Taiwan. 

[Marshal Mo Hare, SASS #45984]

China is now the world’s largest importer of oil. Its primary sources are Russia and Saudi Arabia. Now that China might be Russia’s only customer, the Chinese merchants I remember would bargain for a lower price.

[Buckshot Bob]

5 hours ago, Marshal Mo Hare, SASS #45984 said:

China is now the world’s largest importer of oil. Its primary sources are Russia and Saudi Arabia. Now that China might be Russia’s only customer, the Chinese merchants I remember would bargain for a lower price.

So we’re helping China. Who’s probably a bigger threat the the US . Especially economically 

[Marshal Mo Hare, SASS #45984]

48 minutes ago, Buckshot Bob said:

So we’re helping China. Who’s probably a bigger threat the the US . Especially economically 

Not really, if China buys from Russia, Saudi Arabia wiil sell elsewhere.

[Cemetery]

On 3/9/2022 at 8:27 AM, Badlands Bob #61228 said:

 I predict it will be painful long enough to seriously to affect the November elections in the U.S.  It will be interesting to watch.

 

I'm not so sure about this anymore, too many !@#$%^&*'s are buying into 'corporate greed', or 'it's the price of freedom', or 'buy an electric car' claptrap.

 

 

[Buckshot Bob]

18 minutes ago, Marshal Mo Hare, SASS #45984 said:

Not really, if China buys from Russia, Saudi Arabia wiil sell elsewhere.

If we’re giving China more supply at a cheaper price through our policy, how are we not ? 

[Marshal Mo Hare, SASS #45984]

51 minutes ago, Buckshot Bob said:

If we’re giving China more supply at a cheaper price through our policy, how are we not ? 

China will buy what it needs, pretty much the same as previous months, maybe refill their reserves if they get it really cheap, on the scales of world trade , that’s not a lot.

[LawMan Mark, SASS #57095L]

[Grass Range]

All I know is that an oil company is once again wanting us to sign a lease to drill some test holes.

[Marshal Mo Hare, SASS #45984]

14 minutes ago, Grass Range said:

All I know is that an oil company is once again wanting us to sign a lease to drill some test holes.

That means there is again investment in American oil.  Now whether or not you want the on your land is another story.

[McCandless]

Now that prices are high, expect the the companies that do have unused drilling permits and leases to to get their butts in gear.  It's about price and profits.  When prices had cratered, and there was an overage of supply, it was unprofitable for a lot of companies to pay the salaries, overhead, and operating expenses involved on oil production, for a low return.  So they stopped.  Now that oil production is a gold mine again.  Expect American production to ramp back up.  But, it doesn't happen overnight.

 

[Waxahachie Kid #17017 L]

This "president", and his administration, are the number one reason prices are high.

On the very day he was sworn in, he cancelled the pipeline, and leases on federal property.  

 

Blame two groups for this. The "president", and his administration, and the uninformed/ignorant people that voted for him.

 

We had low energy prices in January of 2021. In a year-and-half look at the results. 

 

That is the unvarnished truth, whether anyone likes it or not.  

 

How high will prices have to go, before people will fight with their vote? 

And how many times will people vote for the same people, and expect a different result? 

 

 

 

[Big Sage, SASS #49891 Life]

OPEC controls the price of oil. How....by limiting production thereby increasing demand. Our domestically produced oil is sold to the highest bidder, no matter what country it is. 

 

IMHO one way we could induce the oil companies here to sell here is to put an excise tax on every barrel of domestic oil exported, say $20.00 a barrel. You can bet the foreign market would dry up and our domestic oil would be sold here in the US. 

[Marshal Mo Hare, SASS #45984]

15 minutes ago, Big Sage, SASS #49891 Life said:

OPEC controls the price of oil. How....by limiting production thereby increasing demand. Our domestically produced oil is sold to the highest bidder, no matter what country it is. 

 

IMHO one way we could induce the oil companies here to sell here is to put an excise tax on every barrel of domestic oil exported, say $20.00 a barrel. You can bet the foreign market would dry up and our domestic oil would be sold here in the US. 

Export taxes are specifically banned in the Constitution.  Embargo possible, tax no.

[Big Sage, SASS #49891 Life]

2 minutes ago, Marshal Mo Hare, SASS #45984 said:

Export taxes are specifically banned in the Constitution.  Embargo possible, tax no.

I said excise tax, not export. It could be crafted and written in such a way to be applicable to oil leaving the country.

[Slapshot]

1 hour ago, Big Sage, SASS #49891 Life said:

OPEC controls the price of oil. How....by limiting production thereby increasing demand. Our domestically produced oil is sold to the highest bidder, no matter what country it is. 

 

IMHO one way we could induce the oil companies here to sell here is to put an excise tax on every barrel of domestic oil exported, say $20.00 a barrel. You can bet the foreign market would dry up and our domestic oil would be sold here in the US. 

So Oil companies in the US export oil to other countries just to have to import oil to meet our demands? 

 

I thought when Trump was in office we was pretty much producing a surplus of oil for what may have been the first time ever. We was actually starting to see contracts opening up. But then Brandon got in office and killed the leases. Hmmm doesn't really sound like OPEC controlling us as it seems to be our Government hell bent on us being dependent on China, Russia and OPEC. Wonder where Brazil fits in all this as they produce oil also.

[Slapshot]

54 minutes ago, Big Sage, SASS #49891 Life said:

I said excise tax, not export. It could be crafted and written in such a way to be applicable to oil leaving the country.

Aw yes penalize our country again without penalizing the countries that rely on importing to the US. Almost sounds like what the Gov does to American businesses with its strangle hold. And yep we allow foreign goods to just flow freely into the US.