10% to 100% Increase

[Alice]

At the refinery I work at we target one penny a gallon profit over operating cost at 21,000,000 gallons a day.

That's your target. Want to share with us what you're actually making?

According to this article, refining margins briefly "kissed" .95 per gallon and are still at .64. That's a bit more than you're claiming.

From the link:

"Financial results released this week by Exxon Mobil Corp. and Chevron Corp. showed higher profits for the first quarter even with lower earnings from crude oil sales. Both companies credited higher refinery margins for helping to make up the difference.
Exxon Mobil reported a $9.3 billion profit for the first quarter, up 10 percent, while Chevron reported $4.7 billion for the first quarter, up from $4 billion for the same period last year. The segment of Exxon's business that includes the refineries earned $1.9 billion in profits, up $641 million."

http://www.kansascity.com/194/story/86901.html

Frankie do you think for once in your life you could actually stick to a subject you now something about.
Go play with Alice.

Never seems to fail...when someone actually makes a point, personal attacks aren't far behind. Wished I'd actually said something... :roll:

Alice

 

[aplusmnt]

With reserves being so tight speculators can make the market turn upside down now.

That is another big piece of the puzzle that we have not delved into until you brought it up.

Stock market guys have a big part in the sharp increases and decreases in price per gallon. Every time the idiot from Iran speaks in public the Stock Market speculators go crazy. Every time the Libs scare us with Global Warming going to make us have a bad hurricane season the speculators go crazy. That happened last year when they said we would have another bad hurricane season prices jumped. But then when it proved not to happen we saw some fast drops in per gallon pricing as they started selling.

There is a lot bigger picture here, than just the Oil companies and Current administration being evil. There is a lot of small parts that make this wheel turn.

 

[backhoeboogie]

With reserves being so tight speculators can make the market turn upside down now.

That is another big piece of the puzzle that we have not delved into until you brought it up.

Stock market guys have a big part in the sharp increases and decreases in price per gallon. Every time the idiot from Iran speaks in public the Stock Market speculators go crazy. Every time the Libs scare us with Global Warming going to make us have a bad hurricane season the speculators go crazy. That happened last year when they said we would have another bad hurricane season prices jumped. But then when it proved not to happen we saw some fast drops in per gallon pricing as they started selling.

There is a lot bigger picture here, than just the Oil companies and Current administration being evil. There is a lot of small parts that make this wheel turn.

It is broader yet! More small parts than any of us can imagine. Don't know how many old timers I have heard say they shut down some marginal wells because crude prices were so low. Those wells could be run at a decent profit now. "Someone could make a good living at it". If you'll take the time to sit and listen, those old timers will tell you exactly what to do with the RR commision etc. We have gone and let two generations of experienced oil men lapse right before our very eyes. And now we have such better technology to boot. Seems to me there is a lot of opportunity for some kids who are willing to give it a go. It is going to happen if prices stay like they are now.

 

[aplusmnt]

Someone correct me if I am wrong, but another piece of this puzzle is that Gas prices did not keep up with inflation for many decades. So even though it seems it is out running inflation when looking at a year or two history it is not that out of line comparing its increase vs inflation over say 20 years when gas was a non issue in our lives.

 

[Workinonit Farm]

"Someone could make a good living at it". If you'll take the time to sit and listen, those old timers will tell you exactly what to do with the RR commision etc. We have gone and let two generations of experienced oil men lapse right before our very eyes.

Not only the oilmen backhoe.

Seems to me there is a lot of opportunity for some kids who are willing to give it a go. quote]

And that is one of the beauties of this country and all its 'evil' capitalism. Right back to what Caustic was saying, and I agree. Choices, some of us still have many choices available to us if we open our eyes and ask questions. If someone is willing to take the time, effort etc. and do the research and apply themself, there are plenty of opportunities still available in this country.

I can see where someone could do just that, and utilize those no-longer-used oil wells. They can still make a pretty good living off the small stuff.

Its no different than tapping into niche markets to sell a product,in some cases that product being beef, or pork, or flowers, or whatever. Soetimes it take a bit more effort on our part, but worth it in the end.

Just my 2 cents.

Katherine

 

[aplusmnt]

I know just 30 miles father north of me here in KS there is lots of oil wells (and or Natural gas) starting back up. I clean some convenient stores up that area and having lots of problems with tar and oil on floors and over all dirtiness. The manager says it is all the oil company employees that come in out of the field.

Sometimes when markets adjust or get higher, more opportunities are opened up. In that area more higher paying jobs are available for those that want them.

People want less dependency on foreign oil but they also want cheap gas. Sometimes both can not happen at same time.

Higher gas prices actually stimulate our own oil production and make it cost affective to produce more at home. So higher prices will actually help with less dependency abroad.

 

[KenB]

Gateopener today a gallon of crude cost 1.56 and it hasn't left the Middle East after transportation cost arrives at the refinery 1.66 a gallon 7 cents a gallon refining cost 40 cents taxes. You are now at 2.13 a gallon and you have to add ethanol mandated by federal law that cost over 4 dollars a gallon at 10% uping the cost another 40 cents. You still have to pay transportion to the terminal and station,the station has to make a profit. Exxon makes more off selling you that bag of chips and fountain drink % wise than they do gasoline. To top that off by government regulation you can only make certain blends of gasoline for certain parts of the country. Gasoline blended for Atlanta has to go to Atlanta you could have the terminal at Atlanta completely full and the one at Dallas empty and we can not move that gas to Dallas due to EPA regs.
Exxon is in the money making business if they could harness mule farts and sell them at a higher profit margin than crude they would.
At the refinery I work at we target one penny a gallon profit over operating cost at 21,000,000 gallons a day.
If you want to get mad get mad at government regulation 40 cents tax and 40 cents for ethanol. Government regulation at its finest.

I thought the oil companys got 52 cents back from the government on ethanol?

 

[KenB]

Gateopener today a gallon of crude cost 1.56 and it hasn't left the Middle East after transportation cost arrives at the refinery 1.66 a gallon 7 cents a gallon refining cost 40 cents taxes. You are now at 2.13 a gallon and you have to add ethanol mandated by federal law that cost over 4 dollars a gallon at 10% uping the cost another 40 cents. You still have to pay transportion to the terminal and station,the station has to make a profit. Exxon makes more off selling you that bag of chips and fountain drink % wise than they do gasoline. To top that off by government regulation you can only make certain blends of gasoline for certain parts of the country. Gasoline blended for Atlanta has to go to Atlanta you could have the terminal at Atlanta completely full and the one at Dallas empty and we can not move that gas to Dallas due to EPA regs.
Exxon is in the money making business if they could harness mule farts and sell them at a higher profit margin than crude they would.
At the refinery I work at we target one penny a gallon profit over operating cost at 21,000,000 gallons a day.
If you want to get mad get mad at government regulation 40 cents tax and 40 cents for ethanol. Government regulation at its finest.

Thanks campground for putting actual #'s to it. I thought that when profits were posted for Exxon it was only the fuel side since that was what the news articles would be centered on.

Why does the price drop seemingly around a period of time where certain events are taking place here? Afterwards they creep back up.

Also why not do more drilling here? We had it going good before the 80's.

A lot of drilling is not being done due to Americans no longer want it. Like off the coast of Fla but Cuba is drilling at a Alarming rate using the National oil company of China.
Gasoline moves a lot more than it used to due to our refining capacity is strained. We haven't built a new refinery in this country since 1970 in Houma La. Demand has out grown production, think about the cars on the road today compared to the 80's, there is plenty of oil not enough refining capacity.
We had excess capacity in the 70's we have eaten it up.
With reserves being so tight speculators can make the market turn upside down now.
Another reason is where you can get the best price for your product, I see shipload after shipload going overseas as we can sell our product for more.
We have virtually quit producing diesel what we don't convert to gasoline is shipped out many refiners have opted out of the new EPA specs. Why spend millions to build new units to meet EPA specs when you can sell it all over the world.

:roll: Talk about outsourcing to make more profit.

 

[Caustic Burno]

At the refinery I work at we target one penny a gallon profit over operating cost at 21,000,000 gallons a day.

That's your target. Want to share with us what you're actually making?

According to this article, refining margins briefly "kissed" .95 per gallon and are still at .64. That's a bit more than you're claiming.

From the link:

"Financial results released this week by Exxon Mobil Corp. and Chevron Corp. showed higher profits for the first quarter even with lower earnings from crude oil sales. Both companies credited higher refinery margins for helping to make up the difference.
Exxon Mobil reported a $9.3 billion profit for the first quarter, up 10 percent, while Chevron reported $4.7 billion for the first quarter, up from $4 billion for the same period last year. The segment of Exxon's business that includes the refineries earned $1.9 billion in profits, up $641 million."

http://www.kansascity.com/194/story/86901.html

Frankie do you think for once in your life you could actually stick to a subject you now something about.
Go play with Alice.

Never seems to fail...when someone actually makes a point, personal attacks aren't far behind. Wished I'd actually said something... :roll:

Alice

I am not an oil man but a carpenter by trade, but I know the man well. When you have a man that started out as a laborer and ends up being in charge of the largest gasoline refinery in the country nights weekends and holidays speaks for itself.
I have sat on the mans porch and some type of communication device never stops ringing on what to do with 100,000 of barrels.
This is typical of this board Camp was trying to give Gate an educated view of the industry and socialist blinded by hate or backwoods hick have to jump in.
I would rather be educated in where my dollars are going.
Thanks Camp

 

[Alice]

If I'd said anything to Mr. Campground whatever, then I'd have expected to be insulted. But I didn't...and I got insulted anyway.

CB, we all have bootstrap stories we can tell. So you can take your backhanded backwoods hick comment and shove it.



Alice

 

[Frankie]

I am not an oil man but a carpenter by trade, but I know the man well. When you have a man that started out as a laborer and ends up being in charge of the largest gasoline refinery in the country nights weekends and holidays speaks for itself.
I have sat on the mans porch and some type of communication device never stops ringing on what to do with 100,000 of barrels.
This is typical of this board Camp was trying to give Gate an educated view of the industry and socialist blinded by hate or backwoods hick have to jump in.
I would rather be educated in where my dollars are going.
Thanks Camp

Who cares what you do for a living. I AM educating you where your dollars are going. You just don't like it. Anyone can read the article and see exactly what I see.

The newspaper article, from industry sources says "Refinery margins, the difference between the wholesale price of gasoline and crude oil costs, are a widely accepted gauge of refinery profits — even though they don't account for all the costs of producing fuel. The margins in recent weeks have surprised even veteran observers of the industry.

"They've been outrageous," said Lewis Adam, president of Admo Energy, a Kansas City company that helps companies manage the risk of volatile fuel prices.

Earlier this month, those margins briefly kissed 95 cents per gallon. Although they have since subsided, they were at 64 cents per gallon on Wednesday, according to WTRG Economics, a private energy consulting firm. That is roughly three times the typical level for this time of year."

CC has said they "target" .01 per gallon, looking at these figures, I seriously doubt that's what they're making. In fact, the industry average is about .20, 20 times his "target." It's greed folks. These companies were making a good profit five years ago, they're gouging the American public today.

 

[Caustic Burno]

I am not an oil man but a carpenter by trade, but I know the man well. When you have a man that started out as a laborer and ends up being in charge of the largest gasoline refinery in the country nights weekends and holidays speaks for itself.
I have sat on the mans porch and some type of communication device never stops ringing on what to do with 100,000 of barrels.
This is typical of this board Camp was trying to give Gate an educated view of the industry and socialist blinded by hate or backwoods hick have to jump in.
I would rather be educated in where my dollars are going.
Thanks Camp

Who cares what you do for a living. I AM educating you where your dollars are going. You just don't like it. Anyone can read the article and see exactly what I see.

The newspaper article, from industry sources says "Refinery margins, the difference between the wholesale price of gasoline and crude oil costs, are a widely accepted gauge of refinery profits — even though they don't account for all the costs of producing fuel. The margins in recent weeks have surprised even veteran observers of the industry.

"They've been outrageous," said Lewis Adam, president of Admo Energy, a Kansas City company that helps companies manage the risk of volatile fuel prices.

Earlier this month, those margins briefly kissed 95 cents per gallon. Although they have since subsided, they were at 64 cents per gallon on Wednesday, according to WTRG Economics, a private energy consulting firm. That is roughly three times the typical level for this time of year."

CC has said they "target" .01 per gallon, looking at these figures, I seriously doubt that's what they're making. In fact, the industry average is about .20, 20 times his "target." It's greed folks. These companies were making a good profit five years ago, they're gouging the American public today.

Didn't take long for the guilty dog to bark.

 

[Caustic Burno]

Overview

Worldwide
The main activities of the ExxonMobil Group are exploration, production, transportation and sale of crude oil and natural gas as well as the manufacture, transportation and sale of petroleum products.

The group also manufactures and markets petrochemicals and participates in coal and minerals mining, and electric power generation.

In 2000, 82% of the revenues came from refining and marketing; 10% from exploration and production; 8% from Chemicals, 8%

Just a quick overview if you were looking at a prospectus if you know what that is. Hmm marketing and refining. Lets see they have 2 million barrels a day refining capacity in the USA if you look them up. Thats an astronomical amout of gallons a day.

Found this one also I wonder how much this puts on the bottom line.

The Friendswood Development Company, a subsidiary of Exxon, designs and develops master-planned communities in the Houston area.


The Friendswood Development Company, in a joint venture with King Ranch, purchased land from the Foster Lumber Company, and created the master-planned community of Kingwood, Texas.

 

[aplusmnt]

I wonder why we hear constantly about how we need to get rid of our dependency on foreign oil, but then when prices go high on gas it is all the American Oil companies or the Presidents fault for it?

Seems if we are buying a large part of our oil from other countries on a world market then how can American Companies be all to blame?

Why when any increase in gas happened under Carter or Clinton, it was OPEC's fault, but now it is Bush and his Oil buddies fault?

 

[VanC]

Why when any increase in gas happened under Carter or Clinton, it was OPEC's fault, but now it is Bush and his Oil buddies fault?

It's called looking at the world with blinders on, hearing only what you want to hear, seeing only what you want to see, not letting facts get in the way of your beliefs, having a closed mind, etc. I could go on, but I'm sure you get the idea. ;-)

 

[Alice]

Why when any increase in gas happened under Carter or Clinton, it was OPEC's fault, but now it is Bush and his Oil buddies fault?

It's called looking at the world with blinders on, hearing only what you want to hear, seeing only what you want to see, not letting facts get in the way of your beliefs, having a closed mind, etc. I could go on, but I'm sure you get the idea. ;-)

Oh ye of little faith...

Alice

 

[backhoeboogie]

I am not an oil man but a carpenter by trade.

Who cares what you do for a living. I AM educating you where your dollars are going.

Frankie, to answer your question, I do.

And - as far as where his dollars are going - I think he said he said something about investments. I definately remember interest too. Are you some kind of an investment banker? Is that how you are going to go about educating him where his dollars are going?

 

[Caustic Burno]

I am not an oil man but a carpenter by trade.

Who cares what you do for a living. I AM educating you where your dollars are going.

Frankie, to answer your question, I do.

And - as far as where his dollars are going - I think he said he said something about investments. I definately remember interest too. Are you some kind of an investment banker? Is that how you are going to go about educating him where his dollars are going?

Correct Boogie I do run stock in a pasture in New York.
One of my favorites is PRNEX

 

[Gate Opener]

I am not an oil man but a carpenter by trade.

Who cares what you do for a living. I AM educating you where your dollars are going.

Frankie, to answer your question, I do.

And - as far as where his dollars are going - I think he said he said something about investments. I definately remember interest too. Are you some kind of an investment banker? Is that how you are going to go about educating him where his dollars are going?

Correct Boogie I do run stock in a pasture in New York.
One of my favorites is PRNEX

So maybe you are smiling when you fill up.

 

[aplusmnt]

Noticed an interesting thing in regards gas prices in our area today. Diesel is 12 cents lower than gasoline. This is the first time Gas prices have been lower than Diesel since the Katrina Hurricane.

Diesel has been consistently 20 to 30 cents higher until this past week or so.