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Joined: Feb 2003
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Hard-core CEG\'er
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Hard-core CEG\'er
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Originally posted by Zoom Zoom Diva:
It's not the oil companies that are profiteering off this, it's the crude oil producers who spend far less than $70 a barrel extracting and delivering crude and the paranoid commodities traders who are screming Chicken Little and are bidding up the price of oil without reason.
Paranoia also exists within both stock and bond analysis of Ford.
I agree on both counts, particularly the second as I'm a pretty heavy investor in FoMoCo.
$70 oil is the problem. Not 24 cents in profit. It's $70 oil that will effect the economy not a few pennies tacked on at the end.
But since there's nothing we can do about $70 oil, people senselessly direct their ire at those few pennies, even tough they're only targetting a very small percentage of the overall price.
2003 Mazda6s 3.0L MTX
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I also have pretty good stock (within funds) and debt holding of Ford respective to my net worth.
All the paranoia does is gives me a better intrerest rate.
Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red
Rex: 1988 Mazda RX-7 Vert, Harbor Blue.
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Joined: Jan 2001
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Quote:
You'd have a point if the margins were significant enough to impact the economy. Simple fact of the matter is that if all the profit was taken out of gas it would still be expensive; few people would even notice the impact on their pocketbook. By your own math, even at exhorbitant pumping (20 gallons/ dollars not gallons ever 3 days) you only paid $597 over three years. Average consumption is probably half that at best, so the average person is only paying about $100/year, less than $10/month, in direct profits to Big Oil.
What things are affected by fuel costs? Almost everything you say? And in the end who pays all those affected costs? The consumer you say? And when consumers stop spending on anything but the basics or even down size their life style because money's getting tight then what?
Quote:
Ooohhh. Look out economy!
Oh you do love to prattle on!
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Joined: Aug 2000
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The point is the oil company profit margins have a minimal impact on the price of fuel.
Brad "Diva": 2004 Mazda 6s 5-door, Volcanic Red
Rex: 1988 Mazda RX-7 Vert, Harbor Blue.
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Joined: Feb 2003
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Originally posted by RT and his SE:
Quote:
You'd have a point if the margins were significant enough to impact the economy. Simple fact of the matter is that if all the profit was taken out of gas it would still be expensive; few people would even notice the impact on their pocketbook. By your own math, even at exhorbitant pumping (20 gallons/ dollars not gallons ever 3 days) you only paid $597 over three years. Average consumption is probably half that at best, so the average person is only paying about $100/year, less than $10/month, in direct profits to Big Oil.
What things are affected by fuel costs? Almost everything you say? And in the end who pays all those affected costs? The consumer you say? And when consumers stop spending on anything but the basics or even down size their life style because money's getting tight then what?
Talk about someone not getting it.
Once more from the top:
You'd have a point if the margins were significant enough to impact the economy.
You're really bitching, and rightfully so, about the impact that $70 oil has on the economy not the 24 cents profit. As I thoroughly explained in about as laymen's terms as possible, your argument doesn't make sense when applied to the profit itself. In the grand scheme of your spending it's just way too small. Over the past 5 years the profits you pay to Big Oil have only increased by about $6/month (from ~$4 to ~$10). 6 bucks. It's nothing. The individual impact doesn't even register on an economic scale.
As gas prices have doubled from $1.50 to $3.00, the profit on that has only gone up about 12 cents. $1.50/gallon can have a pretty sizeable impact on the economy. $0.12/gallon does not.
While you're paying $6/month more now to line Exxon's pockets, you're paying $84/month more now to line the pockets of some Sheik and some Speculators somewhere. Now think real hard about where the problem lies.
You wanna [censored] about something, [censored] about the other 92% that's tripled in the past 3 years. You know, the bulk of the cost. Not the 8%. It's downright stupid to target the 8%. Even if you could totally remove every bit of it, you wouldn't even notice it was gone. It's just too small.
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Originally posted by Zoom Zoom Diva:
It's not the oil companies that are profiteering off this, it's the crude oil producers who spend far less than $70 a barrel extracting and delivering crude and the paranoid commodities traders who are screming Chicken Little and are bidding up the price of oil without reason.
There's a reason OPEC is called a "cartel" and you've hit one of the key nerves in all of this...
Originally posted by Zoom Zoom Diva:
These people need to be diva-slapped until they realize that supply is not nearly the concern they think it is in the short term. If you want to be concerned about 2010 or 2015, fine. That has no relevance in the price of what is being delivered next month.
Paranoia also exists within both stock and bond analysis of Ford.
I'm still in disagreement that this is the main cause behind the uplift with the current prices (oil and gas). $100/barrel and $4-6/gallion and I would tend to agree.
JaTo
e-Tough Guy
Missouri City, TX
99 Contour SVT
#143/2760
00 Corvette Coupe
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