Gas

[snox801]

Oil companies received their money in 2020. I think oil companies got about $8 billion total in PPP. Oil companies reported $80 billion in losses in 2020. Oil companies reported an $240 billion in profits in 2021. Even if the oil companies were able to report the entire $8 billion as profits in 2021, it does not explain the $232 billion in additional profits. In 2019, oil companies reported $55 billion in profits. So we can deduct that which leaves $177 billion that oil companies were able get by cutting operating costs. Maybe its me but that seems like kind of a stretch.

Depends on what the year is. Lots are June so 2020 would show huge loses as the year ended mid lockdown. Then money dumps in fall which would be 21 with lots of cash and no expenses.
Not saying it all is but where did this sudden jump in profit come from in your opinion? It's not greed or why would t they have done it in bad years. Plus we keep hearing it's Russia so which is it?
I tend to believe because it's trade and speculation is involved it's all based on that. We have a government that is openly trying to crush ICE and go electric. So why invest when they may crush you.
Think of the people who put money into keystone. Millions to have some guy walk into office and stop it. Would you invest again?
We need the government out of this stuff because it only works for the well connected who know what's about to happen.

 

[jimbires]

a few days ago , I saw on the news , some 76 gas stations are getting their pumps set up to go past $9.99 per galllon .

I remember shortly after I started driving the local pumps would not go high enough . the stations had to sell gas by the 1/2 gallon to get the pump price high enough

 

[snox801]

Trump warned about allot of things. Of course, when he made that warning, the oil industry was already crashing. Oil wells had been shut down as had oil refineries all under his watch. It was the largest reduction in oil production in US history. Agin, $80 billion in losses and over 600 oil companies filing bankruptcy. Again, all under his watch.


No. Its not a baseless claim.

This isn't the epoch times or even info wars so you probably won't believe them

U.S. producers reluctant to drill more oil, despite sky-high gas prices

Rather than give consumers relief at the pump, many oil and gas executives are sending profits to investors.

www.cbsnews.com

The Real Reason Big Oil Won't Save Us From High Gas Prices

The Real Reason Big Oil Won't Save Us From High Gas Prices

time.com

‘DUCs’ Are Goosing Oil Companies’ Booming Profits. What Happens When They Run Out?

Oil companies are completing wells they drilled years ago to boost cash flow and keep shareholders happy. What happens when the backlog runs out?

www.forbes.com

Why Oil Companies Are Lush With Cash but Not Spending Much | The Motley Fool

It may come down to a variety of factors.

www.fool.com

$100 Oil Is Back! Why Isn’t Texas Drilling?

Russia’s war on Ukraine has made it practically patriotic to pump oil, but the Permian hasn’t ramped up production. Don’t blame Washington. Blame Wall Street.

www.texasmonthly.com

The pause lasted maybe 2 months and there were 9000 existing leases available

Our refining capacity has more than doubled in that amount of time.

Our capacity has doubled but our usage has far outpaced that. So we need more no matter how much we doubled. We need more facilities but we won't get them because the big push for electric cars.

 

[JimFromTN]

Not saying it all is but where did this sudden jump in profit come from in your opinion? It's not greed or why would t they have done it in bad years. Plus we keep hearing it's Russia so which is it?
I tend to believe because it's trade and speculation is involved it's all based on that. We have a government that is openly trying to crush ICE and go electric. So why invest when they may crush you.
Think of the people who put money into keystone. Millions to have some guy walk into office and stop it. Would you invest again?
We need the government out of this stuff because it only works for the well connected who know what's about to happen.

They received $8 billion in PPP. Lets deduct that from the declared profits for 2021. That leaves $232 billion in profits for 2021. Oil companies reported $55 billion in profits in 2019. Lets say they simply got back the $80 billion they lost in 2020 plus the $55 billion they would normally make. Thats $135 billion. There is still another $97 billion in profits. How did all this happen? Supply far exceeds demand which drives up the price of oil. If you read some of the links I provided, you will see that oil companies are licking their wounds from 2020 and want to keep their profits rather than invest in new drillings. To make matters worse for us as consumers, they have realized that they can make allot more money by controlling the flow of oil than by going back to the former business model of drill baby drill. It has nothing to do with keystone. They lost exponentially more money back in 2020 than they did off of keystone. Actually, transCanada paid for the keystone pipeline, not the US oil companies so they really did not lose anything.

What has Russia's role been in all of this? It goes back to 2020. Russia got in an oil war with opec and drove the price of oil to $11 a barrel. I heard that during trading, oil actually went negative for a short time and climbed back up to $11 a barrel by end of day. So Russia contributed to the crash. As for the effect of the war in the Ukraine on gas prices, not only does Russia produce oil but it also provides refined products like gas and diesel. Of course, Russia only made up a small percentage of oil to the US so how could it possibly affect oil prices here in the US? The US pays the same price for a barrel of oil as everyone else does so when other countries stop using Russian oil, it causes the price of oil to go up for everyone. Even if we went completely independent and only used US oil, we would still be paying the same price for a barrel of oil as everyone else. It used to be against the law to export US oil until 2015.

I don't believe the government is trying to keep prices high so that the country will go electric. Its political suicide and would require being in power for a long period of time. Biden has backed out of everything he said he was going to do. ANWR and keystone are insignificant and don't affect the amount of oil on the market.

 

[shortgrass]

Wonder where all that needed electricity is to come from? There are wind mills all over Western Oklahoma, yet they can only supplement what is generated. I spotted a solar set-up at a business in OKC last time I was there. The solar panels sure cover a lot of area. California experiences rolling black-outs on an , almost, regular basis, and recent news is it may not be the only place in the very near future. Hydro-electric is only available in certain areas, and then there's the concerns for wildlife and the environment. Nuclear is frowned upon, even with the advances in tech to make it safer. Natural gas comes with other hydrocarbons, it's not what strictltly comes out of a natural gas wells In the recent past (like 6-8yrs ago) the 'transition fuel' was to be through natural gas. There are quit a few natural gas powered vehicles on the roads around here, mostly company owned vehicles. Natural gas "filling stations" aren't hard to find. Yet, the current administration is trying to by-pass that route. In the process, it will all but destroy the 'middle class' of working people in this country. The environment is important to all thinking people, regulations and permitting abound for the oil (and natural gas) industry, yet the current Administration insists on trying to buy oil from countries that have no care for the environment and are not friendly towards the US. And then there's the case of China and the developing world. Do you suppose they give a )^%@ about how much they spew into the environment. There is only one atmosphere. What gets polluted one one side of the world will end up world wide. Exploring, drilling for, and producing fuels is massively expensive. No one seemed to care when oil companies were loosing money. Now that there is demand again, and not as much supply we accuse them (the oil companies) of price gouging and earning "wind fall profits". Wasn't that long ago powder for reloading was at a lower cost and whatever flavor you might desire was there, now, not so much as demand has sharply increased as well as the raw materials increasing in price too, as well as the cost of fuels to transport the raw materials and then deliver the finished product to the market. This is my last post on this subject. We're in this fix because of massive over reach in regulations by the current Administration, and too much over spending by the current Administration. Sure, prices would have been up a bit because of the invasion of Ukraine, but this is Brandons' Price Hike, and no one else's! I'll not blame the oil companies. It's an out of touch political class that has this all messed-up!

 

[xsn10s]

Good afternoon Jim,she said she put 16.7 gallons in as we are hearing rumors of another price hike.
That put the price per gallon at 4.31.Thats beyond ridiculous!

I believe the national average is beyond that price. Seattle area gas stations are already getting ready for $10 and above gas. If a huriancane takes out another refinery then expect prices to go up.

 

[JimFromTN]

Our capacity has doubled but our usage has far outpaced that. So we need more no matter how much we doubled. We need more facilities but we won't get them because the big push for electric cars.

I think that is a load of garbage. If there is some new legislation out there that prevents refineries from being built, please provide a link. The threat of this country weaning itself off of oil is so low that its almost nonexistent. If it ever happens it will be long after our great grandchildren are gone.

I personally have no interest in electric cars. They are years from being ready. I would love to have a hybrid that got good highway miles as well as city miles but would be more than happy with a compact car that got 45 mpg. I have a 2006 versa which gets good gas mileage but I don't trust it to take on the open road. I need to break down and replace it. The other vehicle if a tahoe that gets 14mpg. Ugh.

 

[jbs2014]

They received $8 billion in PPP. Lets deduct that from the declared profits for 2021. That leaves $232 billion in profits for 2021. Oil companies reported $55 billion in profits in 2019. Lets say they simply got back the $80 billion they lost in 2020 plus the $55 billion they would normally make. Thats $135 billion. There is still another $97 billion in profits. How did all this happen? Supply far exceeds demand which drives up the price of oil. If you read some of the links I provided, you will see that oil companies are licking their wounds from 2020 and want to keep their profits rather than invest in new drillings. To make matters worse for us as consumers, they have realized that they can make allot more money by controlling the flow of oil than by going back to the former business model of drill baby drill. It has nothing to do with keystone. They lost exponentially more money back in 2020 than they did off of keystone. Actually, transCanada paid for the keystone pipeline, not the US oil companies so they really did not lose anything.

What has Russia's role been in all of this? It goes back to 2020. Russia got in an oil war with opec and drove the price of oil to $11 a barrel. I heard that during trading, oil actually went negative for a short time and climbed back up to $11 a barrel by end of day. So Russia contributed to the crash. As for the effect of the war in the Ukraine on gas prices, not only does Russia produce oil but it also provides refined products like gas and diesel. Of course, Russia only made up a small percentage of oil to the US so how could it possibly affect oil prices here in the US? The US pays the same price for a barrel of oil as everyone else does so when other countries stop using Russian oil, it causes the price of oil to go up for everyone. Even if we went completely independent and only used US oil, we would still be paying the same price for a barrel of oil as everyone else. It used to be against the law to export US oil until 2015.

I don't believe the government is trying to keep prices high so that the country will go electric. Its political suicide and would require being in power for a long period of time. Biden has backed out of everything he said he was going to do. ANWR and keystone are insignificant and don't affect the amount of oil on the market.

ANWR and the keystone are significant. Sources of hydrocarbons and the means to transport them are always significant.

How does the supply exceeding the demand drive up the price of oil?

 

[JimFromTN]

Wonder where all that needed electricity is to come from? There are wind mills all over Western Oklahoma, yet they can only supplement what is generated. I spotted a solar set-up at a business in OKC last time I was there. The solar panels sure cover a lot of area. California experiences rolling black-outs on an , almost, regular basis, and recent news is it may not be the only place in the very near future. Hydro-electric is only available in certain areas, and then there's the concerns for wildlife and the environment. Nuclear is frowned upon, even with the advances in tech to make it safer. Natural gas comes with other hydrocarbons, it's not what strictltly comes out of a natural gas wells In the recent past (like 6-8yrs ago) the 'transition fuel' was to be through natural gas. There are quit a few natural gas powered vehicles on the roads around here, mostly company owned vehicles. Natural gas "filling stations" aren't hard to find. Yet, the current administration is trying to by-pass that route. In the process, it will all but destroy the 'middle class' of working people in this country. The environment is important to all thinking people, regulations and permitting abound for the oil (and natural gas) industry, yet the current Administration insists on trying to buy oil from countries that have no care for the environment and are not friendly towards the US. And then there's the case of China and the developing world. Do you suppose they give a )^%@ about how much they spew into the environment. There is only one atmosphere. What gets polluted one one side of the world will end up world wide. Exploring, drilling for, and producing fuels is massively expensive. No one seemed to care when oil companies were loosing money. Now that there is demand again, and not as much supply we accuse them (the oil companies) of price gouging and earning "wind fall profits". Wasn't that long ago powder for reloading was at a lower cost and whatever flavor you might desire was there, now, not so much as demand has sharply increased as well as the raw materials increasing in price too, as well as the cost of fuels to transport the raw materials and then deliver the finished product to the market. This is my last post on this subject. We're in this fix because of massive over reach in regulations by the current Administration, and too much over spending by the current Administration. Sure, prices would have been up a bit because of the invasion of Ukraine, but this is Brandons' Price Hike, and no one else's! I'll not blame the oil companies. It's an out of touch political class that has this all messed-up!

The government is trying to get other countries to pump lore oil because US companies refuse. My question is, if the republicans take complete control and completely deregulate the oil industry and give away oil leases and permits and pass legislation so oil companies can't get sued for poisoning entire regions of people and yet they don't increase oil production enough to get gas prices back to what they were back in 2019, how are you going to blame it on the democrats? Giving you a chance to start thinking about this so you will be prepared in the future. Unless there is a way for oil companies to do that and still make the profits they are now, they aren't. If gas prices remain as high as they are now for the next 3 years, oil companies are looking at a trillion dollars in profits in Biden's first term. Explain to me why they would be willing to give that up.

 

[jbs2014]

I think that is a load of garbage. If there is some new legislation out there that prevents refineries from being built, please provide a link. The threat of this country weaning itself off of oil is so low that its almost nonexistent. If it ever happens it will be long after our great grandchildren are gone.

I personally have no interest in electric cars. They are years from being ready. I would love to have a hybrid that got good highway miles as well as city miles but would be more than happy with a compact car that got 45 mpg. I have a 2006 versa which gets good gas mileage but I don't trust it to take on the open road. I need to break down and replace it. The other vehicle if a tahoe that gets 14mpg. Ugh.

Why would you not prefer cheap and abundant gasoline long term instead of a hybrid?

 

[JimFromTN]

ANWR and the keystone are significant. Sources of hydrocarbons and the means to transport them are always significant.

How does the supply exceeding the demand drive up the price of oil?

Got that backwards, demand exceeds supply. Sorry.

ANWR is not significant anytime in the next 10 to 20 years. We have over 9000 unused leases, why would having another 9000 unused leases make a difference? Not only does keystone transport an insignificant amount of the worlds oil but it is not for US consumption, nor is it US oil. Depending on where you live it could actually drive up the price of gas for you because some of that oil will be refined into diesel before it is shipped overseas and reduce refining capacities in those areas for local use.

 

[2buffalo]

The only thing you have called me on is the oil companies absorbing the profits. Oil dropped from almost $120 a barrel to around $95 a barrel. Gas prices should have almost dropped close to $3 a gallon. Maybe they did where you were but they did not where I was. They dropped maybe 10 cents. There have been several occasions over the last few months where this has occurred. It also does not explain why back in 2008 when oil prices reached $145 a barrel, it was cheaper than today when its $110 barrel. If it makes it up to $145 a barrel, we will probably be paying 50% or more for gas than we did in 2008.

Crude Oil vs Gasoline Prices

This interactive chart compares the monthly price performance of West Texas Intermediate (WTI) Crude Oil vs national average gasoline prices back to 1986.

www.macrotrends.net

See link. It is not the only thing I called you on but I am fine with starting here. One point at a time sometimes work best. The attached chart shows the price of gasoline vs the price of oil over the last 10 years. as you will see it follows fairly closely with the lines intersecting at some points.

Do you think the cost in 2008 was the same to refine a gallon of gasoline as it is in 2022? Y/N

 

[JimFromTN]

Why would you not prefer cheap and abundant gasoline long term instead of a hybrid?

Because I am a realist. I remember spending $80 to fill my truck numerous times back in 2008. A couple of times, I also filled my boat along with it. I think that was about $120 total. I remember back in the 90's cheap gas was $1 a gallon, then a few years later it was $2 a gallon, now its $3 a gallon and soon it will be $4 a gallon. Like I mentioned above, if you can't figure a way for oil companies to make $240 billion a year in profits by selling a whole bunch of cheap gas, it is not going to happen. The best they have ever done doing it that way was probably around $60 billion a year.

 

[JimFromTN]

Crude Oil vs Gasoline Prices

This interactive chart compares the monthly price performance of West Texas Intermediate (WTI) Crude Oil vs national average gasoline prices back to 1986.

www.macrotrends.net

See link. It is not the only thing I called you on but I am fine with starting here. One point at a time sometimes work best. The attached chart shows the price of gasoline vs the price of oil over the last 10 years. as you will see it follows fairly closely with the lines intersecting at some points.

Do you think the cost in 2008 was the same to refine a gallon of gasoline as it is in 2022? Y/N

Look at march 7th 2022. Oil was $109 a barrel and gas was $3.22. Whats oil right now? Around $110? What is the price of gas in your neighborhood?