I will take that as a no.
Gas
- Thread starter jbs2014
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Your question was stupid. Everyone on here knew exactly what I meant except for you. You are obviously a literalist which can be a sign of schizophrenia or autism? It would explain your style of arguing. You are kind of like the grammar police in a sense. One has to take a different approach when dealing with a literalist.
Do you two drink together? 
snox801
Well-Known Member
Explain why they decided now.
They have much more reason to drill and make a profit when they know that the government will not step on them with more regulations.
It's pretty simply really. We cut regulations and prices drop.
If you invest in drilling and supper for that then they say no and shut you down how likely are you to invest again? So with less investment prices go up.
I will never buy the argument that you are making about profit. Why would they just wake up one day and want high profits?
With less regulations they would have more competition and this one would want market share and sell cheaper driving prices down.
So either way you slice it when dems wanna stop oil it has a negative effect. You keep making excuses but I have t heard you say the dems are making the right choice for the country and back that up.
At some point voters need to stop being selfish and voting for things that help them or don't affect them as much. Gas may not matter much to you but as a country overall it very bad.
I even want Brandon to do good as I'm more about Thai whole country being better.
I could vote for everything that comes to raise education spending because it would be great for my family but I can't because it's terrible for the rest of the country.
I have to put a preface on this -
You are stating your opinion and have provided no links to data which would support your opinion and I am not asking that you do that. I am going to state my opinion and not provide any links to data supporting my opinion either. I am assuming this is ok seeing as you are doing the same. If anyone has issue with me not providing supporting data and not the other party involved, I could care less what they have to say and will not respond regardless of how clever or insulting their response is. There is a high probability that I have already provided data supporting my argument in this thread. All one has to do is read through all 49 pages and they will eventually find it. I am not going to repeat myself because they are lazy and have only read the last couple of pages. Even after they read through all 49 pages and have not found my supporting data, I doubt I will take the time to go out and provide it. No one else is, why should I?
Sorry, had to get that out of the way
As to why now, they recorded almost $80 billion in losses in 2020. Under Trump before 2020, they were making $55 to $60 billion a year. Last year in Biden's first year they made somewhere around $240 billion. Based on 1st quarter profits this year, they may not make quite as much but they are going to probably make close to it if not as much or even more. Thats all speculation on their first quarter profits. My question again, why go back to $55 billion a year if you can make $200 billion a year? Producing more oil drives the price down so they have to produce more to make the same money. They have to invest more money which means they have to produce more to pay for that which drives the price of oil down so they have to produce more to get back their investment and make the same money that they are making now. Of course, that drops the price of oil so they have to produce more to make the same amount of money, and so on and so on and so on. Eventually they will outpace demand and that will drive the price of oil even lower and they will start losing money. They lost money in 2020 because supply outpaced demand. It's the global free market that you love so much and it's not just US oil companies, it's all the oil producers. Biden has not done anything to foreign oil producers to keep them from producing and yet they are not increasing production either. Thats why Biden has been talking to them as well. Based on your theory, you would think the foreign oil producers would be taking advantage of the US producers not producing and produce way more oil so they could get all the profits.
Again, anyone wanting to challenge my opinion and want proof, please refer to the preface.
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snox801
Well-Known Member
I think you are assuming a bit to much Jim.
I will take you at your word for profits but I do t believe it's the companies setting these. I can tell you I know a close personal friend who supplies high grade steel for drill rigs. When old goes up he makes huge profits. It's not because he sets the price and doesn't wanna go down it's market value.
Hence why I'm saying market is driven by very simple factors. This is proven time and time again. Simply watch buffet and mongers talks about basic market principles and you will see. Every time the government regulation gets worse prices soar.
It has nothing to do with the company wanting profit. This can be seen in housing in Ca vs less regulation Michigan.
Or look at NY they regulate to the point new companies can't start and compete.
Even easier look at every time the regulation gets more on fuel in Europe or the us gas soars. Doesn't matter which party is in power. Just so happens Brandon is pushing and even admitting they want to do away with oil. So who would invest in new production when they might be kicked in the crotch in 6months.
I will take you at your word for profits but I do t believe it's the companies setting these. I can tell you I know a close personal friend who supplies high grade steel for drill rigs. When old goes up he makes huge profits. It's not because he sets the price and doesn't wanna go down it's market value.
Hence why I'm saying market is driven by very simple factors. This is proven time and time again. Simply watch buffet and mongers talks about basic market principles and you will see. Every time the government regulation gets worse prices soar.
It has nothing to do with the company wanting profit. This can be seen in housing in Ca vs less regulation Michigan.
Or look at NY they regulate to the point new companies can't start and compete.
Even easier look at every time the regulation gets more on fuel in Europe or the us gas soars. Doesn't matter which party is in power. Just so happens Brandon is pushing and even admitting they want to do away with oil. So who would invest in new production when they might be kicked in the crotch in 6months.
It would take you less than a minute to verify what I said about profits. Oil isn't soaring because of some new regulation. Oil is soaring because supply has not kept up with demand and oil producers are in no hurry to ramp up because they are doing better than ever. No one has yet to answer the question. Why go back to $60 billion a year profits when they can make $200 billion a year profits? Why doesn't opec take advantage and take all these profits the us oil companies could make and start producing more? Oil companies don't have to worry about biden. They have to worry about the American people. Biden is only temporary and no one other than the American people are getting kicked in the crotch. The fact that you and others can't see the correlation between what happened in 2020 and now is simply amazing. You are in a state of denial because reality doesn't support your views. You don't want to admit the role the pandemic has played in today's economy because the democrats weren't in charge at the time. If biden had been president in 2020, you would be all about it being a result of the pandemic.
snox801
Well-Known Member
I take you at your word. So I do believe they are profits but the same could be asked of you. Why would they got from record profits in the early 2000's to loosing money. In fact why would it ever go down? It's not as profit driven as you would suggest. It's like Tesla it has very little to do with profit and more to do with speculation and investment
We know why it went down to the point of loosing money. Again, the pandemic created a record drop in demand combined with Russia getting into an oil war with opec which increased supply.
snox801
Well-Known Member
I'm talking long term. It's gone up and down. Around 08-09 it hit $100 a barrel after being almost half. Even in the 90's it was fairly high then dropped to $.80 a gallon.
Profits were high when high and low when low. Seems that yes the pandemic did drop price but it was also very low before that. Same arguments where made last time around when Obama was in office blaming the oil companies. It always has and always will be market driven by speculation.
Actually, it was george w bush who was blaming the oil companies and it was more like $140 a barrel. Events trigger speculation along with supply vs demand. Oil companies have control over supply. Oil tanked because demand plummeted in 2020 and Russia added to the already overabundant supply.
dmj
Well-Known Member
Diesel is now $6.30 here in eastern Oregon.
A friend asked me about him buying a used diesel pick up truck and I relayed some prices I have seen here in Montana.He checked Florida and it too was out of sight.No Diesel's for the time being.
I sure hope things change but I'm not hopeful.
I sure hope things change but I'm not hopeful.
