1. Attention: We have put together a thread with tips and a tutorial video to help with using the new software. Please take a moment to check out the thread here: Trapshooters.com Tutorial & Help Video.
    Dismiss Notice

Get off the oil company butts

Discussion in 'Off Topic Threads' started by hogpwrrr, Dec 10, 2008.

Thread Status:
Not open for further replies.
  1. hogpwrrr

    hogpwrrr TS Member

    Joined:
    Sep 15, 2006
    Messages:
    15
    Gas is down, tell me what else is. All prices went up because it was blamed on the price o fuel.
     
  2. Bocephas

    Bocephas Well-Known Member

    Joined:
    Jan 29, 1998
    Messages:
    1,019
    I think you call it supply and demand.

    People have stopped driving as much as before.

    Pork,beef,copper,scrap,lead,alum.,wheat,corn,beans,have all went down.

    Bo
     
  3. highflyer

    highflyer TS Member

    Joined:
    Feb 1, 2006
    Messages:
    2,474
    I think the oil company executives should be called before congress and asked why gas prices are falling so much. It has to be a conspiracy.
     
  4. Luckyman

    Luckyman Active Member

    Joined:
    Jan 29, 1998
    Messages:
    1,035
    You really think people have stopped driving that much? It all has to do where investors are putting their money these days...They are not putting it in oil so the price has dropped...I believe the demand has gone down a little but not enough to drive prices down so quickly....
     
  5. wm rike

    wm rike Member

    Joined:
    Jul 19, 2007
    Messages:
    594
    Luckyman - Actually, the automobile segment of our doemstic market is using 3% less oil than a year ago, and that is huge. Not just big, but huge.

    It may not sound like much but if you are old enough to remember all the chaos associated with the so-called "Arab Oil Embargo" of the early seventies, the lines, fights, stabbings, and I believe, a homicide or two, all that was the result of a day-to-day shortfall of only 2-3%. Our shortfall in supply was never, not one day, as much as 5%.

    People who know the oil markets well, and that's not necessarily the traders, realized that $140 oil was unrealistic. Something like $100 might have been sustainable if - there are always ifs - the whole financial mess hadn't pressured oil usage downward and diminished demand. To say that the stock market is driving the price of oil down is putting the cart before the horse. What people pay for stock in the oil companies won't move the price of oil one cent - demand for the product does that. Investors can look at the demand and the direction it is headed, and pay a price for the stocks accordingly.
     
  6. bird_buster

    bird_buster TS Member

    Joined:
    Nov 30, 2008
    Messages:
    18
    Guys. I think it is important to point out a very important part of how the price of oil is driven. Oil as we all know is a global commodity, but it is traded in dollar's, not Euros. This has a huge impact on the price of a barrel of Crude oil. During the summer the value of the dollar compared to other markets was very low. People from Europe were actually flying to NY for weekend shopping trips! This drives up the price of gas, because the other markets could otherwise get more for less, due to the value of their currency being greater than ours.
    Oddly enough our economic crisis or as I see it, "reality check", has actually helped bring the dollar back a bit. It also helps that much of the global market has experienced a slow down and we are now gaining ground again.

    This in conjunction with a modest decrease in demand is what drive's the price. Keep in mind that the demand part can easily be offset by OPEC production. Our economic stregnth is out of their control however. We really are a force to be reckoned with. Good sustainable growth will help this happen, not BS investment's where we capitalize on someone else's situation.

    We will see a turn around in our economic state over the next 12-18mo. The sooner we accept the reality of values of goods and servies here in the US the sooner it will happen.

    my 2cents,
    SMK
     
  7. markdenis

    markdenis TS Member

    Joined:
    Jan 29, 1998
    Messages:
    1,123
    Ya I really fell sorry for the big monopoly oil companies.
     
  8. Luckyman

    Luckyman Active Member

    Joined:
    Jan 29, 1998
    Messages:
    1,035
    Let's all keep in mind that the profit margin for oil companies is modest compared to companies like Microsoft etc....I believe somewhere around 8% while MS is around 20%....How come know one is crying about how much Microsoft is making? I guarntee just about everyone on this web-site is using Windows!

    BoooHooo!!
     
  9. TC

    TC TS Member

    Joined:
    Jan 29, 1998
    Messages:
    931
    To state that the average profit margin is around 8% is not exactly correct. The oil companies that have 50 wells in the gulf and another 150 in Texas are not paying a dime more per barrel regardless of the "market price".
     
  10. Luckyman

    Luckyman Active Member

    Joined:
    Jan 29, 1998
    Messages:
    1,035
    That is a drop in the bucket based on the oil we produce locally....If you average it all out it is still way less than 20%....Now if we produced 100% locally you may have an argument....
     
  11. JOND

    JOND TS Member

    Joined:
    Jan 29, 1998
    Messages:
    284
    Drill baby,drill now! JOND
     
  12. R.Kipling

    R.Kipling Well-Known Member

    Joined:
    Jul 29, 2007
    Messages:
    1,765
    What I find very interesting is that with all the screaming about the oil companies last year, what finally kills the economy is Congress and the big banking industry. Classic case of misdirection. Next year we'll get to watch the smoke and mirrors portion of the show.

    Kip
     
Thread Status:
Not open for further replies.