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Started By
Message
re: Gas Price Question for you O&G folks
Posted on 6/16/22 at 1:32 pm to mmmmmbeeer
Posted on 6/16/22 at 1:32 pm to mmmmmbeeer
Profits are at record levels
BECAUSE
we have more demand than supply
Technically both sides are right, but they are both also "missing information". You can't have inflation of businesses never raise prices, the first business that raises prices because demand outstrips supply didn't have any additional costs that influenced them to raise prices, it is just the start of the chain reaction that is huge. Obviously demand went up from all the free money from PPP loans and stimulus checks and record spending the past 6 years, hell we have been on this track since after the Gingrich congress was no more.
BECAUSE
we have more demand than supply
Technically both sides are right, but they are both also "missing information". You can't have inflation of businesses never raise prices, the first business that raises prices because demand outstrips supply didn't have any additional costs that influenced them to raise prices, it is just the start of the chain reaction that is huge. Obviously demand went up from all the free money from PPP loans and stimulus checks and record spending the past 6 years, hell we have been on this track since after the Gingrich congress was no more.
Posted on 6/16/22 at 1:33 pm to OweO
quote:
They are making up for those losses right now.
LOL
Posted on 6/16/22 at 1:33 pm to Hold That Tiger 10
quote:
Do you understand how supply and demand works?
I would expect a closer relationship between oil demand and gas demand. That's why I'm confused.
Seems the answer is refining capacity has driven gas demand far beyond the demand for crude.
Posted on 6/16/22 at 1:34 pm to armsdealer
Exxon operating at a huge loss though. Likely because of investments mostly.
Posted on 6/16/22 at 1:36 pm to mmmmmbeeer
Everything costs more than it did in 2014. The workers cost more, the equipment costs more, the transportation costs more. That's what you're overlooking.
Posted on 6/16/22 at 1:38 pm to Da Joker
quote:
Everything costs more than it did in 2014. The workers cost more, the equipment costs more, the transportation costs more. That's what you're overlooking
All of this, plus there is less supply than 2014.
(Almost) everything you love about gas prices is because of Joe Biden.
Posted on 6/16/22 at 1:41 pm to Dire Wolf
quote:
Inventory is lower than it was in 2014, both in terms of crude and refined product.
Winner, winner, chicken dinner.
Posted on 6/16/22 at 1:42 pm to mmmmmbeeer
quote:
what's responsible for a nearly 50% increase in gas prices with the same oil prices?
refining costs have skyrocketed
they arent even making money at this point, they are losing money, all while MSM keeps lying about them making huge profits when thats a lie, with refining costs today they are barely breaking even, all while biden is shutting down more refineries, very soon there wont be a single refinery operating in this country anywhere
Posted on 6/16/22 at 1:46 pm to mmmmmbeeer
Also take into consideration the cost of electricity. Just as your electric bill probably went up $100 this month by entergy refineries also have to deal with it. Even though refineries use steam to turn turbines with electric motors as back up the monthly electric bill at a refinery is astronomical. Also add the cost of supplied hydrogen, steam, some catalyst for a cat cracker, etc. Refineries are designed to be efficient but still have to deal with rising costs to operate and keep the lights on. There is also shipping cost to deal with that have increased to get it to the pump. The shipping of gas and diesel is also a factor. Ocean going ships, local barge companies, trucking companies, and the railroad have also increased prices
This post was edited on 6/16/22 at 1:50 pm
Posted on 6/16/22 at 1:48 pm to mmmmmbeeer
quote:
mmmmmbeeer
You're too stupid to help. Hope you like the lack of mean tweets. fricking loser.
Posted on 6/16/22 at 1:49 pm to keakar
quote:
refining costs have skyrocketed they arent even making money at this point, they are losing money
Well this is about as far from the truth as it gets lol.
Posted on 6/16/22 at 1:49 pm to mmmmmbeeer
The oil futures and spot oil price in 2014 were much lower than the oil futures and spot prices today. The information in that tweet is just wrong. The crude prices were not the exact same.
In 2014 oil futures were around $100 in Jan 2014 and dropped steadily throughout the year to $50 per barrel at the end of '14.
The current oil price as well as futures are almost $120 per barrel. That is 20% higher than the beginning of 2014 and almost 2.5 times the price of oil at the end of 2014.
Also average gas prices followed that trend. The price per gallon average of gas at the beginning of 2014 was north of $3 per gallon. By December the price as $2 flat per gallon. These numbers reflect the price of oil going from $100 to $50 during the same time.
The current price of oil is 2.5 times the price of oil in December 2014 and the current price of gas is about the same 2.5 times the price of gas in December 2014. Even ignoring the factors of distribution and refining adding costs that aren't the same as in 2014, these numbers seem very reasonable and normal to me.
Dont believe what you see on social media, look it up yourself.
WTI Crude oil prices and futures chart history
Avg gas price history chart
In 2014 oil futures were around $100 in Jan 2014 and dropped steadily throughout the year to $50 per barrel at the end of '14.
The current oil price as well as futures are almost $120 per barrel. That is 20% higher than the beginning of 2014 and almost 2.5 times the price of oil at the end of 2014.
Also average gas prices followed that trend. The price per gallon average of gas at the beginning of 2014 was north of $3 per gallon. By December the price as $2 flat per gallon. These numbers reflect the price of oil going from $100 to $50 during the same time.
The current price of oil is 2.5 times the price of oil in December 2014 and the current price of gas is about the same 2.5 times the price of gas in December 2014. Even ignoring the factors of distribution and refining adding costs that aren't the same as in 2014, these numbers seem very reasonable and normal to me.
Dont believe what you see on social media, look it up yourself.
WTI Crude oil prices and futures chart history
Avg gas price history chart
Posted on 6/16/22 at 1:50 pm to JohnnyKilroy
You realize how many trucks are running g to rigs daily spending 6 bucks a gallon for deisel
Posted on 6/16/22 at 1:50 pm to mmmmmbeeer
quote:
I know there are many components, as you've shown, but which of those components are accounting for a 40% increase given the same crude price?
Refining capacity in this country and across the world has decreased the last couple years for a number of reasons.
There’s a huge part of the equation.
Posted on 6/16/22 at 1:51 pm to mmmmmbeeer
What was the value of the US dollar in 2014 compared to today?
The US dollar has lost roughly 23% of its buying power since 214
The US dollar has lost roughly 23% of its buying power since 214
Posted on 6/16/22 at 1:53 pm to Nado Jenkins83
quote:
You realize how many trucks are running g to rigs daily spending 6 bucks a gallon for deisel
Not remotely enough for his post to be true lmao
Posted on 6/16/22 at 1:54 pm to WizardSleeve
quote:
Dont believe what you see on social media, look it up yourself.
Amen...and thanks for correcting things.
Posted on 6/16/22 at 1:54 pm to kywildcatfanone
Nothing you say will convince this clown that we aren't being gouged. He's a perpetual victim.
Posted on 6/16/22 at 2:00 pm to mmmmmbeeer
quote:
The point of the tweet was to blame price-gouging. What are they missing?
Inflation caused by the shitty economic policies, Supply/Demand, and an administration that is openly hostile to O&G.
Posted on 6/16/22 at 2:09 pm to JohnnyKilroy
Im talk 18 wheelers. Sometimes you could have 30 trucks roll in a day delivering something or another. Cost of all the small moving parts are going up big time. Vast shortages of equipment that are keeping rigs from completing wells under budget. Yea if they hit good well that becomes chump change. Its still a gamble and not all produce like others.
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