Thread: The Official Oil and Gas Thread

Originally Posted by cswil

Yeah, I just read the Global Warming caused the recent Midwest Ice Storm too.

I hope it stays warm, because if OJ goes up to $6 a gallon, I might die and the govt might have to raise taxes to pay for the WIC program.

Raising taxes is a great way to increase programs, you ungrateful capitalist (except with petroleum).

Originally Posted by beefstew25

Daddy, can I get your thoughts on the above?

Well a couple of things. One, we would love to drill in ANWR because we would get the reserves on our books. Reserves really help stock prices.

Two, oil prices and gas prices aren't as closely tied together as they once were due to the tightness in the refining capacity. Prices on gasoline really move around a lot when refineries shut down for mainteneance and the such.

Three, for most Big Oil companies higher oil prices hurt refinery margins. This is because the Big Oil has to buy much of it's oil from the country run oil entities in Saudi Arabia and Russia. So our raw materials (oil) increase in price and it takes some time for the price increase to make it's way to the consumer, so you lose some money there. You really make money on the margin between what it takes to get oil out of the ground and what it sells for. Most Big Oil companies have pretty high expenses to get it out of the ground (Alaska, deep sea oil wells, tar sands, etc.) compared to the Saudis who pump it out of the desert. It really is economy of scale, Big Oil makes a lot of money because it has a lot of assets. If people drank milk like we use oil, we would all bytch about dairy farmers being rich.

Originally Posted by beefstew25

Raising taxes is a great way to increase programs, you ungrateful capitalist (except with petroleum).

Well, maybe Hillary will raise taxes to pay for gas for people that cant afford it.

Thank you Daddy. That was the only answer you could have given where I wouldn't have a response.

Originally Posted by BigDaddyBronco

Well a couple of things. One, we would love to drill in ANWR because we would get the reserves on our books. Reserves really help stock prices.

Two, oil prices and gas prices aren't as closely tied together as they once were due to the tightness in the refining capacity. Prices on gasoline really move around a lot when refineries shut down for mainteneance and the such.

Three, for most Big Oil companies higher oil prices hurt refinery margins. This is because the Big Oil has to buy much of it's oil from the country run oil entities in Saudi Arabia and Russia. So our raw materials (oil) increase in price and it takes some time for the price increase to make it's way to the consumer, so you lose some money there. You really make money on the margin between what it takes to get oil out of the ground and what it sells for. Most Big Oil companies have pretty high expenses to get it out of the ground (Alaska, deep sea oil wells, tar sands, etc.) compared to the Saudis who pump it out of the desert. It really is economy of scale, Big Oil makes a lot of money because it has a lot of assets. If people drank milk like we use oil, we would all bytch about dairy farmers being rich.

Milk prices have doubled. What do you think that is the result of?

Originally Posted by cswil

Milk prices have doubled. What do you think that is the result of?

Global warming!

Originally Posted by cswil

Well, maybe Hillary will raise taxes to pay for gas for people that cant afford it, the plasma, the cell phone, the car payment, the video games, and a 12 pound lobster tail dinner once a week.

Edited to display the absurd.

Originally Posted by BigDaddyBronco

Well a couple of things. One, we would love to drill in ANWR because we would get the reserves on our books. Reserves really help stock prices.

Two, oil prices and gas prices aren't as closely tied together as they once were due to the tightness in the refining capacity. Prices on gasoline really move around a lot when refineries shut down for mainteneance and the such.

Three, for most Big Oil companies higher oil prices hurt refinery margins. This is because the Big Oil has to buy much of it's oil from the country run oil entities in Saudi Arabia and Russia. So our raw materials (oil) increase in price and it takes some time for the price increase to make it's way to the consumer, so you lose some money there. You really make money on the margin between what it takes to get oil out of the ground and what it sells for. Most Big Oil companies have pretty high expenses to get it out of the ground (Alaska, deep sea oil wells, tar sands, etc.) compared to the Saudis who pump it out of the desert. It really is economy of scale, Big Oil makes a lot of money because it has a lot of assets. If people drank milk like we use oil, we would all bytch about dairy farmers being rich.

Well-said. . and you didn't resort to denigrating cswil's intelligence. . .I commend you.

Originally Posted by NightTrainLayne

Well-said. . and you didn't resort to denigrating cswil's intelligence. . .I commend you.

CSWIL has taken some punches lately. Be nice.

CSWIL, I never heard back on what you were doing second week in March...

Originally Posted by beefstew25

CSWIL has taken some punches lately. Be nice.

CSWIL, I never heard back on what you were doing second week in March...

Actually, my boss and I had a very preliminary conversation about going to Las Vegas in the middle of March.

Originally Posted by cswil

Actually, my boss and I had a very preliminary conversation about going to Las Vegas in the middle of March.

MAY. I'll be in Vegas in MAY.

Not March.

Originally Posted by cswil

Actually, my boss and I had a very preliminary conversation about going to Las Vegas in the middle of March.

OK, good, so your feelings won't be hurt when Joe and I don't invite you.

Originally Posted by beefstew25

OK, good, so your feelings won't be hurt when Joe and I don't invite you.

That was uncalled for.

Originally Posted by DallasChief

That was uncalled for.

Beef treats me like a stray dog. I am getting used to it.

Originally Posted by cswil

Beef treats me like a stray dog. I am getting used to it.

Nut heard you. And he is pissed.