Do You Think Oil Companies (ExxonMobil, Chevron et al) Control the Price of the Oil Commodity?

[Gawain 0]

I use ExxonMobil as the benchmark example because they are the largest American oil exploration company, and because I am most familiar with them being invested in them.

These companies extract the oil from the ground, however, it does not mean they own it and thus sell the commodity.

The oil price is set in the market, and no, oil is not "running out".

Finding and developing oil fields is time-consuming and very expensive. The oil companies are affected by the rising prices as well.

2007 Annual Report

Total Revenue and other Income:  $404.552B

Total Costs and Deductions:      $334.078B

-- of that taxes and duties:   $31.728B (sales based tax)

$40.953 (other tax and duty)


Net income before taxes:         $70.474B

Income Tax:                      $29.864B (that's 41%)

Net income:                      $40.610B

The biggest deduction was about $199B in crude oil PURCHASES (for refining), which cost another $30B to make fuel.

So, the question stands: Do you think oil companies control the price of the oil commodity?

If you answered yes, you are 100% incorrect and you are buying into posturing that stands to cause more long term economic harm to everyone.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[airdvr 201]

American oil companies only control about 10% of the world's oil supplies. And they're competing with nationalized companies in the ME, Russia, and Venezuela.

One of the biggest reasons their profits are so high right now is their "old" wells. Built prior to all the regulations it costs $25-30 a barrel to bring it out of the ground.

Please don't dent the planet.

Destinations by Roxanne

[ChasingBlueSky 0]

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So, the question stands: Do you think oil companies control the price of the oil commodity?

If you answered yes, you are 100% incorrect and you are buying into posturing that stands to cause more long term economic harm to everyone.

https://www.theice.com/oil_indices.jhtml

Things like the ICE Brent Futures set the prices. The majority of the interests involved in that are American and British. That impacts crude prices more than anything else in the world. It's driven by profit, not supply/demand or oil or how much is pumped/consumed per day.

Now, do Oil Companies play in that market? If so they are just as much responsible as the rest of the oil future traders.

_________________________________________
you can burn the land and boil the sea, but you can't take the sky from me....
I WILL fly again.....

[lawrocket 3]

They control the price to the extent that they are competing to buy it. Of course, they are competing to buy it so they can refine it and sell it to the public.

My wife is hotter than your wife.

[Deisel 37]

CNN released a poll (yeah, I know) a few days ago asking basically the same question. But the choices were between oil company unethical behavior (talk about spin) and market forces. Their results were 60% believed that unethical behavior was driving prices. It is so very sad to see how little most of us understand about the world we live in.

The brave may not live forever, but the timid never live at all.

[StreetScooby 5]

Good stuff, Gawain. Thanks for posting it. Having spent 6 years working for Exxon Research, I'm continually appalled by folks who think Exxon is making too much money. Absolute nonsense. They spend a huge amount of money, focus heavily on safety and the environment, and yet are made out as devils...

We are all engines of karma

[billvon 2,772]

Nope. They have some small influence over the price of oil via their usage of it, and they control the price of their product (gasoline.) But investors have far more control over oil prices than Exxon does.

[Darius11 12]

I think what the biggest problem with the oil companies is that they are like a monopoly.
The price is controlled so there is no real competition. You can drive everywhere in the state and see a difference of .10C or so. Which is a very small percentage when gas is at 4.00 a gallon.


The other reason I think oil companies are like a monopoly is this. What’s the alternative? Do you have another reasonable choice for transportation? The answer is no; unless you live in NYC or one of the other big cities with a public transportation system that works.

In this country gas is not a luxury it is a necessity you simply can not survive in the system without personal transportation.

Have you ever tried to use public transportation in a small town (which is what America is mostly made up off)? A 20 min. drive can take more then a few hours not to mention there schedules are unreliable.

So when a product becomes a necessity should it not be regulated? Or should the companies who control it be able to make as much profit as they want?

I am not against people making money but when I have no other viable choice other then to use their product or not survive, it is a monopoly and I have to pay what ever they want. I am sure the oil companies know this. Lets not forget the oil companies are the reason monopoly laws were made in the first place.

I'd rather be hated for who I am, than loved for who I am not." - Kurt Cobain

[billvon 2,772]

>So when a product becomes a necessity should it not be regulated?

No. A better option is to make it NOT a necessity by pushing alternatives - and then let the market regulate price.

[Darius11 12]

Yes! but right now do you believe that alternatives are available to the general public?

I have not seen much. Right now if I decide not to drive I am walking.

I'd rather be hated for who I am, than loved for who I am not." - Kurt Cobain

[TrophyHusband 0]

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>So when a product becomes a necessity should it not be regulated?

No. A better option is to make it NOT a necessity by pushing alternatives - and then let the market regulate price.

if i were an "oil" company, i would change to an "energy" company and be on the front lines of alternative energy souces, and buy up all of the patents for alternative energy, and then sit on all of the new technology until all of the oil is sucked from the ground. i don't know if oil companies are currently doing this, but i would be surprised if they weren't.

"Your scrotum is quite nice" - Skymama
www.kjandmegan.com

[billvon 2,772]

> Yes! but right now do you believe that alternatives are available to
>the general public?

Right now, today, you can buy a natural gas car. You can buy an all-electric sports car that does 0-60 in 4 seconds. You can buy a hybrid and get it converted to a pluggable hybrid. You can buy E85 and run it in most cars. You can get off-the-shelf electric motorcycles.

Those are, right now, tiny niche markets. Our efforts would be well-spent expanding them so that people really do have a choice.

[kelpdiver 2]

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If you answered yes, you are 100% incorrect and you are buying into posturing that stands to cause more long term economic harm to everyone.

You're 100% wrong if you believe that oil companies have 0% impact on the price.

[kelpdiver 2]

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> Yes! but right now do you believe that alternatives are available to
>the general public?

Right now, today, you can buy a natural gas car. You can buy an all-electric sports car that does 0-60 in 4 seconds. You can buy a hybrid and get it converted to a pluggable hybrid. You can buy E85 and run it in most cars. You can get off-the-shelf electric motorcycles.

Those are, right now, tiny niche markets. Our efforts would be well-spent expanding them so that people really do have a choice.

niche is the word, all right.
Cars with fuel systems of limited supply, cars that cost 100k and are available in a tiny first production run.

The bicycle is the first level alternative. It should be a focal point.

[billvon 2,772]

>The bicycle is the first level alternative.

An excellent alternative indeed. I just got a used Brompton folding bike so I can take it on trains, buses etc.

[TrophyHusband 0]

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> Yes! but right now do you believe that alternatives are available to
>the general public?

Right now, today, you can buy a natural gas car. You can buy an all-electric sports car that does 0-60 in 4 seconds. You can buy a hybrid and get it converted to a pluggable hybrid. You can buy E85 and run it in most cars. You can get off-the-shelf electric motorcycles.

Those are, right now, tiny niche markets. Our efforts would be well-spent expanding them so that people really do have a choice.

i can't buy a natural gas car, there's no place to fill it up. the commute to work for my wife is 30 miles round trip. we could buy a house a couple miles closer, but we wouldn't shave off enough to make it worth while. my wife can't take a motorcycle or a bike to and from work. we can't move to another town to work, the air force tells us where we will live and work. the only option we have is to buy another vehicle, but you can buy a hell of a lot of gas for $10,000 to $15,000. we don't have alternatives here and i suspect that most people don't have that many alternatives. i agree whole heartedly with you that we need to pursue alternatives, but we also need to drill and expand refining capacity because i don't believe alternatives will be widely available until all of the oil is gone.

"Your scrotum is quite nice" - Skymama
www.kjandmegan.com

[mnealtx 0]

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i can't buy a natural gas car, there's no place to fill it up.

Looks like there's 10 different places within the city limits

Edit - sorry, I was wrong. It was pointed out that the search defaults to gasoline prices when my initial entry was for LPG prices in MH. The nearest sources shown are in Boise, although there very well may be sources in MH that aren't listed.

My apologies for the confusion.

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706

[billvon 2,772]

>i can't buy a natural gas car, there's no place to fill it up.

?? I checked the real estate listings for Mountain View, and several houses offer gas heat.

>i agree whole heartedly with you that we need to pursue alternatives, but
>we also need to drill and expand refining capacity because i don't believe
>alternatives will be widely available until all of the oil is gone.

If that's the case, then we might as well give up now. We will have no military to speak of and no way to run our economy.

[Gawain 0]

This just in: Exxon is getting out of the retail gasoline business.

The profits just aren't there. This is a big deal, and makes me wonder if other oil companies that have a retail arm will follow suit.

The end result to the consumer will be interesting...how might this affect retail gas prices if the industry follows suit?

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[TrophyHusband 0]

you can fill a natural gas car at any gas station? this is something i did not know.

"Your scrotum is quite nice" - Skymama
www.kjandmegan.com

[TrophyHusband 0]

ok, i'm learning something new here. i was unaware that you could fill a natural gas powered car just about anywhere. this is something my wife and i will research and crunch the numbers on.


i don't understand where you are coming from in your second statement. can you please elaborate?

"Your scrotum is quite nice" - Skymama
www.kjandmegan.com

[mnealtx 0]

If they sell propane, yes...pretty much anyplace you can refill the propane tank for your bbq, I'm given to understand.

Mike
I love you, Shannon and Jim.
POPS 9708 , SCR 14706

[Gawain 0]

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ok, i'm learning something new here. i was unaware that you could fill a natural gas powered car just about anywhere. this is something my wife and i will research and crunch the numbers on.

i don't understand where you are coming from in your second statement. can you please elaborate?

Natural gas automobiles are only available in California. The Honda Civic GX is the only one that I know of, and it is only sold in California, and then, only in certain markets (SF, LA, SD if I think). I don't know what Bill and the gang are talking about. But NGVs are no where near being widely available.

So I try and I scream and I beg and I sigh
Just to prove I'm alive, and it's alright
'Cause tonight there's a way I'll make light of my treacherous life
Make light!

[lummy 4]

That search was for "gasoline" if you search for natural gas there are none. I'm still trying to figure out why Billvon is searching Mountain View tho

I promise not to TP Davis under canopy.. I promise not to TP Davis under canopy.. eat sushi, get smoochieTTK#1

[billvon 2,772]

>i was unaware that you could fill a natural gas powered car just about anywhere.

You can fill a natural gas car anywhere there's natural gas (i.e. at home if you have natural gas.) You just need a compressor (which several companies sell.)

>i don't understand where you are coming from in your second statement.
>can you please elaborate?

We will always need oil to run our military. If you think it will take a long time to convert a car to electric, it will take ten times as long to get to an electric F-22. If we really do drain our oil completely before we get alternatives we will be defenseless.