So much for ‘Peak Oil’

[olofscience 420]

Just now, brenthutch said:

Apparently you don’t understand the difference between profit and profit margin.  

You're the one confused.

11.5 billion total profit, record high.

tripled refining profit margins.

I do understand the difference. Unfortunately for you, both show how BS your argument is.

[Phil1111 908]

4 minutes ago, olofscience said:

You're the one confused.

11.5 billion total profit, record high.

tripled refining profit margins.

I do understand the difference. Unfortunately for you, both show how BS your argument is.

I have to leave it up to you. Because calling a spade a spade might get me a 30 day holiday.

[olofscience 420]

8 minutes ago, Phil1111 said:

I have to leave it up to you. Because calling a spade a spade might get me a 30 day holiday.

Took one recently myself but really strange for a text-based forum to have so many have trouble just reading stuff, right? It would be so much more interesting to actually be able to discuss things, but at this point they're so repetitive, you don't really miss much with the time outs.

[billvon 2,380]

1 minute ago, olofscience said:

It would be so much more interesting to actually be able to discuss things

So why not discuss things with people who will discuss them, rather than the people who just copy and paste FOX News zingers?

 

[brenthutch 383]

The lack of understanding of basic economic principles of some of the members of this forum is truly breathtaking.  Confusing profit margin with gross profit, suggesting market distortions for goods and labor will fix inflation, conflating tax burden distribution with GDP… we even had someone post that there is no shortage of supply because there is still gas at the pumps. 

 

[olofscience 420]

11 minutes ago, billvon said:

So why not discuss things with people who will discuss them, rather than the people who just copy and paste FOX News zingers?

Well in this case I was actually thankful to brent providing proof that corporate taxes work he keeps digging though.

[olofscience 420]

1 minute ago, brenthutch said:

The lack of understanding of basic economic principles of some of the members of this forum is truly breathtaking.

I know right? Some of them even claim to have an MBA!

[brenthutch 383]

16 minutes ago, billvon said:

So why not discuss things with people who will discuss them, rather than the people who just copy and paste FOX News zingers?

 

What are you talking about, I just gave an Econ 101 class for free.  I can assure you it was not cut and pasted. BTW FOX is predictable and boring, I watch MSNBC for my entertainment.

[SkyDekker 1,121]

On 7/30/2022 at 3:07 PM, brenthutch said:

the proposed $369 billion Senate energy and climate-spending package jolted the sector to its best week in 18 months.

$369 Billion for a best week in 18 months. Maybe they should learn to stand on their own in stead of needing all that government spending....

Edited August 2, 2022 by SkyDekker

[billvon 2,380]

17 minutes ago, brenthutch said:

What are you talking about, I just gave an Econ 101 class for free. 

Sure you did. 

[jakee 1,254]

2 hours ago, brenthutch said:

Ring the bell! Class is in session. 
If you can only produce 10 widgets at a cost of $5 per because of regulatory and supply constraints and the market price of those widgets is $10. You will have doubled your money and made $50

If those supply and regulatory constraints are eased you could produce 100 widgets at $5 per (to keep it simple we will ignore the reduced input and production cost from deregulation and keep it at $5 per widget). Because of increased supply you can now only sell your widgets for $7.50.  While your profit margin had been slashed your total profit has greatly increased while reducing the price for the consumer 

Class dismissed 

So how much less oil is being used now than normally would be? Pumps are still full. Airliners are still flying. Ships are still sailing. Power plants are still burning. Plastic factories are still plasticking. Where will all the extra oil based widgets come from to make up the shortfall in barrel sale price?

 

More to the point, since we live in reality and not in Brent’s unicorn fart and rainbow based fantasy economics classroom - why are oil companies making much, much more now than they did before supply became tighter, and why will they make even more than that if supply goes back to where it was when they were making so much less?

 

That is what you need to explain. Please give it a shot.

[SkyDekker 1,121]

Elasticity wasn't covered at his MBA.

[Phil1111 908]

1 hour ago, brenthutch said:

What are you talking about, I just gave an Econ 101 class for free.  ...

The horror...the horror. It proves the old saw was wrong. The one that you get what you pay for. Imagine the poor students scarred for life.

[brenthutch 383]

1 hour ago, jakee said:

So how much less oil is being used now than normally would be? Pumps are still full. Airliners are still flying. Ships are still sailing. Power plants are still burning. Plastic factories are still plasticking. Where will all the extra oil based widgets come from to make up the shortfall in barrel sale price?

 

More to the point, since we live in reality and not in Brent’s unicorn fart and rainbow based fantasy economics classroom - why are oil companies making much, much more now than they did before supply became tighter, and why will they make even more than that if supply goes back to where it was when they were making so much less?

 

That is what you need to explain. Please give it a shot.

https://en.wikipedia.org/wiki/Demand_curve

[billvon 2,380]

1 hour ago, SkyDekker said:

Elasticity wasn't covered at his MBA.

"Listen up!  So here's how the economy works.  If you have a large supply of gasoline, and the demand drops due to a pandemic, then price drops because Trump is a genius.  Companies will then scale back supply.  If the demand comes roaring back after the pandemic and the companies drag their feet on getting the supply back up, then it's all Biden's fault.  If the demand starts to decline due to high prices, and companies start producing more, then the price will drop because of natural market forces that have nothing to do with Biden."

[jakee 1,254]

43 minutes ago, brenthutch said:

https://en.wikipedia.org/wiki/Demand_curve

How does that curve work when you plug some real numbers into it?

Here’s something to get you started - global oil production now is down around 7% from the high of 2019, and the average price per barrel so far this year is around 90% higher. 

So we get to the point where oil costs what it used to and oil companies are doing better than they are now by drilling how much?

Edited August 2, 2022 by jakee

[wolfriverjoe 1,340]

23 hours ago, olofscience said:

You don't know how to read and it shows...

You're just making stuff up now aren't you.

What do you mean 'now'?

[brenthutch 383]

On 8/2/2022 at 12:21 PM, jakee said:

So how much less oil is being used now than normally would be? 

https://finance.yahoo.com/news/summer-gasoline-demand-us-drops-154329656.html

[JoeWeber 2,294]

On 8/2/2022 at 8:51 AM, brenthutch said:

I just gave an Econ 101 class for free.

Did you mention your fee before or after you explained that in a free market pricing is determined less by fair value and more by what the market will bear?

[billvon 2,380]

On 8/2/2022 at 11:18 AM, jakee said:

How does that curve work when you plug some real numbers into it?

Woah there!  Let's not get all ivory-tower out of touch elitist on him!  Numbers are no fair.  They muddle his feelings.

[olofscience 420]

On 8/2/2022 at 7:18 PM, jakee said:

How does that curve work when you plug some real numbers into it?

lol.

Like that has ever happened before with brent 

[brenthutch 383]

21 minutes ago, billvon said:

Woah there!  Let's not get all ivory-tower out of touch elitist on him!  Numbers are no fair.  They muddle his feelings.

Let’s take a real world AND real time example.

Demand for gasoline is starting to slacken.  Do oil companies..

A. Reduce supply and keep their margins and profits up

B. Drop their prices in order to increase/maintain demand and keep profits up

If you chose B you are a winner.  If you choose A you are a LOSER 

[ryoder 1,381]

4 hours ago, billvon said:

Woah there!  Let's not get all ivory-tower out of touch elitist on him!  Numbers are no fair.  They muddle his feelings.

What if we limit the real numbers to just the positive integers?

Edited August 4, 2022 by ryoder

[jakee 1,254]

5 hours ago, brenthutch said:

https://finance.yahoo.com/news/summer-gasoline-demand-us-drops-154329656.html

Ok cool - so forecourt gas demand is about 10% below average and price is about 30% above average.

 

Have you figured out the problem with your theory yet?

[jakee 1,254]

4 hours ago, brenthutch said:

If you chose B you are a winner.  If you choose A you are a LOSER 

Cool! Did you notice that neither option is conditional on how much they’re able to drill baby drill?