Oil Declines.. Again! $107 - Page 3

Confused · 09-03-2008, 01:00 PM

If oil companies werent makin a profit we would be hurt later on. As mentioned there is a lot that goes on from the time the oil leaves the ground until it hits your tank.

They need to keep the prices high enough so that they have the funds to keep finding it and coming up with the means to recover it.

Frankly I think havin the cost of gas what it is actually is a good thing in that it is motivating us to get off the foreign oil.

You can actually go online and find a list of gas stations that do and do not use Arab oil. For example conoco does not use Arab oil if you wanna start small and not buy from the gas stations that do.

tone · 09-03-2008, 01:05 PM

Quote:

Originally Posted by Stryker

This is nothing new... The only reason in the last few weeks that oil has gone up was because of hurricane Gustave, and the risk of damage to the platforms in the gulf... That being said, analysts have stated they wouldnt be surprised if it dips below $100/barrel this week (dont know if I believe this one)... It would just be nice to see a little relief at the pump since oil has dropped nearly $45/barrel in the last few months... Funny how the price of gas has only dropped like 40 cents/gallon... Sad

A good rule of thumb is multiply the price per oil/barrel times three to get what the price of gas will be per gallon. So, with oil being at around 110 this week, gas should go to around 3.30. Just a rule of thumb though. Still sucks though

Stryker · 09-03-2008, 01:39 PM

One thing you are forgetting is that that price per barrel includes all those other costs.... It costs the oil companies somewhere around $14/barrel to drill/refine... All the other costs is PART of that other $100 or so... Still there is no way the other costs could add up to that much.... Some of the major oil companies testified in front of congress a few months ago, and one of them said that they could make a sizable profit on $60/barrel.... I'm all for capitalism, but sometimes these people take it too far...

Duke990 · 09-03-2008, 02:01 PM

Quote:

Originally Posted by HercDriver130

first of all you dont get 42 gallons of gas from a barrel of oil... you get 42 gallons of crude oil.... that is then refined into numerous products.......

AND .... many people profit from a barrel of oil before you ever see it at as gasoline at the pump....
a-- some one had to find it
b-- some one had to pump it out of the ground
c-- it had to be transported...probably several times.. maybe half way around the world
d-- then it has to be refined ( into many products not just gasoline )
e-- then it has to be transported again... probably several times
f-- then YOU might get to pump it into your car....
AND remember at every point above somebody or division of some company provides that service and makes a profit.......

Second gas is down about 65 cents a gallon in my area.....

I suspect it will linger around the 100 dollar mark for awhile.... we will just have to what and see...

I'm glad there are other people who see this. "Tax big oil!" people say. Who do they think will end up paying those taxes in the long run? I think it's funny that a certain political party finds it incorrigible that oil companies make about $0.04 profit per gallon but it's ok for the government to tax $0.17 per gallon.

Sherwood80 · 09-03-2008, 02:18 PM

The price of gasoline is based on the price of "Unleaded Gasoline" on the commodities, which is about 3/4 of the total cost of gasoline. About 60-80 cents added onto that is due to misc. taxes each state imposses. So watch the "Unleaded Gasoline" price. It usually drops at the same rate as oil drops.

cfii2007 · 09-03-2008, 03:16 PM

Quote:

Originally Posted by Pilotpip

Oil will settle at whatever level the market can sustain. Consumption has been reduced quite a bit in the last couple years. However what I think is sad is that people now see $3.39/gallon as a bargain.

If we continue to use less than we were and continue to seek alternatives to petroleum and look at recycling or fixing things that are broken rather than simply replacing them (as stated petroleum is used in almost everything we buy) the price will have to come down because there will be more competition.

I agree...people who forecasted $200 a barrel were idiots. OPEC basically let the price rise until demand peaked and then dropped. I think we are at peak pricing right now.

bradeku1008 · 09-03-2008, 07:18 PM

Quote:

Originally Posted by Duke990

I'm glad there are other people who see this. "Tax big oil!" people say. Who do they think will end up paying those taxes in the long run? I think it's funny that a certain political party finds it incorrigible that oil companies make about $0.04 profit per gallon but it's ok for the government to tax $0.17 per gallon.

Right on my friend

HercDriver130 · 09-03-2008, 07:23 PM

If you windfall tax oil companies ....they will simply raise their margins..... exxon made about 7 cents on the dollar..... if thats excessive....so be it.... Sure they made 40 billion... on well over 500 billion in sales.......

The price per barrel does NOT include all those costs... that is the market price...delivered at the market.... other cost are on top of that....

bradeku1008 · 09-05-2008, 09:23 AM

$105.66 at 12:20 and going down more

stoki · 09-05-2008, 09:31 AM

The decline in fuel price is great news. Hopefully it will continue. But I also hope that everyone will drop all these projects for alternate fuels etc. just because gas is cheaper again, as it will spike again if nothing is done about it.

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