Brav989

Well in net revenue ExxonMobil made $36.130 billion dollars in NET revenue. $370.680 billion total. Which is an all-time record for any publicly traded company in history.

ryane946

Yup. We have to remember that oil companies are HUGE vertically integrated companies. I know $36 billion is a lot of money, but that is less than a 10% profit (and that is smaller than many companies). A solution to high oil prices is reinvesting these large oil company profits into new technology to make drilling for oil more reliable, more of a science, and therefore MUCH cheaper and easier. Some sort of government incentive might help this out. I mean an extremely high tax on profits over a billion dollars that is not reinvested into new means of exploration and scientific drilling. This needs to happpen, otherwise high oil prices are here to stay.


Continue down, oh, say 2 lines, to my comments on solar electricity. If you knew the kind of quantum leaps that solar energy is making, with the help of nanotechnology, you would know that coal will not be used forever. Also, I know in California, something like 30 or 35% (or maybe higher) is from renewable sources (hydro, wind, solar), and that number is state mandated to increase EVERY year.


I know this was a long post, but the first 3 paragraphs are an excerpt from a previous post of Southwest's fuel hedges, and the last paragraphs are an excerpt from a presentation I gave on the future on energy.
I feel the day that all cars become electric (and this WILL happen), you will see an abundance in oil that can last hundreds and hundreds of years. When oil prices, (and therefore jet fuel prices) are not attached to automobiles, the price will come down significantly. Furthermore, price spikes will be very moderate, and this will be a great day for aviation.

Give it 20 years. All electric cars. Solar power generating the majority of electricity. Nuclear reactor in space. And a major drop in demand for oil, which will lead to a major drop in the price of oil, and a major drop in the price of jet fuel.

CargoBob

The graph on the previous page proves me right...fuel prices will fall again and will rise again...do you know anything about history or econmics...I am 100% right...but I am not proud of that...it is economic common sense the price will fall again. How much I don't know--nor do you. Another common sense fact: the price will rise again!!!!!!!!!!!!!

You are probably the same weather idiot that put out the forecast for IAH last week to be VMC and then we had to almost divert because of T-storms.

ryane946

Yup, the typical what goes up must come down argument. Hey, does that apply to housing prices? Not at all! Why? There is a limited amount of land, and a high demand for housing. Housing prices WILL NOT return to the level they were 10-20 years ago.

I believe the same is true with oil. I will make a prediction. Oil will not receed below $60 a barrel for more than one month's time period. It is likely to stay in this range, and perhaps increase in the next few years. High oil prices are here to stay. The only solutions are:
1. Reinvesting huge oil company profits into more technology to make drilling easier and more affordable. Also more exploration.
2. Reduce demand for oil.
3. Switch to alternative fuels.

Demand for oil will not drop with gas at $4, $5, and probably $6 a gallon. I think there is some break-point on gas prices that will cause a significant decrease in demand. But I think that amount if at about $6 or $7 a gallon. Demand will continue to increase across the globe.

I made my case that cars will be all electrically powered in about 20 years. Until then, we need to deal with oil prices as best we can. Reduce demand where we can. Make vehicles and aircraft more efficient.
P.S. I really hope I am wrong, and oil could return to $30 a barrel. I hope for it every day. But I just can't see it happening.

Slice

Because we can! If you're on the computer there must me a lonely tree needing a hug somewhere!

CargoBob

ryan:

As I previously posted, I don't believe gas is going to $1.50/gal. But we could see below $60 a barrel again--probably temporary.

Corrected for inflation, fuel prices are at the same level as was seen in certain months of the 1980s w/ Carter...I don't have the stats but I read it in the trusty NYT (ha)...not the same class of product but fuel prices are better than bottled water prices.

Question? is SWA hedging the next 20 years of fuel at todays prices??? I don't know the answer; but I assume if you ran an airline ryan, you would be spending your cash locking in todays rate????

joel payne

Time to switch gears. Let's see what kind of reaction this gets. Competition helps American consumers, union reps
Phil Farnum
Date published: 6/13/2006

In his letter, Jordan Biscardo wants to know what happened to our social contract in Amer- ica ["Are unions the problem, or today's work-force trends?" June 6].

First, writing about unionized job losses when our economy is strong and unemployment is low is silly.

Restrictive work rules and demands not related to productivity, skill, or value drive jobs away.

Second, rewarding people who work is still a common practice in our country.

Wages should be linked to performance and value. Delta Air Lines' employees making concessions to their employer are doing so to keep their jobs.

Without concessions, Delta may not be able to compete in a market with increasing operating costs. Consumers choosing their travel options are really driving these concessions.

Third, union members and folks seeking living wage concessions are asking consumers to purchase higher-cost goods in order to reward those not as highly valued by the market.

One of the reasons Wal-Mart and other discount retailers thrive is because they provide goods at an attractive price to consumers.

Those competitive marketplace goods are usually not union-made or even American-made.

Mr. Biscardo might ask if we should harm the public through higher prices with no increase in value.

The people harmed by competition should re-evaluate their skills and education and move toward more productive occupations.

Increased prices without corresponding increases in consumer value are inflationary and a hidden tax on consumers that reward those who do not want to compete fairly in an open marketplace.

Phil Farnum
~~~
Rebuttal to the above article
I'm deeply disappointed that you would include an anti union screed in you newsletter, especially when the untruth of it is right in front of your eyes.

Before deregulation all of the pundits favoring it predicted that Delta would be the most successful of all airlines because it had only one union, the pilots, and full flexibility to redirect its workforce.

Today Delta is among the worst off of airlines while the most heavily unionized carrier of them all, Southwest, is not only profitable but consistently has the most popularity among travellers.

And while you are out asking the Delta employees who voted 82% against unionization to pony up sixty bucks apiece to "protect" their pension rights, the Western mechanics who were Teamsters have full pensions that Delta cannot touch and health benefits guaranteed by their union. You may remember that Delta tried for about ten years to get their hands on the Teamster pension funds and failed. If they had succeeded, don't you think the Teamsters would now be standing in line like the other Delta employees with their hands out?
So, where are the halcyon days of those who have to hire a lawyer to "protect" their rights.

If the lawyers you've hired tell the truth you'd know by now that the only rights an employee has with respect to wages, hours, or benefits derive from a union contract .Without a union contract you are "at will" employees subject to whatever conditions the employer wishes to apply. The employees of Delta whose jobs are now subcontracted, or who have been let go know that for sure.

Northwest Orient Airlines was once the most consistently profitable airlines in the industry, and the most unionized, until corporate raiders loaded it with debt in a takeover. The raiders all left with their ill gotten gains while the still highly unionized NWA employees now battle one another to see who can give up the most to keep their jobs.

The most that can be said with respect to airlines and unions is that wages and conditions arising in union contracts have little to do with success or failure in the airline business. Just ask the totally non-union folks at money losing Jet Blue.
What does matter though is that union represented employees can control their own destinies through negotiations, for good or ill, while those exercising their "freedom" to be non union can only be sure they will do what management tells them do.
Maybe our children will see that all of the union managed pensions and health benefits plans are still surviving nicely, with one exception, while you folks pay for the privilege to approach your employer hat in hand to beg for mercy.

Brav989

Well, there is something called global warming and something else called conservation. Both of which driving a huge pos vehicle like that, that should be illegal on the US roads in the first place, don't help one bit

LuvJockey

Hey Ryan - where did you give your energy presentation?

Slice

Whatever dude.