Want Cheaper Petrol? Then stop using it!

[roland]

It's really a good supply and demand story. Has petrol really gone up over time more than say a litre of milk or a litre of bourbon? It's probably not that much more expensive than say a litre of Coca Cola.

The huge revenues the oil companies produce and workers salaries of $150,000 plus for "red necks" screwing together pipe strings have to be supported somehow

As investors we should all be looking to cash in on this somehow and follow the dollars - bring it on, let's go for $200 a barrel, as the oil price goes up our oilers are grinning from ear to ear - it's not costing them anymore to pump it up out of the ground as the price rises.

Grab some of your favourite oiler with a good flow of hydrocarbons and go for the ride - this is great stuff!!!!

 

[ronski456]

I read in last weekend's The Age that higher oil prices means that it costs oil producers more to get the stuff out of the ground and hence lower margins.

True or false?

 

[GreatPig]

it's not costing them anymore to pump it up out of the ground as the price rises

Surely even oil companies have to use the stuff as part of their business, and thus have it as an input cost.

GP

 

[roland]

Surely even oil companies have to use the stuff as part of their business, and thus have it as an input cost.

GP

It would depend on their setup. Many rigs use the gas byproducts for power etc. Transportation costs would have to be an issue, but I guess would be buffered with stockpiles of unshipped product which would be increasing in value as we speak - still sounds like a win win to me....

 

[Dukey]

I read in last weekend's The Age that higher oil prices means that it costs oil producers more to get the stuff out of the ground and hence lower margins.

True or false?

maybe true for some but CVN for example - their last presentation they say extraction & transportation costs just over $4 per barrell!!!!! plenty of margin for them AND the taxman - but that is in thailand.... no redneck rig monkeys getting $150k there !!!

have also heard of w Qld companies running their cruisers on crude.! dunno how true that is......

 

[2020hindsight]

of course there are "overheads"

http://www.abc.net.au/news/stories/2004/01/29/1033792.htm
Fight continues for Exxon Valdez compensation
By Tracey Bowden in Alaska

Posted Tue Jun 10, 2008 8:34am AEST
Updated Tue Jun 10, 2008 9:21am AEST
With its sparkling waterways, spectacular bird life and snow-capped mountains, Alaska's Prince William Sound is a chilly paradise.

But the postcard image belies continuing sadness and a battle between a far-flung local fishing population and one of the world's corporate giants, the ExxonMobil company.

Nineteen years ago, on Good Friday, this is where the Exxon Valdez supertanker ran aground, spewing 40 million litres of crude oil into the waterways and onto the beaches.

And the locals are still fighting for compensation over the environmental and economic impact of what happened in 1989.... etc

 

[Julia]

As investors we should all be looking to cash in on this somehow and follow the dollars - bring it on, let's go for $200 a barrel, as the oil price goes up our oilers are grinning from ear to ear - it's not costing them anymore to pump it up out of the ground as the price rises.

Grab some of your favourite oiler with a good flow of hydrocarbons and go for the ride - this is great stuff!!!!

Roland, what about the thousands of people who don't have shares and are genuinely struggling with the rising cost of living? Just too bad for them?

 

[prawn_86]

Roland, what about the thousands of people who don't have shares and are genuinely struggling with the rising cost of living? Just too bad for them?

Yes, i say.

1. People should not over-extend themselves. Live within their means

2. If they want to generate more cashflow do it through upgrading their skills or moving into a different industry

3. Instead of complaining they should do something about it.

4. In a country such as Aus everyone has an opportunity, its just depends on how hard you want to work.

 

[Agentm]

It's really a good supply and demand story. Has petrol really gone up over time more than say a litre of milk or a litre of bourbon? It's probably not that much more expensive than say a litre of Coca Cola.

The huge revenues the oil companies produce and workers salaries of $150,000 plus for "red necks" screwing together pipe strings have to be supported somehow

As investors we should all be looking to cash in on this somehow and follow the dollars - bring it on, let's go for $200 a barrel, as the oil price goes up our oilers are grinning from ear to ear - it's not costing them anymore to pump it up out of the ground as the price rises.

Grab some of your favourite oiler with a good flow of hydrocarbons and go for the ride - this is great stuff!!!!

the cost of drilling has gone up like you cant believe, offshore its many many times over, and onshore the in ability to secure rigs and the costs to work them have increased also.

labor costs are increasing and transport costs for all the equipment and pipes and fluids..

the need to chase unconventional plays is also adding to costs and we explore new ways to unlock fields traditionally thought to be no go zones, and as we are drilling deeper and deeper..

want cheaper fuel,, get the hedge funds off the index!

want cheaper exploration costs.. not likely!!

 

[Trembling Hand]

want cheaper fuel,, get the hedge funds off the index!

Yeah that will make the black stuff flow faster.

 

[Agentm]

Yeah that will make the black stuff flow faster.

some light reading in a crude way


http://money.cnn.com/magazines/fortune/fortune_archive/2006/05/29/8378002/index.htm

http://www.bloomberg.com/apps/news?pid=20601087&sid=alYVlHUmKbF4&refer=home

 

[kenny]

I have this sobering suspicion that one day in the future, our descendants will wonder and think; "They actually burnt the stuff and not made a sustainable/recyclable use of it?"

Regards,

Kenny

 

[tigerboi]

Re:2 WAYS TO MAKE YOUR PETROL LAST LONGER...

1.Being a truck driver teaches you to read the traffic much further ahead,so when the lights are red & im 200m back because ive got 18 gears to use,it makes you just cruise on up,1st you go down 1/2 a gear then the closer you get you go down a full gear,all the while the car drivers are flying up to the lights..,brake(waste more of the pad)then off the line again is another squirt..just drive your car conservatively & see how many less red lights you catch,you might surprise yourself...

2.When you are going down hill throw it into neutral or got a good speed up on the flat,count it up & see how you go...20kms ticks up real quick...tb

 

[Temjin]

want cheaper fuel,, get the hedge funds off the index!

It's not exactly the long positions that these hedge funds are to be blamed as they haven't been adding much to their long positions over the past few months. Surprising though, the shorts are covering their positions at an increasing rate over the last few months too, thereby, jacking up the prices. So when you pick stuff from the mainstream news, don't believe them all.

Mind you though, I don't mean that these hedge fund index players are 100% innocent. Do you know that the amount of oil positions they have opened is only worth 2 days of total global production? That's hardly speculations in my opinion. There are plenty of fundamental reasons behind the recent rise in oil prices, including the continue devaluation of US dollars.

 

[Euler]

of course there are "overheads"


Quote:
http://www.abc.net.au/news/stories/2...29/1033792.htm
Fight continues for Exxon Valdez compensation
By Tracey Bowden in Alaska

..........

And the locals are still fighting for compensation over the environmental and economic impact of what happened in 1989.... etc
__________________

An ABC1 report on this issue showed a smug "suit" explaining how they had discharged their obligations in relation to the incident. I assume he hadn't paid a visit to the effected area to see the legacy left and impact still felt by the locals and the environment ... and 19 years later!

 

[son of baglimit]

the cost of drilling has gone up like you cant believe, offshore its many many times over, and onshore the in ability to secure rigs and the costs to work them have increased also.

labor costs are increasing and transport costs for all the equipment and pipes and fluids..

the need to chase unconventional plays is also adding to costs and we explore new ways to unlock fields traditionally thought to be no go zones, and as we are drilling deeper and deeper..

want cheaper fuel,, get the hedge funds off the index!

want cheaper exploration costs.. not likely!!

therefore dont invest in oilers - invest in those servicing the oilers.

 

[prawn_86]

therefore dont invest in oilers - invest in those servicing the oilers.

Their costs are rising too. Its all proportional

 

[Smurf1976]

Surely even oil companies have to use the stuff as part of their business, and thus have it as an input cost.

GP

This is why the "alternatives" that supposedly become viable at x% above the current price don't actually become viable at that price. Most of them use lots of energy so their costs go up along with the price.

When oil was $20 the alternatives were supposedly viable at $30 or at most $40. Bottom line is they're still not viable at $130 and won't be any time soon. That's the nature of energy and something I'd say at most 0.1% really understand - energy is EVERYWHERE in EVERYTHING.

No energy and all the gold, iron ore or whatever else you have in the ground is useless. No energy and all the IT in the world is also useless. No energy and even most of a hospital is likewise useless. That's why energy is such a problem...

 

[Smurf1976]

Roland, what about the thousands of people who don't have shares and are genuinely struggling with the rising cost of living? Just too bad for them?

Same with those born too late to avoid the incredible inflation of house prices. Same with those who can't for whatever reason grow some food at home.

The only difference with this one is that, unlike housing especially, there's nothing Australia can do as a country to avoid it.

 

[roland]

Roland, what about the thousands of people who don't have shares and are genuinely struggling with the rising cost of living? Just too bad for them?

Hi Julia,

Your comment has sort of bugged me all day since it wasn't directed at the misfortunes of anyone.

In actuality, I am amongst the strugglers. My wife and I run 2 x struggling retail businesses and have a combined income of around $20,000 p/a, out of this we pay our $250 per week rent on a 1 bed flat, and $500 a week for the business rent - so for the past 2 years we are running negative and eating into meagre savings.

90% of our cash is in shares, 30% which I stupidly lost with BBP over the last 2 days.

I watch the news reports about people not being able to pay their $500,000 plus mortgages because of a $20 a week rise in their repayments and wonder why I should feel sorry for them. I suppose they could drop off one of their 4 household mobile phones or stop racking up the credit card expenses that they are paying 20% plus on interest....

As Prawn said, it's a matter of living within your means. The comment was quite clear, if you can't afford something then you have to do something about it - no point whinging about it to Governments or whatever, you have to adjust and modify the way you live and try to profit the best way you can from this or any other situation or challenge.

Other than the events that have affected me with some major loses with BBP, I adjust as others must do. We downsized the office, laid off staff, moved closer to home (to save fuel) we share a mobile phone ($11 capped per month), have no credit card debt (or any other debt), we don't go out, against our outgoings have no income, but we survive.

Unless totally stupid, I don't believe that the so called "struggling families" cannot sort out their situations to put themselves in a better financial position.

So, sorry to say - no sympathy