Oil Prices Justified?

[Galong]

So let me get this straight -

1.) a hurricane is heading toward an oil manufacturing and drilling area in one small part of the world.

2.) The US of A went to war to get cheap oil.

3.) Oil companies are making huge profits.

Aren't we all being screwed by the oil companies?

Why can't they cut the salaries of the oil rig workers? They make way too much money already. Why can't the oil companies simply make less profit?

This is one screwed up (being polite here) world that we live in when corporate American can demand and get whatever they wish. I'll be happy when the last drop of oil is pulled from the earth... wait a minute <scratching head>, if that means Thais possibly driving nuclear Honda Dreams then forget it.

[BaanOz]

Aren't we all being screwed by the oil companies? 

<{POST_SNAPBACK}>

Galong,

No, not at all.

Since holding oil stocks over the past 6 months!

Edited August 29, 2005 by BaanOz

[The Coder]

First, keep in mind right now oil is cheaper compared to some of the past decades when you factor in inflation. But I think the policy of pricing oil based on the worst case future scenario that never materializes eventually backfire on them. I would be quite happy to see the price of oil double, triple, or more. Two reasons (1) people will stop wasting so much which will yield economic efficiencies that benefit everyone, and (2) at some point it will rise above the cost of cleaner alternative energy sources making it obsolete. Oil at $2000 a barrel? Sounds good to me because no one will be smogging up everywhere with tailpipes anymore and we can all wave goodbye to OPEC and the oil companies.

[Ian_B]

It's been way too cheap for far too many years

Never forget oil is a non-renawable resource

How much are you paying for a litre of coca cola? Is it more than a litre of diesel?

Coke is only sugar, vegetable extract and water, which has an endless supply, unlike oil.

Of course I'm biased as I've been working in the oil field for 16 years now

[tuky]

I agree, oil is still to cheap

A couple of reasons,

Never forget oil is a non-renawable resource

First, keep in mind right now oil is cheaper compared to some of the past decades when you factor in inflation

At the moment production is not meeting demand comfortably. This is usually a couple of years looking ahead. Most countries have a reserve, but it is like the gold reserve most countries also have, can you see them melting the reserve to make jewellery?

Why can't they cut the salaries of the oil rig workers? They make way too much money already.

What do you do for a living Galong? Anyone?

I am already underpaid for the lifestyle I have to live for that money. If wages drop any lower I will get a normal job as the sacrifices would not be worth it. Remember, someone has to do it, someone has to sacrifice home life to do it, if no one did, how would you cook your food? How would you get around? How would the plastics you use everyday be produced? If you are Canadian how would you heat your house during winter?.

Have you ever looked into the Piper Alfa disaster? Look it up and then ask yourself how much money a month you would want to put yourself in that situation, beause those of us that do it are in that potential situation everyday.

[meom]

Why can't they cut the salaries of the oil rig workers?  They make way too much money already.  Why can't the oil companies simply make less profit?

Way too much money? It's probably one of the few industries left where people actually work instead of sitting on their ass half the day talking bs.

Maybe you should try it one time; 12 hrs/day, 35days straight on a rig in the middle-east for example where it's bloody hot, dusty, no alcohol, no women and practically no margin for errors.

In the end it's a shitty job and I think people in this business deserve the money they're earning.

[TRIPxCORE]

Aren't we all being screwed by the oil companies? 

Why can't they cut the salaries of the oil rig workers?  They make way too much money already.  Why can't the oil companies simply make less profit?

Yes, you probably are being screwed by the oil companies along with everyone else. You think this is the first industry to try and take advantage of the consumer? Hardly!

Cutting the salaries of oil rig workers huh? They make too much money already? Who are you to say they make too much money? Every worker in every industry deserves to make whatever they can get. The oil companies can afford to pay these people whatever they are making so they do. They should not have to cut their salaries just to placate you. If you believe this is a valid reason to cut peoples pay, why not tell the Marriott Hotel to start charging 200 Baht a night for their rooms because you think they are overpriced? Tell Mercedes to start selling their cars at 400,000 Baht because you think they're overpriced. We could go on and on. There will always be things consumers think are overpriced. If you feel that way, find an alternative or stop using it altogether. Nobody is forcing you.

Oil riggers spend large amounts of time away from their families in harsh, inhospitable conditions. I say give em' a raise!

Edited August 29, 2005 by TRIPxCORE

[tuky]

Oil riggers spend large amounts of time away from their families in harsh, inhospitable conditions. I say give em' a raise!

A man after my own heart

The reason why oil and gas workers are paid a little bit more than the average joe is because if they didn't nobody would work for them.

Supply and demand, they want us, we get to tell them how much we want.

I know several projects offshore Nigeria that cannot find people (who wants to work in Nigeria?), what can they do? up the price to get the people.

Remember, someone has to do it, someone has to sacrifice home life to do it, if no one did, how would you cook your food? How would you get around? How would the plastics you use everyday be produced?

If your interested, plastic is actually a petroleum based product. How much plastic do you use everyday?

[Boon Mee]

Well, talking about whether or not oil prices now at over $70.00 a barrel are justified - with Hurricane Katrina blowing away a lot of the infrastructure in the Gulf of Mexico, they won't go down, that's for sure.

[tuky]

Well, talking about whether or not oil prices now at over $70.00 a barrel are justified - with Hurricane Katrina blowing away a lot of the infrastructure in the Gulf of Mexico, they won't go down, that's for sure.

<{POST_SNAPBACK}>

exactly, wipe out a major fruit producer, fruit prices are going to increase.

Do you have a link to an update on whats going on Boon? I read a quote earlier that this might be the worst storm ever on record.

[Simbo]

How about converting cars to run on Chang. It's potent enough.

[meelousee]

Oil price justified?

Darn right as long as the Saudis keep the choke settings low and the Opec production level at status quo; just to keep lining their pockets the answer is yes. Opec has the capacity to bring oil down to 45.00 without any real economic damage, but wont because of greed and keeping the stock holders happy.

The storms, the war in Iraq the India & China explosion of industrialization will keep it that way.

I said before in an earlier post on a similar topic, the top analysts said 71.00/ 71.5 by first quarter 2006, spot market not taking into account a protracted war or more storms.

Many refineries are looking at ways to streamline production expecting 85.00! Venezuela case point, I don’t have the links but you can look them up. Venezuela is upgrading 3 refineries at their cost, and not in Venezuela!

I don’t see oil being below 60.00 ever again, that is unless world peace were to break out and the Saudis say, Hey I have all the gold I want, here is Aladdin’s lamp thanks….

Solutions, alternative fuels and the Hydrogen fuel cell break through. but when?

[meelousee]

So let me get this straight -

1.) a hurricane is heading toward an oil manufacturing and drilling area in one small part of the world.

2.) The US of A went to war to get cheap oil. 

3.) Oil companies are making huge profits. 

Aren't we all being screwed by the oil companies? 

Why can't they cut the salaries of the oil rig workers?  They make way too much money already.  Why can't the oil companies simply make less profit?

This is one screwed up (being polite here) world that we live in when corporate American can demand and get whatever they wish.  I'll be happy when the last drop of oil is pulled from the earth... wait a minute <scratching head>, if that means Thais possibly driving nuclear Honda Dreams then forget it. 

<{POST_SNAPBACK}>

So you think that poking a piece of pipe at one of the most dangerous forces of nature is not worth a few bucks more than handing out burgers at McDonalds?

You should maybe work on one of these offshore drilling platforms see if the work and danger are worth only minimum wages.

If you want to Oil companies to make less profit, talk to the Saudis, don’t point your finger at America just because the Saudis have their offices in New York This may come as a shock to you but the biggest share holders are from Saudi Arabia, Japan, China and India

Yes there are some fat cats that are American, but they are the minority!

to put it as you say

(being polite here)

[aughie]

I don't know specificaly why PdVSA is upgrading 3 refineries but I did read venezuela's heavy crude does not meet US EPA standards and must be further refined before it can be imported to the US. 65% of their exported oil is shipped to the US.

[Boon Mee]

Well, talking about whether or not oil prices now at over $70.00 a barrel are justified - with Hurricane Katrina blowing away a lot of the infrastructure in the Gulf of Mexico, they won't go down, that's for sure.

exactly, wipe out a major fruit producer, fruit prices are going to increase.

Do you have a link to an update on whats going on Boon? I read a quote earlier that this might be the worst storm ever on record.

Use this one Leith.

New Orleans is still standing but it's real ugly on the ground and all along the Gulf Coast. Katrina will still be a Catagory 1 or 2 until tomorrow as it makes its way up the Ohio Valley...

[Galong]

Ah, the test was a success!

I was wondering if anyone ever read my mostly-tongue-in-cheek rantings. I feel so much power in me little fingers.

Thanks...