petrol prices

Clarkey said:
Simon, you seem to deny at every possibility the fact that oil companies make any money. I'd like to know how you can explain the biblical profits that the big oil companies make :confused:. I mean, $17 billion profit for first quarter combined for BP and Shell, this is large.
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Since when? I know they make money just it's not as clear cut as people state.

They don't make any money on fuel and it certainly costs a lot more than $4 to get the oil out of the ground. Then there is transport, refining, processing etc of the oil to get it to the finished product.

Remeber oil companies don't actually own the oil, they get it out of the ground for countries
 
Simon said:
Since when? I know they make money just it's not as clear cut as people state.

They don't make any money on fuel and it certainly costs a lot more than $4 to get the oil out of the ground. Then there is transport, refining, processing etc of the oil to get it to the finished product.

Remeber oil companies don't actually own the oil, they get it out of the ground for countries
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How are they compensated, do the countries pay them per barrel or something?
 
its getting ridiculous now :( i avarage 19-20 mpg on my travels to work and back, it was £1.12 for unleaded when i put some in yesterday at esso.

the cars going though so i can down size the engine size :cool: from a 2.9 corrado to a a4 2.6 quattro :D.












yes i know i wont save anything but its all about the extra doors :cool:
 
If you are choosing to buy an A4 2.6 Quattro today, with fuel prices what they are and every indication they will rise strongly over the next year you can hardly complain about fuel prices!
 
clv101 said:
If you are choosing to buy an A4 2.6 Quattro today, with fuel prices what they are and every indication they will rise strongly over the next year you can hardly complain about fuel prices!
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buy no, but swap yes :) i will probably cycle to work soon, so i wont be to much of a major issue, but the price is a complete joke tbh, the way its going many people will struggle to drive a car, and be left in places with little or no public transport .
 
$0.12/gallon in Venezuela?

The reason why? In Venezuela and Saudi Arabia, oil is produced by a government-owned company and local gasoline prices are kept low.

So if they can extract and refine the oil for so little, companies like BP/Shell are truely making a fortune, and there's no denying it. Although admittedly BP/Shell claim to reinvest a lot of their profits into finding new oil.
 
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norm said:
$0.12/gallon in Venezuela?

The reason why? In Venezuela and Saudi Arabia, oil is produced by a government-owned company and local gasoline prices are kept low.

So if they can extract and refine the oil for so little, companies like BP/Shell are truely making a fortune, and there's no denying it. Although admittedly BP/Shell claim to reinvest a lot of their profits into finding new oil.
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Venezuela is a nigh on communist country, they extract and sell the oil on the world market and then uses that profit to subsidise the fuel it sells to its citizens.
 
Clarkey said:
Simon, you seem to deny at every possibility the fact that oil companies make any money. I'd like to know how you can explain the biblical profits that the big oil companies make :confused:. I mean, $17 billion profit for first quarter combined for BP and Shell, this is large.
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Oil companies are paid around $25-$30 a barrel if i remember correctly. Over the years, it has cost them more to rent equipment to drill the oil from the ground so again their price went up again. But dont forget 86 million barrels are sold each day. It hardly hard to understand how they make so much money.

I hate it when people moan at the oil companies, they are a business selling something each country in the world wants.

Also the price of a barrel is set by the markets, hence the reason why its currently 130
 
teaboy5 said:
Also the price of a barrel is set by the markets, hence the reason why its currently 130
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Of course the price is of is set by the markets but it's also true that oil companies make extraordinary profits.

For example Shell made $27.6bn profit in 2007. Shell pumped around 3.3mbpd (oil equivalent) in 2007 so made a profit of $23 per barrel. 2007's average oil price was around $70, so that's a profit margin of 33%.
 
What i'm saying basically is that the price of oil has gone up ~$30/barrel in the last 6 months and I find it hard to believe its costing them 30% more to produce, hence they must be making even more profit.
I personally would rather stop eating bread and run Ethanol instead
 
realscot said:
What i'm saying basically is that the price of oil has gone up ~$30/barrel in the last 6 months and I find it hard to believe its costing them 30% more to produce, hence they must be making even more profit.
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Of course, it's not costing them any more to produce. No one says it is. :confused:

They are making more profit, but there's nothing they can do about it. The price is being bid up by the market, not set by the producers.
 
teaboy5 said:
But why should they not? They are as i have already said a business.
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Because they manipulate the market to increase oil costs. Help countries 'fiddle' reserves and bribe people in power about the opinions they give to the media and put in their reports.


Come on you know it goes on! :eek:

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clv101 said:
Of course the price is of is set by the markets but it's also true that oil companies make extraordinary profits.

For example Shell made $27.6bn profit in 2007. Shell pumped around 3.3mbpd (oil equivalent) in 2007 so made a profit of $23 per barrel. 2007's average oil price was around $70, so that's a profit margin of 33%.
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I would say 33% profit margins is far from being unreasonable for any business, its just the quantity which makes the numbers huge as already been said.
 
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