Review suggests Big Oil manipulated gas prices [THEY WOULDN'T DO THAT]

The Associated Press ^ | Nov. 26, 2006 | JEFF DONN

[mountainlyons]

A small refinery would not make enough money to keep up with Californica's EPA requirements. Why doesn't a Californian buy the "bargain" refinery? A $1B EPA scrubber I would bet.

[Doodle]

Guess I better buy me some more of them Big Oil stocks!

[kerryusama04]

Oil and the border are going to be or downfall. Jihadis can be killed pretty quickly, but a culture and an energy infrasturcture take time to perfect.

[kerryusama04]

Oil prices are controlled by the free market. End of story.

Well, except for the subsidies and the environmental nazis stopping drilling through the government and the courts, then, yeah, it's a free market.

[SAJ]

Try this one. One of the 2-3 most knowledgeable energy economists in the world. The Russian Oil Ministry, to name one big player, has been his subscriber for years.

WTRG Economics

or this one:

The Energy Economist

[em2vn]

Will you give some specifics.

[LOC1]

A few interesting facts:

Shell's Bakersfield refinery was the fourth smallest and one of the least complex in the California. On a complexity adjusted basis, it was only 1/4 to 1/3 as large as the other two Shell refineries.

It costs comparatively little more to operate a large complex refinery than a small less complex refinery. Therefore the cost per incremental barrel of capacity in a large complex refinery is generally less than in a small refinery.

All refineries compete against the largest, most complex, most efficient refineries in the world, protected only by the relative cost to import crude oil vs refined products.

The largest new refinery in the world will come on-stream in 2008 in India. It is ten times as large, and many times as complex, as the Bakersfield refinery.

For the years 1995 through 2000, average refinery margins in the US were $2.34 per barrel. That compares to a margin of $3.50 per barrel required just to pay the interest on a 7% loan to build a new refinery. That minimum required margin does not provide for repayment of capital or any profit.

[bray]

AP analysis is an oxymoron. Pure bias for the masses.
They still manipulating the prices down??

Pray for W and Our Troops

[Dubya]

Pray for W and Our Troops

Yes I do they sure need it.

[dalereed]

To hell with the consumer advocates, the oil companies are entitled to and should charge whatever price they can.

BTW, I don't own any of their stock or any stock for that matter and never will.

[Dog Gone]

[Dog Gone]

See 31. ;-)

[bill1952]

Shhh. You are clearly quoting financials and showing an economic interpretation of those facts.

Please do not disturb the Kool aid drinkers here.

[Dog Gone]

"If you think prices 10 years from now are going to be $100 a barrel, you might not be that enthused about producing as much as you can now," said energy economist Allan Pulsipher at Louisiana State University.

They actually PAY this guy to be an economist??

Allan, I'll take $60 right now over $100 ten years in the future EVERY time. Anyone with a basic understanding of economics would.

[Smokin' Joe]

Wait, wait, something is screwy here. I just can't find "Big Oil" anywhere...Are they listed on a stock exchange?

The only time I ever heard of this company they were working in a joint venture with Eevil Oil, but that was on a Captain Planet Video (/sarc)...not long before I destroyed the video.

As for prices in 1999, Google that.

An awful lot of us in the industry sat a chunk of that one out because prices here were $4.50/bbl for sour crude, $6.50/bbl for sweet crude. Drilling stopped completely in this region for the first time since oil was discovered in the early '50s.

As for investing heavily in drilling right after that price crash, who in their right mind would? Most compaines were a little slow to commit the capital outlay to new ventures at the time, and quite a few projects went on hold.

Look out folks, the Dhimmicrats are ramping up to take over or rip off 'Big Oil". Those of us who smoke(d) know what happened to product prices when they went after 'Big Tobacco".

You think fuel is expensive now, just wait 'til the government gets done looting oil compainies or takes over.

[Smokin' Joe]

If the last 3 Congresses wouldn't drill, the next one sure the hell won't.

Congress only drills pages and aides.

If they had to drill an oil well it'd be a total train wreck. Believe me, they wouldn;t have been able to produce Spindletop.

[nwrep]

They sure aren't making any money pumping liberal bias.

You are under the naive and mistaken impression that their motive in pumping liberal bias is to make monetary profit. Let me break the news to you. It is not. Profit is the farthest from their minds. The main goal is to bring about societal change.

[dr_lew]

A 2001 study by the Federal Trade Commission reported that some companies were deliberately crimping supply during a Midwestern gasoline price spike. One executive told regulators that "he would rather sell less gasoline and earn a higher margin on each gallon sold."

So why aren't they heroes for trying to save the planet?

[bill1952]

I'll take $60 right now over $100 ten years in the future EVERY time

And you would be absolutely correct. - good point.

[ElkGroveDan]

Why would an oil company want to stay in liberal California?

Same reason a Wall Street stock trader would stay in liberal New York. That's where the oil is.