Diesel nears the $5.00 dollar mark and most likely a way of life

[raceu4it]

what i've been told is that oil should be around the $70-$75 barrel mark, blame on it on wall street as the energy stocks account for the majority of profit, and oil is basically the new gold. it's just a commodity that they found a way of manipulating.

 

[whittaker727]

I think you forgot a zero...should be $87,000,000. All in a days work uh!

Thanks man, but what's 78,300,000 among friends

 

[whittaker727]

That 8,775,000 is gross revenue, not net profit. Take out every operating expense, tax, whatever from that number and that's how much money you actually made.

Now, out of your net profit, reduce that number even further with costs for expanding, researching and developing new technology to keep your business going, etc.

It's not as simple as it seems.

As pointed out to me, it's 87,750,000 per day. As you also bring up, that is gross. The O&M of this field takes 60 days to pay for it self before everything else is pure net profit!
60 days X 87,750,000= holy sh!t
305 days (the rest of the year) X the ever rising price (not cost) of oil and you get a number that locks up my calculator. What technology has that much money paid for that you would consider "worth the cost"
And that IS as simple as it seems. If you don't think we're being given the dirty sanchez, I want to live in your world and maybe I wouldn't be so Pizzed.

 

[Dogmeat]

As pointed out to me, it's 87,750,000 per day. As you also bring up, that is gross. The O&M of this field takes 60 days to pay for it self before everything else is pure net profit!
60 days X 87,750,000= holy sh!t
305 days (the rest of the year) X the ever rising price (not cost) of oil and you get a number that locks up my calculator. What technology has that much money paid for that you would consider "worth the cost"
And that IS as simple as it seems. If you don't think we're being given the dirty sanchez, I want to live in your world and maybe I wouldn't be so Pizzed.

Explain to me how we get oil out of the ground.

 

[slyrydr]

the landscaper that just finished my yard, just bought a cng dual fuel for his new 6 liter chev truck....cost him 8 grand for everything...cng sells here for .63 a gallon....the cng conversion for diesel trucks is presently 13,500, it runs 70% cng and 30% diesel....i converted my 78 chev to propane back in the late 70's, and was saveing about 50% on fuel costs (not to mention no gas lines), but then lots of people started using propane and the cost went up to where it was only slightly less per mile than gasoline.....the dual fuel makes a lot of sense for my landscaper, who fills up his diesel truck every other day for 125 bucks a pop, now he runs on the cng, but it won't pull his heavy trailers....but for his running around getting not too heavy stuff, it makes a lot of sense......i've started slowing down when traveling, i used to go 75-80 most of the time and got 17-18 mpg in my 07 5.9 cummins....now most of the time i travel at 60 mph and am getting 21-22 mpg....price of everything is going up to reflect fuel prices, it's going to have definite impact on peoples' lives

 

[whittaker727]

Well the way we do it is to use the natural gas that sits on top of the sub surface oil field. The oil wells get tapped and the gas comes up first, we then compress the natural gas and force it down hole under the oil pool and it pushes the crude up through the well. The natural gas is then stored in the ground until we need that well again for more "lift gas" or we get a pipeline installed to get the gas from here to market. Like I said, yes there are cost invoved for operations and maintenace, but those costs are recovered in the first sixty days of the fiscal year. Oil closed even higher today at $120. per barrel. That's 2.25 million more than yestrday, and it didn't cost anymore to get it today than it did yesterday. It didn't cost anymore yesterday than it cost five years ago when gasoline was $1.95 per gallon.

 

[mattymac]

Uhhhhhhhhhhhhhhhhhhhh....yeah, uh ok.

Please explain to me how they got "Tax Free" bonus' ... Usually bonus money is taxed at about %40 across the board.

Do you mean "tax deferred" bonus? In other words, it was bonus money they rolled over into tax-deffered retirement plans?

Your logic explainign that "oil costs $150 a barrel" to pull out of the ground is umm.....

Well .... that would effectivley mean every bit of profit an oil producer makes is due to being able to write it off at a loss .....? I don't really follow your logic here.

Also, if you look at what ExxonMobil's profit margin was for FY2007, it was about 9.2% ...

That isn't exactly what I'd call "raping everyone".

this happend to a very good friend of mine in the 70's, he retired from exxon, there was alot going on behind the scenes that well never know or see.

when I say tax free, I mean CASH, untaxed, unclaimed cold hard CASH BONUS!

when I stated that oil costs 150.00 thats what the federal govt said a barrel of oil "should" cost to produce, 150.00 was just an example but whatever the figure was it was WAY higher than what it actually cost for an oil co to pull outta the ground.

with the gas crunch in the 70's the feds TRIED to step in, backpedeling saying that theres a "cap" on oil prices and "this" is how much its gunna be now, exxon raised the price of oil the next day by around 30%, the govt threatend to sue, exxon said that you cant afford to sue us, they then threatend to tripple the price of oil to the US, the govt backed off. This happend so fast the general public didnt even notice or know what was going on.

9.2% profit isnt that big of a profit margin, but why are they setting record high figures? demand?? How about that 9.2% only being reported, how much is going on that we dont know about???

 

[Dogmeat]

this happend to a very good friend of mine in the 70's, he retired from exxon, there was alot going on behind the scenes that well never know or see.

when I say tax free, I mean CASH, untaxed, unclaimed cold hard CASH BONUS!

when I stated that oil costs 150.00 thats what the federal govt said a barrel of oil "should" cost to produce, 150.00 was just an example but whatever the figure was it was WAY higher than what it actually cost for an oil co to pull outta the ground.

with the gas crunch in the 70's the feds TRIED to step in, backpedeling saying that theres a "cap" on oil prices and "this" is how much its gunna be now, exxon raised the price of oil the next day by around 30%, the govt threatend to sue, exxon said that you cant afford to sue us, they then threatend to tripple the price of oil to the US, the govt backed off. This happend so fast the general public didnt even notice or know what was going on.

9.2% profit isnt that big of a profit margin, but why are they setting record high figures? demand?? How about that 9.2% only being reported, how much is going on that we dont know about???

So in other words, back in the 70's he probably got roughly the equivelent of what GM just did to all their union workers ....?

The 9.2% was a number that was based of FY2007 reported gross revenues vs. reported net profit.

The last thing in the WORLD that needs to happen is having the f*cking federal government step in and screw things up even further than they already have ....

 

[bigfoot]

The last thing in the WORLD that needs to happen is having the f*cking federal government step in and screw things up even further than they already have ....

Amen to that.

 

[mattymac]

The last thing in the WORLD that needs to happen is having the f*cking federal government step in and screw things up even further than they already have ....

what makes you think they would do that to the american working class human beings???

 

[bigfoot]

what makes you think they would do that to the american working class human beings???

Cause they already have!!!

 

[Dogmeat]

Well the way we do it is to use the natural gas that sits on top of the sub surface oil field. The oil wells get tapped and the gas comes up first, we then compress the natural gas and force it down hole under the oil pool and it pushes the crude up through the well. The natural gas is then stored in the ground until we need that well again for more "lift gas" or we get a pipeline installed to get the gas from here to market. Like I said, yes there are cost invoved for operations and maintenace, but those costs are recovered in the first sixty days of the fiscal year. Oil closed even higher today at $120. per barrel. That's 2.25 million more than yestrday, and it didn't cost anymore to get it today than it did yesterday. It didn't cost anymore yesterday than it cost five years ago when gasoline was $1.95 per gallon.

That's pretty good I'd say if you've recouped your costs for completing a well in 60 days ... but, It has to cost more to produce today than it did 5 years ago, if for no other reason than the fact that you effectivley burn your own product to get the stuff out of the ground ... I'm assuming you all burn quite a bit of diesel up there considering you probably never shut the equipment off, right?

I can see your point about how saying it didn't cost any more today than it cost yesterday, but over the course of a 5 year span I think you could show that it definatley is more costly ...

That's interesting you guys are basically doing "natural gas floods" up there. I really don't have any experience with that type of thing as %99 of the work I do is soley natural gas production, but suffice to say, I look at everything that's entailed in completing a single natural gas well here in the rockies and it doesn't surprise me how and why it's so expensive, and oil is getting harder and harder to get out of the ground ...

I dunno, honestly, I guess what I really need to do is start researching economics more than I do completion methods ... heh

 

[Dogmeat]

what makes you think they would do that to the american working class human beings???

I guess the way I look at it is, everyone that lives in the rural areas of the Rocky Mountains deserves the opportunity to work hard and get paid well for it.....I absolutley loathe the fact that tens of thousands of oilfield workers in this part of the country fall victim to the political football game that is the rocky mountain oilfield.

Apparenty, all anyone out here deserves to do in life according to some people in washington is flip burgers for tourists ....

I guess the way I see it is, for those of us who work int he patch around here, if we gotta pay a higher price for gas and diesel ... it's worth it to us to keep our good paying jobs because we have a better quality of life from it.

That's really why I get so pissed off when people start *****ing about the "evil oil comapanies" ... I think they do a hell of a lot more good than bad.

 

[plumnuts]

did not spring check a sled because of the elevated $$ for fuel

 

[SnowAddiction2]

I have to disagree. I will be telecommuting (working from home) and biking to work a lot more this year for two reasons (well actually 3). 1) high fuel prices 2) need to get in better shape 3) Would like to see if I can't reduce my environmental footpring a little. I enjoy my "motorized" recreation in the summer and winter and to help offset the fuel costs I have doing two of the activities I love, I will be riding my bike to work and sacrificing a few other things.

I'm with NOSECONDCHANCES 3 reasons to bike to work. I also have been riding a Bicycle to work to reduce my foot print and get in shape. Getting in shape is the bigger benefit than saving money. My future toys will definitely NOT involve fossil fuels. But, will continue the snowmobiling passion until my sled wears out. Since it's a yamaha, I will be in the hobby for a while.

Fuel prices are just a wake up call for all of us to realize how dependent we really are. I personally feel, the less we use, the better off we will be, financially and ecologically. High prices will also drive American/World injenuity to develop new power technologies. The younger generation are learning from existing technologies and will leap frog us into the next power source.

My current foot print is HUGE right now, but am working on reducing it.

OK--flame away!

 

[xrated]

Oil closed even higher today at $120. per barrel. That's 2.25 million more than yestrday, and it didn't cost anymore to get it today than it did yesterday. It didn't cost anymore yesterday than it cost five years ago when gasoline was $1.95 per gallon.[/QUOTE]

Well stated Whit.

 

[onlyrotax]

I don't think the current price of gas is changing people's behaviors at all. The roads are still crowded. There are still plenty of snowmobiles on the hill. The fact that gas prices are rising and people believe they wont go back down might keep some newcomers from taking up snowmobiling in some parts of the country, but not here.

I think in mountain areas will continue to see an increase in the number of snowmobilers. A lot of the new snowmobilers in the mountains are skiers and snowboarders that are looking for faster backcountry access. I bet half of these people eventually quit skiing to focus on sledding. I havent quit snowboarding yet, but the time may come.....

That being said, I think all bets are off if it reaches $9-10 a gallon. Hopefully by then we will all have 300 hp solar powered sleds. Too bad Bush was elected (was he even elected the first time?), we would probably be a lot closer to a reasonable alternative to oil. Gore would have pushed for it.

If you think gas is high now just wait until Hillary takes over and pulls the troops out of Iraq. The terrorists or Iran (they are all the same), will take over Iraq and then they will also take over Saudi Arabia and gas will be $50 a gallon instead of $4 !! Like it or not the war in Iraq IS ABOUT OIL and oil runs everything on this planet, if the previous scenario happens this country will COLLAPSE INTO ANARCHY and civil war with people killing each other for food and firewood !! I guess I will check the ammo in the guncase and find my axe!!!!

 

[Roadtrip]

Every dollar you spend at Walmart on Chinese junk is a dollar that they have to compete with us for raw materials. As their demand increases our prices rise, no big mystery there. Buy American and you rob them of their ammunition and power. In short the blame lies with us. Personally, I quit buying bottled water and $5 capichinos. My 440 powered 78 Dodge truck, no payment, will get fed. As will the motor home and sleds. Happy Earth day.

 

[avi8ter]

Hated To Do It$$$

Parked my 06 cummins.150 last week to fill it. bought my new 08 chevy aveo5, $2500 less than my xp.3/36 ,5/100 warrenty roadside assistance.heater works,guages work/driveline intact.same size fuel tank asmy sled.my spring check went to chevy. best 8299 ever spent. pizzed me off though, could'nt wait to go to the gas station, but the damn dealer filled it. diesel 4.60 av-gas4.90; see ya later gone flying!!!!! AVIATER......

 

[Blk88GT]

8300 buys a lot of fuel.