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Regardless. The fact remains that they do control every aspect of the production of roughly 1 billion barrels of oil a year.
****, Exxon controls 3% of the world's oil production from start to finish.
THEY'RE A MONOPOLY
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****, Exxon controls 3% of the world's oil production from start to finish.
THEY'RE A MONOPOLY
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio Regum -
Oh, and now that I know Kaakie's a filosofiser, I've got one for him.
POSTULATE: Kaak doesn't understand the effect that additional supply has on the equilibrium price in a free market
PROOF:
*yawn* Yes, i know all of this. So this new company that comes in...Are they going to sell it for less than market? Not if they don't have to. And sure they'll make a killing, JUST LIKE EXXON MOBIL and all the other gas companies.
QED
12-17-10 Mohamed Bouazizi NEVER FORGET
Stadtluft Macht Frei
Killing it is the new killing it
Ultima Ratio RegumComment
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I'm thinking that Exxon has every bit as much to do with the price as opec, since a) 90% of their oil comes from non-opec sources and b)Opec doesn't set the price, they set the production limits (which Saudi ignores.)
And I'm sure the countries benefit from the oil companies being there, but i'd bet a big portion of those contracts were set up a long time before the price of oil sky rocketed, which like i said, doesn't affect production costs.
42 cents, and I got the information from my father, who works for the oil companies. If there is a link, I don't know where it would be, but i can't imagine there would be one considering the problems it would cause. Besides, as i have said, it's easy to inflate they way these prices appear on the books when you are writing checks to your self for all of the services required to bring gas to market."Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic."Comment
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At least you now understand.Originally posted by Zkribbler
I'm glad to see that the oil companies' record profits are not part of a price-fixing conspiracy but rather because the cost of their supplies of crude oil went up.
Didja happen to look in XOM's (or whomever's) latest 10k, under COGS? Or did you realize it from reading this thread? If it's the latter, I'm glad to have been a part of your epiphany.
Page 48, Consolidated Statement of Income:
Costs and Other Deductions
Crude Oil and product purchases:
2003: $107 billion
2004: $139 billion
2005: $185 billion
Note that they spent 1/2 of all 2005 revenues purchasing oil.Last edited by JohnT; April 14, 2006, 19:11.Comment
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KH: have you not been following the news lately? a few weeks ago there was a story about gas going up while reserves were at a much higher than anticipated level. The futures market has as much to do with gas prices as supply."Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic."Comment
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Opec doesn't set the price, they set the production limits
Is this what happens when you don't have basic economics training?
What effect do you think production limits by the biggest producers have on the price?“I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
- John 13:34-35 (NRSV)Comment
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No, i understand the very basic principles of supply and demand. I'd also like to point out that the market is a bit more complicated than that. Do you really not know that?"Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic."Comment
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At least you now understand.
Didja happen to look in XOM's (or whomever's) latest 10k, under COGS? Or did you realize it from reading this thread? If it's the latter, I'm glad to have been a part of your epiphany.
I thought I was being sarcastic. Usually, when costs go up, profits go down.
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Please... enlighten us as to these complications that make OPEC not a price setter in the oil market.Originally posted by Kaak
No, i understand the very basic principles of supply and demand. I'd also like to point out that the market is a bit more complicated than that. Do you really not know that?
(this should be good)“I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
- John 13:34-35 (NRSV)Comment
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Uh, since when? Profits are a combination of many factors, of which "costs" are but a part. "Price" matters too, as well as "volume".
Edit: X-post with Imran.Comment
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KH:
No one said they were a world monopoly. As the scope of this discussion is the US, and since they are the largest oil company in the US, that is irrellavent."Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic."Comment
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Originally posted by Kaak
KH:
No one said they were a world monopoly. As the scope of this discussion is the US, and since they are the largest oil company in the US, that is irrellavent.
Petroleum is a WORLD MARKET.“I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
- John 13:34-35 (NRSV)Comment
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JohnT - read their yearly report. Reduction of operating costs have helped a little bit, but no where near enough to account for the 40% increase in profitability."Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic."Comment
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Imran: Find someone from Cuba and ask them how much the equivalent of a gallon of gas costs."Mal nommer les choses, c'est accroître le malheur du monde" - Camus (thanks Davout)
"I thought you must be dead ..." he said simply. "So did I for a while," said Ford, "and then I decided I was a lemon for a couple of weeks. A kept myself amused all that time jumping in and out of a gin and tonic."Comment
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I don't understand why he ignores that. Is the idea that we're supposed to play some thought-experiment:
"If the US were the world, and if Exxon were the largest oil company in the world, er, the US, er, whatever, and we boycotted Exxon, would the price of gas at Amoco go down?"
Well... no. Amoco would realize they have a more-captive market and raise their prices. Or not. Who the **** knows?Comment
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