How's W doing?

And here's a link to the page where I got that information. Lower on the linked page is a detailed breakdown from just a week ago.
http://www.energy.ca.gov/gasoline/margins/index.html

 

Tod, what's the biggest factor in establishing the cost of crude?

 

Here's another one. The title says it all:

 

Dammit young man, do you need a refresher in mathematics. If you have a margin of x% and the price of your product goes up 50%, if your margin remains the same, what happens to your profits?

 

I don't know. Demand has increased, but it's not like someone just flipped a switch and prices skyrocketed overnight. According to the page I linked to on my last post, in one year, oil prices have increased 49%. That is intentional, I think. So my answer is this: OPEC's discretion

Honestly, that guess is my best effort.

 

Just guessing as well, OPEC is a factor, but the futures market and their reaction any time the leader of Iran farts is as big a factor.

 

Todd, did you miss the mention of losing 33% of their Gulf production after the hurricanes in that article?

 

They go thru the roof. If the margin remains the same, x% of whatever the new and adjusted figure for the product after you have included manufacturing, ingredients, marketing, etc, it will still be x%. If the total post production costs go up, naturally so do your profits; x% remaining constant.

I think I understood the question. Is that what you meant?

 

No, I saw that. I didn't mention it because it was an 'isolated incident', meaning that breakdown of refining capabilitly coincided with a breakdown in our ability to physically receive oil at the two major ports in the Gulf: Mobile and New Orleans. We couldn't refine it and we couldn't get it. Gas prices dipped back to pre-Katrina figures until these last few weeks.

I saw that in one of your linked graphs too. So how do you interpret that data, Frank? I'm a motorcycle industry rep, I'm no Cliff Claven.

 

That's pretty much it. If the oil companies target a margin of 7% over costs, and costs increase 49% (per the article) then profits increase by 49%. If they have increased their profit margin, then I will join you in the state of righteous indignation.

 

I'm sure there's a combination of factors involved, and getting hard data seems to be a bit difficult. Maybe I just haven't researched enough. The demand side sure seems to be a reasonable explanation at this point, though, and Arab state leaders saying they have plenty of oil seems to bear that out. Maybe the Senate will get to the bottom of this one.

 

No offense, but what is your point? I mean, summarize what you're trying to say. Did you win some debate that I didn't know we were having? While you're at it, define 'righteous indignation.'

 

he's saying all the "all W's fault" thing is bullshit.


which, is in FACT what you've been trying to say all this time.

 

They can't!! They are all posing in front of gas station signs today. Both party sides... photo opp Friday. They need to get to the bottom of it though; I think they are realizing that their jobs depend on it now. Both sides.

 

You asked:"I think I understood the question. Is that what you meant?"

I confirmed that it is and clarified ny thoughts further. To that I added that if they have increased margin and not just maintained a margin, then I would join those that are pissed at the oil companies.

Righteous indignation is being justifiably pissed off.

 

No I haven't. Didn't you see my 'best guess' earlier? OPEC!

I will point my finger at W for the instability in the mideast brought on by our occupation of Iraq. That is what I think has driven OPEC's pricing discretion the most. The oil companies love what's going on. They are getting more rich than ever through no fault or effort of their own.

By the way, I owe you a SUCK ON MY ROOT from earlier.

 

sorry, i wouldn't do a miniature root. if i'm gonna be a gay bear, i'm gonna be a gay grizzly.

 

Frank:

The AG has authorized the investigation into price fixing, and has mentioned that OPEC member states aren't immune. This is going to get interesting, how do you indict a government, or it's oil minister for fixing prices? This is going to be very interesting.

Art

 

you can say that again.......

 

I'm not Frank (and we're both happy about that) butt, IIRC, the refineries are in the midst of a seasonal change-over that is further complicated by the need to more thoroughly clean the systems due to the changeover from MBTE to Ethanol. So, although they aren't running at theoretical capacity, they may be running at actual capacity.