Gas prices and profit (3 Viewers)

[megadeth]

Truth hurts like hell, doesn't it Bob? I never said or even implied that, at least most of us, haven't earned what we have. What I said was: AMERICANS ARE SPOILED!! I stand by that statement.

Why is it that so many of you feel that you're ENTITLED to cheap gas? If the price of gas dropped tommorrow to $3/gal., you'd be happy for a while....but, before long, you'd start Bi*ching again that it was too much and you'd be screaming for govt. action so you could get $2/gal. gas. SPOILED!!

In this thread, as in others about gas prices, the prevailing theme is that gas prices are too high and that the govt. should do something about it. NO WHERE, I repeat, NO WHERE have I seen anyone suggest that you change your habits. Hell no!! We're ENTITLED to hop in our cars and go where we want to go, when we want to, and BY GOD, it ought to be cheap!! Don't you dare suggest to me that I change my habits and not drive as much or buy a more fuel efficient car. How dare you suggest that I walk, ride a bike, ride a bus, or just stay home!! I'm an American, and I'm entitled to what I want, when I want it!! And, it's the Government's JOB to make sure I get it!!!

Some of you people crack me up.

What truth? It's your opinion and we all know what opinion's are don't we?
I know oil is a commodity just like any other and market dictates price.
Now that countries like China and India are becoming industrilized (because of a lot of our industrial jobs being imported) which requires more oil and in turn drives the price up!
We are know competing with other nations that were not players before.
Our education system in this country is for chit and yes that I do blame on our government.
If you want to think that our government is doing a stellar job then you go right ahead our world needs its sheep too!
You my friend crack me up.....

 

[Nitrohaulic]

If you're talking about getting screwed tax-wise, I agree. And, it's going to continue as long as we keep sending the same people back to congress every two years.

When I say "Spoiled" though, I'm talking about those people who don't give a second thought to spending $5 for a cup of 'mocha-java frappa whipped beverage' at some drive through; or $1.25 for a little 20 ounce bottle of 'spring water' ($8/gal for WATER!!), and yet complain about the price of gas. Just doesn't make sense to me, and it still cracks me up.

Those are the kinds of examples I use all the time. Credit card companies and lotteries aren't exactly going out of business. Like I heard a comedian say, a "latte" is a latte f***ing money for a cup of coffee! Like he also said, just go to Denny's where, for a couple of bucks, they'll keep pouring until the server asks if you want another cup and you, shaking and sweating will scream "Hell no! I gotta go home!"

On average, I believe the richest make their money off of the poorest because the poor don't walk around with calculators saying "Honey? We're getting screwed on these small items!" I'm about to be involved in an entertainment venture that's based on exactly that. Our ideal customer is the guy walking around with a $20 NASCAR shirt and a $15 WWF hat on. That's our guy! The money we intend to make off of him, it's not like it was going into his Roth IRA, anyways!

 

[Eddie]

Our education system in this country is for chit and yes that I do blame on our government.
If you want to think that our government is doing a stellar job then you go right ahead our world needs its sheep too!
You my friend crack me up.....

Gee, I'm sorry, I don't recall saying anything about education; I thought we were talking about gas prices. Also, I don't believe I ever said that I think our government is "doing a stellar job". In fact, what I DID say was that nothing will change as long as we keep sending the same people back to Congress every two years.

Keep up the bi*ching Bob. You're doing a great job of it!!

 

[Mike]

Eddie, you last sentence says it all. Vote for the samo old shyt and get the same old shyt. I will never re-elect anyone in office. If they are that good let them run for another office.

 

[megadeth]

Gee, I'm sorry, I don't recall saying anything about education; I thought we were talking about gas prices. Also, I don't believe I ever said that I think our government is "doing a stellar job". In fact, what I DID say was that nothing will change as long as we keep sending the same people back to Congress every two years.

Keep up the bi*ching Bob. You're doing a great job of it!!

I stopped voting a few years ago because there isn't a politician I care about or feel strong about!
So throw that crap out the window!
I brought up the education dilemma because it will be a serious problem for the future of this country.
By taking it up the shorts and not *****'n about it would lead me to one forgone conclusion!

 

[Nitrohaulic]

I think Bob's point about education couldn't BE more on topic! Kids are NOT being raised with the belief that this country and it's economic system is as great as it is/has been in the past.

One thing I noticed when I was in school and always wondered about was why all the older teachers taught the lower grades while they kept getting younger as the grade level got higher. I highly suspect that isn't an accident at all, as the older ones were more conservative and the ones that have the last impression on your are more liberal. I think more people come to this country with a capitalist mindset as opposed to the ones who are born right here. I can't speak for all public schools but, entrepreneurialism wasn't exactly what we were groomed for.

Any business that makes a profit is doing what they're is SUPPOSED to do. They care as much about you as you would about them if they were going out of business. I bet all the people with oil company stocks in their retirement mutual funds are glad they're making a profit.

 

[Don]

So you own a company that sells bitacks and you sell them for $11.00. You cost on these bitacks is $10.00. You mark up your cost by 10% to get you selling price of $11.00. Somewhere along the line, various things that make up your bitacks increase in price and it now cost you $20.00 for each bitacks. So you keep your same markup of 10% and you sell them for $22.00.

Using some of the arguments here, then you should not sell you bitacks for $22.00. Even though you are MAKING THE SAME PROFIT MARGIN as before, everyone thinks you are mean, evil, wicked and rotten.

Keep in mind, regardless of what the retailers say…some are making pretty decent money, because the retail operations are market driven. They will sell anything at what the market will bear. It is called Capitalism people. Usually, gas sells for a higher price in urban areas as opposed to the suburbs

Here in my area there is a company that owns a C-store chain that sells gas. They have four different major brands under their mix. They have their own tanks and deliver to their own stores with their own trucks. Their tank farm is 23 miles from one of their stations at an Interstate exit in my town. This exit is 37 miles South of Louisville. Now, 23 miles North of my town is another exit (14 miles South of Louisville) where this company has a location…both same brand. This station is 22 miles from their tank farm. This morning gas was $3.74 in my town, while 23 miles up the road, closer to Louisville, the same gas was $3.99….NOW HOW CAN YOU BLAME THE OIL COMPANY FOR THAT….that is the local retailer selling a product at a price the market will bear.

Another thing to keep in mind…on average the oil companies make around 7.5% margin. Let’s use the prices above. First…keep in mind that the oil company pays for the crude, pays for their own drilling., pays to refine the crude, pays the employees, pays to ship the gas and other refine product s around the country, etc.….a lot of work and investment to get back all these "record" profits. Let’s assume the oil company sold the gas to the above retailer for $3.65. At 7.5% margin, the Exxons and BP"s will make 27.3 cents on each gallon. The Federal government will get around 18.75 cents for each gallon. And they DID NOT LIFT A FINGER, DID NOT BREAK A SWEAT to get that 18.75 cents on EACH gallon….same for state government.

Now,,,,go back to when gas was in the low $2.00 range. Let’s say the oil companies were selling gas to the retailers for $2.00 per gallon. At the average 7.5% margin, the mean, evil oil companies were making 15 cents on each gallon….WHILE,,,,the federal government was making 18.75 cents per gallon………..and you want the government to go after the evil oil companies and make them earn less profit….while they still pocket their same money, REGARDLESS of the price, and not have to do a damn thing to pocket it either…..

How can anyone still think the oil companies are evil and are making such obscene profits

 

[megadeth]

So you own a company that sells bitacks and you sell them for $11.00. You cost on these bitacks is $10.00. You mark up your cost by 15% to get you selling price of $11.00. Somewhere along the line, various things that make up your bitacks increase in price and it now cost you $20.00 for each bitacks. So you keep your same markup of 10% and you sell them for $22.00.

Using some of the arguments here, then you should not sell you bitacks for $22.00. Even though you are MAKING THE SAME PROFIT MARGIN as before, everyone thinks you are mean, evil, wicked and rotten.

Keep in mind, regardless of what the retailers say…some are making pretty decent money, because the retail operations are market driven. They will sell anything at what the market will bear. It is called Capitalism people. Usually, gas sells for a higher price in urban areas as opposed to the suburbs

Here in my area there is a company that owns a C-store chain that sells gas. They have four different major brands under their mix. They have their own tanks and deliver to their own stores with their own trucks. Their tank farm is 23 miles from one of their stations at an Interstate exit in my town. This exit is 37 miles South of Louisville. Now, 23 miles North of my town is another exit (14 miles South of Louisville) where this company has a location…both same brand. This station is 22 miles from their tank farm. This morning gas was $3.74 in my town, while 23 miles up the road, closer to Louisville, the same gas was $3.99….NOW HOW CAN YOU BLAME THE OIL COMPANY FOR THAT….that is the local retailer selling a product at a price the market will bear.

Another thing to keep in mind…on average the oil companies make around 7.5% margin. Let’s use the prices above. First…keep in mind that the oil company pays for the crude, pays for their own drilling., pays to refine the crude, pays the employees, pays to ship the gas and other refine product s around the country, etc.….a lot of work and investment to get back all these "record" profits. Let’s assume the oil company sold the gas to the above retailer for $3.65. At 7.5% margin, the Exxons and BP"s will make 27.3 cents on each gallon. The Federal government will get around 18.75 cents for each gallon. And they DID NOT LIFT A FINGER, DID NOT BREAK A SWEAT to get that 18.75 cents on EACH gallon….same for state government.

Now,,,,go back to when gas was in the low $2.00 range. Let’s say the oil companies were selling gas to the retailers for $2.00 per gallon. At the average 7.5% margin, the mean, evil oil companies were making 15 cents on each gallon….WHILE,,,,the federal government was making 18.75 cents per gallon………..and you want the government to go after the evil oil companies and make them earn less profit….while they still pocket their same money, REGARDLESS of the price, and not have to do a damn thing to pocket it either…..

How can anyone still think the oil companies are evil and are making such obscene profits

Good post Don but don't forget these oil companies get huge tax breaks from our lovely government!

 

[TJ]

There has to be change...@ the last proxy meeting w/ CHEVRON USA, am a shareholder, they felt oil would top $300.00-400.00 a barrel around 2010-2012and the alternative fuels would start to be produced, which CHEVRON USA is very involved, along w/ the auto makers commiting to the next wave of vehicles...
My suggestion: Buy oil stocks...the dividends have always been positive-