www.iFourWinns.com

Ok, while there is plenty of blame to go around on the oil problem I'm inclined to look at things slightly different.

As a business person I look at profitability not like the media (actual dollars) but in profit margins or percentages. Ofcourse oil companies reported record profits. We have record usage with the help of China, not to mention the record prices. The key is to look at their margins and percentages. For instance oil companies reported a profit margin of 9%, which combined with their gross income is a ton of money. But over the last 20 years this margin hasn't necessarily increased. So as a stock held company the oil companies are not helping but they are also not the ones responsible for our pump costs, they are just covering expenses and making a profit. (not a comment on whether or not they should be helping)

When you compare this to the profit margins of other energy sectors including wind, natural gas, and in this area even the water department it stays in line.

On the other hand look at casino's at 18%, Sallie Mae at 22%, and if you want a lot of fun the avereage hedge fund turned 50-75% margins.

The real evil out there is a nice healthy combination of The United Arab Emmerence, Oil Traders (speculators), and our own govt. on behalf of that enviormentalist wack jobs.

1. Ok could the middle east pump more oil and faster. Hell yes they could, but why? They are filthy ritch with absolutely no leverage at this time to change their ways. Our Govt. doesn't have the ability or gumpsion to threaten these guys because to threaten them we have to have a fall back plan which we don't.

2. I agree with Gelco, our country has unbelievable assets that could, with some distinct and pointed plans, power our own country for many, many years at half the cost.

3. Now to the dirt ball pieces of crap that truly causes the problem. The speculators. I recently read in depth on this sitution and can't tell you I exactly know how it works but I have a good idea. The people who are trading the oil, basically make bids to buy "x" amount of barrels at a certain price. They then sell their purchase to the oil companies for a small profit. The kicker is these folks don't have any money. If they bid on the oil they don't have to write a check or cover their purchases, they mearly spend imaginary money (I know sounds like Congress) and then cover it by selling it to oil companies immediately. Surprise Surprise do you think there is a benefit in arbitrarily increasing these numbers every day. If you bought a million barrels yesterday for $120 a barrel, is there any advantage in running up the price the next day to $125............YES of course. In theory these folks have a chance at losing....if the price crashes then they could lose their imaginary money...........but do you think these groups are ever going to actually let the price do that??

So IMHO the answer isn't the oil companies or your local gas station. They are just passing costs along to make their standard profit (not to mention providing jobs and economic growth keeping the country from really crashing) The answer is to actaully have something to hold over the market in general. The mere announcement that Anwar is being opened (although it would be years to actually see the oil) would crash prices and fast. The middle east doesn't want this to happen..........any idea where the envior wacko's get their money.

Call your Congress man/ woman and tell them to start the drilling. Right through the head of a caribou if necessary.

_________________
2008 Four Winns 224 Funship 5.0 GXI/DP Black w/ Tower
2007 GMC Crew Cab Short Bed / Bose Ed.
2007 Fourwinns H180 (SOLD)

"There are no stupid questions, only stupid people"

That's pretty much right on.

The oil companies doing business in this country have unimaginable quantities of oil sitting under land that in many cases they already own. It just sits there, due to the environuts and over regulation (largely resulting from environuts). The companies learned decades ago that the costs and trouble associated with getting oil out of the ground simply is not worth the tradeoff in costs and trouble dealing with all the groups allied against them.

I grew up learning about all of these dynamics from a close family member who - let's just say was an important player in the oil industry.

_________________


Mike
2005 Four Winns 230/240
VP 5.7GXi/DP
1998 F-150 XLT
Boat Pic

If you want a good plan Oil Tycoon T Boone Pickens from Oklahoma just released and spent millions of his own money. Wind, water, bio fuels, and oil.

Don't have a link just search and you will find.

_________________
2008 Four Winns 224 Funship 5.0 GXI/DP Black w/ Tower
2007 GMC Crew Cab Short Bed / Bose Ed.
2007 Fourwinns H180 (SOLD)

"There are no stupid questions, only stupid people"

tackleshep,

Thanks for the input. I've been schooled. I was wondering how the speculators were affecting prices. How do I get some of that imaginary money? I would even go so far as to assume that perhaps taxes generated at the pump are helping to pay for this mess of a war we are in? Things are only getting worste....a gallon of milk and a gallon of gas cost the same? WTF? I don't know about you guys, but my pay rate isn't keeping up with inflation.

_________________
Matt-

2007 Four Winns H190
Earth First, We'll Mine the Other Planets Later

I think ol' T. Boone has gone a little around the bend. His whole argument is based on an assumption that capacity has reached an innate upper limit that cannot be exceeded by any sustainable means. I couldn't disagree more - but in order to do so, some other assumptions are going to have to change. Like, for example, the one about Sierra Club getting whatever they want no matter how stupid or damaging it is.

_________________


Mike
2005 Four Winns 230/240
VP 5.7GXi/DP
1998 F-150 XLT
Boat Pic

I don't think I would put my money up for a 9% rate You could do better in the market which is another story all them polititions that are leanning to the port are beating up on large oil who really arnt large making my retirement plans scary ( hope they arnt trying to make me dependant on them ) I would rather work til I die before the gov keeps me.
Gregg

In listening to T. Boone I didn't take it that way. I took it as we have reached critical mass on oil production. While we can produce more, the arab nations will really make us pay for it.

T. Boones big deal is what I agree with.............."STOP USING FOREIGN OIL" Wind, nuclear, drilling........do whatever, just stop supporting the overseas crap.

_________________
2008 Four Winns 224 Funship 5.0 GXI/DP Black w/ Tower
2007 GMC Crew Cab Short Bed / Bose Ed.
2007 Fourwinns H180 (SOLD)

"There are no stupid questions, only stupid people"

Yes sir, thank you sir! Couldn't agree more!

_________________
2008 H210SS VP 5.7 Gi/SX
2011 Ford F150 FX4 EB