Oil price, what a fuggin' joke...

[slowpoke]

...unfortunately the joke is on us.

I work offshore for an oil and gas company and my platform produces Propane, Butane and Condensate. These products are equated to oil (Barrel of Oil Equivalent or BOE) to give a common measure of hydrocarbon production. We produce over 100,000BOE/day, and the cost to produce each of those barrels? $5US (approx). Yup, a lousy 5 bucks, with the oil price up at $90US.

The joke of it is the less oil and gas we all produce the more we can charge for it. It should be criminal.........

[Kittyhawk]

Interesting...I can see in my generation petrol could possibly fade out, then what? run our bikes on water and electromagnetic engines? eeep

[xwhatsit]

My crackpot theory is that yes, one day we will be buying electric bikes (yippie! 100% torque from 0 rpm :devil2:), but you will be able to buy at great expense some sort of synthetically brewed petrol. Save up and buy a tankful for your vintage GSXR to take to the classic motorcycle meet.

@slowpoke, that $US5, is that just the price to process it? Or does it include all of the prospecting/drilling equipment/yada yada yada that covers the process from dead dinosaur plants to the barrels of sticky black shit?

[rainman]

The joke of it is the less oil and gas we all produce the more we can charge for it. It should be criminal.........

Ain't "commodity" markets fun?

So, what do you make of the view that production has been dropping since 2005 because we're "on a bumpy plateau" of availability and there's going to be up to 7% decline a year as we go forward? Seems to be tying up with the experiences of some (Mexico, North Sea, Indonesia etc)? :buggerd:

Ah well, good thing we ride low consumption bikes and not big fat-arse SUVs, ay? We even put out less emissions, so we're better from a climate change perspective too. Maybe someone should tell the gummint we're the good guys!

[dogsnbikes]

...unfortunately the joke is on us.

It should be criminal.........

it is,and the ring leader(Bush) wont be happy until he controls it all :confused:

[BMW]

dam interesting that they put so much on the price. oh and add the Gov tax for us in Ak!

[Coyote]

Maybe someone should tell the gummint we're the good guys!
But we're all thugs and speeders aren't we?

[tri boy]

I think $5US/Barrel might not include all related costs, (lease rights to drill areas, platform cost/depreciation, built in costing for further exploration etc) but, yes the oil producers and distributors are doing rather well at the moment, but nothing lasts for ever.
Don't forget shareholders, they expect a good return on their invested money, otherwise there would be little funds available to continue pumping the black gold.

[Harry33]

Well here in Canada I paided 89c a litre last week. Since I've been here I've only ever seen it get to $1.10 at it's highest. Oh and the petrol stations here have real price wars. That $1.10 a litre was only for a couple of weeks at the most.
Not matter what the gas companys say back home, they are greedy fucks and have Kiwi's by the balls and they know they can get away with it because they have for years.

Maybe it's another reason 250's hold there price.

[Usarka]

there are things we buy at work for $15 per unit and sell for $80.

oh noes.

it's called supply and demand. oh and profit.

btw $1.10 canadian = approx NZ$1.50 we live on a shitty little island in the arse of the world. canada is next to one of the biggest oil markets in the world.

[Swoop]

Hey guys. Have some thought for the poor Arabs please. They need to be kept in the conditions that they have become accustomed to over the past few years. Some are having to get by with only four Lamborghini's.
Show some respect please. Perhaps put a donation in the jar when you fill up with petrol?

SAVE THE OIL CONGLOMERATES!!!








:wacko:

[Usarka]

these poor saps have control over a resouce that the whole world needs.

of course they're going to sell it cheaply :killingme

there are two options:
1. while demand > supply pay the ticket price
2. invasion

[Flatcap]

My crackpot theory is that yes, one day we will be buying electric bikes (yippie! 100% torque from 0 rpm :devil2:), but you will be able to buy at great expense some sort of synthetically brewed petrol. Save up and buy a tankful for your vintage GSXR to take to the classic motorcycle meet.




By synthetically brewed I take it you mean the moonshine from the stil in the back shed.

You could fuel the old classic bike and yourself at the same time!

[slowpoke]

I think $5US/Barrel might not include all related costs, (lease rights to drill areas, platform cost/depreciation, built in costing for further exploration etc)

No, this is production cost only but the amount of money my company have spent on exploration is negligible compared to the profits. The platform was scheduled to pay for itself in 7 years but did it in 4 including drilling costs) thanks to the rise in the price of oil so we're riding in the first class section of the gravy train. Depreciation is tax deductable.

there are things we buy at work for $15 per unit and sell for $80.

oh noes.

it's called supply and demand.


Supply and demand? It's called collusion when the main players get together and volountarily reduce production to increase demand and elevate prices. There is no shortage of oil, just a volountary shortage of production.

[Finn]

You can blame the green movement for the price of oil. They started bleating on about how we are consuming oil way too fast and the oil companies thought... excellent! Someone else is doing the marketing for us... for free.

Bit like the global warming joke.

[Harry33]

there are things we buy at work for $15 per unit and sell for $80.

oh noes.

it's called supply and demand. oh and profit.

btw $1.10 canadian = approx NZ$1.50 we live on a shitty little island in the arse of the world. canada is next to one of the biggest oil markets in the world.

You might have a point about the exchange and the oil markets etc but whats the excuse for the lack of competition between the petrol stations etc. It seems like if someone farts in the middle east it's time for a price rise in NZ and it doesn't seem to matter about the oil thats already at the NZ pumps (I'm guessing thats already been purchased ) cause they raise that to.

Surely NZ must have a stockpile/reserve of oil. Why don't they hit Kiwi's with the new price once they use up the older purchased oil.
Anyway probably a pointless post from me considering we all just take it in the ass and there's nothing we can do about it anyway.

Now as for the tobacco companies....:jerry:

[johan]

I find it very hard to complain about the superficial oil prices. Looking back the past hundred years, over two world wars where the western world more or less secured its oil reserves as we know it today, millions of lives spilled, we can still go to our local petrol station and fill up our bikes for $15. Still, people complain when petrol prices increases a few cents!?
Of course the cost of extracting the oil is just a fraction of the retail price. It's balanced perfectly so that the average family can fill up their cars every week, still not too cheap to make the draining oil reserves becoming a non issues.

In the country I come from (Sweden), petrol prices are about twice as expensive as here in NZ, still Sweden is next to Norway, which is a big oil producing country. I remember reading that Norway don't use their money from the oil to make the everyday life better for their people, it would overheat their economy. Instead, they sit on a big pile of money while social security is less than ideal. Exactly the opposite of what Dubai is doing, Dubai spend their oil money like crazy to secure their life after oil runs out. A very different mind set.

Somehow I think the world would be a better place without the oil.

A pretty good article:
http://www.iht.com/articles/2005/11/18/business/wbnoroil.php

[Badjelly]

You can blame the green movement for the price of oil. They started bleating on about how we are consuming oil way too fast and the oil companies thought... excellent! Someone else is doing the marketing for us... for free.

Apparently, you can blame the green movement for anything.

[Harry33]

Apparently, you can blame the green movement for anything.

and Labour lol

[Ocean1]

So, what do you make of the view that production has been dropping since 2005 because we're "on a bumpy plateau" of availability and there's going to be up to 7% decline a year as we go forward?

Is this the same prediction that's been circulating for the last 10 years? or a brand new one?


Supply and demand? It's called collusion when the main players get together and volountarily reduce production to increase demand and elevate prices. There is no shortage of oil, just a volountary shortage of production.

Collusion among suppliers is frowned upon by the commerce commission, true. Unfortunately they don't have much clout offshore. It might not be cricket but it's a fact of life.


Surely NZ must have a stockpile/reserve of oil.

The gumint (through various licensing mechanisms) requires a national reserve of 30 days worth. Cashflow considerations make this unattractive for suppliers, and in fact that reserve includes stock on the water, in transit. The real reserve (actually in bulk storage facilities) at any given time varies but historically we’ve often been within a couple of days of “empty”, even closer.

[inlinefour]

it is,and the ring leader(Bush) wont be happy until he controls it all :confused:

I think he has been getting lessions from Bill Gates... :mad:

[Finn]

Apparently, you can blame the green movement for anything.

Well they did bring us orange furniture and sandals. It all went tits up from there.

[imdying]

Apparently, you can blame the green movement for anything.What do you expect, they make it bloody easy for him.

[rainman]

Is this the same prediction that's been circulating for the last 10 years? or a brand new one?


More like 30. (Club of Rome days, I'm thinking). Some things take time.

Production is apparently indisputably* down since Apr 2005-ish, despite raging prices, and every incentive for them that have the black oily stuff to make a shitload of cash.

*Or so I'm told.

[Toaster]

Yep, petrol has huge profit margins in there for the producers and distributors.

Filling up the tank in the stationwagon is getting so painful its like getting fucked with a dick big enough for an elephant to feel it.

[Ocean1]

More like 30. (Club of Rome days, I'm thinking). Some things take time.

Production is apparently indisputably* down since Apr 2005-ish, despite raging prices, and every incentive for them that have the black oily stuff to make a shitload of cash.

*Or so I'm told.

Cause and effect round the right way? Historically evey time an artificial constraint has been placed on production the price has risen. Opec's whole marketing strategy is based on either reducing production or threatening to, they do it every time the market flattens out.

[homer]

remember people on 91 octane the govt takes around 45 % in tax
REMEMBER that its per cent .....not 45 cents this is aprox as it does change some times
so when you think about it fuel at what 1.63 per litre
so the govt take aprox 73 cents of that nearly half
so dont just blame the cost of production or you wouldnt buy a new tv or stereo or car ......OR BIKE would you
remember as the price goes up so the tax take is greater
I personally think the govt should get a cut as tax but its cents it dosnt change as a percentage
so 45 cents at say 1.63
or 45 cents at 1.80 per litre

I just fulled my car tonight i had aprox 65 kms till empty and it cost me $109.98
sounds expensive ....but it was only 65 litres thats not a lot for the expense


I also really dont care about the price if its dear its dear
are you going to stop drinking beer ......$8 a litre ish
will you go get 30 kgs of steak at $9 a kg
no so cause its petrol its dear

I see a direct connection between petrol and wages
petrol goes up so do wages ....if they dont maybe everyone should be asking for a pay rise
after all everyone has to end up paying in the end ....not just the pump food ,tyres, just anything you can think of .

Oh and as i just check these figures its actually 50.5 cents and then tax on top of that......check the AA

[Conquiztador]

Soon we will only have the real die hards on the roads. The ones that WANT to ride. The ones that will pay whatever it costs to ride.

I am soo looking forward to that day!!!


But one thing that I am confused about is this: In any normal business you will pay the billls (in NZ) 20th month following. So why is it that when the Arabs raise the price of crude oil, the next day we pay more for the petrol that has been in NZ for a month or two???

[rainman]

Cause and effect round the right way?

I don't know how it's possible to know, one way or the other.

[fredie]

we pay 49% tax per $1

[xwhatsit]

Soon we will only have the real die hards on the roads. The ones that WANT to ride. The ones that will pay whatever it costs to ride.

I am soo looking forward to that day!!!

Won't work like that. As they raise the cost, cars are going to get more and more expensive, and wee motorcycles and scooters will get super-popular. Just like the 50s/60s/70s. The roads will be teeming with two-wheelers.

I am soo looking forward to that day!!!

[Conquiztador]

Won't work like that. As they raise the cost, cars are going to get more and more expensive, and wee motorcycles and scooters will get super-popular. Just like the 50s/60s/70s. The roads will be teeming with two-wheelers.

I am soo looking forward to that day!!!

Agree, let the day come when petrol is $5/litre and the roads are for bikes!!!

[fredie]

scooters and bikes everywhere in sydney .:scooter: booming . i paid $1.51 :2guns:aus$ for a litre of premium 98 petrol today:gob: