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 ), 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)?

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

[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!!!

[Usarka]

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

of course they're going to sell it cheaply

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 ), 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.