[jimjamuser]

Originally Posted by coralway

Last year? SEC filings from the largest oil and gas companies show they’ve collectively completed $45.6 billion worth of buybacks since the start of 2021.

So, if you're ok with oil and gas companies dramatically increasing their prices so they can buy back their stock, and make their investors happy, then no one has any reason to complain about current prices.

Stock buy-backs are often a desperate attempt by a corporation to prevent its stock price from falling. It can also happen when a corporation is MORE optimistic about its future than the general market.

[jimjamuser]

Originally Posted by Stu from NYC

Management decided that the future of oil was not great and it was best to return excess cash to their investors. They saw that govt was going to push the automakers into electric vehicles greatly reducing the demand for oil.

The investors can than take the money and invest in other things that help grow the economy. Do you think they take this cash and hide it under their mattresses?

Are you still saying this is a bad thing?

Reducing the DEMAND for oil should push the price of oil (and gasoline) down. Making the US less dependent on Middle East and Russian oil.

[jimjamuser]

Originally Posted by Chi-Town

Make sense. Don't reinvest the profits into alternative sources of energy. Just let the demand run out and call it a day. Not a long term strategy but you gotta make hay while the sun shines.

Large corporations are often not very nimble at changing their basic business models.

[jimjamuser]

Originally Posted by donassaid

What an insensitive and out of touch response. So you are ok with paying 2 1/2 times more for gas than 18 months ago? Double what you paid for milk and other food products in the same time period? I guess you must be a rich liberal who can afford to pay $10/gal for gas if need be. Most of us are not in that boat.

When economics gets too confusing just play the LIBERAL card, just like a get-out-of-jail card.

[jimjamuser]

Originally Posted by Robbb

Its called supply and demand. When the government restricts supply buy increasing regulations, canceling pipelines, discouraging investment, and delaying or canceling permits, supply drops and prices skyrocket. This is a completely self inflicted crisis. The answer, drill baby drill.

The oil price was NOT changed so much by what the US government did, BUT a lot by what the Russian government did.

[Topspinmo]

Originally Posted by coralway

1st quarter oil profits
Chevron - $6.3B
Exxon - $5.5B
BP - $6.2B
Shell - $9.1B



Living is easy with eyes closed

You forgot to add stock traders

[Topspinmo]

Originally Posted by coralway

Last year? SEC filings from the largest oil and gas companies show they’ve collectively completed $45.6 billion worth of buybacks since the start of 2021.

So, if you're ok with oil and gas companies dramatically increasing their prices so they can buy back their stock, and make their investors happy, then no one has any reason to complain about current prices.

Stock market controls price of crud oil.

Crude Oil Prices Today | Brent and WTI Price Charts

[jimjamuser]

Originally Posted by FredJacobs

Supply and Demand is the culprit behind the price increase. When you limit the supply, the demand stays the same and prices go up. Who sets these prices - it begins with the cost per barrel which fluctuates daily. In 2020 the average price per barrel was $39.68; in 2021 the average price was $68.17. The average for 5 months of 2022 is $99.56 and the price today is $120 per barrel - 200% more than 2020.

Why did the price per barrel go up? Because the supply was cut; the demand stayed the same and buyers of oil were willing to pay more to meet the demand.

Does this affect industries other than automotive? A little under ½ a barrel of oil is used for gas. The rest goes to the manufacture of plastics, fertilizer, cosmetics, detergents, solvents and pharmaceuticals.

I recall, in 2016, when Candidate Obama was interviewed about Climate Change, he stated that he would like to see gas prices go up to $7 or $8 per gallon to stimulate the growth of renewable energy. He trained his Vice-President well. I guess neither man considered the collateral damage of their decisions.

Long term, the future of energy IS renewable energy. Even Saudi Arabia knows this. Here in the Villages, it comes down to when are you going to replace your noisy, smelly gas golf cart with a clean, quiet ELECTRIC golf cart?

[Topspinmo]

Originally Posted by jimjamuser

Reducing the DEMAND for oil should push the price of oil (and gasoline) down. Making the US less dependent on Middle East and Russian oil.

We didn’t depend on foreign oil till recently. 3% Russia non player but makes good talking BS point.

[Topspinmo]

Originally Posted by jimjamuser

Long term, the future of energy IS renewable energy. Even Saudi Arabia knows this. Here in the Villages, it comes down to when are you going to replace your noisy, smelly gas golf cart with a clean, quiet ELECTRIC golf cart?

Long term like 200 plus years.

[jimjamuser]

Originally Posted by cherylncliff

Take from the poor and give to the rich then deny the poor a living wage.

Outsourcing to China helps deny the poor a living wage. Also, tax breaks for the wealthy.

[Topspinmo]

Originally Posted by Two Bills

And you honestly believe that US oil companies would sell the oil cheaper on US market, than the OPEC fixed world price?

How does OPEC fix market, oil trading set price. Now they can affect that price by increasing or decreasing output if other suppliers don’t set up or regulated out of the picture.

[jimjamuser]

Originally Posted by Stu from NYC

You did not quote me but apparently you are directing your response to me.

Just because I understand the forces behind the oil business and our economy does not mean that I am ok with this self induced inflation.

I am as unhappy as anyone else but understand the culprit behind this.

The inflation was caused by our govt and world economics.

The Fed took way to long to start to cool the economy by raising interest rates. The govt paid too much money to people not earning as much as others and people got used to being one parent breadwinner so labor force participation is way down and the resulting shortage of workers caused wages to increase substantially.

Further our govt in its infinite wisdom decided oil was bad and promoted electric vehicles and discouraged expanding oil production which was decreased during covid.

As a result of all this we are all paying more for the products we use every day.

Today's inflation has a lot to do with factors that NO ONE in the US had ANY control over - namely the Russian invasion of the Ukraine and China's bad Covid response which shut down its economy and stopped their manufactured goods from being sent to the US - thus hurting the SUPPLY of manufactured products, which drove those prices up.
........The closest thing to US blame is that the FED should have reacted faster. But, historically, the FED has NOT gotten its TIMING PERFECT.

[jimjamuser]

Originally Posted by Stu from NYC

Price gauging to me is a very short run thing.

Cost of pills and the shot for bee strings is part of our govt screwing up the medical system and allowing things like this to happen. No reason medicare cannot negotiate pricing of drugs.

The Government CAN'T screw up the medical system because INSURANCE controls the biggest medical system. Except for the smaller V.A., Medicare, and Medicaid systems. And yes, the INSURANCE companies DO screw up the US medical system. Other countries are smart enough to have the more superior National Health Care systems.

[Stu from NYC]

Originally Posted by jimjamuser

The Government CAN'T screw up the medical system because INSURANCE controls the biggest medical system. Except for the smaller V.A., Medicare, and Medicaid systems. And yes, the INSURANCE companies DO screw up the US medical system. Other countries are smart enough to have the more superior National Health Care systems.

Given how inefficient the US govt is would be very worried that they would screw up a single payer system.