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Gas prices just jumped another $1.00!!!


Kid Gleason

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QUOTE(jasonxctf @ Sep 1, 2005 -> 03:06 PM)
this is all you need to know

 

in 2002 BP had an annual gross profit of $21 billion. This grew to $28 billion in 2003 and was $35 billion in 2004.

 

in 2002 Exxon Mobil had an annual gross profit of $112 billion. This grew to $116 billiion in 2003 and $134 billion in 2004.

 

For those who dont know, gross profit is very simply revenues minus product cost.

 

The gas companies are clearly raising prices at a rate far exceeding increased costs.

 

Looks like I should be investing in some gas. Wow, s*** is just getting outrageous. Though in Europe, isn't it around 5 bucks a gallon?

Edited by nitetrain8601
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QUOTE(NUKE_CLEVELAND @ Sep 1, 2005 -> 04:52 PM)
Thank god I live on a military base.  Still only 2.63 a gallon here.

 

 

Speak of the devil.. I was just asking about you. Are you guys going to get asked to go help with order there?

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QUOTE(Steff @ Sep 1, 2005 -> 03:53 PM)
Speak of the devil.. I was just asking about you. Are you guys going to get asked to go help with order there?

 

 

Ive heard some talk but I think its just talk at this point. They have tens of thousands of Guardsmen in the affected states plus several thousand active duty folks available to deal with all this so I dont see any of us getting a call unless they need something really specialized.

 

 

For now Im doing my part by sending my whole mid-month paycheck to the Red Cross.

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QUOTE(Buehrle>Wood @ Sep 1, 2005 -> 03:47 PM)
What I don't get is that it was the oil refineries affected. It takes around 3 years to turn oil into gas, yet the gas rise is happening now. We don't have a gas shortage right now, yet every company increased its prices anyway.

 

I guess we should be happy we don't live in Georgia, where it's over 6 dollars.

Can you provide a reference for the 3 years from crude to gasoline figure? I don't know for sure, but that seems outlandishly long.

 

Simple heat fractionation can produce a straight run gasoline fraction basically as quickly as the equipment can heat the crude and cool and collect the fractions. And I understand there is a ton of post-separation processing (cracking, reforming, alkylation, sweetening, etc.) to increase the yield of gasoline from the other crude fractions. But three years seems like a long horizon. Not saying that isn't the case, but if it is I had no idea it took anywhere near that long.

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QUOTE(jasonxctf @ Sep 1, 2005 -> 03:03 PM)
all i have to say is watch Exxon Mobil and BP's earnings after 3rd and 4th quarter 2005.

 

both of there eps have tripled in the past 3yrs.

 

You can't sell what you don't have. I hardly see their revenues increasing when #1 they can't refine gas, and #2 they are going to have to put HUGE expenses into rebuilding infrastructure. Even if the government gives them aid, it will be loans, and will have to be paid back.

 

QUOTE(Buehrle>Wood @ Sep 1, 2005 -> 03:47 PM)
What I don't get is that it was the oil refineries affected. It takes around 3 years to turn oil into gas, yet the gas rise is happening now. We don't have a gas shortage right now, yet every company increased its prices anyway.

 

I guess we should be happy we don't live in Georgia, where it's over 6 dollars.

 

Blame that on accountings. Last In Last Out. You charge to replace what you are selling. It sounds criminal, but that is standard business practice unfortunately. Then again thinking like that is what put Arthur Anderson out of business.

 

QUOTE(NUKE_CLEVELAND @ Sep 1, 2005 -> 04:57 PM)
Ive heard some talk but I think its just talk at this point.  They have tens of thousands of Guardsmen in the affected states plus several thousand active duty folks available to deal with all this so I dont see any of us getting a call unless they need something really specialized.

For now Im doing my part by sending my whole mid-month paycheck to the Red Cross.

 

Nuke that is awesome. Good for you, and hopefully you get paid back in spades. I wish I could do the samething I hope you generousity serves as a motivatore for everyone:usa

 

 

QUOTE(winodj @ Sep 1, 2005 -> 05:34 PM)
10% of our capacity to produce gasoline is out of commission right now.

 

Yet the price of gas has increased by 50%.

 

That doesn't make sense to me.

 

The Oil crisis of the 1970's was caused by about a 15% reduction in overall supply and prices went up by a factor of 4 by the time all was said and done. With the elasticity of energy prices, they are highly responsive to changes in supply and demand. Something like this could have the country paying $5 a gallon by the time this is all said and done if the supply disruptions end up being mid to longer term.

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QUOTE(southsider2k5 @ Sep 2, 2005 -> 09:10 AM)
You can't sell what you don't have.  I hardly see their revenues increasing when #1 they can't refine gas, and #2 they are going to have to put HUGE expenses into rebuilding infrastructure.  Even if the government gives them aid, it will be loans, and will have to be paid back.

Blame that on accountings. Last In Last Out.  You charge to replace what you are selling.  It sounds criminal, but that is standard business practice unfortunately.  Then again thinking like that is what put Arthur Anderson out of business.

Yep, a big gross profit doesn't mean much when you've got big expenses that will suck that figure down, and then you're earnings after interest and tax, which is pretty much the final figure and that decreases even more.

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http://www.chicagogasprices.com/

 

This shows you the cheapest and highest gas prices around chicago. I dont know where any of the cheap ones are but the 3rd highest (tied for highest price) one is a Gas City at 131st and Lagrange, which is right by my house. I actually just got home from getting my car washed there and noticed it was really high so i checked and someone reported it already.

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