And you buy economist Stephanie Kelton’s book The Deficit Myth. Deal?
Is this because of the Biden admin. or because they do not want to increase supply and do more stock buybacks?
Not a chance. Senge is teaching you how to approach ANY problem with systems thinking. It is (or was) a graduate level course at MIT. He is teaching you HOW to think, not what to think.
Your suggested book is an opinion book.
How do you know it’s an opinion book?
The lack of a financial motive to build a new refinery is mostly technologically driven. If we continue on this EV trek, and do so fairly effectively, the “demand” to refine gasoline drops. Less refining is needed. It makes more financial sense to “band aid” the existing refineries, then making a huge investment to be able to make more gasoline, while the country is headed away from the use of gasoline. If the ROI looks grim, why risk the money that will never be recooped?
Biden is contributing to the problem, in that he is pushing the advancement of EV’s at all costs. Many of his efforts raises end users costs. But if allowed to occur organically, the transition would have a smoother transition.
I would take the cynical view last.
That was for castoli…
Even if it is a “fact” book, it is not a book that will teach me how to approach all problems. Peter Senge will help you analyze problems (any kind of problems) and consider the repercussions. He will help you suspend your assumptions through mental models, plus personal mastery to look closely and clearly at current reality.
And two other disciplines needed for effective teams to solve problems. You seem more of a loner, so you might not find much value to you.
I knew that. I just used your quote.
I can’t believe I am actually trying to help him. But he is much smarter than I am. So, there’s that.
1 Like
Economics weighs heavily on most aspects in life. It can be the difference between life and death, literally. Understanding how the Fed. budget actually works and getting the sequence right is everything. It is the truth. The view may be heterodox but typically all the good things are on the margin.
Funny how it works, isnt it. Yet diesel and gasoline prices go up in my country, but LPG prices went down. I have an LPG injector installed on my old car, thus currently driving it.
The thing is there is a monopol almost everywhere. In my country there is only LPG free market and the rest is taken by Lukoil who do whatever the fuck they want.
What is the average profit per gallon of fuel for oil companies?
I am sure you don’t know, so I will tell you. 10 CENTS.
What is the average tax per gallon of fuel?
Again I am sure you are clueless, so I will tell you.
State average is 38 CENTS per gallon.
Federal tax is 18 CENTS per gallon.
So, 56 CENTS average per gallon for taxes and 10 CENTS profit to the actual company providing it.
Please tell me again who is gouging us.
1 Like
I believe that the $0.10 is gas station profits per gallon?
If we assume that the the companies like Exxon (they are oil producers and refiners) only make $0.10 per gallon profit, I still see an issue with that line of reasoning. Is a stock buy back considered an cost in the Profit = Revenue - Cost equation? Dividends to investors? IMO, those things should not be, but likely are.
FWIW, I think that our prices are a combo of things. Our fuel companies are indeed making a lot of profit (I made good money on my oil / fuel stocks I bought in early 2020, a few near 500%). It isn’t the only thing though, we have a war with a oil producing country going on, policy that isn’t the best, speculation about the future market, etc…
I think the fuel tax break would result in more demand, and the winners would be the fuel companies. Would help me with my stocks. We as a whole would save a nickle at the pump though.
Gas stations profit 3-7 cents per gallon.
Oil companies are profiting 10-15 cents - sometimes less.
2 Likes
I guess my point is ATM, do you think things like a stock buy back is a considered a cost? I would count all of that money as profit, but I don’t think that is how it plays out in the accounting department. The company became worth a lot more, that is a profit in my eyes.
You hold a different view than anyone else I have ever known in finance on this one lol.
You also have to take into account the investment on drilling and what that costs.
Producing fuel is a very expensive and risky / volatile industry.
What do you want these guys to do? Make 1 cent a gallon and decrease your cost by 9-14 cents per gallon?
It is a business, not a charity.
2 Likes
I agree with you. I am just saying that I think currently fuel companies are doing very well.
That may be fair, but they don’t have to spend that money to produce as is. It isn’t an operating cost. If they didn’t do those stock buy backs, what would their profit be? A lot more.
I don’t disagree with you on how accounting works. I just think pointing out profit can be misleading if the company’s value also dramatically increased (which for a few of the companies their market cap is 5X what it was in early 2020).
1 Like
What are the current profit margins for oil and gas companies?
I’m sure you don’t know, so I will show you. The average net profit margin for oil and gas production was 4.7% in 2021 and 31.3% in Q4 2021
Why the uptick in profit margins?
And propose a tax holiday, instead of holding those accountable for price gouging. Got it!
You obviously didn’t read the article closely that showed their net for the year was a 19% profit margin.
Again, any company not at the very minimum maintaining a 15%+ profit margin won’t be in business long.
Have you ever owned a business or seen the books of a large business?
Oh right yeah you haven’t. You don’t even know what the numbers mean from the article you listed. But, you sure can google.
1 Like
I’m sure these profits are barely above break even. How will they survive?
Or
I guess since I never owned a business this news doesn’t count and Big oil profits are not at recent record highs.
Where did you get your indoctrination, I mean education?
Big Oil executives openly admitting to using inflation as a cover to raise prices on consumers and reward their shareholders. “We’re not going to change our growth rate,” said Pioneer CEO Scott Sheffield. “We think it’s important to return cash back to the shareholders.”
No. This can’t be true. A wholesome oil company, nah!
Purposefully throttling output to artificially keep the money spigot turned on.
One major Texas producer, Pioneer Natural Resources, admitted it was cutting its targeted production increase from 20 percent to just 5 percent in order to return a full 80 percent of its cash flow back to investors.
Everything for the shareholders. Externalities are not a concern. Gotta love late-stage capitalism!
And?
The shareholders are their boss not the consumer. They owe you or me absolutely nothing.
Well I’m a shareholder so they owe me something. 
I’ll address the rest later.
I’m enjoying a nice bottle of Papi.
3 Likes