Oil Closed at $129.17 Today

[Siebert Outdoors]

A stock repurchase has no impact on reported net income.

Income divided by fewer shares outstanding will have a nominal,

but positive impact on earnigs per share.

8-)

Very positive to the one that ownes the stock.  More money in the pocket.  Now I wish I owned about 10k shares.

[llPa1nll]

I have said it before and I will say it again. My view is that painfully nothing will get done or happen, any time soon. Why? Because in my opinion there is far too much money to be made by far too many important people.

[burleytog]

I have said it before and I will say it again. My view is that painfully nothing will get done or happen, any time soon. Why? Because in my opinion there is far too much money to be made by far too many important people.

What do you propose?  Government intervention?

[fishingfourfun]

While it is painful to our wallets now it will helpus to find better alternatives.  There was no reason to look at different fuels in the past because of the low cost of gas.  We now need to look at alternative fuels to help power our world.  

[Micro]

That's just a sampling of the expansion plans.  I could find more, but I think my point has been made.

What your point' doesn't consider is that those increases' are extremely modest.  They don't even keep up with increased demand.  In 2007, US drivers burned 36 million more gallons of gas per day than was being refined and that's at 90+% refining capacity.

Refining capacity is the principal problem.  

As shown above this simple fact is incorrect.  Oil production and proven resources is not keeping up with increasing world wide demand.  Refining capacity is tight but it is not "seriously lacking".

Oil production IS keeping up with demand.   Saudi Arabia just refused a US request for more oil production because, according to Saudi Arabia, current output is satisfying demand.   Even if oil output was increased, we couldn't refine any more at least not enough to begin to keep up with increased gasoline demand.  George Bush principally wanted more oil from Saudi Arabia (which has easily refinable sweet light crude) not for immediate refining but to pump into the Strategic Reserve.  

The remaining shareholders are enriched and the person who sold the stock got the price he/she wanted for it.  Sounds like a good deal all around.

But that's not the reason for the buybacks.  Buybacks are typically employed to cover employee stock options  - like those of big oil executives.   $400 Million  to a retiring Exxon CEO.  And how many other hundreds of millions, or billions, to other executives and employees.  

Let's keep the emotional portion of this discussion out of it.  It doesn't really add much to the discussion.

There's no emotion.  There's only emotion if I get kissed when I'm screwed.  

[mattm]

There's no emotion.  There's only emotion if I get kissed when I'm screwed.

I'm pretty sure thats not politically correct, but its funny ;D.

[tyrius.]

What your point' doesn't consider is that those increases' are extremely modest. They don't even keep up with increased demand. In 2007, US drivers burned 36 million more gallons of gas per day than was being refined and that's at 90+% refining capacity.

We've got a bit of disconnect in our numbers here. You're referencing gallons and my links were referencing barrells. To put it in perspective per the DOE we import roughly 1 million barrels of gasoline per day. If just the first two of my references come online in 2008 that will provide over 500,000 barrells of production a day and roughly 45-50% of that will turn into gas. As I said earlier, my references were by no means all inclusive.

Refining capacity is the principal problem.

If refining capacity was the principle problem then the price of gas would be rising faster than the price of oil. Instead oil prices have roughly doubled while retail gas prices are up about 57%.

But that's not the reason for the buybacks. Buybacks are typically employed to cover employee stock options - like those of big oil executives. $400 Million to a retiring Exxon CEO. And how many other hundreds of millions, or billions, to other executives and employees.

Your point is just one of the reasons for stock buybacks. Other reasons are that the company feels that their shares are undervalued, that they can't effectively utilize all of the cash that they are producing, among others.

Let's keep the emotional portion of this discussion out of it. It doesn't really add much to the discussion.

There's no emotion. There's only emotion if I get kissed when I'm screwed.

[Glenn]

ok folks, let's not go down the "I'm right, you're wrong" path.  If you're going to cite figures, state your sources of fact (not opinion!).

Otherwise, let's all just agree that gas prices suck eggs and hope they go back down soon - a lot!!

btw - it's OVER $4/gal in my neck of the woods now!  

[tyrius.]

ok folks, let's not go down the "I'm right, you're wrong" path. If you're going to cite figures, state your sources of fact (not opinion!).

When I say DOE I mean this site.

http://tonto.eia.doe.gov/dnav/pet/pet_pnp_top.asp

Otherwise, let's all just agree that gas prices suck eggs and hope they go back down soon - a lot!!

btw - it's OVER $4/gal in my neck of the woods now!

We hit 4.15!!  Holy H's that is high!!!

[llPa1nll]

I have said it before and I will say it again. My view is that painfully nothing will get done or happen, any time soon. Why? Because in my opinion there is far too much money to be made by far too many important people.

What do you propose?  Government intervention?

I can honestly say that I am not informed enough to have an end all solution to this problem. It would have been nice back in the 1970s for the government to start a rigid plan to ween the US economy off of oil, but thats hind sight.

My opinion is allot of these recent increases are because of a weak dollar and that investors are betting on it to stay weak and speculating that oil prices will remain high, since oil is a commodity this kind of thing happens.

I do know for a fact that if the price of oil stays where it is this coming winter there will be allot of people who will be going cold this winter, in the northern half of the country.

[frogtog]

Remember when you looked at TV and seen those little Chinese running around pulling the little carts and riding bicycles. Well thats what you are fixing to do in the USA. It's not so much the oil companies

as it is China and India economy growing. That is why they are outsourcing every thing to India and everything you buy in the US is made in China. Just my thought.

[jhoffman]

Ive said this many times over and I'll say it again...

The problem is not supply and demand. People have sold their big trucks, big boats and more and more are turning to public transportation. Most people have even changed how they heat their home. Demand is WAY down.

The problem lies in the fact that oil is a publicly traded commodity. The investors are setting the price of oil. Anyone from anywhere in the world can buy the stock. Whos to say that other countries arent buying shares by the millions to put us into an economic slump. Think that cant happen? Why wouldnt they do something that easy, its easier then flying a plane into a building.

Until the government steps in and takes control and stops the sale of oil on the stock exchange its going to continue to rise. Annalists are predicting that oil will hit over $200 a barrel by next year. That means were looking at about $7/gallon for gas.

How many of you now need that extra 10mph on your bass boat? I for one can live with a 50.

[KYbass1276]

I have said it before and I will say it again. My view is that painfully nothing will get done or happen, any time soon. Why? Because in my opinion there is far too much money to be made by far too many important people.

What do you propose? Government intervention?

Well enlighten us to your idea's,  

[MaxDal]

well, History is being written right now !

The barrel went well over 130, up to 135 today. It then repositioned a little under 133.5

I'm no expert, but I don't think we will see the prices going down anytime soon.

Could it be that most investors have left the normal financial equities after the subprime story and are now speculating on raw materials (we've also seen a dramatic growth in the price of gold for instance) ... that plus the fact that China and India are adopting the western way of life.

Let's see the good points in it, we will have to trade our cars for bikes and our boats for float tube. At least, that will be keep us in shape.

[burleytog]

Demand is WAY down.

 

Where?  In one town in central Kansas?

Public transportation isn't an option for a good portion of the country.

[jhoffman]

Demand is WAY down.

 

Where?  In one town in central Kansas?

Public transportation isn't an option for a good portion of the country.

Everywhere, people are turning to things like infrared heat to heat their homes. Bet if you look at ebay its FLOODED with big outboards. Still seeing 40 hummers rolling around? Many people have bought hybrids, its not a pipe dream its true.

"In fact, demand is falling in some countries. According to economist John Kemp at the commodities firm Sempra Metals, the U.S. consumed 4 percent less petroleum in January 2008"

"Even China's thirst for oil is abating somewhat. Its demand for oil, which once rose at 10 percent per year, has now dropped to 6 percent per year"

"So supply is up; relative demand is down and yet, the price of oil is soaring. What's going on? Last week, Exxon Mobil CEO Rex Tillerson blamed a third of the recent run up in oil prices on the weak dollar, another third on geopolitical uncertainty, and the rest on market speculation."

http://www.freedomszone.com/archives/2008/03/oil_supply_up_relative_demand.php

4% in JANUARY, the coldest month of the year!

I didnt even read this article prior to today, this has been my census for awhile.

[jhoffman]

And if this doesnt say it all

http://money.cnn.com/2008/05/22/news/economy/gas_prices/?postversion=2008052217

"But some global economies - namely China - are much stronger now. Since oil is a dollar-traded commodity, a weakened dollar has made crude look relatively cheap to some foreign nations."

hmmm... still blowing smoke?

[jhoffman]

Oh and heres one more, it looks like the senate finally hears me.

http://www.chron.com/disp/story.mpl/headline/biz/5795651.html

[burleytog]

Oh and heres one more, it looks like the senate finally hears me.

http://www.chron.com/disp/story.mpl/headline/biz/5795651.html

Political posturing and an exhibition of why politicians should have nothing to do with business.  Their display of economic ignorance shows why the price of gasoline will not fall any time soon.

[jhoffman]

Oh i agree, but its nice to see someone speak up. We need to borrow a couple more trillion and buy the world market of oil, whats a couple more to the debt we have.

[fishfordollars]

Well if I blow the Merc on my skeeter, I can still fish. Probably need to fish it that way for a while anyway. Trim it up and hit the troller.

[KYbass1276]

Does it trouble any of you when you see what you're doing to us?" asked Sen. Richard Durbin, D-Ill.

I liked this response from the link that Jhoffman provided, as if they really care.   They probally had lunch afterward and appologized for being so hardnose with them but they had to make a good show for J Q taxpayer voter.   Then they took the big campain checks after dinner.

[jhoffman]

Does it trouble any of you when you see what you're doing to us?" asked Sen. Richard Durbin, D-Ill.

I liked this response from the link that Jhoffman provided, as if they really care.   They probally had lunch afterward and appologized for being so hardnose with them but they had to make a good show for J Q taxpayer voter.   Then they took the big campain checks after dinner.

Probably voted for a raise. I was just proving my point that Im not the only one who views the situation for what it really is.

[KYbass1276]

Does it trouble any of you when you see what you're doing to us?" asked Sen. Richard Durbin, D-Ill.

I liked this response from the link that Jhoffman provided, as if they really care. They probally had lunch afterward and appologized for being so hardnose with them but they had to make a good show for J Q taxpayer voter. Then they took the big campain checks after dinner.

Probably voted for a raise. I was just proving my point that Im not the only one who views the situation for what it really is.

I see your point and I hope you didn't think I was attacking you or anything.   I just think that it's all a big show.   No pun intended toward you.

[jhoffman]

No hard feelings, its a discussion board, take everything with a grain of salt.