O/T: "Drill Baby Drill"

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Han wrote:

The explosion was a mile away from the BOP.
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As I understood it, there was a pressure anomaly from the well that caused the explosion. The visible part may have been above water, but I really thought the main event was at the well head. Maybe I'm wrong.
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Han
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"Han" wrote:

-------------------------------------------- One of Murphy's laws:
"If it can fuck up, it will".
Lew
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Lew, you know that Murphy was an optimist, right?
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Best regards
Han
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Matt wrote:

Last I heard no one has figured out what "it" is, so how could they cross "it" off their list?

Who gives a damn? The people that know best how to prevent disaster is the people doing the drilling.

The only "agency" that really cares is the accounting office of the oil company involved. Are you thinking some corrupt government official actually cares or a bunch of government gobbledygook red tape is more meaningful than a few 100 billion going up in smoke?
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Jack
News Flash: Government Motors (GM) fines their top competitor $16 Mil.
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wrote:

But their plans will be dictated first and foremost by PROFIT MOTIVES, not what is absolutely safest or best practice. The head engineer is guided by "how will this look to stockholders on our bottom line THIS WEEK.
It is already known that additional capabilities for remote shutoff which have been used on some wells, were not on this well due to the extra cost.
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snipped-for-privacy@nowheremonfrere.com wrote:

Yes! Profit motives are a much better incentive to get things right than graft and corruption of politicians.

Yeah, wonder how losing 100's of billions, and possibly the whole company looks on their bottom line?

Nothing of interest is "already" known, at least nothing reported to the likes of us...
--
Jack
Mr. Geithner, May I Borrow Your TurboTax?
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wrote:

Trust me, and what we know from lots of history... All that matters during planning is how it will look on this week's flash report.
There is no doubt that the bottom line no longer looks so hot, but hindsight is never a part of how these things are planned. Short term profit is way out in front.
Oh, the recent spike in gasoline prices? Nothing to do with supply and demand, and everything to do with unregulated market speculators.
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snipped-for-privacy@nowheremonfrere.com wrote:

Sorry, I don't trust you. Well, I don't know you, but what you say doesn't work for me.

Right, they invest 100's of billions on some sort of short term, flash dream...

I'm still stuck on the fact the government makes more profit on a gallon of gas than the people that invested 100's of billions to get the gas to the pumps...
--
Jack
The Problem with Socialism is you eventually run out of Other Peoples Money!
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wrote the following:

Why do you think they don't try to reduce prices on oil? They make a percentage, so the higher that is, the more money they rake in.
I'd be happy if the courts ruled out non-physical trading. One source said that oil had been traded up to 100 times on paper, each with profits, before it actually moved from one point to another, source to purchaser. That's a lot of useless markup.
-- All national institutions of churches, whether Jewish, Christian, or Turkish, appear to me no other than human inventions, set up to terrify and enslave mankind, and monopolize power and profit. --Thomas Paine
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That would certainly put a crimp in large users of oil, like airlines. They'd probably all be bankrupt by now if they couldn't deal in futures.
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Larry Jaques wrote:

Who makes a percentage? Certainly not the gas station owner. He makes a few cents per gallon irrespective of the price. In fact, the more the price increases, the lesser percentage he makes.
The distributor of gasoline is in a similar economic situation. He buys from the refinery and does NOT mark up a percentage. He sells his bulk gasoline at the market price.

A guy sells a warehouse of sardines for ten-cents per tin. The guy who bought them at ten cents sells them the next day for fifteen. The company that bought the sardines at fifteen cents turns around and sells them for a quarter. The guy who bought them for a quarter goes to the warehouse and opens a can.
He takes the opened can of sardines back to the guy who sold them for a quarter and says: 'These sardines are rancid. They are inedible!"
He is advised: "Those sardines are not for eating - they are for buying and selling."
Oh.
Humor aside, if you would bar non-physical trading, you would have to ban insurance policies because that's what futures trading really is.
Perhaps the biggest reason Southwest Airlines made a (huge) profit last year was because the years before they bought jet fuel contracts at $40 - $50 - $60 per barrel. Then oil shot up to above $80/bbl.
Interestingly, Continental Airlines did the same thing, but had to sell their contracts when they hit a small cash-flow problem. They then had to pay the $80 and $90/bbl price later.
Sure, there's a lot of markup, but no one really loses. The creator of a future resource (a barrel of oil, a pork belly, a bushel of soy beans) cannot know what he'll get when the item is ready for market. He's willing to sell this future product at a fixed price now so that he can plan for the future. Likewise, the buyer is willing to commit to a future price now so he, too, can plan.
Rule #1 in an MBA program: "Always trade an unknown variable price for a known fixed one" is the basis for futures trading.
Even so, futures trading is an open market between a willing buyer and a willing seller. Why would anyone want to interfere with that?
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On 05/04/2010 03:04 PM, HeyBub wrote:

Huh? Around here the prices across the city increase within half an hour of each other. Decreases are less uniform.
If a station owner filled his tanks at price X and then raises his prices a few percent when everyone else does, he's making that much more profit.
Prices at the pump go up whenever there is the slightest hint of an upcoming increase in the price of crude, and don't come down until crude has been down for ages already.
Chris
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On Tue, 04 May 2010 15:11:45 -0600, Chris Friesen

Prices at the pump are based on what the product will cost to replace, not what was paid for it originally.
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Chris Friesen wrote:

"Rocket Up, Feather Down" is the principle at play.
When wholesale prices increase, the station has to increase their retail price to cover replacement. When wholesale prices decrease, individual stations have no reason to reduce prices immediately because demand remains constant. Prices eventually do go down - due to competitive pressures.
So, prices go UP due to cost, prices come DOWN because of competition.
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On 05/05/2010 10:12 AM, HeyBub wrote:

Why? Aren't they usually operating on a 30 or 60 day billing cycle?
If so, they could continue to sell at the current prices until they had to replace it at the higher rates. Alternately, they could increase the rates slightly, undercut the competition, and still make more profit.
Presumably either of these scenarios would lead to them selling more gas and thus making more money. Once they reorder then they're making as much as everyone else, but they've had a short-term spike in sales.
Basically, gas prices at the pump don't seem to follow the normal supply-and-demand curves that would lead to the highest profits for the individual stations...there seems to be some organization at work at a higher level.
Chris
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Billing cycle? What's that got to do with what "they" pay. "They" (whoever "they" is) pay for the fuel, as delivered. Of course "they" could trade on the futures market, but that has it's costs (and profits), too. Why don't you ask "them" to sell you gasoline at the same price for a month at a time (it's called a futures contract).

"They" have to replace whatever is sold.

"They" are called "distributors". "They" have the same problem that you do.
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Somebody wrote:

Chris Friesen wrote:

--------------------------------------- Ever hear of LIFO?
Talk to the accounting gurus.
Lew
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Larry Jaques wrote:

Who is "they"?
If you look at all thats involved in getting oil out of the ground, refined into gas, distributed to the pumps, and sell it at far less than Pepsi, Coke, Water and other significant products AFTER taxing the shit out of it, I generally think about how "they" manage to keep the price so low.
They make a

Thats pretty much how everything works. The percentage raked in by the oil companies is far, far less than that raked in by Coke, Pepsi, Polar water, MicroSloth, and a slew of other companies. Oil companies generally rake in less than 7% profit, BP will rake in a whole lot less than that this year.

The truth is, Ali Bama, AlGore and the gang won't rest until gas is around $8 gallon so they can sell their hot air fans to the unsuspecting public.
--
Jack
Got Change: Inconvenient Truth =====> Convenient Lies!
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wrote the following:

Can you say "economies of scale", Jack? I knew you could. ;)

True. Ali Bama? New one, deeper than it first looks. <vbg> I'd been seeing a lot of Obama bin Biden along those lines, and I'm still waiting for the other veil^H^H^H^Hshoe to drop.
-- All national institutions of churches, whether Jewish, Christian, or Turkish, appear to me no other than human inventions, set up to terrify and enslave mankind, and monopolize power and profit. --Thomas Paine
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