Cost of OPEC to produce a barrel of oil...

[krazyace5]

$4, Then they sell it on the open market for $70!?!

Talk about a scam....

[Dynasty]

Capitalism rocks. Good for them.

[krazyace5]

[ QUOTE ]
Capitalism rocks. Good for them.

[/ QUOTE ]

Monopolies rock...

[Warik]

I seriously doubt it only costs them $4 to produce a barrel.

However, I also even MORE seriously doubt $70 is an even remotely fair price. /images/graemlins/smile.gif

[Sponger15SB]

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$4, Then they sell it on the open market for $70!?!


[/ QUOTE ]

This is pretty much nothing compared to a lot of products.

Stuff like perfume and lipstick costs like 5 cents to make.

[Arnfinn Madsen]

A lot of the oil on the world market has a considerable lower production cost (about 50c pr barrel) while some is at above $10 per barrel.

[Voltron87]

yeah this whole world free market economy is total [censored] the USA over. were seriously hemorraging cash here.


maybe if we didnt use oil in such a wasteful fashion...

[mason55]

[ QUOTE ]
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$4, Then they sell it on the open market for $70!?!


[/ QUOTE ]

This is pretty much nothing compared to a lot of products.

Stuff like perfume and lipstick costs like 5 cents to make.

[/ QUOTE ]

At least with those you can pretend you are paying someone extra to design it for you.

[jakethebake]

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However, I also even MORE seriously doubt $70 is an even remotely fair price. /images/graemlins/smile.gif

[/ QUOTE ]

if someone pays it, it's fair.

[mason55]

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[ QUOTE ]
However, I also even MORE seriously doubt $70 is an even remotely fair price. /images/graemlins/smile.gif

[/ QUOTE ]

if someone pays it, it's fair.

[/ QUOTE ]

In fact I would maintain that we are ripping OPEC off. If there are gas shortages in certain areas that means that demand is outpacing supply and prices should be raised.

[Voltron87]

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However, I also even MORE seriously doubt $70 is an even remotely fair price. /images/graemlins/smile.gif

[/ QUOTE ]

if someone pays it, it's fair.

[/ QUOTE ]

jake is basically right. although if there was a monopoly on water and a business were letting people die of dehydration and jacking water up to a G a gallon, i would say that was unethical. all stupid hypotheticals aside, hes right.


people tend to forget, if the USA didnt buy so much oil from the saudis their tents would be falling apart. the saudis are as dependent on our $$ as we are on their oil, if the USA smartened up and used oil more efficiently we would be in much better shape. right now the saudis basically empty tankers of oil at us shores, fill it up with 100 dollar bills and repeat. and we use more and more oil every year.

[krazyace5]

[ QUOTE ]
[ QUOTE ]
$4, Then they sell it on the open market for $70!?!


[/ QUOTE ]

This is pretty much nothing compared to a lot of products.

Stuff like perfume and lipstick costs like 5 cents to make.

[/ QUOTE ]

Actually diamonds are alot like this to, plentiful but marketed as rare....

[sfer]

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Capitalism rocks. Good for them.

[/ QUOTE ]

Monopolies rock...

[/ QUOTE ]

OPEC isn't a monopoly.

[LethalRose]

Microprocessors cost on average 40 cents. Most of your money goes to research and advertising.

[Cancer Merchant]

Two words: bottled water.

[Sponger15SB]

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Capitalism rocks. Good for them.

[/ QUOTE ]

Monopolies rock...

[/ QUOTE ]

OPEC isn't a monopoly.

[/ QUOTE ]

Why not just say "OPEC is actually a cartel"

[utmt40]

http://i15.photobucket.com/albums/a361/utmt40/gasleg.gif
http://i15.photobucket.com/albums/a361/utmt40/gas.gif

[Jules22]

lol!!! nice cartoons

[morello]

Where is your $4 figure coming from? I highly doubt it is accurate.

[wonderwes]

We are the leader in SUV's. When you come to think of all the major countries and their cars, no one comes close to us in SUV/citizen ownership. Back in the 80's people wanted big cars so the mini-van became the new thing. In the early 90's all these home moms (sexist, I know) wanted a big car but didn't want to drive a mini-van. Answer? The craze of SUV's sales goes on the rise. Look how many car makers made SUV's back them. Ford had a bronco, Chevy had the suburban, and there were a few other car companies in the mix. Now every single auto maker has one if not multiple SUV models.

We have been wasting gas for decades now. Oh yeah, airline flights are only going to cost more now.

[Voltron87]

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Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

im pretty sure its accurate. however it doesnt factor in other economic costs, the fixed costs of research, building the oil rig/driller, the infrastructure to move the oil. but once thats all paid for it is not expensive to get more oil out of the ground.

and not all oil is created equal. some is next to impossible to get out of the ground. people have this idea that oil sits in lakes underground, but what actually happens is that is drained up out of rocks and solid ground, using pressure and drilling tools. some is easier to get out, there is a natural force, and in some cases it is extremely difficult and would cost more.

[morello]

[ QUOTE ]
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Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

im pretty sure its accurate. however it doesnt factor in other economic costs, the fixed costs of research, building the oil rig/driller, the infrastructure to move the oil

[/ QUOTE ]

Then it can't be accurate!

It's like saying "Intel charges $100 for a processor when it costs 30 cents to make!" While that may be true, they spend millions on these "other" costs (mostly research).

Not including them is silly, especially in an argument that's trying to claim an enormous markup is being made.

[Kanchi]

Is this the year of peak oil /images/graemlins/shocked.gif?

[Voltron87]

[ QUOTE ]
[ QUOTE ]
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Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

im pretty sure its accurate. however it doesnt factor in other economic costs, the fixed costs of research, building the oil rig/driller, the infrastructure to move the oil

[/ QUOTE ]

Then it can't be accurate!

It's like saying "Intel charges $100 for a processor when it costs 30 cents to make!" While that may be true, they spend millions on these "other" costs (mostly research).

Not including them is silly, especially in an argument that's trying to claim an enormous markup is being made.

[/ QUOTE ]

well, it is accurate. right now, they oil refinery in question could produce another barrel for 4$. (or whatever the marginal cost of a new one is)

youre right, but in this case your wrong. when the fixed costs have been covered, then it really does cost 4$ for another barrel. and from an economic standpoint what the investment group who started the oil refinery paid to set it up is moot. kind of like dead money in the pot.

[krazyace5]

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Where is your $4 figure coming from? I highly doubt it is accurate.

[/ QUOTE ]

Bill O Reilly said that figure on the factor.

[tonypaladino]

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Where is your $4 figure coming from? I highly doubt it is accurate.

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Bill O Reilly said that figure on the factor.

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No Spin Baby

[Il_Mostro]

[ QUOTE ]
Is this the year of peak oil ?

[/ QUOTE ]
Probably not. Though ASPO now says it was last year. But there is a lot of mixed signals... Mike Lynch is claiming we will see an unprecedent build-up in production-capability the coming 10 years.
But he also said,a year ago, that oil would be 30$ by now, so who knows who to trust.

[Il_Mostro]

Sorta funny, but wildly inacurate. Oil is cheap cheap cheap.