Darn economy!

awa1979 · #1 02-01-2009, 03:09 AM

The oil companies profits are huge for sure when you look at it, but when you look at the total revenue of many of the companies, the profit margin for some is only around 10%, its not a cheap business to be in.

Snaz · #2 02-01-2009, 03:18 AM

Q: Why is oil selling for ~ $30.00 / barrel and I am paying $0.94 / litre?
A: Cash grab by the oil companies and their distributors.

Shameful. Nothing improves an economy quicker than cheap gas, why are we not being passed the savings by the oil companies?

Tom R · #3 02-01-2009, 04:08 AM

Don't you just get sick and tired of the oil companies. They close a refinery putting people out of work. Then the next day they increase the price of gas due to production shortages caused by the closed refinery. If it isn't the oil companies its the oil speculators.

Tom R

hillbillyreefer · #4 02-01-2009, 04:50 AM

If you don't like how the oil business is run, put up a few million of your own bucks and start one. Then you'll get it.

I don't make a living off the business and I don't feel sorry for them, but they are in it with us. Their costs have risen dramatically over the last few years, service companies want their piece of the pie too. Now the oil companies are cutting back and everyone is complaining. Once the service companies cut back their prices they'll go back to work. It's a cycle it's happened before and it WILL happen again.

I do feel for everyone who has lost their job. I do hope it will be short lived. You never know maybe your next job will be the one that makes you want to go to work, instead of just have to go to work.

awa1979 · #5 02-01-2009, 05:00 AM

Quote:

Originally Posted by Snaz

Q: Why is oil selling for ~ $30.00 / barrel and I am paying $0.94 / litre?
A: Cash grab by the oil companies and their distributors.

Shameful. Nothing improves an economy quicker than cheap gas, why are we not being passed the savings by the oil companies?

Remember not all of that goes to the oil companies.

6.75¢ per litre BCTFA
12¢ per litre Translink
1.75¢ per litre Provincial Gasoline

Total: 20.50 cents per liter in taxes, not including the carbon tax or GST.

Take away the taxes, and we are not paying much more then some areas of the US.

Source

digital-audiophile · #6 02-01-2009, 02:20 PM

Being in the pipe business, we have seen our costs double from $900/Tonne to over $1800/tonne. These costs of course get passed on to the oil compaines putting the steel in the ground. So perhaps the price of a barrel of oil has dropped by $100, the cost to drill the wells is still the same as it was when oil was $147.

If you think about it:

Calgary gasoline is ~$0.83/Litre
Coffee at Tim Hortons ~$5.00/Litre

My two cents

Red Coral Aquariums · #7 02-01-2009, 03:39 PM

Calgary gasoline is ~$0.83/Litre
Coffee at Tim Hortons ~$5.00/Litre

The real canadian black gold

It doesn't jump start our economy but it gets my little business going in the morning. LOL

Kevin

Tom R · #8 02-01-2009, 04:00 PM

I own 30% of a small manufacturing company (kitchen cabinets). We compete with approx. 120 small companies making the same products in our immediate area and 100,000's more world wide. We sell in Canada, Japan and the USA and can be competitive in each market with other manufacturers selling in that area. We all buy the same raw materials and use the same basic methods of construction. Yet none of us charge the same for our products. We have all used our expertise to modify and mechanize our production thus giving us a different efficiency and final cost.

Yet it never ceases to amaze me the oil companies can all produce their products within a 10th of a cent the same in an entire province. (can you say price fixing) oh no that would be illegal.

Tom R

hillbillyreefer · #9 02-01-2009, 04:14 PM

How many investigations have been launched by government into price fixing by the oil companies? None have ever been able to conclude there is price fixing or collusion.
If joe charges 78.9 and pete across the street is charging 79.9 obviously joe is going to get the business. Pete looks across the street at the sign sees 78.9 and realizes why his station is slow. Drops price to 78.9 business picks up. Pretty easy to match prices when they are displayed on the sign in numbers that are 18" tall.

Now lets all go make our tinfoil hats.