Gas Could Hit $3.75 by Spring

[Youngstownshrimp]

And when many citizens of the Mahoning valley become prosperous in the next few years because of our wealth in energy resources, will we be fat cats too?

[irishbobcat]

(Reuters) - Chevron Corp (CVX.N) and Total SA (TOTF.PA) posted sharp gains in quarterly profit on Friday, the latest among the major oil companies to see their coffers swell on the strength in oil prices.

First-quarter crude prices were nearly double that of the quarter a year earlier, driving up profits for Exxon Mobil Corp (XOM.N), BP Plc (BP.L), Royal Dutch Shell Plc (RDSa.L) and ConocoPhillips (COP.N), which all reported earnings this week.

The huge growth in profits comes as scrutiny of the oil industry increases because of the disastrous oil spill in the Gulf of Mexico, which reached wildlife refuges on the Louisiana coast on Friday.

Chevron's profit more than doubled from a year earlier, in estimate-beating debut results under Chief Executive John Watson. The 30-year Chevron veteran is plotting a familiar course for the company, saying he wants to revive the refining business and stick with its pipeline of oil and gas projects.

"They're in good shape," Edward Jones analyst Brian Youngberg said of Chevron under its new leadership. "There's really no need to make any significant change."

Total's net profit rose 23 percent, matching estimates.

[Dan Moadus]

Who cares about the increased gross profits, that just means they're selling more oil.  What is left for the owners after they pay everyone.  The question is, is what is their net profits, and is it excessive? You'll find that it is typically about the same as most companies, and certainly not any where near the highest.

[irishbobcat]

Big five oil company profits for the first quarter of 2010 vs. first quarter 2009


BP's 2010 first quarter profits were $5.6 billion, a 135 percent increase over the first quarter of 2009. This profit was 50 percent higher than predicted by The Financial Times. Shell announced that its profits had risen by 49 percent since the first quarter of 2009. Chevron's profit was $4.6 billion, a 156 percent increase, while ConocoPhillips had $2.1 billion in profits. The world's largest private oil company, ExxonMobil, had a first quarter profit of $6.8 billion, which was 38 percent more than 2009.

[Dan Moadus]

Ok Dennis, so you don't agree with my facts. Let's see your proof. What do you claim the net profits are of Oil Companies.
Note to readers: If Dennis' response is anything other than a citation of what he claims regarding oil company profits, we should start to look upon anything he says as nothing more than mindless liberal babble.

[irishbobcat]

Sure, Dan.....keep reading the funny papers for your facts......

[Dan Moadus]

Here again Dennis you are just spouting off liberal clap trap, and people are not buying it because it's so easy to go look this stuff up. If you google "oil company profits" you can see that their net profit margin is under 10%. Last year by the way, Google had a 25% net profit margin.  On the hierarchy of profitability, the oil companies aren't anywhere near the top. Yep; as I said liberals and environmentalists = high gas prices. Sorry to trip you up with facts Dennis, but that's how it is.

[irishbobcat]

Oh Please, spare me your neo-con repeated bashing of liberals.....

your fat-cat neo-con oil companies are once again raping the american poor and middle class.....

it's as simple as that.......

[Dan Moadus]

Sorry Dennis, but we aren't talking about flying pigs or moons made of cheese, we are talking about things that can directly be blamed on liberals and verified.  Liberals do want gas prices to soar based on statements that they make. (Obama and Al Gore) And liberals have stopped us from drilling for oil and building refineries and nuclear power plants. Could there be any questions about that? You and your compatriots are beginning to reap what you have sown, and now you moan.

[irishbobcat]

Thanks for playing the blame game, Dan.......

Blame liberals for everything.....

Pigs can't fly....blame liberals

The moon isn't made of cheese.....blame liberals....

The Browns can't win....blame liberals.....

blah blaah blah......get a new script writer....dan

[Dan Moadus]

We are starting to see the tip of the inflation ice berg, caused largely by the Fed's attempt to stimulate the economy by flooding it with newly printed money. Inflation in many goods is sometimes not visible because prices are kept in check by new production method's and competition (think big screen TV's). Inflation usually shows up first in commodities that are limited, such as food and fuel. Generally rising commodity prices are fueled by speculators after some event signaling a coming shortage such as a large crop being destroyed by bad whether or a refinery put out of commission. Ominously, the price rise we are seeing now is a result of no such event. This may be inflation in its classic form, (too few goods, chased by too many dollars).

Of course progressives are happy at this turn of events. Obama said that he thought gas should be at least $4 a gallon. In fact many liberals relish high fuel prices, because it means they are closer to their dream of solar and wind power being able to compete with fossil fuels. That's what Cap and Trade was all about.

So don't look to Obama doing anything that would drive speculators away from oil, such as reauthorizing drilling in the Gulf or opening up any new lands to drilling. As you "fill up" remember who helped bring this on (Liberals, and Environmentalists).

Also, be prepared for the blame to be immediately placed on the oil companies. But remember; they don't control the price of gas, because if they did gas would never have come back down to $2.50 a gallon once they got it to $4. It is soley a supply and demand effect, driven by speculation.

[irishbobcat]

With fuel prices in a temporarily lofty spot thanks to the holidays, it's hard to think of the price of a gallon of gas as a bargain, but according to the former president of Shell Oil, that's exactly what it is compared to what we'll see just one short year from now. While speaking with Platt's Energy Week Television, John Hofmeister said that he fully expects gas prices to be above $5.00 per gallon by the end of 2012. That stance puts Hofmeister firmly in the worst-case scenario club, though other analysts are barely any jollier in their predictions.

Tom Kloza, who serves as the chief oil analyst with Oil Price Information Service, believes that Hofmeister's predictions will come true, just not in the time-frame that the former Shell head honcho has predicted. Instead, Kloza says that he expects $5.00/gallon fuel to show up within the next decade. If so, we can probably expect to see a repeat of the financial shock that occurred when fuel prices shot up in mid-2008. The predictions are enough to make us a little queasy, so you have to really feel for our friends in Blighty – the UK recently saw gas prices spike to $7.30 a gallon. What will their prices be in 2012?

[joly1584]

This morning gas was $3.18 at Belle Vista & Mahoning.

[Why?Town]

Gas at the Salt Springs rd truck stop was $3.09 teh other day. It's $2.99 today.

[jay]

I passed a station this morning.  Gas was $3.09

I passed the same station this afternoon.  The gas was now $3.19.