Hey haut, straight from Big Oils mouth

[KaGee]

Re: Hey haut, straight from Big Oils mouth

Well the BP plant in texas would be a GOOD example of one of the worst refinerys in the USA


In order to boost profits they gambled on matiance and saftey and lost



Tommays

Tom, I have a personal friend that works at the local BP refinery here... they are always doing something in the way of upgrades or maintenance and he is always working 12 hour shifts because of it.

 

[dirtyoldman]

Re: Hey haut, straight from Big Oils mouth

You guys are right. Big oil makes too much money. I want to make too much money as well. Here's how I'll do it:

1) Begin doing maintenance on all my equipment. It need maintenance anyway. We'll be own for a few months, but the prices for equipment we aren't making will go higher. Of course we're buddies with our competition, and the fact that they are making more money is nearly as good as making money myself.

2) Cut new plant expansion projects. This will have the benefit of raising margins, but the downside is that we'll have to sacrifice production. Oh, well. 15% of millions of dollars is still a big number, right?

3) Run at 100% capacity. I love paying my employees overtime and increased maintenance costs associated with running equipment into the ground.

4) Increase my competiton. I like being nervous about the Chinese or Indians being able to supply my product. I always say share the wealth!

5) I'd like to have more governmental control that will make my product very hard to make and make me subject to congressional investigations if not made right of if my margin is "too" high. I love it when people are unhappy with me all the time.

 

[dirtyoldman]

Re: Hey haut, straight from Big Oils mouth

Don't get me wrong. I have nothing to do with oil. I hate paying high prices.

But what other company in the US do we expect to minimize margins out of the good of their own heart? If you tell me to do it I say "NO!" And oil is supposed to be different? Know what keeps my prices low? It's when I know that my competition has been talking to the customer. It's when I want that job and am worried that employees may be laid off if I don't make this sale.

So, if you want to kep my price low the best way to do it is to keep competition high.

That said, why are we fighting new refineries? Why are we coming out with new as requirements and laws that mandate much exta refining capacity?

 

[kenimpzoom]

Re: Hey haut, straight from Big Oils mouth

Hey Ken here is something I just stumbled across, makes pretty good reading .A few excerpts.

HHmmm…seems to be a bit if discrepancy somewhere between your 4-6 percent margins and this fellows $30 dollar profit per barrel, guess we will have to hone in on that one wont we?

The 4-6% was all during the 90s and up to around 2004. Now they are making better margins, and very recently very high margins. These high margins are good for the plants that are producing, they are bad for those shut down (hurry up and get it fixed!!!!! ).

FYI, I just paid 2.89 yesterday down 10 cents. I predict it will level off at 2.50 this summer.

Ken

 

[kenimpzoom]

Re: Hey haut, straight from Big Oils mouth

Tom, I have a personal friend that works at the local BP refinery here... they are always doing something in the way of upgrades or maintenance and he is always working 12 hour shifts because of it.

The media has pounced on cost cutting as the cause of the BP explosion, and it played a minimal role. Incompetence, poor supervision, and putting trailers next to a refinery was the cause. BP was 100% at fault and messed up bigtime and still to this day that refinery is at about half capacity. Their mistakes cost blood and money.

Ken