Sunday, August 2, 2015

When Oil is $52/Barrel

Chevron has been able to bring down the cost of producing oil by 20 - 50% over the last three years.  How?  How do you get production costs down so far so fast?
The companies are also seizing savings amid the downturn, particularly in the U.S. Jay Johnson, a Chevron executive vice president, said the company had been able to bring down the cost of tapping oil and gas by 20% to 50%, making it profitable to drill some new prospects even at today’s oil prices. Exxon has operated at a lower cost on U.S. soil over the last three years than many smaller drillers, said Jeff Woodbury, head of investor relations. But both companies reported losses from their U.S. oil-and-gas drilling operations through the first half of the year, as have rivals BP PLC and ConocoPhillips.
Maybe it never actually cost that much, they only spent that much.  Being in control by government preference of everything from drilling, refining and retailing,  you can play all sorts of games to keep the cash flowing in.

That's how come at $52 a barrel, we are still paying $3.50 at the pump, whne it should be maybe $2.

Capitalism sucks, we need free markets.

Feel free to forward this by email to three of your friends.


Anonymous said...

I've been very curious about this situation in society, the price at the pumps in correlation to the price per barrel coming down.... I'm really surprised there hasn't been a massive movement of some sort, in action and word protesting to this obvious evil against us. The price per barrel is almost half of what it's been/was, and yet the price to us at the pump hasn't changed....