I was generally referring to imported oil prices and profit margins as that is where most of it comes from. Fritz
________________________________ From: Brian Riordan [mailto:riordan.br...@gmail.com] Sent: Thursday, December 11, 2008 3:43 PM To: Fritz Holt Cc: David; Texascavers Mailing List Subject: Re: [Texascavers] OT - price of gas It all depends. A classic Texas gusher takes nothing to get a lot. Deepwater fields cost a certain amount to initiate, produce and transport, if the current price doesn't offset that, they lose, while the Texas gusher may still make money. Canadian Oil Sands require even more to upgrade the oil (besides, who the hell wants to work in Northern Alberta, just take a look at housing prices! http://www.colinhartigan.com/view_listing.php?listing=mls&id=8320001070)- it takes so much energy to produce the crude oil here, that without a high oil price, it doesn't make sense to dig it up. If a company initiates a project because it became economical at 80 bucks a barrel, they may lose money on that field for every day of production under 80 bucks/barrel, while the Texas gusher STILL makes money. To oversimplify... On Thu, Dec 11, 2008 at 3:04 PM, Fritz Holt <fh...@townandcountryins.com<mailto:fh...@townandcountryins.com>> wrote: Oil companies are complaining because oil has dropped from $140. a barrel to below $50. Some years back when oil was at or below $20. they said if only the price could get back to $30. Although, I have read where the oil companies/refiners do not make a higher percentage of profit when oil prices are high. There are advantages and disadvantages when oil and Gasoline prices are high. I personally prefer it at the current price of $1.48 at Sam's. Fritz -----Original Message----- From: David [mailto:dlocklea...@gmail.com<mailto:dlocklea...@gmail.com>] Sent: Thursday, December 11, 2008 1:26 PM To: Texascavers Mailing List Subject: [Texascavers] OT - price of gas I saw gas for $ 1.34 yesterday. I heard one analyst say that if the economy continues at its current pace, that gas could fall to 99 cents per gallon in some places. Where I live, there does not appear to be a decrease in demand for gas, so to me the huge price drop of $ 2.50 per gallon seems surprising. I am not going to complain though. I feel that someone illegally profited from the sale of gas this past summer when gas prices were at an all-time high. Maybe it wasn't illegal, but certainly greedy, or something like price-gouging. David Locklear --------------------------------------------------------------------- Visit our website: http://texascavers.com<http://texascavers.com/> To unsubscribe, e-mail: texascavers-unsubscr...@texascavers.com<mailto:texascavers-unsubscr...@texascavers.com> For additional commands, e-mail: texascavers-h...@texascavers.com<mailto:texascavers-h...@texascavers.com> --------------------------------------------------------------------- Visit our website: http://texascavers.com<http://texascavers.com/> To unsubscribe, e-mail: texascavers-unsubscr...@texascavers.com<mailto:texascavers-unsubscr...@texascavers.com> For additional commands, e-mail: texascavers-h...@texascavers.com<mailto:texascavers-h...@texascavers.com>
