Thread: Oil Slick Stuff

Originally Posted by Buster

Yeah I watched that as the CEO calmly said he made 1.1 milliom dollars a month income..Then asked what he does with these record breaking quarterly profits..he said we reinvest them...IN WHAT!?!?, their personal incomes???!!??..How about building a few more refineries.

the blame lays at Congress feet far more the oil co's for the increase in costs etc.

Congress has had numerous opportunities to come up with a sound economic energy policy for years and years yet rarely does anything pass thru that isnt restrictive and drives the price up.. from limiting drilling to piling on taxes to a cost per gal of fuel.

For example:

in california, oil companies make on avg a dime on a gallon, whereas taxes make up for 62 cents (source: http://www.energy.ca.gov/gasoline/margins/index.html)

are we forgetting who the real robber baron is?

Originally Posted by Bullitt

Yeah I just heard our local prices are up 32 cents in the past month.

Love to Bike,

I hear ya with that short Oil play, but be careful when shorting a bubble. A friend of mine persistently shorted CROX last year because of the same reasons. He got hammered initially, but got lucky in the end. You don't even have to be a stock market genious to realize it's completely out of hand just by looking at a long term price chart of Oil. I don't think it's any different this time.

If there's anything to make you feel better, China bought buku shares of BX at the top and now they've moved on to stockpiling Oil at all time highs.

Well I didn't exactly put all my retirement money in this short - I certainly don't want to get it in the shorts, so to speak.

However I'm confident that the money I put in will be well (pun intended) invested.

..and if you are wondering where the real money is going from oil cash....

Originally Posted by Bullitt

If there's anything to make you feel better, China bought buku shares of BX at the top and now they've moved on to stockpiling Oil at all time highs.

Which is exactly what BA was doing until Congress put a stop to it - buying oil at inflated price and stockpiling it - putting money in their friends pockets. Only difference is our oil is not nationalized, so we pay the price now but don't get the profit later. It's big oil and their friends in Congress and financials who are buying beaucoup shares and will reap the profits...now and later.

Originally Posted by Buster

Yeah I watched that as the CEO calmly said he made 1.1 milliom dollars a month income..Then asked what he does with these record breaking quarterly profits..he said we reinvest them...IN WHAT!?!?, their personal incomes???!!??..How about building a few more refineries.

They reinvest them in speculation in the market, that's what's driving the price now...

Originally Posted by Asylum

..and if you are wondering where the real money is going from oil cash....

they can do that...but our government can't build safe levees and bridges or restore wetlands. POLITICS!

Actually, oil is now only a very small part (last I heard 3%) of Dubai's total economy, they were smart enough not to depend on oil and are a historical trade center to boot. Admittedly they did use oil money to get to where they are but they aren't there simply because of the rising oil prices of late.

On the other hand, the oil dependent economies like Saudi Arabia are sliding down the falling dollar and getting smacked with higher commodity (food) prices, splitting the haves and have-nots further apart.

Originally Posted by Silverbird

Actually, oil is now only a very small part (last I heard 3%) of Dubai's total economy, they were smart enough not to depend on oil and are a historical trade center to boot. Admittedly they did use oil money to get to where they are but they aren't there simply because of the rising oil prices of late.

On the other hand, the oil dependent economies like Saudi Arabia are sliding down the falling dollar and getting smacked with higher commodity (food) prices, splitting the haves and have-nots further apart.

gosh, I wonder who bought all of that land?

here's an idea: think about who is spending all of the money that makes up the other 97% of that economy....

Originally Posted by Asylum

gosh, I wonder who bought all of that land?

here's an idea: think about who is spending all of the money that makes up the other 97% of that economy....

Hrmm. Buy land? No I think it's leased and belongs to the Crown, but I could check if your really are curious. Leasees include Finance companies, hotels, rich oil princes (:toung, gold trade, commercial shipping, luxuary goods, bulk goods (Dubai's a major port). Also they have a very low population since there's not much water there - water reclamation is a major industry. What you don't want to be is a guest worker in construction, it's gotten better than it was a couple years ago but it took some major scandals to get there.

My point is, oil isn't getting most of the oil coutries much of anywhere. Dubai has one of the smallest reserves left in the area and will most likely run out in the next 20 years, or so they say. The guys with the big reserves seem to have only picked up a lazy rich class as a result of their money in the ground.

Originally Posted by Asylum

gosh, I wonder who bought all of that land?

If you're referring to the photo you posted...those are man-made islands offshore Dubai built and paid for by investors and the government, not "bought land," and they still own them - it's a money-making resort area, not a "settlement." More are being created and developed. Hence my comment about our government's lack of initiative and ability...

Originally Posted by luv2read

If you're referring to the photo you posted...those are man-made islands offshore Dubai built and paid for by investors and the government, not "bought land," and they still own them - it's a money-making resort area, not a "settlement." More are being created and developed. Hence my comment about our government's lack of initiative and ability...

Not to dispute your comment about our government, cause I agree 100%, but there is something to be said about a governement where dissenting voices are squelched, some things do get done, like drilling for our own oil. There's quite a group I'd love to throttle in our congress.

CB