With so much at stake, why no federal investigation

[bctbct]

Oil prices are sky rocketing, would a federal investigation slow them down? This would probably be considered tampering with a "free market", but I think the end would justify the means.

 

[EagleKeeper]

Oil prices are mainly determined by futures oil trading - world wide.

 

[Steeplerot]

Originally posted by: EagleKeeper
Oil prices are mainly determined by futures oil trading - world wide.

But of course investigating into the fact that this may not be totally true would help nothing, accountability, feh.

*reaches for that load of cash from oil exec*

 

[eilute]

The only thing I think we can do is build nuclear plants and require that all new cars be super efficient hybrids.

It would also be good if we could increase the supply without increasing the cost of exploration. I don't think anyone has an iota of an idea how to do this though.

 

[CaptnKirk]

Looks like the same kind of trade speculation that Enron was engaged with in their energy trading.

Could be - friends of 'Who' active in controling the market ?

 

[bctbct]

Do you guys think that an investigation would lower prices? Just heard on the news that gas is over $4 in some parts of CA.

 

[Moonbeam]

Americans will eat their children if it would lower the price of gas. We elect clowns to govern us and blame others when the circus comes to town. We earn everything we get.

 

[blackangst1]

An "investigation" would be a fruitless endeavor. Study up on futures trading and how OPEC works and you will understand. It's not oil companies that set prices

 

[bctbct]

Originally posted by: blackangst1
An "investigation" would be a fruitless endeavor. Study up on futures trading and how OPEC works and you will understand. It's not oil companies that set prices

I was wondering if it would have the same effect of a stock securities investigation on stock

 

[blackangst1]

Originally posted by: bctbct

Originally posted by: blackangst1
An "investigation" would be a fruitless endeavor. Study up on futures trading and how OPEC works and you will understand. It's not oil companies that set prices

I was wondering if it would have the same effect of a stock securities investigation on stock

Nope. Commodities markets are not really "governed" the way the US stock market is. It would kind of be like the US trying to impose it's rules on a foreign stock exchange...impossible.

As far as oil prices go, that is the job of OPEC, not oil companies. And the USA isnt a member of OPEC anyway. From Wikipedia:

The Organization of the Petroleum Exporting Countries (OPEC) is made up of Algeria, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates and Venezuela; since 1965 its international headquarters are in Vienna, Austria.

The principal aim of the Organization, according to its Statute, is "the coordination and unification of the petroleum policies of [its] member countries and the determination of the best means for safeguarding their interests, individually and collectively; [devising] ways and means of ensuring the stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations; [giving due regard] at all times to the interests of the producing nations and to the necessity of securing a steady income to the producing countries; an efficient, economic and regular supply of petroleum to consuming nations, and a fair return on their capital to those investing in the petroleum industry."

http://en.wikipedia.org/wiki/Opec

 

[blackangst1]

Originally posted by: Steeplerot

Originally posted by: EagleKeeper
Oil prices are mainly determined by futures oil trading - world wide.

But of course investigating into the fact that this may not be totally true would help nothing, accountability, feh.

*reaches for that load of cash from oil exec*

You're terribly misinformed...(what a suprise). Oil execs have ZERO to do with the price of oil. See my post below about OPEC.

 

[tommywishbone]

The millionaires & billionaires that run the show, could not care any less about $3.50 per gallon gas.

 

[3chordcharlie]

Oil prices change constantly, but when the federal government in Canada investigated price fixing in gasoline, the price magically changed less than once a week for the entire year of the investigation. Before and after, prices changes have averaged more than one per day.

 

[jackschmittusa]

The net profits made by the oil companys in recent quarters suggest that they do have a significant influence on gas prices. And the average guy doesn't really care about oil prices, just the retail price of gas.

 

[blackangst1]

Originally posted by: jackschmittusa
The net profits made by the oil companys in recent quarters suggest that they do have a significant influence on gas prices. And the average guy doesn't really care about oil prices, just the retail price of gas.

Yes, but the profits of oil companies also are in line with the OPEC price/barrel. *shrug*

 

[bctbct]

But wouldnt an investigation make some investors nervous that the prices would fall, hence lowering the price at the pump?

 

[Moonbeam]

The oil companies are investigated up the ass and their is nothing ever found. You clowns are paying high prices for the simple reason that you elect morons who continue with the fossil fuel circus show. The nation needed a war to get onto solar 40 years ago. There is only one plan in America and that is how to get elected and stay there. America is a bird that sh!ts in its nest. Enjoy.

 

[LegendKiller]

Originally posted by: jackschmittusa
The net profits made by the oil companys in recent quarters suggest that they do have a significant influence on gas prices. And the average guy doesn't really care about oil prices, just the retail price of gas.

This is what pisses me off about America. Everybody is willing to just swallow a number and cry foul.

Let me ask you. If you one year made $100 and only $10 of that was profit, and then the next year you made $200 and only $20 was profit, do you suddenly say you are more profitable? In absolute dollar terms, yes, but that doesn't mean crap when it comes down to making money.

Ratios, %, makes the difference, not absolute dollars. Whether the stock market goes up or down by 200 points means nothing unless you put it in relativity to another number, whether that is 10,000 or 100,000.

The oil companies get charged more for oil and they pass that on. Of course it's not going to be a 1:1 ratio, since operating costs and other costs are not linear with their product, that is just given. It is logical.

However, given the fact that the general American populace only want to blame others for their stupidity (ie SUVs) they are willing to pass the buck to the oil companies.

Ignorance to this fact is common. People would rather go into hysteria than study the problem (nuclear power, finance...etc) and come to a logical conclusion once all data is presented.

Personally, I hope oil hits $150/barrel, gas hits $6, and this country gets a rude awakening into reality. I hope exxon's profits go even higher, at least the pension, 401k, and other funds can benefit from it then.

 

[blackangst1]

Originally posted by: LegendKiller

Originally posted by: jackschmittusa
The net profits made by the oil companys in recent quarters suggest that they do have a significant influence on gas prices. And the average guy doesn't really care about oil prices, just the retail price of gas.

This is what pisses me off about America. Everybody is willing to just swallow a number and cry foul.

Let me ask you. If you one year made $100 and only $10 of that was profit, and then the next year you made $200 and only $20 was profit, do you suddenly say you are more profitable? In absolute dollar terms, yes, but that doesn't mean crap when it comes down to making money.

Ratios, %, makes the difference, not absolute dollars. Whether the stock market goes up or down by 200 points means nothing unless you put it in relativity to another number, whether that is 10,000 or 100,000.

The oil companies get charged more for oil and they pass that on. Of course it's not going to be a 1:1 ratio, since operating costs and other costs are not linear with their product, that is just given. It is logical.

However, given the fact that the general American populace only want to blame others for their stupidity (ie SUVs) they are willing to pass the buck to the oil companies.

Ignorance to this fact is common. People would rather go into hysteria than study the problem (nuclear power, finance...etc) and come to a logical conclusion once all data is presented.

Personally, I hope oil hits $150/barrel, gas hits $6, and this country gets a rude awakening into reality. I hope exxon's profits go even higher, at least the pension, 401k, and other funds can benefit from it then.

Actually Jack said it correctly...NET PROFIT. NET. Although youre correct on your analysis of profit, oil companies continue to have record breaking PROFITS. Not just income.

 

[LegendKiller]

I never disputed that "NET PROFIT" or (Total Revenue - Total Profit) or "bottom line", was a record breaking event. However, the significance of that event is worthless. It has absolutely no sigificance. It makes jackschnitt difference whether you double your absolute "net profit" if your expenses go up by just as much. Which is the point people miss, it doesn't matter if you make $20 off of $200 or $10 off of $100, you are still making only 10%. Now, if they were making $50 off of $200, or 25% profit, it would matter, but they aren't.

People grab onto the absolute number and treat it as some type of major number. *IT DOESN'T MATTER* as long as they are making the same (or near the same) %. Relative numbers are all that matter.

Why the hell do finance people, statisticians, and anybody else that uses quantitative analysis use relative numbers? Because it's the only way to put numbers in perspective.

EPS, profit, ROE, ROA, P/E, they are what matters, not just some stupid dollar figure that knuckle dragging morons attach themselves to.

 

[blackangst1]

Originally posted by: LegendKiller
I never disputed that "NET PROFIT" or (Total Revenue - Total Profit) or "bottom line", was a record breaking event. However, the significance of that event is worthless. It has absolutely no sigificance. It makes jackschnitt difference whether you double your absolute "net profit" if your expenses go up by just as much. Which is the point people miss, it doesn't matter if you make $20 off of $200 or $10 off of $100, you are still making only 10%. Now, if they were making $50 off of $200, or 25% profit, it would matter, but they aren't.

People grab onto the absolute number and treat it as some type of major number. *IT DOESN'T MATTER* as long as they are making the same (or near the same) %. Relative numbers are all that matter.

Why the hell do finance people, statisticians, and anybody else that uses quantitative analysis use relative numbers? Because it's the only way to put numbers in perspective.

EPS, profit, ROE, ROA, P/E, they are what matters, not just some stupid dollar figure that knuckle dragging morons attach themselves to.

Actually, hard numbers DO matter. Especially for people like me who own stock in oil companies

 

[LegendKiller]

Then you are buying stock for the wrong reason. Being in the investment community, having studied it ad nauseum, I can tell you that absolute numbers, in the way many people interpret them (including Jack), mean jack squat.

If somebody were to tell you that they could double your profit within a year, you would wonder how. If they were to tell you that the only way for you to do that would be to invest double the amount, then you really haven't gone anywhere have you? Sure, you have made $20 instead of $10, but you have $200 invested rather than $100.

 

[blackangst1]

Originally posted by: LegendKiller
Then you are buying stock for the wrong reason. Being in the investment community, having studied it ad nauseum, I can tell you that absolute numbers, in the way many people interpret them (including Jack), mean jack squat.

If somebody were to tell you that they could double your profit within a year, you would wonder how. If they were to tell you that the only way for you to do that would be to invest double the amount, then you really haven't gone anywhere have you? Sure, you have made $20 instead of $10, but you have $200 invested rather than $100.

I understand where you are coming from. I use this same argument against those who think the rich should pay more in taxes. They dont understand percentages.

It's getting off topic, but I bought this stock for one reason only-long term gains. Not exactly the wrong reasons

 

[bctbct]

Investigation announced, price drop. Guess that answeres my original question. Sign me up for the Class Action Lawsuit.