Damn those dastardly BIG OIL Companies and their BIG PROFITS

S. Lindsey's picture

A field that could hold 3 BILLION barrels + of oil is now being exploited finally after 10 years of research and 2.7 BILLION DOLLARS of GASP… PROFITS.

Currently Chevron Corp is paying $500,000 A DAY to drill for this massive field that runs from the Gulf all the way down to South America.

The new well off the coast of Louisiana will connect to a huge platform floating nearby, which cost Chevron $650 million to build.

With no guarantee it would pay off.

Chevron went there, an hour-long helicopter ride south of New Orleans, because so many of the places it would rather be -- big, easily tapped oil fields close to shore -- have become off-limits much of the U.S. roped off because of environmental regulations.

In a time when our Energy needs are growing and we are being strangled everywhere, as well as, here be those America loving Democrats you can THANK a Big Oil Company.

At least they are trying to keep your gas under $3 bucks a gallon. But don’t expect it to go down.. Not when they have to drill in 4300 feet of water and are subject to the whims of nature.

Now how about those PROFITS?

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Calculations
Submitted by imagine that on Thu, 01/07/2010 - 6:12pm.

S. Lindsey, I'm sure your numbers are acurate as to the $500k/day costs. I decided to do a little math myself just to compare cost vs. profits. I used a recent, admittedly record number of $6B, as reported, quarterly profit and divided it by 121 days in a quarter. The amazing number I got was $4.96M per day. This number IS profit--not revenue. I wish I could get returns like this on my business investments--don't you?

Let us remind the people what is meant by profits....

Revenue - costs = profit.

So, I guess those costs were really nothing more than an investment in their business. Isn't this what business is all about?

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Imagine..Think about this
S. Lindsey's picture
Submitted by S. Lindsey on Fri, 01/08/2010 - 9:22am.

2.7 Billion PLUS was spent on just 1 well. You cannot compare total profits vs cost of 1 well.. you have to take in the totallity of the R&D dept plus the daily grind of ALL EXISTING WELLS, SHIPS, PLATFORMS, PAYROLL, and the EXPLORATION of all other POTENTIAL wells.. etc.

BUT that was not the point... Remember Congress tried to make profits EVIL and threatend to sieze them?

Just how much oil would we be pumping if that occured? Were you ready to pay $4 and $5 dollars a gallon? Just sayin..

Remember "BIG OIL" gets about a 4% return on each gallon of gas sold.. AND they do ALL THE WORK AND TAKE ALL THE RISK.. The FEDERAL Government gets 15% per gallon of gas sold and does NOTHING for it..

"Is life so dear or peace so sweet, as to be purchased at the price of chains and slavery? Forbid it, Almighty God! I know not what course others may take, but as for me, give me liberty or give me death!" ~~ Patrick Henry
"Illegitimus non carborundum"


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Big Oil
NUK_1's picture
Submitted by NUK_1 on Wed, 01/06/2010 - 11:27am.

I hardly am going to rush to congratulate companies for trying to be profitable. Chevron is not doing this because of any other reason, nor should they. Oil exploration and drilling has always been a crap-shoot to begin with and I don't have any sympathy whatsoever for their challenges in dealing with those issues or environmental regulation. TOUGH. That's the nature of their business and they thrive regardless. They make plenty of good profit and what they are doing now isn't some humanitarian gesture or anything else...it's to make more profit. That's the way it should be. Do they need some kind of "thank you" for that?

As far as prices at the pump, retailers have bumped their margins from a few pennies a gallon to 15-20cents/gallon at the pump once gas hit $4.00/gallon and they have mostly held that margin in the aftermath. They changed their profit margins when they had the chance and pump prices aren't going to come tumbling down suddenly.


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Missed point
S. Lindsey's picture
Submitted by S. Lindsey on Wed, 01/06/2010 - 3:51pm.

Not saying we should THANK them for doing their jobs..Nuk.

We or I should say most of us realize they get paid to do it well..

My point was simple.. remember when the profit reports all came out and every screaming whiner out there shed tears and cried foul?

Well just what do those EVIL profits pay for?

What would have happened if Congresses threats of seizing their profits would have happened?

Do you think Chevron or Exxon or Aramco or any other Oil Company out there would have spent almost 3 BILLION in exploration?

I think not..

"A little matter will move a party

but it must be something great that moves a nation.

~Thomas Paine"


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