Fuel prices

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May 4, 2007 2:22 pm

I don't know if all of you are aware of gas stations called CITGO.   They are owned by Venezuela and Hugo Chavez.   If you have been following the news you are aware of his nationalization program (i.e confiscation program).          

I see no reason why anyone in this country should purchase their fuel at these stations.  Since he is putting the squeeze on us....please return the favor.

Please pass this information on to everyone you know.....

May 4, 2007 5:04 pm

As opposed to the lubing up we're getting from the other oil companies!


I should feel better about getting screwed because I'm getting screwed by US companies?


I don't!

May 4, 2007 7:19 pm

Don't blame U.S. oil companies.


In fact, the worst thing you could do to Chavez and the best thing you could do for the U.S. oil companies and the American consumer is open up some offshore areas for drilling. You'd see an immediate drop in oil prices, even though the actual drilling might not take place for a couple of years. Also, with the lower oil prices, Chavez would no longer be able to financially prop-up his regime or export his "revolution".

May 4, 2007 7:46 pm

Yeah, like the drop we saw when they had the biggest ever find in the Gulf Of Mexico last year!


Like the way oil prices are plummetting to new heights on the back of Canadian oil Sands development. And the ethanol!


Jeeze pretty soon they'll be paying us to take the stuff away! 

May 6, 2007 11:53 pm

Love the fact that we now have like 5 players in the oil industry. Remember only 5 years ago it was 12. Of course good thing inflation is in check...

May 7, 2007 1:38 am
doberman:

Also, with the lower oil prices, Chavez would no longer be able to financially prop-up his regime or export his "revolution".





Venezula is already decending into a weird combination of high
inflation (which will accelerate into hyper inflation at some point)
and economic stagnation as voluntary capital investment stops.



Without the constant influx of hard currency from oil exports nothing
would be accomplished. I have no clue why people continue to hold latin
american bonds, when spreads are so tight and you are only an election
away from this non-sense starting up again.


May 7, 2007 7:59 am
Whomitmayconcer:

As opposed to the lubing up we're getting

from the other oil companies!



I should feel better about getting screwed because I'm getting screwed by

US companies?



I don't!





Then why not put everything you have into oil companies? Then it would be

YOU that makes all the big bucks by screwing everyone else.

May 7, 2007 8:32 am
Starka:

Then why not put everything you have into oil companies? Then it would be
YOU that makes all the big bucks by screwing everyone else.





Shhhhhhhhhhhhhhhh.

May 7, 2007 9:10 am
AllREIT:
doberman:

Also, with the lower oil prices, Chavez would no longer be able to financially prop-up his regime or export his "revolution".





Venezula is already decending into a weird combination of high
inflation (which will accelerate into hyper inflation at some point)
and economic stagnation as voluntary capital investment stops.



Without the constant influx of hard currency from oil exports nothing
would be accomplished. I have no clue why people continue to hold latin
american bonds, when spreads are so tight and you are only an election
away from this non-sense starting up again.




ditto.

In general I don't understand why folks are so willing to pour $ into lower credit debt at all...doesn't seem to be worth the risk right now.

May 7, 2007 10:32 am

"Then why not put everything you have into oil companies? Then it would be
YOU that makes all the big bucks by screwing everyone else." Starka


Yeah, there's an idea... I wonder how it would have worked out...


Jan 1, 2000 regular gasoline =$1.26/gal


Jan 1, 2000 XOM Price per share= $39.75 (call it 40)


May 7, 2007 regular gasoline = $3.07


May 7, 2007 XOM Price per share = $81 (call it)


 (3.07 - 1.26) / 1.26 = 144% increase


 (81 - 40) / 40 =  102.5%


Granted, I didn't calculate in the dividends... (call it $10.50 over the 7.5 years) (91.5 - 40) / 40 = 128.75%


I'm not even EVEN with the increase in the gas prices. I should be multiples ahead. So shareholders are also getting screwed by the oil companies, right?


I know this is a simplistic analysis, bit then that's all that the suggestion deserved.

May 7, 2007 10:33 am

Here's the site for the gas price cite... http://www.eia.doe.gov/oilgas/petroleum/data_publications/w rgp/mogas_history.html

May 7, 2007 2:46 pm
Whomitmayconcer:

"Then why not put everything you have into oil companies? Then it would be
YOU that makes all the big bucks by screwing everyone else." Starka


Yeah, there's an idea... I wonder how it would have worked out...


Jan 1, 2000 regular gasoline =$1.26/gal


Jan 1, 2000 XOM Price per share= $39.75 (call it 40)


May 7, 2007 regular gasoline = $3.07


May 7, 2007 XOM Price per share = $81 (call it)


 (3.07 - 1.26) / 1.26 = 144% increase


 (81 - 40) / 40 =  102.5%


Granted, I didn't calculate in the dividends... (call it $10.50 over the 7.5 years) (91.5 - 40) / 40 = 128.75%


I'm not even EVEN with the increase in the gas prices. I should be multiples ahead. So shareholders are also getting screwed by the oil companies, right?


I know this is a simplistic analysis, bit then that's all that the suggestion deserved.



Not necessarily....

One could argue that XOM's price in 2000 was trading where it was based upon dividend yield and anticipated profits.

May 7, 2007 3:44 pm

And if it weren't for the fact that the stock went down to call it 30 in July of 2002 when Gasoline was at 1.44, that might just make sense.


But the price did go lower when the price of gasoline was going higher.


JFS&G  (3.07-1.44)/1.44 = 113%


(81-30)/30 =  170%

May 7, 2007 3:58 pm
joedabrkr:


In general I don't understand why folks are so
willing to pour $ into lower credit debt at all...doesn't seem to be
worth the risk right now.





Debatable if it is ever worth the risk. I get an extra kick from seeing
alot of the closed end junk funds. Thanks to their ability to invest in
illiquid securities, many of them are full of CCC and B- rated bonds.



Same thing for "floating rate income funds", where alot of people have no clue that they own junk bank loans.



The deal with junk bonds goes something like this.



Corp/ABS: The ability to pay

Govt: The will and ability to pay.



Why take two risks? And doubly so in Latin America where there is a glorious history of countires repudating their external debts.

May 7, 2007 4:50 pm

You buy them when nobody wants them and you sell them when everybody wants them. You make a pile of money, you move on to the next thing that nobody wants.


It's fairly simple.


The mistake is when people who are of a  "buy and hold" mentality buy a burning match and hold it until their fingers have matching burns!

May 7, 2007 5:50 pm

The mistake is when people who are of a  "buy and hold" mentality buy a burning match and hold it until their fingers have matching burns!


I like that. You mind if I see that?

May 7, 2007 6:45 pm

How to fight high gas prices?


Honda Reflex Scooter - 72MPG


Yeah, the high gas prices are frustrating. But something equally frustrating are cars that don't get the advertised fuel mileage.


We just picked up a new Camry. It gets 23/28 regardless of how its driven. That's a lot less than the CAFE numbers on the window sticker, the upper number being 34mpg highway. I know "your mileage may vary" but a 2003 Honda Accord we sold last summer got 34 on the highway. And I drove that car exactly the same way I drive this one, like I stole it.


The Camry is my wife's commuter car and not being a car guy girl we opted for the four cylinder instead of a six. We figured the four would get the same MPG as our Honda. We figured wrong.


The car we traded on the Camry was a 2006 Lincoln Towncar. The car was a problem child from day one and it to didn't come close to it's CAFE numbers of 19/25. Around town it got 17 and out on the open road 19.


Our Jeep GC has a six that gets 16MPG which is worse gas mileage than the 8 cylinder Jeep GC it replaced.


Got my eye on the Smart for two. Bet it doesn't meet its numbers either.

May 7, 2007 6:55 pm

I like that. You mind if I see that?


Sorry. "you mind if I use that?"


The Tecate is still flowing through my blood from Cinqo De Mayo...

May 7, 2007 7:18 pm
Whomitmayconcer:

"Then why not put everything you have

into oil companies? Then it would be YOU that makes all the big bucks by

screwing everyone else." Starka



Yeah, there's an idea... I wonder how it would have worked out...



Jan 1, 2000 regular gasoline =$1.26/gal



Jan 1, 2000 XOM Price per share= $39.75 (call it 40)



May 7, 2007 regular gasoline = $3.07



May 7, 2007 XOM Price per share = $81 (call it)



(3.07 - 1.26) / 1.26 = 144% increase



(81 - 40) / 40 = 102.5%



Granted, I didn't calculate in the dividends... (call it $10.50 over the 7.5

years) (91.5 - 40) / 40 = 128.75%



I'm not even EVEN with the increase in the gas prices. I should be

multiples ahead. So shareholders are also getting screwed by the oil

companies, right?



I know this is a simplistic analysis, bit then that's all that the

suggestion deserved.





So then who do you think is screwing you? (That should be simple

enough even for you!)

May 7, 2007 8:25 pm

Ladies and gents.. I have a big V8 that gets 23 MPG and takes premium.



The big question with regular and premium really means very little.



If you take 20 gallons per fill up it will cost one $4 more to use premium. That is nothing.



I love my V8.