Oil prices . .

[Traildust]

But they manage to make billions and I can't afford a barrel.

You cant afford a catalyst change in a cat cracker either!

[Big pig]

Oil company margins were 8.3% in 2021. Compared to tech and pharmaceuticals at 23%.

They make billions because of hundreds of billions invested.

Thank you for the facts.

[kyle1974]

yep they made billions. But, But, wait .... they really don't make but a penny a gallon.

You think they only make money at gas stations?

[Roger]

But why? All business is based return on investment. You arent going to invest billions if you arent going to get billions in return. Sure a million is a lot to people like me, but its a terrible return if you invest a billion.



You dont lose money for a year if you dont expect to make it back later. You just shut the doors, go home and cry.



Whether you are pathetically small like me or a massive company employing 10s of thousands, its all about return on investment.

Not understanding the "but why?" But why what? I never said a company shouldn't make money. That's the business of business. Just pointing out that stating those companies invest billions and have huge scale expense loads is no more helpful than stating they made 350 billion in revenue. As a business owner, you know profit is the bottom line and the big oil companies roll in billions of net profit every year, except covid, as I mentioned. Not saying it's bad, but it's tiresome to hear talk like oil companies are barely getting by.

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[Hogmauler]

Regular is $2.95 a gallon in katy

[Big pig]

Not understanding the "but why?" But why what? I never said a company shouldn't make money. That's the business of business. Just pointing out that stating those companies invest billions and have huge scale expense loads is no more helpful than stating they made 350 billion in revenue. As a business owner, you know profit is the bottom line and the big oil companies roll in billions of net profit every year, except covid, as I mentioned. Not saying it's bad, but it's tiresome to hear talk like oil companies are barely getting by.

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8% profit. And provide fuel for the very truck ( or car ) you drive. Not to mention the natural gas in your home. And the plastic container your shampoo comes in.

BP

[miket]

Not understanding the "but why?" But why what? I never said a company shouldn't make money. That's the business of business. Just pointing out that stating those companies invest billions and have huge scale expense loads is no more helpful than stating they made 350 billion in revenue. As a business owner, you know profit is the bottom line and the big oil companies roll in billions of net profit every year, except covid, as I mentioned. Not saying it's bad, but it's tiresome to hear talk like oil companies are barely getting by.

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Because 8% is very little return, regardless of the dollar amount. Billion or not, 8% is a low profit margin. And very risky, a few bumps and you are back at a loss. Those billions in profit dont last long when your expenses are so high and margins so low .

To break it down to the absolute generalized basics, if your expenses stay the same, and you have no income for 29 days of the year, all your profit is gone. You are begging for money to survive.

Again, a billion aint crap when your operating expenses are a ten billion.

[miket]

Maybe this will help. When I first started and my expenses were $100k and profit was $20k, that was fine. Thats 20%. Could go over 2 months if things turned to crap. Now that my expenses are $700k, that $20k will only last me a couple of weeks.

Make $20k on $100k, not bad. On $600k? Shut it down and go work for someone else.

[Drycreek3189]

If you have never been in business, any business, then complain all you want but you’ll never understand a company’s perspective. To invest dollars, hundreds, thousands, millions puts your azz on the line. I’ve been in the oilfield for 50+ years and believe me I never heard anyone moaning and crying when oil was $12 a barrel except the poor bastages that were trying to make their livings there. What goes around comes around, and there only two things for sure in the oilfield. When it’s up, it’s gonna come down, and vice versa. Been there on several booms and several busts !

[Maddox]

If you have never been in business, any business, then complain all you want but you’ll never understand a company’s perspective. To invest dollars, hundreds, thousands, millions puts your azz on the line. I’ve been in the oilfield for 50+ years and believe me I never heard anyone moaning and crying when oil was $12 a barrel except the poor bastages that were trying to make their livings there. What goes around comes around, and there only two things for sure in the oilfield. When it’s up, it’s gonna come down, and vice versa. Been there on several booms and several busts !

I’ve survived 14 layoffs and out of 5 companies on my resume, 3 no longer exist and 1 left the US market and closed their office here. O&G is a wild industry to work in, but is highly profitable. You have to plan for the downturns and expect them.

My first job in the industry was an internship with a major. First week I was there they had a significant layoff. The recruiter came to my office and said two things:

1) it’s the oil industry, everyone gets laid off once in their career.
2) never have so much personal stuff in your office you cannot carry it out in 1 trip.

[Greenheadless]

You can tell who signs which side of a paycheck 8n the thread for sure.

[preaux40]

My question is how are NG prices staying so low during the extreme winter we're having . . Especially the NE . .

[bowfishin fool]

You can tell who signs which side of a paycheck 8n the thread for sure.

[emoji28]


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[Pedernal]

My question is how are NG prices staying so low during the extreme winter we're having . . Especially the NE . .

From what I have heard it has actually been a mild winter. My brother lives north of the Chicago area and they are having a very mild winter from what he can remember.

[Roger]

You can tell who signs which side of a paycheck 8n the thread for sure.

Maybe, maybe not. I'm mearly pointing out numbers on here that are publicly available and being talked to like I don't understand net profit margins. I teach hs physics now because I felt called to work with kids, but I've ran a 20 million business with 270 employees, so I know at least a couple of things.

I never once complained about companies making money. Some folks need to learn to read along with their business acumen. Just pointing out that, regardless of margin, they do it consistently. Saw some 2022 numbers today. New record profits up to the 55 billion range coming in for last year. I'll bow out of this conversation. Ya'll have fun.

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