Forum Post: Why does Texas charge as much for oil as OPEC does?
Posted 13 years ago on Oct. 16, 2011, 11:52 p.m. EST by Lefty48197
(117)
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We have a cartel made up of people who despise America and Americans and they conspire to set a price for oil that perpetually threatens to destroy America's economy. The market has nothing to do with the price of oil OPEC sets the price for oil sold by OPEC nations.
Why does Texas force us to pay the exact same price for oil as those OPEC nations that hate America?
Just like the gold price "fix" the US largely controls.
Commodities as weapons?.!
I'll answer the question myself. Yes, there is a cartel that sets the price for the oil their members sell. That cartel is called OPEC. There is nothing "market" about the prices they chare for oil! In fact one thing that you always get from a cartel is an inflated price.
The answer to my question is that there is also a cartel that sets the price of the oil that comes from Texas and Alaska too. That cartel is made up of American oil corporations. Why does Texas oil cost as much as OPEC oil? Because the American oil cartel sets their price at the same level as OPEC. Windfall profits taxes or profit ceilings for the American oil industry would end the collusion and allow Americans to buy American oil from American corporations at a much better price than OPEC charges.
Market price. Do you understand the concept?
Fixed prices by a cartel. Do YOU understand?
OPEC is a cartel but even together the nations form simply as a large supplier. They supply less than half the world's oil. They cannot dictate market prices.
That is simply untrue as they have historically shown, they can dictate market prices. You do not exactly need greater than half of the world's oil supply if you control a significant enough amount of a necessary commodity.
"We have a cartel made up of people who despise America and Americans and they conspire"<--This is true.
In 2002 Rockefeller authored his autobiography “Memoirs” wherein, on page 405, Mr. Rockefeller writes:
“For more than a century ideological extremists at either end of the political spectrum have seized upon well-publicized incidents such as my encounter with Castro to attack the Rockefeller family for the inordinate influence they claim we wield over American political and economic institutions. Some even believe we are part of a secret cabal working against the best interests of the United States, characterizing my family and me as "internationalists" and of conspiring with others around the world to build a more integrated global political and economic structure - one world, if you will. If that's the charge, I stand guilty, and I am proud of it."
"We are on the verge of a global transformation. All we need is the right major crisis and the nations will accept the New World Order."
http://www.un.org/esa/dsd/agenda21/index.shtml
They don't really. There are many different product pricings depending on the type of oil, e.g., West Texas Intermediate (WTI), LSC, etc., etc. The prices vary quite a bit depending on the sulfur content, how heavy it is, and other aspects which affect how it's refined and what types of products are made..
They also vary depending on how the production is sold, e.g, captive production, under contract, open market., immediate delivery, future delivery, delivery to some specific terminal, on and on through many differences depending on what it is, where it's produced and for who and how it's sold.
But, to answer your question more generally, oil is a commodity which is sold pretty much just like any other commodity and when offered for sale in open markets it is sold on a bid-ask basis. High bid buys it. The numbers that you see reported are for some specific benchmark product on some specific market for some specific delivery date at some specific point of delivery. It's a benchmark only. The actual feedstock cost for oil actually used at some refinery can and does vary significantly from that.
Why doesn't Texaco demonstrate economic patriotism and sell gallons of gas for $1.99 today?
Oh probably for the same reason you don't go in one day and offer to work for half of your previous salary.
I don't have a cartel made up of America's military enemies setting the prices for my services. I don't believe in destroying America, sorry if that offends you.
For one thing, Texaco is not Texas and gas is not oil. lol
But beyond that it would take me forever to even start to try to explain to you how oil/gas pricing works.
If you're really interested the easier way to look at it that takes a lot of complexity out of the equation is from their cost per gallon as sold. The profit/gallon likely won't be nearly as much as you might think. Oil companies make tons of money mostly because they deal in huge volumes, not so much because they have high profit margins/mark-up per individual gallon. Lots of other commodities and related companies have far, far larger margins.
Good question. Another is do we allow big oil to pretend that they pay the market price for crude, when in fact they handle their own exploration, drilling, refining and delivery? Oh yeah, because we need a movement like this one.
Texas is a state, and therefore, it does not produce oil to sell. You seem to hate the state of Texas? Why?