A righteous man hates lying; But a wicked man is loathsome, and comes to shame.  Proverbs 13:5

 

 Yahweh stands up to contend, and stands to judge the peoples.
Yahweh will enter into judgment with the elders of his people, and the princes thereof: It is you that have eaten up the vineyard; the spoil of the poor is in your houses:
 what mean you that you crush my people, and grind the face of the poor? says Sovereign, Yahweh of hosts.
  Isaiah 3:13-15

 

The lies that are being told about the oil supplies of the world and their sources, cannot be unanswered!  The price gouging continues to escalate, and the poor pay the greatest price.   How much oil does the Middle East supply where the USA is concerned?  Some would have you believe that we must have oil from the Middle East or there would be a shortage!   The recent rant on the necessity of procuring oil from Iran is smoke in our nose. A stick in the eye so to speak.  A downright lie!!!  Iran only supplies a small portion of the oil consumed by the USA.  Here are some statistics for you to study.  Perhaps there are still some honest uncorrupted people in places of authority and responsibility that can and will, bring to light exactly what is happening.  The oil industry is very powerful, they have very deep pockets, and many people are on their payroll.  This includes people in high government positions both foreign and domestic. 

 


 

Top Suppliers of U.S. Crude Oil 2004
(Thousand barrels/day)

Rank
Country of Origin
Thousand Barrels/day
1
Canada   1,616
2
Mexico   1,598
3
Saudi Arabia   1,495
4
Venezuela   1,297
5
Nigeria   1,078
6
Iraq   655
7
Angola   306
8
Kuwait   241
9
United Kingdom   238
10
Ecuador   232
11
Algeria   215
12
Russia   158
13
Norway   143
14
Colombia   142
15
Gabon   142
16
Argentina   59
17
Brazil   51
18
Trinidad and Tobago   49
19
Indonesia   34
20
Australia   21
21
Libya   18
22
Cameroon   18
23
Guatemala   18
24
Malaysia   18
25
Brunei   15
26
China, People’s Republic of   14
27
Congo (Kinshasa) *    14
28
Oman   10
29
Congo (Brazzaville)   8
30
United Arab Emirates   5
31
Ivory Coast   5
32
Qatar   4
33
Yemen   4
34
Denmark   2
35
Peru   1
36
Syria   1
37
Thailand   1
 
Other   158
 
Total   10,088
 
Persian Gulf **    2,400

Includes crude oil imported for storage in the Strategic Petroleum Reserve.

* Formerly Zaire
**Includes Bahrain, Iran, Iraq, Kuwait, Qatar, Saudi Arabia, and United Arab Emirates.

Source: Petroleum Supply Annual 2004, Volume 1; Table 21

     

The Persian Gulf supply is comprised of several Arab nations, the Persian Gulf supply is around 23%, with Saudi Arabia supplying the most.  The chart below gives good information as to oil suppliers and country location.

 

 

Could we do without Oil from the Middle East?  Yes, of course we could.  We are using the supplies of the Middle East to save our own supplies in case of war.  What else could be done to conserve energy?  Reduced driving would be one way to lower consumption.  Reduce the unnecessary trips that use up the oil resources more rapidly.  Insulate the homes better.   Burn alternative sources, such as coal.  As you look at the following statistics, think of all the financial turnovers there are in just one barrel of oil.

 


 

 

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Home > Energy Basics 101 > more Basic Petroleum Stats

Basic Petroleum Statistics (data for 2004 except where noted)

 

 

 

 

Gallons of Oil per Barrel

42

Barrels of Oil per Metric Ton (U.S.)

7.33

U.S. Crude Oil Production

5,419,000 barrels/day

State Ranking of Crude Oil Production

Texas - 1,073,000 barrels/day

U.S. Crude Oil Imports

10,088,000 barrels/day

U.S. Crude Oil Imports from OPEC

5,042,000 barrels/day

Top U.S. Crude Oil Supplier

Canada - 1,616,000 barrels/day

U.S. Petroleum Product Imports

3,057,000 barrels/day

U.S. Petroleum Product Imports from OPEC

659,000 barrels/day

U.S. Net Petroleum Imports

12,097,000 barrels/day

Top U.S. Total Petroleum Supplier

Canada - 2,138,000 barrels/day

Top Oil Producing Countries & Exporters

#1 - Saudi Arabia

Top Oil Consuming Countries & Importers

#1 - United States

U.S. Total Petroleum Exports

1,048,000 barrels/day

U.S. Petroleum Consumption

20,731,000 barrels/day

Dependence on Net Petroleum Imports 

57.8%

Crude Oil Domestic First Price wellhead price

$36.77/barrel

Motor Gasoline Retail Prices U.S. City Average

$1.92/gallon

Regular Grade Motor Gasoline Retail Prices U.S. City Average

$1.88/gallon

Premium Motor Gasoline Retail Prices U.S. City Average

$2.07/gallon

Federal Motor Gasoline Tax

18.4 cents/gallon

U.S. Motor Gasoline Consumptiona

9,105,000 barrels/day (382.4 million gallons/day)

Share of US Oil Consumption for Transportation

67%

U.S. Average Home Heating Oil Price

$1.55/gallon (excluding taxes)

Number of U.S. Operable Petroleum Refineries

148

Ranking of U.S. Refining Capacity

#1 - Baytown, Texas (ExxonMobil) 557,000 barrels/day

Top U.S. Petroleum Refining States

#1 - Texas 4,628,000 barrels/day

U.S. Proved Reserves of Crude Oil as of December 31, 2004

21,371 million barrels

Top U.S. Oil Fields as of December 31, 2004

Prudhoe Bay, AK

Top U.S. Producing Companies as of December 31, 2004

BP - 827,000 barrels/day

U.S. Strategic Petroleum Reserve

676 million barrels

 

 

more Petroleum Data & Information...

 




 
 

 The amount of financial transactions occurring daily where big oil is concerned, should be considered astronomical.  Small wonder big oil has so much power.  Big oil developed the oil fields in the Middle East and you can see why they want to keep them.  The bottom line is always profit.  They want the revenue from oil transactions.  And?  They are willing to do anything to keep the money flowing, and that includes waging war.  How cognizant are the people to this mind numbing greed?  Locked in securing everyday necessities, the people are blinded to their own surroundings.   The need for life's gratuities, drives them to surrender without question to the system.  Petroleum products are very useful, and necessary in this modern era.  Do the math! USA Oil consumption per day is: 20,731,000 times, price per barrel, equals?  The going price is close to $70.00 per barrel now.  Let's just use this rounded figure to arrive at the consumption cost per day.  $1,451,170,000  Does over one Billion dollars a day sound about right?

 


The following Oil Company Profits analysis, reveals the money involved in this lucrative business. 

 

 

Oil Company Profits
 

 
• What do oil companies make on a gallon of gasoline? Shouldn't the government regulate oil profits?          
•  Why are oil company profits so large? •  What happens to those oil profits?
•  How do oil profits compare with those of other industries?
What do oil companies make on a gallon of gasoline?

Where the Gas Dollar GoesAn industry-wide study in the late 1990s showed that oil industry profits amounted to an estimated 7.3 cents on each gallon sold.1 More recently, ConocoPhillips reported that during the third quarter of 2005 earnings from its U.S. refining and marketing operations amounted to 9 cents per gallon, out of industry average retail price of $2.60 per gallon during the quarter.

A multitude of factors can affect an individual oil company's profit on gasoline sales. Profitability factors include the efficiency of the firm's refining, distribution and marketing system, as well as its source of raw material. In times of rising oil prices, companies that own and produce a considerable portion of the crude oil used in their refineries may benefit more than other companies that must purchase most or all of their supplies on the open market.

Crude oil generally represents the single greatest cost component of gasoline, which explains why gasoline prices rise and fall so quickly with changes in the world price of crude oil. For example, at ConocoPhillips, crude oil costs make up 85 to 90 percent of the total costs of running its refineries. As an international commodity, crude oil is bought and sold 24 hours a day, so its price is changing constantly. In the matter of a day or two, crude oil prices can move up or down by several dollars, depending upon supply and demand factors.

In general, crude oil accounts for roughly half of gasoline's price, as shown in the graphic. Other price components include refining, distribution (pipelines and tanker trucks) and marketing (service stations and convenience stores). These so-called "downstream" costs have been falling as companies have made operations more efficient. When gasoline reaches the pump, another major factor comes into play - federal, state and local taxes, which average 15 to 20 percent or more of the pump price. The federal tax is 18.4 cents per gallon, while state taxes vary from 14 cents in Wyoming to more than 44 cents per gallon in New York.

1 Estimate was based on an average pump price between January 1997 and September 1999. The estimate was derived by dividing the net income of the gasoline-related operations of major oil companies by the total number of gallons sold by those companies. Study was conducted by the American Petroleum Institute.

Find out more out at...
Weekly Update on Gasoline Prices, a report compiled by the U.S. Energy Information Administration.
Gasoline and the American People, a report by Cambridge Energy Research Associates, an independent energy research and consulting organization.

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Why are oil company profits so large?

Profit 5 Year Average Profits of major oil companies reached $43.3 billion in the first half of 2005, some 42 percent higher than in the same period last year. The big percentage increase helped support the impression that oil profits are excessive, but business analysts stress that other measures should be considered in assessing a company's or industry's profit picture. Business Week magazine, for example, regularly monitors the profitability of various companies and industries by comparing their profit margins. To determine profit margin, the magazine divides net income by total revenue. In the case of oil and gas companies, total sales consist of the money they receive from selling their products, as well as revenue received from any other sources. Net income is the money left over after all costs and taxes are paid.

Over the long haul oil profits generally remain below or on a par with those of other major industries. As the chart indicates, the Business Week analysis of the data from the five-year period July 2000- July 2005, shows that the profitability of oil and natural gas companies (5.7 cents per dollar of sales)2 has been just slightly above the profitability of all industries combined (5.5 cents per dollar of sales).

2
 Not to be confused with profit margin on each gallon of gasoline sold, as described in the first question.

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How do oil profits compare with those of other industries?

Oil Profits vs. Other Industries Business Week magazine regularly compares the profitability of various industries and companies on the basis of profit margin, which is calculated by dividing net income (profit) by total sales and other revenues. For example, a software company that clears $90 million in net income on product sales of $1 billion would earn a profit margin of 9 percent or 9 cents on each dollar of sales.

Traditionally, oil companies have trailed many other industries in this measure of profitability. As indicated in the graphic, the profit margin of oil and natural gas companies was slightly above that of all industry in the second quarter of 2005. However, the industry's profitability remained below the profit margins of many other industries such as banking, financial services, pharmaceuticals, insurance and computer software and services.

Find out more out at...
Oil and Gas Industry Profit Margins, compares industry profit margins against other industries in the second quarter of 2005. Compiled by the American Petroleum Institute using Business Week data.
Energy Finance, a gateway to energy industry financial and operating data compiled by the U.S. Energy Information Administration.

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Shouldn't the government regulate oil profits?

Gas Price vs. Other Items History serves as a helpful teacher on this question. As part of a general effort to combat high inflation in the early 1970s, President Nixon placed price controls on the oil industry and many other sectors of the American economy. Eventually the controls were lifted from other industries, but they remained in place for U.S.-produced oil as the government tried to partially protect consumers from the jump in world oil prices caused by the oil embargo of 1973-74. A so-called windfall profits tax was imposed on the industry in 1980, when again world oil prices rose dramatically as a result of supply disruptions stemming from conflicts in Iran and Iraq. The government began phasing out the tax in 1981.

Although various price and profit control programs did limit income to oil companies, it's questionable whether they benefited consumers in the long run. Between 1974 and 1980, imported oil prices averaged about 50 percent more than the price for oil produced in America. As a consequence, U.S. oil companies were discouraged from exploring for and finding supplies of oil and natural gas at home. Meanwhile, industrial and individual consumers were shielded from higher prices that might have encouraged greater energy conservation.

A report by the U.S. Energy Information Administration (EIA) that surveyed the events in the 25 years following the 1973-74 oil embargo concluded that federal price controls and allocations systems not only "failed to resolve these problems (electricity brownouts and rapidly rising prices), they seemed to aggravate them."

According to a 1990 Report of the Congressional Research Service, the windfall profits tax that was signed into law in 1980 and repealed in 1988 drained $79 billion in industry revenues during the 1980s that could have been used to invest in new oil production – leading to 1.6 billion fewer barrels of oil being produced in the U.S. from 1980-1988. The tax reduced domestic oil production as much as 6 percent, and increased oil imports as much as 16 percent.

As the graphic shows, gasoline prices since the early 1980s have risen at a slower rate than many other essential consumer items, including food, housing, educational and medical care.

 

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What happens to those oil profits?

Oil  Industry Investment in the U.S. Basically oil company profits are used for two purposes — to pay dividends to shareholders in the business and to pay for capital investments to find, produce, process and deliver energy products to consumers.

Shareholder Dividends: Millions of Americans own stock in oil companies either directly as shareholders, as owners of mutual fund shares or as participants in pension fund and other retirement accounts. Each year, dividends paid by oil companies put hundreds of millions of dollars into the hands of the public.

Capital Investments: By far the largest portion of oil profits goes back into the business to find and develop resources and improve and expand facilities. Consumers most often see industry capital investments in the form of new or upgraded marketing outlets, such as local convenience stores. But in reality, investments in the retail marketing business are small when compared to the massive amounts of money spent by the industry in places that few consumers ever see — such as the middle of the North Sea, the Alaskan North Slope or the deep waters of the Gulf of Mexico. In these far flung locations and in countless other places around the world, companies must search for new resources of oil and natural gas to replace the supplies that are being depleted daily by consumer demand.

Higher prices provide greater incentive to look for oil and gas in more remote, expensive locations. As the graph indicates, in response to the rising price environment of the last several years, the industry has steadily increased its capital expenditures. In the case of ConocoPhillips, the company has invested an average of $1 billion a month over the last three years (2003 to 2005 year-to-date annualized) – slightly more than its earnings over the same period.

The oil industry is termed a "capital intensive" industry because so much of its work requires the expenditure of millions and sometimes billions of dollars even for a single project. Here are some examples based on estimates for energy projects in which ConocoPhillips is participating:

 

  • $4-5 billion to increase the capability of refineries to produce 15 percent more gasoline, diesel and heating oil by 2011.
  • $1.5 billion to build new terminals to receive shipments of liquefied natural gas (LNG) from aboard to meet U.S. market needs.
  • $6 billion for a pipeline to bring 1.8 billion cubic feet of natural gas to the United States from Canada’s Mackenzie Delta.
  • $20 billion for a pipeline to transport natural gas from the Alaska North Slope to the Lower 48 states.

Find out more out at...
Economic State of the U.S. Petroleum Industry, a long-term view of how fluctuation in energy prices affect industry investment, employment, taxes and royalties. Prepared in 1999 by the American Petroleum Institute.

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With the above information being so self-explanatory, we hardly need to say more.  We are in for a very oppressive time unless something drastically changes.  Unless the USA develops more domestic oil resources such as Anwar, we will be slaves to import oil.  It's time to be self sustaining domestically.

 




Exxon profit tops $10 billion, capping record year
Mon Jan 30, 2006 11:34 AM E
T



By Deepa Babington

NEW YORK (Reuters) - Exxon Mobil Corp., the world's largest publicly traded oil company, on Monday reported a quarterly profit of $10.7 billion, capping a year of record earnings dominated by surging oil and gas prices.

The results pushed up Exxon's profit for the year to a staggering $36.13 billion -- bigger than the economies of 125 of the 184 countries ranked by the World Bank. Profit rose 42 percent from 2004.

The company and its peers have come under fire for posting billions in profit while consumers struggle with high gasoline prices. Exxon was quick to emphasize that such results would help it make long-term investments to meet energy demand.

The Irving, Texas company's fourth-quarter net income rose 27 percent, to $10.71 billion, or $1.71 a share, from $8.42 billion, or $1.30 a share, a year earlier. Revenue was just shy of $100 billion.

Excluding a special gain, the company earned $1.65 per share, handily beating the average forecast of $1.45 among analysts polled by Reuters Estimates.

"It's an exceptionally strong quarter -- they're the world's most profitable company," said Robert Lutts, president of Cabot Money Management. "It could raise eyebrows among some, but they're doing their job."

Exxon shares were up $1.84, or 3 percent, at $63.13 in late-morning trade on the New York Stock Exchange.

OIL'S RECORD RUN

Crude oil prices rose about 40 percent last year, driven up by tensions in oil-producing countries like Iran and Nigeria, hurricanes in the Gulf of Mexico and tight supplies. They have been rise for four years, handing Big Oil a profit bonanza.

Natural gas prices have been on a similar tear, nearly doubling last year on the futures market thanks to supply disruptions and higher demand.

Earnings at Exxon's exploration and production division rose 44 percent to $7.04 billion. Refining and marketing operations posted a marginal rise in profit as the impact of the hurricanes offset a boost from higher refining and marketing margins.

Still, Exxon's results showed evidence of some of the problems affecting large oil companies, which are struggling to raise output as they grapple with maturing fields and find it harder to access vast reserves in regions like the Middle East and Russia.

Exxon said oil and gas production fell 1 percent in the quarter. However, excluding the lingering effects of Hurricanes Katrina and Rita, which slammed into the U.S. Gulf Coast last year, as well as divestment and entitlement effects, production rose 2 percent.

Analysts expect the company to report higher production this year as new projects in Russia and Africa ramp up.

"Progress on tangible growth in oil and gas production has so far been slow and, combined with the inertia associated with its sheer scale, has led the shares to lag the performance of the smaller names," Citigroup said in a research note.

Exxon used a large chunk of its growing cash pile to buy back shares -- $5 billion in the fourth quarter, the same as in the third quarter. Also, it hiked its quarterly dividend last week.



--------------------------------------------------------------------------------

 Reuters 2006. All rights reserved.


 


Some interesting oil industry statistics

http://www.gravmag.com/oil.html#dollar

 


 

Yours in Yahshua, Hawke

 

 

 

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