Thundercat505
08-06-2006, 02:30 PM
has anyone ever heard something of this nature????
There are 4 prices for oil
1) The Singapore Spot price which is currently around $75.00 and which is
the only one we hear about.
2) The contract price - approx $37.00 per barrel atm
3) The Real Well Head price approx $30.00 per barrel atm (Cost, plus
royalties, plus reasonable profit)
4) The Adjusted Well Head price currently about $60.00
More closely explained:
1) The Singapore Spot should be considered a "top up" price. Like what our
state pays when there are electricity shortages and we need top-up power it
is a premium price that companies pay when they need to buy oil in shortage
situations. It does not reflect the "real" price of oil and is probably the
price paid for only about 10% of oil.
2) The contract price reflects the price that companies and refineries who
do not pump their own oil pay for oil. This is the price they pay from the
big oil producers and is subject to 12 month or 2 year contracts. it does
not vary at all during the life of the contract. The important thing to
realise is that these companies need to buy at the spot price if for some
reason their contracted suppliers cannot supply. War, natural disaster, etc.
This will raise the price in the short term as speculators cash in. But the
prices stay up as the companies cash in on the ignorance and spin.
3) Big companies like Mobil, Shell and BP, pump their own oil out of the
ground and pay the Real Well Head Price but do not "appear" to. This is the
"Cost plus Royalties" price.
But of course it would not be any good if they "appeared" to be paying so
little for oil. What they do is split the company into an "exploration and
extraction division" and a "transport division", and into a "refining and
distribution and marketing division".
I have never heard of any of this, just questioning whether anyone else has! this is the gist of something I recieved and just curious about it. can't provide a full link to this and wish that I could. not sure what anyone else got with that link but it didn't come from this puter.
edited for link removal.
There are 4 prices for oil
1) The Singapore Spot price which is currently around $75.00 and which is
the only one we hear about.
2) The contract price - approx $37.00 per barrel atm
3) The Real Well Head price approx $30.00 per barrel atm (Cost, plus
royalties, plus reasonable profit)
4) The Adjusted Well Head price currently about $60.00
More closely explained:
1) The Singapore Spot should be considered a "top up" price. Like what our
state pays when there are electricity shortages and we need top-up power it
is a premium price that companies pay when they need to buy oil in shortage
situations. It does not reflect the "real" price of oil and is probably the
price paid for only about 10% of oil.
2) The contract price reflects the price that companies and refineries who
do not pump their own oil pay for oil. This is the price they pay from the
big oil producers and is subject to 12 month or 2 year contracts. it does
not vary at all during the life of the contract. The important thing to
realise is that these companies need to buy at the spot price if for some
reason their contracted suppliers cannot supply. War, natural disaster, etc.
This will raise the price in the short term as speculators cash in. But the
prices stay up as the companies cash in on the ignorance and spin.
3) Big companies like Mobil, Shell and BP, pump their own oil out of the
ground and pay the Real Well Head Price but do not "appear" to. This is the
"Cost plus Royalties" price.
But of course it would not be any good if they "appeared" to be paying so
little for oil. What they do is split the company into an "exploration and
extraction division" and a "transport division", and into a "refining and
distribution and marketing division".
I have never heard of any of this, just questioning whether anyone else has! this is the gist of something I recieved and just curious about it. can't provide a full link to this and wish that I could. not sure what anyone else got with that link but it didn't come from this puter.
edited for link removal.