oil industry

[Enviro-mental]

One of the overarching messages coming from the oil industry these days is that they have generally done a bad job of engaging, educating and communicating with the public. Would like to hear your thoughts on this. How should the oil industry involve themselves in terms of social responsibility and are the companies that claim to be green really green

[muldonach]

Originally Posted by Enviro-mental

One of the overarching messages coming from the oil industry these days is that they have generally done a bad job of engaging, educating and communicating with the public. Would like to hear your thoughts on this. How should the oil industry involve themselves in terms of social responsibility and are the companies that claim to be green really green

Well they have certainly let the politicians in the UK foist the blame for petrol pricing on to them.

I think that in terms of social responsibility the oil companies should be producing and transporting the fuels with as little damage to the environment as can be achieved and that local populations should benefit from the disruption inevitably caused.

Whilst I have limited experience I would say that those companies which claim to be green really are green in the areas where they claim to be. BP in the Caspian sea for example run an absolute zero discharge policy so that nothing whatever is discharged to the sea, all drilling fluids are recycled and drill cuttings are returned to shore for landfill disposal.

This is in very marked contrast to the operations of other operators in the same area.

Regards
Mac

[Enviro-mental]

Thanks Muldonach,

I fully agree. Speaking about oil pricing, if you look up "More Hirsch on Peak" on YouTube, he makes some really good points (it was quite an eye opener for me). Whether its on conservation tips, to how they are helping with the environment to creating general awareness. It is important that the public is aware.

He explains is that there is only so much oil out there. People don't know the problem and as the recession goes deeper and deeper, people are going to want to know, they are going to have to pay attention. "We are limited by geology in this situation and each year the situation gets worse and worse and oil production will go into decline".

Instead of pushing the blame around, everyone needs to start taking initiative and start communicating and educating the public.

[Graham Barker]

im not an expert...ok, bp say they have limits...but it doesnt include going to places to drill for oil when, morally, though i think none of the heads of any oil company has any morals, similar to many lawyers i guess, they know they are in the wrong...
also, oil pricing, its mad...fuel prices blamed on the oil companies, well..someone has to take the blame...why the government if the oil companies are still charging high prices...surely the price of petrol should be a lot lower now...even 6 months or 12 months ago...when the oil prices went throguht the roof the oil companies charged more and more for fuel...but now its around half the price it was, how come fuel hasnt come down in line...so i blame the oil companies too - greed...someone somewhere is making a lot of money from this....

[muldonach]

Fuel Prices have not come down in line with the drop in oil prices because the cost of crude is not the only cost that is involved in producing petrol or diesel.

Costs of production are more or less fixed, transport costs can be fixed or variable depending on the means of transport. Costs of refining and distribution are pretty much fixed on a short term basis at least.

Domestic fuel prices hardly matched the climb from 12 to 140 dollars per barrel did they?

Someone is making a lot of money - fuel duty as I understand it is set at a fixed amount per litre with VAT on top and together these taxes make up some 70% of the price at the pump.

Regards
mac

[liam71]

Domestic fuel prices hardly matched the climb from 12 to 140 dollars per barrel did they?

For a very good reason, it would be pitchforks at dawn if they did. Can you image your domestic heating bills increasing at the rate of petrol?

[muldonach]

Originally Posted by liam71

For a very good reason, it would be pitchforks at dawn if they did. Can you image your domestic heating bills increasing at the rate of petrol?

we don't use heating oil ourselves but I rather suspect that if you look closely the prices actually increased at more than the rate of change of petrol prices.

Agricultural diesel doubled in price although I would have to check the receipts to confirm the timescale.

cheers
mac

[Graham Barker]

ok..so if all these prices are 'fixed' in production etc....then how come the prices continually went up and up and up whenever the price of crude went up....now its come down, but the fuel prices havent...that doesnt make sense...the prices of production dont go up every day like the price of crude re demand for it....so therefore by your argument the price needent change that much and therefore when the price of crude drops it should reduce anyway....someone somewhere ismaking a lot of money...and i hate to say it...it isnt just the government here...they, as usual, are an easy target to blame, their taxing hasnt changed, so im afraid it has to be somewhere in the production and manufacture part....and thats not a surprise...

[muldonach]

Well in SW Scotland at least pump prices certainly came off their peaks and dropped considerably as the oil price collapse fed its way through, they are on an upward trend at present but so is the oil price which has gone from 45 to 75 us dollars in the last 6 months or so.

There is certainly a tie between the price of crude and the price of finished products but it is not a simple direct tie.

In addition to the factors already listed you may also want to take into account the effect of currency movements and also the fact that there is a shortage of refining capacity which cacn result in a world market for some finished product.

It is true to say that fuel duty is a fixed cost per litre but don't forget the effect of VAT which is chargeable on the final pump price.

Cheers
mac