The doubling in the price of oil

[Paddy]

Germany was doing it 60 years ago whilst being bombed regularly.

Yes, but not cheaply.

[AtW]

Yes, but not cheaply.

Apparently (before dollar got devalued) making fuels from coal had break even point of $60, the main problem was that constructing refineries will take years and then they would have to operate for years to break even overall, so nobody (from oil companies) wanted to invest in it, and why would they if their primary product goes in price all the time? It's like asking house building company to actually look at their costs and build cheaper.

[Paddy]

Apparently (before dollar got devalued) making fuels from coal had break even point of $60, the main problem was that constructing refineries will take years and then they would have to operate for years to break even overall, so nobody (from oil companies) wanted to invest in it, and why would they if their primary product goes in price all the time? It's like asking house building company to actually look at their costs and build cheaper.

Well put. Another reason for oil companies not wanting to exploit coal technology is that it really needs to be mined, processed and consumed in the same country. Oil companies find it easy to ship oil around the globe and play a three card trick. They can buy oil with their offshore company and sell it expensive to their onshore company thus claiming that they make little profit on the forecourt.

[Pondlife]

They can buy oil with their offshore company and sell it expensive to their onshore company thus claiming that they make little profit on the forecourt.

They are correct. The profit is not made on the forecourt.

[hyperD]

China has a huge amount of coal reserves. They're laughing all the way to world domination.

[AtW]

They are correct. The profit is not made on the forecourt.

They are correct - it's just the biggest profit from sales on forecourt is made by the Govt.

HTH

[hyperD]

Forecourts make little profit, hence the proliferation of additional sales streams in them, such as selling cofee etc

Downstream is energy intensive and competitive and doesn't make huge profits either. Chemicals business is marginal.

Exploration is the big boys moneymaker. Oh, and the obscene government VAT and tax take (76%?).

[Pondlife]

Forecourts make little profit, hence the proliferation of additional sales streams in them, such as selling cofee etc

Downstream is energy intensive and competitive and doesn't make huge profits either. Chemicals business is marginal.

Exploration is the big boys moneymaker. Oh, and the obscene government VAT and tax take (76%?).

Exactly.

Lubricants is a non earner. Chemicals better but not really. Refineries are being sold by the big boys in droves.

It's all about upstream.