US Oil Producers Fail to Produce

[Seran]

Remember when you told everyone they had to kiss Biden's hairy ass

I'm sorry, but just why are you thinking about a seventy year olds ass? Is that a fetish of yours?

[Methais]

And just to finish it off, Taco Bell is just a brand owned and operated by Yum! brands, a spinoff from PepsiCo in the late 90s, which also owns KFC and Pizza Hut. Yum! Brands (Stock ticker YUM, down ~30% this year) is the publicly traded entity and has come up short the last 2 quarters due to significant margin compression as a result of these increased food, freight, and labor costs. As I stated, and these are not 'arguments', when demand decreases, they can only maintain profitability by cutting costs in one of these three areas. Labor is the only one that they have direct control over, and being good corporate citizens by running into the red to keep people employed is not a viable path for a publicly traded company.

All that aside, I like Yum! Brands as an investment (when the smoke clears and a bottom is found). Taco Bell and KFC are great, but ever since I recovered from covid, that damn original recipe just doesn't taste the same to me.

They brought back the Mexican pizza though.

[Furryrat]

They brought back the Mexican pizza though.

But I still can't get my custom beef and potato burritos! Ugh.

Thinking of this and now Biden's hairy ass has ruined my day.

[Seran]

And just to finish it off, Taco Bell is just a brand owned and operated by Yum! brands, a spinoff from PepsiCo in the late 90s, which also owns KFC and Pizza Hut. Yum! Brands (Stock ticker YUM, down ~30% this year) is the publicly traded entity and has come up short the last 2 quarters due to significant margin compression as a result of these increased food, freight, and labor costs. As I stated, and these are not 'arguments', when demand decreases, they can only maintain profitability by cutting costs in one of these three areas. Labor is the only one that they have direct control over, and being good corporate citizens by running into the red to keep people employed is not a viable path for a publicly traded company.

All that aside, I like Yum! Brands as an investment (when the smoke clears and a bottom is found). Taco Bell and KFC are great, but ever since I recovered from covid, that damn original recipe just doesn't taste the same to me.

And so you injected a really worthless point about cost-push inflation, being a type of inflation, as relevant to these discussion of Big Oil profiteering during a national energy crisis? I pointed out a classic example of where cost-push is subject to the CHOICE of the corporation and you figured you'd push what I presume is a doctorate in macroeconomics or business management to support your theory Taco Bell is doing it wrong.

So, to recap, cost push inflation is a type of inflation which may decrease profits or be used to increase prices of consumers at the risk of demand destruction. Big Oil meanwhile hasn't seen a substantial increase in costs as again, their average publicly disclosed expense for well maintenance is $35 per barrel. Supply is constrained domestically by the active choice of Big Oil not to reinvest massive profits into capital expenditures and as a result of the API coordinated idling of production in 2020 to support market prices. Yes we've lost a fraction of imported oil (700,000) from our Russian embargo, but that doesn't justify the current illegal profiteering.

[Neveragain]

Just gotta quote this for later.

That didn't take long.

[Neveragain]

the current illegal profiteering.

You're retarded.

[Furryrat]

And so you injected a really worthless point about cost-push inflation, being a type of inflation, as relevant to these discussion of Big Oil profiteering during a national energy crisis? I pointed out a classic example of where cost-push is subject to the CHOICE of the corporation and you figured you'd push what I presume is a doctorate in macroeconomics or business management to support your theory Taco Bell is doing it wrong.

You brought it up, dude. And no, never once in this example did I interject any personal determination of right or wrong. Judgement and feefees are your domain.

So, to recap, cost push inflation is a type of inflation which may decrease profits or be used to increase prices of consumers at the risk of demand destruction. Big Oil meanwhile hasn't seen a substantial increase in costs as again, their average publicly disclosed expense for well maintenance is $35 per barrel. Supply is constrained domestically by the active choice of Big Oil not to reinvest massive profits into capital expenditures and as a result of the API coordinated idling of production in 2020 to support market prices. Yes we've lost a fraction of imported oil (700,000) from our Russian embargo, but that doesn't justify the current illegal profiteering.

Yawn, it's like a conversation with a child. Everything I have posted in this thread previously evidences the substantial risks, costs, bankruptcies, layoffs, stock devaluations, predatory policies, court injunctions, stroke of a pen executive orders, pipeline shutdowns, environmental penalties, green initiative demands, and the overall hatred of everyone not employed within the industry is this ----------> "Big Oil meanwhile hasn't seen a substantial increase in costs".

The US produces and consumes 20% of global oil. Oil is a global market and probably the most basic example of supply and demand. Demand dropped 30% during the pandemic, and oil prices plummeted. Demand is very high now and so is the price. Even gender curious kindergarteners can grasp this.

Refineries are at 95% capacity.

The only cure for high prices is high prices.

[Neveragain]

Refineries are at 95% capacity.

Oil refining is a capital-intensive business. Planning, designing, permitting and building a new medium-sized refinery is a 5-7 year process with costs ranging from $7-10 billion, not including land acquisition.

DOW just finished a new high tech ethanol refinery here a couple years ago. They started building it back around 2008, by the time it was finished gas had dropped down to $2.50 and the refinery was shuttered.

People like Seran envision a scenario where oil producers have a hand dial they toggle to impact the oil flow.

[Seran]

Uh huh, so we've come full circle in that Big Oil is merely the victim of circumstance for reaping massive profits. We'll just ignore the idling of stripper wells to decrease supply, profits being shunted into dividends, rather than capital expenditures that would allow drilled, but not completed (DUCs) from adding to supply, spot prices which are increased, despite no fundamental increase in value. Then we'll go on to criticize Biden who had no control over the free market prices, supply dampening or refinery shutdowns wholly enacted by Big Oil.

Sure, why not, also the sky is purple.

[Methais]

Uh huh, so we've come full circle in that Big Oil is merely the victim of circumstance for reaping massive profits. We'll just ignore the idling of stripper wells to decrease supply, profits being shunted into dividends, rather than capital expenditures that would allow drilled, but not completed (DUCs) from adding to supply, spot prices which are increased, despite no fundamental increase in value. Then we'll go on to criticize Biden who had no control over the free market prices, supply dampening or refinery shutdowns wholly enacted by Big Oil.

Sure, why not, also the sky is purple.