Toomuchfun/crude pricing under fire

Toomuchfun I would like to know how you have come up with these conclusions. As I work in manufacturing that depends on these plastic products. The price of these raw materials have increased with every thing else.

I would also remind you that the product that they are refining is fuel not plastics. What is ever left from the refining is a waste product. In the fact that they have found a use for it means it is not trashed. Supply and demand set the price not what you pay at the pumps.

If in fact the prices of these waste or by products are low in comparison to the cost of crude oil. Could it be that the reason is that no one is buying the durable goods they are making from them as they are using the money to put in their tanks to get to work?

Top of the morning to Ya, OZZB

It is a little early for me but I'll attempt to respond in kind.

1- Where do I come up with all these CONCLUSIONS? WELL I WAS TAUGHT THAT CONCLUSIONS WERE THE END RESULT OF SCIENTIFIC INVESTIGATION. THAT HAD BEEN ENCOURAGED BY THEORY, THAT IN TURN WAS THE RESULT OF SOMEONES IDEAS OR QUESTIONS. No conclusion has been reached yet, as there has been no scientific investigation conducted, by the Scientist's taking part in this CR4 Forum.

2- I am reminded that they are refining fuel. Plastics are a waste product, and fuel prices are the result of supply and demand. The cracking of the crude oil produces many products besides gasoline ,diesel, several grades of fuel oil , kerosene, and several grades of other fuels, like jet-a, and bunker grades a-b c, tar and asphalt, as well as the lighter weight products that distill out lighter than gasoline and somewhere along the way we get plastic, another by-product. Gasoline and diesel prices are established by manipulating supply and demand. Crude prices are the end result of greed, not the cost of production. It requires no more production cost to produce crude at $60.00 than $126.00 per barrel. The only waste involved with crude is the spillage around the pumping station and the stuff that is to light to recover, that is burned off at the refinery.

3- No one is buying the goods made from the waste products! "WOW" Crude oil is like a PIG. They have a use for everything but the squeal. Everything that is made with moving parts gets lubricated, whether by grease, oil or even a synthetic, (adjusted by man kind) product, and the vast majority of these lubricants begin as crude. Let me suggest that you count everything that you touch to day that is made of the WASTE PRODUCT THAT YOU CALL PLASTIC.

4- Automobiles were originally designed to run on ethanol or methanol as a fuel. Gasoline was a waste product. However because this waste product could be used as a fuel for said autos, and was readily available and cheap, It became a desired product. No longer waste.

5- Today we have a crisis with using corn for ethanol production. Corn is used in many of our food products, there fore competition exists. SO NOW WHAT ABOUT THE WASTE! The husks are returned to the field for decomposition, the cob is used as fuel, the ethanol that makes it past the local tavern, is further distilled to increase the alcohol content to 195%, and is used as a gasoline additive, And the CAKE, the waste that remains is converted to animal feed.

And sense CAKE is a waste product of the ethanol production rage and there is now more Cake than any one could have possibly ever imagined, SOMEONE TELL ME WHY THE PRICE OF ANIMAL FEED IS RISING SO HIGH WHEN WE NOW HAVE SO MUCH CAKE THAT WE CANNOT EAT IT ALL!

TMF

"is the price of various fuels being jacked up to support a lower price of other materials that are also recovered as part of the refining process. I am aware that some petroleum producers also produce plastic pellets for use in industries that make plastic every things."

I find nothing in these paragraphs to support the statement above in you opening post.

Unfortunately this question as titled confused some folks minds. Maybe I should have have asked if--------- the entire industry wide use of petroleum products including those Mfg.s as asphalt shingles and other roofing products, floor covering products, sealants, trash bags, vinyl applications of almost every imagination, land fill liners, computer disks, and everything else one could possibly associate with having at least some element of some grade of crude oil in it its composition --------Has experienced the same destabilizing cost increases as has fuels used for home heating and transportation of all varieties.

OR IS IT JUST some products BEING SELECTED BY THE futures investors AS EASY GET RICH TARGETS.

Are any of you aware that these futures investors only have to post a 6% deposit in order to control the future of 16 barrels of crude. Other typical investments for the players require at least a 50% contribution.

AS we have recently experienced the topsey tervy activities of the real estate flippers and the horrible downside that came along with it, I feel compelled to ask you professionals whether or not the same issue might be hidden on a barrel of sweet light crude.

I only made an observation, you players have converted it in to a challenge. I made suggestions based on known activities, You seem to have taken it as a personal confrontation. Could we at least attempt to stick to the science that might be involved with this blog?

Tmf

all the commodity markets are playing on each other. Even the price of wheat is being run up by speculation. Do you know google is trading at 32 times its earnings and exxon at 11? Energy industries are at 13 as is microsoft. WHY in the name of little green apples is a company that produces nothing worth so much?

Speculation. Why are houses selling for $1000/ft^2 in SFO, but $75 in Witchita?

Thanks for responding!!!

However: we are no closer to answering the big question!

ARE THE OTHER MANUFACTURERS OF PRODUCTS THAT UTILIZE PETROLEUM BASED PRODUCTS FACING A 400% INCREASE IN COSTS FOR THE PETROLEUM PORTION OF THEIR PRODUCTS.

Or only the users of transportation and heating fuels suffering the whole load. Why not stick to the issue!

MAYBE FUTURES INVESTMENTS SHOULD BE OUTLAWED AS AN INVESTMENT TOOL AS THEY ARE CLEARLY A METHOD OF DESTABILIZING WORLD ECONOMIES.

THAT STATEMENT SHOULD ROCK AN AIRCRAFT CARRIER OR TWO.

Tmf.

WE are drifting away from the point. Is everyone sharing the increased costs of crude by the barrel?

in the industry, we do not price products by the gallon, we do it by the pound. When you do it that way, crude oil comes in at $.25/lb. Gasoline is $.30/lb, diesel is $.31/lb ethylene is $.6/lb (by the way thats $15/gallon). Propane is $17/lb bulk and $.25/gallon in 25 to 100 lb lots.

Get out your science books and do the conversions. Then when get good at that, we also cost it out by the energy content, the units are $/MMBTU. Crude is $20/mmbtu, gasoline is 28, diesel is 29, propane is 26 to 40, and LNG is 25, finally natural gas is 9 in large and 15 at your house.

Please share the reply to OZZY