Comments on: Lukoil's Sub-$5 Buck Oil http://briansullivan.blogs.foxbusiness.com/2008/09/06/lukoils-sub-5-buck-oil/ FOXBusiness Fri, 20 Nov 2009 18:24:21 -0500 http://wordpress.org/?v=2.8.5.2 hourly 1 By: Dennis Butler http://briansullivan.blogs.foxbusiness.com/2008/09/06/lukoils-sub-5-buck-oil/comment-page-1/#comment-861 Dennis Butler Mon, 08 Sep 2008 17:18:01 +0000 http://briansullivan.blogs.foxbusiness.com/?p=113#comment-861 Any way you cut it, if that was U.S. oil we would be pumping billions in to our economy. Any way you cut it, if that was U.S. oil we would be pumping billions in to our economy.

]]> By: Lex http://briansullivan.blogs.foxbusiness.com/2008/09/06/lukoils-sub-5-buck-oil/comment-page-1/#comment-853 Lex Mon, 08 Sep 2008 15:44:48 +0000 http://briansullivan.blogs.foxbusiness.com/?p=113#comment-853 This is another sensationalist headline that betrays complete carelessness with the subject matter. That is just lifting cost. You cant subtract that from the market price to find profit. There are many other costs that reduce the profit to something like 15-30% that is characteristic of boom-time profits in any industry. Look at pharmaceutical profits, for example. The other cost are: transporting oil from siberia to a market (europe, us, asia), overhead, investment in new field exploration and development (R&D) etc. Russian government oil taxes change with the market price and are designed to leave a company no more than $20-25 in gross profit. Be a little more responsible with your reporting - you are misguiding people. This is another sensationalist headline that betrays complete carelessness with the subject matter.

That is just lifting cost. You cant subtract that from the market price to find profit. There are many other costs that reduce the profit to something like 15-30% that is characteristic of boom-time profits in any industry. Look at pharmaceutical profits, for example.

The other cost are: transporting oil from siberia to a market (europe, us, asia), overhead, investment in new field exploration and development (R&D) etc. Russian government oil taxes change with the market price and are designed to leave a company no more than $20-25 in gross profit.

Be a little more responsible with your reporting – you are misguiding people.

]]> By: monkeyfurball http://briansullivan.blogs.foxbusiness.com/2008/09/06/lukoils-sub-5-buck-oil/comment-page-1/#comment-768 monkeyfurball Sat, 06 Sep 2008 22:39:54 +0000 http://briansullivan.blogs.foxbusiness.com/?p=113#comment-768 A TRAVESTY of monumental proportions. We need natural gas powered cars in the USA and we need them now. A TRAVESTY of monumental proportions. We need natural gas powered cars in the USA and we need them now.

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