Skip to comments.Exxon’s $100m Algae Investment Falls Flat
Posted on 05/30/2013 11:20:15 PM PDT by Vince Ferrer
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Did you want me to compress one down so it was hard to read the scale? Oil is priced in barrels and gasoline is priced in gallons.
How would changing the scales not show oil at less than half the price you claimed or gasoline consistently above the price you claimed?
You try producing oil for that price today. The easy-to-get oil is running out. The cost of the deep shale wells with multi-stage fracking and mile or two long laterals are not cheap.
If the cost to produce was like you suggest, the profit margins from the oil companies would be more than a magnitude higher.
So prices went up that much in 15 years due to costs of production? Right.. And they’ve fluctuated as your graph shows from just that as well?
imho the big winner in the algae oil space is not an algae company but rather a bacteria company called Joulle Unlimited. They have engineered bacteria to make ethanol, diesal and jet fuel or whatever exactly to spec so there is no refining. They can bring the fuel in for 1.28@ gallon. They’re currently scaling up to a 1000 acre facility in new mexico.
I know you have a personal high level stake in this stuff, but c’mon. You know they’re laughing it up to the bank. I’m not saying oil companies are ‘evil’, but they did fake out their problems in the 90’s in order to mega merge to kill competition in the market which is why prices are so high.
Oil prices have always jumped around. I've been in this industry a couple decades. Boom and bust is normal. Long term companies have to invest for the future or they won't be around. For every barrel of oil that is taken out of the ground, they have to find a new one. That can either be new exploration or they can spend money to get more from the fields they already have, like CO2 flood, water injection, etc.
In the bust times, the cut way back on that investment and hope they can ride out the down time. Most shutdown projects they planned and people like me get let go. If they didn't plan well, they usually get bought out by some company that planned far better. Nothing new in the oil business. Is this really news to you?
Obviously you don’t have the slightest clue what it cost to get a barrel of oil out of the ground and to market.
Stick to something you know something about, oil isn’t it.
They are public traded companies. Buy some stock if you believe that they are magic money machines. You too can be big oil.
Snicker snicker : )
Don’t you just love the idiots that think there is no cost in producing a barrel of oil.
Everything is free don’t you know.
These are the kind of idiots who’s knees would buckle if they had to pay for one day of a workover rig.
I'd like them to put their 'rounding error' in my bank account.
That work is too tough for this old man. Liberals hear $5billion in profit and can’t understand stand it took $100billion in sales to get there in the gasoline business. % % %.
People don’t realize most of what’s called “Big Oil” the refineries, don’t produce enough oil for their needs they have to buy it from somewhere.
The independent operators drilling the wells may never get their money back and turn a profit on the well, it cost more to drill the well than they ever get out of it.
If the price wasn’t were it is, a lot of those wells would never get drilled, it cost too much to drill and complete a well to get a lower price.
The oil business isn’t for the faint hearted, it’s one big gamble and more loose than win.
The only thing I can think of, is for the sake of the solar. Algae turn sunlight energy to carboniferous biomass. But I’d consider it more logical to try to do something like that, not in a desert, but near Hawaii, where solar could be used to operate a saltwater to freshwater still (and there’s also lots of rain where God has already done the distillation for them).
that is very true.
This is it, not sure how it works but you can see a lot of exposed water.