deziloooooo
Senior Associate
Joined: Dec 20, 2010 16:22:04 GMT -5
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Post by deziloooooo on May 1, 2011 8:30:38 GMT -5
good morning all..I just ran across a article of a little problem in India. It seems that there is going to be a 40 plus BILLION doller lost on a State run Oil Firm, and was hoping some one could explain how any oil related enterprise could lose such sums today..Oil, demand, prices going up...what am I missing. ---------------------------------------------------------- freeinternetpress.com/story.php?sid=30030------------------------------------------------------------- [Click on link to read article} ------------------------------------------------------------ State-Run Oil Firms In India Face $40.5 Billion Loss 2011-05-01 05:11:36 (4 hours ago) Posted By: Intellpuke India, which annually imports more 25.5 million tons of crude oil from Saudi Arabia, is heading toward an unprecedented oil shock as revenue losses, termed under-recovery, have nearly quadrupled over last year. State-run oil companies are expected to lose over $40.52 billion on fuel sales, with crude oil prices almost regaining their all-time high of three years ago, the country's Ministry of Petroleum and Natural Gas warned in an interim update on the situation. "The oil marketing companies (Hindustan Petroleum, Indian Oil and Bharat Petroleum) are currently incurring daily under-recovery of Rs. 490 crore ($110.3 million) on the sale of diesel, PDS (rationed) kerosene and domestic LPG," it said. In 2008-09, the government had issued oil bonds worth $16 billion to the three firms — Hindustan Petroleum, Indian Oil and Bharat Petroleum — to make up for more than two- thirds of the $23.25 billion revenue loss. Upstream oil firms like ONGC provided another $7.2 billion. In the 2010-11 fiscal, the three Indian firms lost $17.6 billion. However, the government has provided only $4.7 billion in compensation so far. The oil marketing firms lost $501.3 million on selling gasoline below imported cost during April and June before its price was freed from the government control. They lost $7.74 billion on sale of diesel, $4.4 billion on PDS kerosene and nearly $5 billion on sale of domestic LPG. |
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tyfighter3
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Joined: Dec 20, 2010 13:01:17 GMT -5
Posts: 1,806
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Post by tyfighter3 on May 1, 2011 13:01:08 GMT -5
The last paragraph says it all, Price controls.
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Post by ty on May 1, 2011 13:17:14 GMT -5
The last paragraph says it all, Price controls.  |
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tyfighter3
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Joined: Dec 20, 2010 13:01:17 GMT -5
Posts: 1,806
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Post by tyfighter3 on May 1, 2011 14:13:39 GMT -5
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tyfighter3
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Post by tyfighter3 on May 1, 2011 14:16:36 GMT -5
Government GREED is never a good thing for it's people that it represents.
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deziloooooo
Senior Associate
Joined: Dec 20, 2010 16:22:04 GMT -5
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Post by deziloooooo on May 1, 2011 15:09:31 GMT -5
Am I reading that correctly, every $[or Lb} of net profit that is earned is taxed at , was 50 % and now going to 62 % ?? Even for one such as I , that's a bit to much..especially since they do nothing to gain that revenue but sit back and wait for the $[Lb's} to come in, granted it is their property, the leases, people own them, government is representing the people, but still, kind of a land lord gaining their rents, and I believe they, oil companies had to pay a lot to get the leases to drill there, and possible they drilled a lot of dry holes to find the stuff, at least initially, which was a big expense, the people, government got hose lease costs $ the companies just had hugh drilling losses. If This is the way it is all over the world, they, oil companies , should take some of the $ earned and spend a bit in educating the public of those areas what the industry is all about, might get a bit of a break, granted a little one , cut a bit of slack as prices keep rising for their products. Ty for the explanations, appreciate it. |
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bimetalaupt
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Joined: Oct 9, 2011 20:29:23 GMT -5
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Post by bimetalaupt on May 1, 2011 15:36:06 GMT -5
Just a thought,
My mother said some 30 years ago it will be best to "Drain" other lands oil reserves first before tapping what little we have left.. If you add the next generation Methane power to that and the almost 100% recycled methane from the magma layer under the crest of the earth.. We could have about a 250 year energy reserves until the fourth generation Nuclear power recycles all the war heads and we burn all the coal and shell oil..
What will we have left.. Wind, solar,deep drilling methane,geothermal and oil from algae.. IE almost unlimited energy...Give use a 500 mile charge on you lithium power storage system with solar cells on the roof...
Just a thought from mother,
Bruce
As many know my brother held the solar powered race for years at his Heartland Park Raceway.
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tyfighter3
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Joined: Dec 20, 2010 13:01:17 GMT -5
Posts: 1,806
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Post by tyfighter3 on May 1, 2011 20:03:43 GMT -5
Bruce, there is a time and place for everything. Now is the time and place to be putting to work the blue Collier worker and keeping Gas prices stable. We need both right now. Shell spent 4 billion in Alaska with all of the permits, infrastructure in place and so forth, but before they could Drill one hole the EPA put a stop to them because their was a village with 245 people in it. Needless to say Shell picked up and left. I wonder how many jobs where lost?
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