₦airaland Forum

blueAgent:
You are really naive.

lol , I don't need to call you naive, you showed it that you are not only naive But ignorant

blueAgent:
They set the least basic price, required to recover there costs, the rest is influenced by market forces.

lol, you just admitted the same thing you disbelieved. Funny man. You don debunk yourself

blueAgent:
So what do they use the money 4?
Do they dash you the money?

mtchww

blueAgent:
The IOC.

Prices are set by Market forces( demand and supply)

are the IOCs not part of the market forces? Do they play not part at all in setting the oil price ,since you admitted they are responsible for oil drilling and also spending millions in exploring new field?

blueAgent:
Part of the money and profit, is invested into exploration and development of new fields.

you dey talk nonsense

blueAgent:
Yes, there are element of truth in this.
But the fact is, for us to buy cheaper Fuel, the government needs to subsidzie the fuel or better still, the naria appreciates favourably against the Dollar.

Than, even if crude oil in the international market is $100 , with naria exchanging let's say 200naria to a dollar, petrol prices would still be cheap.

A reasonable, government should lay emphasis on reduce imports, encouraging exports, fighting corruption, reforming our banking and foreign exchange markets, all this would boast the value if naria against the dollar.

oga you dey yern bulshit. Subsidy is a scam. The same way they increased electricity and said it's because the government took subsidy away.

The government can make fuel 200per liter and still make too much gain. But because the Nigeria's oil is controlled by the British and they manipulate the price we as a country sil never be free. Tinubu gas taken loan that is not needed and will never be able to pay back because he devalued the naira therefore accumulating the loan even more, and so he has used the oil as collateral for these loans that is why he can't do much about the oil situation. Dangotes refinery is just the British petroleum with dangote face. They shut their refineries in Europe to establish another in Nigeria due to air pollution, and that why oil prices are going up despite a so called indigenous refinery

https://businessday.ng/news/article/dangote-refinery-seen-accelerating-closure-of-europes-existing-90-refineries/
Learn and stop quoting me unnecessarily

blueAgent:
More gibberish as usual.

Are IOC the ones that Set the price for crude oil?

who sucks these crude from the ground? Also tell me , who are these people spending this millions and billions of dollars you make noise about all the time to justify fuel price increase.

blueAgent:
I have a bachelors degree in petroleum Engineering with over 15years working in the industry( pipeline and process).

I know what, I am saying.

Exploration of potential crude oil fields cost millions of dollars, after oil is found it costs millions of dollars to drill Wells to ascertain the quantity of oil available and the type of crude available.

It also cost alot of money, to build production facilities, weather FSPO( offshore) or flowstations for(onshore) or tie back using pipeline to an existing facility.
After all this has been done, it costs money daily to operate those facilities and equipments.
Logistics, feeding, helicopter,chemicals,trucks,personnel, Food for those in camp, workover on Wells, safety equipments, e.t.c
The list is endless, this costs I mentioned, cost millions of dollars inorder to extract the oil.

With time, the pressure of the reservoir goes down beyond a certain limit that makes it, uneconomical to produce more oil from that field, hence new fields would need to be explored and developed, the process continues.
That's how oil and gas industry operates.
Note: A company can spend as much as 100million dollars to drill a well and end up finding no oil. Oil and gas, is a high risk business, Especially exploration phase.

oga you might have a degree in all these. But the fact is that these money you mentioned even from what you wrote it is clear that that these millions are one time spending and not regular. Read what you wrote ,you said when oil is found"" and I agree, they spend a lot to establish the facilities to drill these oil but after that the money and profits they make as time goes on is far more than the money they spend on maintenance and so this cannot be a justified reason for fuel increase at alllllll!!!

blueAgent:
Is gas price currently the same price it was during Goodluck's presidency or even Buhari?

Prices of gas has gone up, go and check your records.

lol, yet it is not same as fuel or even diesel. And the only reason it went up is because they pushed it up for gain. If dangote invests in gas today, they will come out and tell you that subsidy on gas is removed and so that's why they have to increase the price. The same gas that is being flared and thrown away every day.

blueAgent:
There are lots of corruption and failure on the part of the political class, but my argument is not based on that.
My argument is to prove that, no private refinery can buy crude oil at current market price and sell it below a certain price.( lower than there cost price)

your argument was implying that the IOCs spend a lot of billions in dollars during drilling and each and every time they extract crude from the ground and so this is why fuel is expensive due to inflation. Which you I proven to be false

blueAgent:
This is the height of Ingnorance.

Which school or media outlet did you hear, it costs nothing to extract Crude oil from the ground?
From Exploration, drilling and production costs billions of dollars.

Why not educate yourself online , there are lots of articles you can read, to understand about the oil industry, rather than come online to display Ingnorance.

lol. How come gas prices are not affected like petroleum products. Is it not the same method basically that is used to mine both resources?

Are they still laying new pipe line to extract this crude. Is like digging a bore hole to pump water and anytime u need more water you just pump more. The only time you need to spend money is maintenance or when digging a new bore hole. Once an oil well is discovered then a drinking system is established which drill oil constantly no need to spend billions each time you want to pump oil out of the ground. So tell me exactly what and what are they spending billion for to extract oil in order to justify the skyrocketing of fuel price I am still waiting. You challenged me I gave you answer and i challenged you back now you point me to Google. But you claim you have sense .

blueAgent:
At your age, you don't know that crude oil prices changes every minute and day, so also the price of products gotten from crude oil.

dey talk mumu talk. So God who put the price of petrol in the ground is changing the price abi? Petrol subsidy was taken out+ which is a scam anyway) and petrol price jumped up now that subsidy is back instead of petrol to come down it is going up exorbitantly. Why should Nigerians buy petrol and indigenous product for over 1000naira if not for political gain. They here dey yern rubbish dey form intelligence.

blueAgent:
You are trying so hard to look smart and intelligent.
But you are one hell of a dumb shit.

If you cannot show me practical example, how a refinery can produce petrol and sell it at 800naria and below and still be profitable than shutup.

Stop exhibiting your ignorance and naivety.

I challenge you to show me how a refinery can make profit selling at your desired price, give me a breakdown starting from crude oil costs, show me practical breakdown of products from the refinery and there average refining costs and quantity per barrel.

I need the answers for the question above.

You just dey make careless noise. The fact here remains that it cost the IOCs nothing to extract crude from the ground, if not for politics and dirty profiteering why would dangote buy crude with dollar in his own backyard? .

So the proof lies in the fact that it cost nothing to extract the crude from. The ground so why put a dollar price tag!! Unless you want to manipulate the oil market.

I challenge you to proof to me that is cost billions to extract the oil from the ground. Also show me proof of how much it cost to extract the oil when oil was sold for 145, how much it cost to extract at when fuel was 350-600-750-800 -1300 and now 1190. Show me how much it cost to extract oil to justify all this price changes

blueAgent:
Which facts.

Clown way dey form expatriate.

How many gallons of crude oil make one barrel?
How many gallons of PMS is gotten from one barrel of crude?
How much is the cost of one barrel of crude oil?
What is the cost of refining on barrel of crude oil?

I need the answers, Mr know all.

Zombie

lol you are the noise maker, the price of fuel just went down from 1300 to 1190. Tell me , did any of those things you mentioned as the things affecting fuel price have any influence in the reduction of the fuel price recently? Answer and explain let's see who is noise maker

blueAgent:
Noise maker, it is almost a week now and you are yet to answer or respond to my questions.

It's obvious you have boxed yourself into a corner.

which question are you talking about ,I saw no question

blueAgent:
Zombie.
At your age, you don't know that subsidy on Diesel was removed years ago before that of petrol, hence the reason while petrol was sold lower than diesel.

na you be dead body. Subsidy was removed on diesel and the price has remained stable, how much was petrol when subsidy was taken out? How many times did petrol price increase? Or did they keep removing something that was already removed? Why has petrol price not come down since even the federal government has admitted that subsidy is back. Why is petrol price even higher now that subsidy is back and fuel price is still higher than diesel?

Now you see say nah you be zombie

blueAgent:
It's obvious you are very confused and Naive.

I stated fact. Show me the confusion and naivety

MEEVEET:
Which school did you guys go to? Can't you guys read and comprehend?

l i use ur own words against you for you to see how pointless ur words are....now ur asking like u dont know what am talking about. i see you have nothing else to say

MEEVEET:
Do you have have an idea how much it cost to make a well to be productive?

Some of you are just ignorant sha

People spend anywhere between 500 million dollars to 10 billion dollars per well

Produce, government still take 55% of profit
Then still tax their 45% profit

Then u think stealing from them is justified?

bla bla bla,... Where do some of you even come from. So it was the money spent on oil well that made prices of petrol climb to 1300 in less than 8 months? Well done smart guy

blueAgent:
So you don't know, that it is costs more to produce 1liter of pms than 1 liter of diesel?

Secondly the demand for PMS is higher than that of diesel.

it cost more yet petrol was sold for less than 400 while diesel was sold for 800 before tinubu. You have nothing to say just keep quiet.

blueAgent:
You are confused.

Am not an advocate for Tinubu or dangote.

Am only a professional engineer, who is explaining to you why petrol can never be sold below 800 to 1000naria without subsidy.

The economics behind oil refinery business is what am interested in, not the politics.

The truth is, if you like have 400 oil refineries in Nigeria, along as they use crude oil as feedstock, weather it is sold in dollars or naria, prices of PMS would fellow prices of crude oil.

lol first of all there is no such thing as subsidy. Secondly when you u u announced that subsidy was gone. Nnpc stated selling for about 500 while others sold at 550. Now that subsidy is back price keeps climbing,.. why should the price of petrol keep rising even when subsidy is back do you people think at all.

Very very staged and scripted fight. Boxing is now same as WWE

MEEVEET:
Where did I say that?.

I said kpo fire people steal their crude
Dangote buys at international price

buying at international price for oil that is In your backyard? You people fail to see that dangotes refinery is not dangotes but the foreigners who gave him money to build it own it. That is why many refineries overseas are shutting down like the one in Scotland. And there reason is because they can't stand competition with dangotes refineries. These people have been pouring out CO2 emissions for years in their country ,now due to emissions laws they have shifted there refinery to Nigeria and called it dangote refinery. That is why fuel prices are going up because actually it is not a domestic refinery but a foreign one meant to profit the foreigners who established it. Open your eyes . You argue what you don't know and think you are smart.

blueAgent:
You keep talking with Proof or evidence.

You fail to understand, what is cost and profit and how it impacts manufacturing or business.

like I said what your saying does not hold water at all. It is not even reasonable To say such when a child can perceive that politics is involved in price manipulation of petrol. Why is diesel price still Sam and even gas prices? But petrol has fine up far beyond both or are they not spending dollars too on mining those resources?

blueAgent:
Is pipe the only thing that is required to produce oil?
You have a lot to learn and you are not willingly to learn.

Go and Google about how oil and gas industry operates and effects of inflation.

pls leave all these your saying. It's irrelevant. Fuel price sky rocketed from 550-1300 in less than 8 months and your saying I should Google to see reasons why it is so. Just listen to yourself. As if you don't know in your heart dangote refinery is the reason why

MEEVEET:
What the heck are you even talking about?

you speak as if the rise in fuel price is caused by what the OIC s spend in extracting the crude. I asked if that was the reason why nnpc increased the price of fuel when tinubu announced that fuel subsidy is gone? Is that also the reason why it suddenly went to to 670 , 750, 850 and now 1300

Some of you come online to speak like sound minds when ur far from sound and intelligent

MEEVEET:
Who laid the pipeline?
Who pump the crude?

You think it cost nothing to extract oil? Lmaooo when are we looking for investors na

So if you buy a land and build house after 50 years tenants don't have to pay you rent abi?

See reasoning

lol, so how much did they spend to extract the crude when tinubu said no more subsidy and nnpc increase fuel price lmao!!,...

In the history of fuel price increase when has the money spent on extracting crude from the ground been the reason for fuel price increase. Lol funny man, make una dey justify nonsense dey form say you get sense

blueAgent:
You really sound naive and ingnorant


Am never an APC or Tinubu supporter.

Am only been professional in my career.

All over the World oil and gas are costs and financed in $$$$.

Weather it is Brazil,Libya or Venezuela
Petrol prices are relatively cheaper in those countries apart from Venezuela becos of their currency having a stronger value against the dollar.

Weather dangote pays for crude oil in naria or dollars. we the consumers must pay its equivalent ,that would be economically feasible for the refinery to run properly.

The useless president, complicated the issue by devaluing the naria, hence the value of dollars appreciated against the naria leading to inflation.

Try to humble yourself and learn, stop rejoicing in ignorance.

see this man,... The dangote refinery that was financed by foreigners for their own good is what is causing this price increase. Inflation or not , there is no reason why fuel should sell for 1300 after dangote refinery starts refining crude in the country. Ask yourself why other refineries in the country has not been working for years and was neglected by the government only to favour a monopolist to build his own in a free trade zone close to a sea port. My point is that these dangote refinery is not for Nigerians but for a foreign entity who's goal is to continue to reap off Nigerians. The dangotes refinery is not dangotes at all he is just a front.


So all these bla bla you are talking while calling it sense it actually nonsense. If the three major refineries in Nigeria where working, dollar or no dollar fuel would never be 1300per liter.

blueAgent:
You would have aslo, requested for food to be given to you free, because God does not charge a dime for one to plant corn and harvest it?

my point is the I.O.Cs laid the pipes that suck this oil many years ago, so why keep increasing the price? Is God increasing the price of crude in the soil? If not for the same petrol price increase that affected food, you think there will be price increased for food items? If you plant pepper and sell for 50naira for ten pieces what will make you increase it to 1300 suddenly? If not greed and dirty politics.

blueAgent:
What is sourced locally?

The compressors, turbines,pipes, chemicals, drill pipes, drill muds, drilling services, well completions and servicing e.t.c are all imported materials or services offered mostly by foreign companies and they charge in $$$$.

The oil and gas industry globally is a dollar dominated industry.

how come all these you mentioned do not affect libya , Venezuela, Brazil. Or you want to tell me they don't use all these? These things are excuses. The only reason why petrol price is exorbitant is because of the dangote refinery. But people like you like slavery while thinking your intelligent and smart. Sorry for most of you Nigerians

MEEVEET:
Kpo fire people steal crude

Their cost of crude is zero

Venezuela and Libya are small population with big crude oil production

Nigeria crude oil per capita crude oil production / population is similar to that of Ghana

Like I said ignorance is bliss

correction kpo fire people do not steal crude. They get it from the pipeline which is laid in the ground already over 50 years ago. Same way the I.O.Cs get it from the ground at zero cost. Or you want to tell me they pay God?

Population it not a bases for why the fuel should be exorbitant . As a matter of fact, more profit would be made in Nigeria due to population than it would be made in Venezuela and libya so it should even be more cheaper in Nigeria

blueAgent:
Go and Google about oil and gas industry.
I don't have time to explain.

why should I do that when I have a brain to think. Why should fuel be expensive in a country that has it in excess!. If these people where to sell the air you breath they would make it expensive and give you all manner of excuses why it is so