₦airaland Forum

blueAgent:
Hmm ....

You ignored the most important cost, which is the cost of the crude oil.
Average price of crude oil now is $77.
That's : 77×1600=123200Naria per barrel.


A barrel contains 42gallons of crude oil and each barrel gives you on average 19 to 20gallons of PMS.
1 gallon contains 3.7litres of pms.

Hence 1barrel= 20gallons of PmS= 20×3.7liters=74liters.

There is no way pms, would be sold below minimum 800naria, unless the Naria appreciates against the dollar or government subsides it.

The useless president, would have not devalued the naria.

The best option is for our government is to peg the Naria to dollar, while reforming the banking and currency exchange market.

No commodity has an intrinsic value, we place value on the product.


The true value of crude is the operational cost in lifting it out of the ground which is X, not $77 per barrel.

One company sells a leather belt with the same leather quality for 1m USD another sells for 10 USD, both are making profit but the true cost of extracting the leather from animal hides is far lesser.

If we had a sincere government, now that Oando controls the largest upstream oil field, they should be sincere enough to let us know the true cost of lifting crude out of the ground and not the international market price.

Also, it can come at zero cost to the government with concessions.
Take a certain percent of what you lift as payment.

EMILO2STAY:
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

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.

Baxilexi:
No commodity has an intrinsic value, we place value on the product.


The true value of crude is the operational cost in lifting it out of the ground which is X, not $77 per barrel.

One company sells a leather belt with the same leather quality for 1m USD another sells for 10 USD, both are making profit but the true cost of extracting the leather from animal hides is far lesser.

If we had a sincere government, now that Oando controls the largest upstream oil field, they should be sincere enough to let us know the true cost of lifting crude out of the ground and not the international market price.

Also, it can come at zero cost to the government with concessions.
Take a certain percent of what you lift as payment.

You think it's akara and bread business?

Your suppliers and oil service providers, charge or offer services based on international market prices which is greatly influenced by crude oil prices.

Do you know, how much it costs just to drill 1000ft in an oil well?
An average oil well is over 5000 to 10000fts deep.

Even the Cocoa and groundnuts that we export, are controlled by prices set in the international market.

No nation is an island, when it comes to business and global economy.

Baxilexi:
No commodity has an intrinsic value, we place value on the product.


The true value of crude is the operational cost in lifting it out of the ground which is X, not $77 per barrel.

One company sells a leather belt with the same leather quality for 1m USD another sells for 10 USD, both are making profit but the true cost of extracting the leather from animal hides is far lesser.

If we had a sincere government, now that Oando controls the largest upstream oil field, they should be sincere enough to let us know the true cost of lifting crude out of the ground and not the international market price.

Also, it can come at zero cost to the government with concessions.
Take a certain percent of what you lift as payment.

Oando does not control the largest upstream oil fields . Get the facts right. Shell, Mobil, Total, Chevron etc all have bigger upstream oil fields than Oando

blueAgent:
You think it's akara and bread business?

Your suppliers and oil service providers, charge or offer services based on international market prices which is greatly influenced by crude oil prices.

Do you know, how much it costs just to drill 1000ft in an oil well?
An average oil well is over 5000 to 10000fts deep.

Even the Cocoa and groundnuts that we export, are controlled by prices set in the international market.

No nation is an island, when it comes to business and global economy.

You came late to the party.

Even our officials admit that the cost of pumping crude in Nigeria is the most expensive in the world.

https://punchng.com/nigerias-48-per-barrel-oil-production-cost-global-highest-faleke/?amp

Nigeria also has one of the lower emoluments in the world, so I’d like to hear how all the workers at the rig are being paid higher than those in the US and Saudi.

mikeapollo:
Oando does not control the largest upstream oil fields . Get the facts right. Shell, Mobil, Total, Chevron etc all have bigger upstream oil fields than Oando

By acquiring NAOC, Oando strengthens its presence in the Niger Delta region, which is a critical area for Nigeria’s oil and gas production. The acquisition also gives Oando a competitive edge over other indigenous companies, potentially making it the largest indigenous oil producer in Nigeria.

https://www.thisdaylive.com/index.php/2024/08/31/oandos-naoc-deal-new-era-for-nigerian-oil-sector/

My facts, kindly provide yours. And if it isn’t, what ranking does it have?

Baxilexi:
You came late to the party.

Even our officials admit that the cost of pumping crude in Nigeria is the most expensive in the world.

https://punchng.com/nigerias-48-per-barrel-oil-production-cost-global-highest-faleke/?amp

Nigeria also has one of the lower emoluments in the world, so I’d like to hear how all the workers at the rig are being paid higher than those in the US and Saudi.

You are really confused.

See how, you contradict yourself, go and check your previous comment and this one, U would see your confusion.

I don't have that time to argue with you.

CUNNING MAN DIE CUNNING MAN BURY AM.


ORISA37
POLICE, DSS AND EFCC SHOULD GET INVOLVED.

Baxilexi:
By acquiring NAOC, Oando strengthens its presence in the Niger Delta region, which is a critical area for Nigeria’s oil and gas production. The acquisition also gives Oando a competitive edge over other indigenous companies, potentially making it the largest indigenous oil producer in Nigeria.

https://www.thisdaylive.com/index.php/2024/08/31/oandos-naoc-deal-new-era-for-nigerian-oil-sector/

My facts, kindly provide yours. And if it isn’t, what ranking does it have?

!

You have just introduced two new words: potentially and indigenous.
That means changing the context of what you typed earlier

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:
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:
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

EMILO2STAY:
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

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.

EMILO2STAY:
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

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.

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:
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 .

EMILO2STAY:
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 .

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.

EMILO2STAY:
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 .

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.

EMILO2STAY:
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.

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)

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

EMILO2STAY:
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

More gibberish as usual.

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

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:
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:
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.

EMILO2STAY:
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.

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.

EMILO2STAY:
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.

The IOC.

Prices are set by Market forces( demand and supply)

EMILO2STAY:
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!!!

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

EMILO2STAY:
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!!!

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

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

you dey talk nonsense

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?

EMILO2STAY:
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?

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