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Energy Prices


MuckleMoo

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13 hours ago, oaksoft said:

This can't be right.

@satoshi assures us he knows what he's talking about and that it isn't true that vast profits are being made here.

I never said that, don't even know what constitues vast profits.

But yes rising commodity prices help energy extraction companies (duh), but this is a sector that has been doing badly for years. Of Britains three major O&G Extraction firms from ten years ago, one no longer exists (was taken over) and the other two have much lower share prices.

None of this is my opinion. Just a fact I'm afraid.

Edited by Satoshi
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3 hours ago, oaksoft said:

Who is doing that?

The people posting about energy production companies on a thread about energy supply.  Looks like you can read, so check the last few pages if you want specific names.

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22 hours ago, 101 said:

And the most damning tweet in the thread.

 

What a bunch of wankers.

Hopefully Sunak announces a fat cat tax on Covid companies and energy firms and cutting VAT for 12 months on Energy bills.

You can keep hoping. A narcissistic billionaire with 12 houses doesn't give a shit about you or I.

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46 minutes ago, Andre Bo said:

You can keep hoping. A narcissistic billionaire with 12 houses doesn't give a shit about you or I.

I know but if he's going for the top job, which he seems to be gunning for then he better start acting even slightly in the public interest.

I don't know who did the consultation on the energy price loan, but I saw one survey after it was announced that had more than 70% saying they would turn it down if that was an option. The man's an idiot.

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32 minutes ago, 101 said:

I know but if he's going for the top job, which he seems to be gunning for then he better start acting even slightly in the public interest.

I don't know who did the consultation on the energy price loan, but I saw one survey after it was announced that had more than 70% saying they would turn it down if that was an option. The man's an idiot.

That's an interesting statistic about the so-called rebate, but if you consider what he has gotten away with already while maintaining high approval ratings then you'll maybe understand why I am not filled with optimism. 

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Won't spend too much time looking into Richard Murphys tweet - partly because I don't care that much and partly because he is admits it's broad and based on lots of assumptions.

He says the cost of energy supply doesn't change much when the oil price changes (which afaik is maybe correct) but the cost of extraction obviously does even if the increase is delayed a few months.

He doesn't cover now terribly the share prices of oil and gas extraction companies have been for the past ten years. It's been a terrible time to be a shareholder of these companies (you have lost money at a time the stock market had a bull decade).

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Well I don't expect anyone will ever care about the shareholders (mostly pension funds) but it's to challenge the notion put forward on the thread that they are mass profiteering and driven by greed. They aren't (or at least no more than any other company) they are driven by the commodity cycle.

The energy business (supply or extraction) is far from the most profitable (or rent extracting) industry to be in. This isn't because of how I feel or what I think - it's based on the available ROE and share prices of these companies.

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I'm relatively lucky in that I got us put on a 5 year fixed deal with isupply (they left the uk market last year and moved us to edf who have to honor the fixed deal) that expires in September. I can only hope that by the time that expires the prices will be heading down... doubt it but its something to hope for.

The wife has been looking into getting a heat pump but unless the government start doing massive discounts for them (like they have for electric cars) who is going to be able to afford them?

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56 minutes ago, steelmen said:

The wife has been looking into getting a heat pump but unless the government start doing massive discounts for them (like they have for electric cars) who is going to be able to afford them?

I was considering replacing the gas combi boiler with an electric one, but nothing I've read on here (or anywhere else) recently is suggesting that this would be a cost effective move.

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