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Originally Posted by RIJIMMY
Not a defense, but just some clarification. the market drives oil prices, not the oil companies. Oil companies keep huge supplies of oil barrels. The cost to produce them remains the same. If the price to produce them is $10 and a barrel is selling for $25, they have a profit of $15. If it is selling at $65, then profit is $55. hence the record profit. They basically do nothing, and make a ton more profit. Oil is a limited resource that scientists have been saying for decades is running down, world oil consumption has increased 10 fold in the past 5 years. A dramatic rise in price is to be expected.
The key is to find alernate fuels. Oil will be expensive for as long as we are around. It is not some profit drive conspiracy, as much as it is hurting the common man, it is hurting other businesses. Do you think CEOs of major corparations would be sitting back if they beleived the oil companies were shafting them?
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I think that more explains the Profit that the OPEC nations are getting from selling to the Exxons of the world. its the fact that the Exxons of the world are reporting "Record Profits" and not just for the company but EVER....No company has ever made that much profit in a quarter.
If Exxon buys a barrel of crude at $40 a barrell (which equals 42 Gallons) and they are charging us so much for a gallon of gas. Then the price of a Barrel goes up to $60 a barrel you would think that a gallon of gas should only go up by about .47 cents, I mean, under the same logic, it doesn't cost any more to refine it.....so why does it increase by almost twice that or more at the pumps.....and then oil Companies are Bragging about "Record Profits"
I'm no economics major so I'm just offering up my observations as I see them...but something just doesn't smell right.
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