Re: Price and profit of gasoline

On Sat, 29 Apr 2006 14:47:12 -0700, El Castor wrote:


Gosh, Glenn. If a US oil company buys a barrel of oil from Saudi Arabia,
Nigeria, or Venezuela, what does it cost? $12 a barrel? How about $70.
If a Minnesota wheat grower sells a thousand bushels, what does he get
for it? The market price? And does he get the market price regardless of
whether he's losing money or making a 50% profit? Anything wrong with
that? Should he take into consideration the starving Namibians and sell
at 20% under the market?

The average cost of production is twelve dollars. The price from the
producer, driller is seventy dollars. Their profit is fifty-eight dollars
a barrel (58/42 per gallon). I made no judgmental statements, you must
try to read more carefully.


Fact is, Glenn, if demand drives up the price of oil, then competing
sources of energy like solar, nuclear, and shale become more attractive.
and money gets poured into their development and production. At the same
time, oil producers are scrambling to get as much of their profitable
product to market as they possibly can. Put an onerous tax on oil and
in the end you get less of it at a higher price.

But it didn't happen. You theory is faulty. All was foretold but you
were blinded by academic authority. You listened to false profits (sic).
Because of your gullibility we pay 1.40 per gallon to the oil countries
with no end in sight to the increases.

--
Glenn

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