Quote:
|
Originally Posted by 84LX89GT
ok here's my take since everyone has had a turn:
oil companies are making record profits while we pay a higher premium.....something is wrong there no matter how you justify it. Profits are caused by selling something at more than it's worth to a LOT of people. oil companies are price gouging plain and simple.
|
No, they are not, plain and simple.
Quote:
|
they're making MORE even though there's "trouble". I don't know how they get away with it or what it's doing because i'm not an econimic genius who has their cost margins in front of me, but SOMETHING wrong is occuring right now.
|
Oil company profit margins are at about 6%, far less than other industries, such as MicroSoft. The SOMETHING you refer to is a highly increased demand for gasoline and other oil products while the supply remains static or, as has happened, is interrupted. The oil companies are making bigger profits because - as the availability of gas shrinks and demand increases - they can raise the price - as well as sell more, which is what is occuring...not some 'conspiracy'. Generally, raising the price (of gas) lowers consumption but that hasn't happened, so, the oil companies make more profit. Despite what many folks believe, it's not illegal to make a big profit and there is no law that gas prices can never go up, as some seem to believe.
Quote:
my second point:
screw oil companies, i'm going to apply for a permit from the federal government to produce ethanol as a fuel (real easy to do) and when i find a suitable car i'll just bypass the whole fuel cost thing, which is slightly offset by the equipment needed to produce moonshine. I haven't done this yet because i have other financial concerns that take priority over this "hobby".
I may start another thread about the whole ethanol thing if i find motivation, but i think it's the way to go since it's so easy to do and fairly easy to convert carbureted cars and it runs so clean.
|
That sounds like a fantasy but you are free to do whatever you wish in this regard. I hope it works out for you. I really do. I don't like high gas prices, either.