Record Oil Company profits...

Originally Posted by hi_im_god

way too complicated.

reminds me of econ 1 and 2. yawn.

boogiemen are easier to understand.

Everyone wants oil.
Prices go up.

Companies that are associated with
a product that is in high demand and is limited have
a difficult time doing poorly.


Stop the blame game and ride a bike.

I have no background in Economics.
No classes ever taken.
I await education on a difficult topic from heaven.

I would seriously like to be told why oil companies
should not be making big profits given current conditions.

[hi_im_god]

supply curve stable or down

plus

demand curve up

equals

boogieman curve through the roof.

Originally Posted by hi_im_god

supply curve stable or down

plus

demand curve up

equals

boogieman curve through the roof.

Alrighty then.

[SCUDSBROTHER]

There is no true competition in the oil market. A very few companies
control the entire market. We are basically slaves to these companies.
If they decide to charge us $4.20 per gallon, than we have to pay and
that is it. It is not like we can drive down the street and get a
better price and they know it. You don't really "shop around" for gas prices.If that was true,then you would see some much lower prices at some stations,but it isn't a free market situation.Don't you remember in the mid 80's when the price of oil was low,and The 1st George Bush was vice President? He went and talked the Saudis into keeping production low,and the price of oil went back up.If this was a free market system involved,then you would have many more companies involved here with refining oil.What do we have 4 or 5? Don't you think others would like some of those huge profits? Why do you think it is that there aren't hundreds of oil companies involved here? Why is it you shop around for the best price of a new computer,but not for the best price of a gallon of gas?With computers the difference in prices is quite noticeable.The price between brands of gasoline? Not much.When was the last time gas prices went down substantially? Wasn't it before the November 2006 election?I told ya at the time to take note of it.

[Danzig]

everyone should have seen the writing on the wall when all the small companies were being gobbled up by the large. can't beat the competition? buy it.
so, you have a few super companies, and absolutely no competition. and then you have high prices, because who's going to act to bring them down? it's the 'governments fault' in that the regulatory bodies allowed all these mergers to happen. and now we pay the price, yet again, for lack of foresight.

[2Hot4TV]

OPEC will keep raising the price till it train wrecks the U.S. and then it will buy up the wreckage with the profits. All this in the next 10 years?