I read somewhere that some could take crude oil out of the ground at $3.00 either a gallon or barrel I forgot. I suppose the price depends on how the cost of the well is accounted for. After the price of the well is paid off the oil is mostly profit. The price of oil and gas at the pump is quite manipulated.
Must be true if you read it somewhere. And if one hundredth of one percent of a fungible commodity is produced way below the market price, how do you think that effects the market price?
The price of oil and gas at the pump is quite manipulated.
If true, why would they ever go down?
It’s all a huge racket. When I worked at ExxonMobil all that they cared about was ‘upstream’ which is pumping. The refining part of the business was almost seen as a loss leader. They do get it out of the ground very cheap and then the completely manipulated market jacks it up 20, 30, 40 times.