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To: Tatze
So if a company bought property with a lot of oil, or it signed a long term contract to pump oil at a fixed price, and the price of oil rises sharply, then yes, the oil company is doing well. In your scenario, it would be making significant profits. Of course, the same would apply if the company simply bought a lot of oil when it was cheap and put that oil in storage tanks.

Oil companies, however, buy a lot of crude or pay a commission based on the current market price.

43 posted on 05/22/2008 7:00:42 PM PDT by Koblenz (The Dem Platform, condensed: 1. Tax and Spend. 2. Cut and Run. 3. Man on Man)
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To: Koblenz
Oil companies, however, buy a lot of crude or pay a commission based on the current market price.

That was the piece I was missing. Thanks! So its the Federal Government getting rich with the commissions in addition to the taxes?

44 posted on 05/22/2008 7:11:10 PM PDT by Tatze (I'm in a state of taglinelessness!)
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