Has anyone considered this for a minute?
If you lower cost, but increase quantity, don’t you make up for the lower cost?
I think the question is, what is the rock bottom break even cost to make a gallon of gas from a barrel of oil? If the politicians would get their hands out of taxing gas, then consumers would INCREASE use if the cost were low.
SO, you get lower transportation costs for trucks, trains, airplanes etc. Higer consumer use in travel, buying produce, and hard items shipped via train or truck.
You have increase travel for vacations driving etc.
IN OTHER WORDS, HAS ANYONE THOUGHT THAT MAYBE EVERYONE STAND TO WIN, WITH LOW GAS. WHEN I SAY LOW, I MEAN LIKE $1.00 OR LESS A GALLON.
Production of product would end well before gas could reach a $1.00 a gallon. Hell, if gas was FREE you’d still pay 40 cents a gallon in taxes.
Profit margins are very thin at $55 a barrel and no profit for most operators at $50 a barrel.
“If you lower cost, but increase quantity, don’t you make up for the lower cost?”
Maybe I should have just written: You can’t make up a loss by selling more product at a loss.
Until we up our refinery capacity, it’s a moot point unless we start importing way more gasoline.
Thats why the 50s and 60s economies were so good. If it were not for LBJs little war, the 60s would have been a big economic boom time.