I dont think the service stations are getting rich .I'm asking abou tthe oil companies themselves ..the big shots...I'm simply asking if part of the high prices are simply for profit above and beyond the expense of the supplies . It seems to me that some here are saying that the high prices are simply to cover expenses and that the big oil companies are simply covering expenses these days and not pocketing even more money because of the situation.
By the way I'm up north and I'm just imagining my heating bill for this coming winter.
"I'm simply asking if part of the high prices are simply for profit above and beyond the expense of the supplies ."
Yes.
It's called capitalism.
They tried it the other way in the soviet union.
It didn't work.
How much does it cost to refit a refinery that's been seriously damaged?
Those are the oil companies' equivalents to what we've described as the retailers' purchases of their next tanker trucks full of gasoline.
And, if we're going to look longer into the future, we need to consider the general increase in demand from China and India and the effect that is having on crude oil prices.
As for the oil compaines, everyone wants new refineries, more drilling, pipelines, etc. but wants the products of this tremendous capital investment to be free.
It simply does not work that way.
About half of this problem comes from the ecowhackos regulating refineries out of business, restricting drilling, etc.
They even fought coalbed methane production the whole time they were demanding that power plants burn natural gas instead of coal.
Natural Gas is our main heating fuel up here (North Dakota), where heat is not optional, but the reserves have been squandered to run air conditioners in LA.
These same people will gladly blame "BIG OIL" right along with the Socialist media.
Funny how people will complain about service stations making a few (less than 10) cents a gallon on gas, but not carp aout the price of a can of wino wieners (vienna sausages) in the convenience store.
The well I am working on right now will cost the oil company about 3.5 million when it is completed. I expect it will produce about 400 bbls per day on average, for about 4 years (starts with more, but will decline). When that is done, the well will be sold to a smaller company who will wring more oil out of it, and eventually be plugged, and the site reclaimed and restored. In the end, you will not be able to tell there was an oil well here.
As the production from this well is declining, other wells must be drilled to replace the producing reserve that will be used up here. This requires a tremendous capital investment, just to keep up with declining reserves by replacing them with new discoveries and new wells.
Gaining on that curve, actually increasing the overall amount of oil available involves even more.
The money has to come from somewhere.
I suspect you are one of the many people who bought a gas guzzler is upside down on the note and realize you can't afford to get rid of it or feed it...your anger is displaced...and I want to know...where were all your comments about the dessimation of the O&G comapnies dutring the 80s...when they went under or bankrupt...and laid off 10s of 1000s...where were your snide comments when the O&G struggled to stay in business with 10.00 a barrel oil?
You are hopelessly clueless about an industry that is heavily regulated and has been crippled by liberal pinko commies. THE O&G has to contend with MMS while offshore and have air requirements...they can't even build a refinery without the pinko commies giving persmission every step of the way...even the gasoline mixes are different for different areas of the US...THANKS to the pinko commie enviro wackos...AND finally the PINKO commies that have BRAINWASHED people like you who name call the OIL companies "big shots" and imply that they are EVIL...
I'll bet you think HOSPITALS are evil too...
You have misplaced YOUR anger...you need to save your nastiness for the PINKO COMMIES that have crippled the industry that YOU and I have to be dependent upon...NOT the O&G company that struggles to find new sources of oil, hire competent people, prevent spills, prevent the killing of personnel...keep wells running even when we have horrible weather...sir you no nothing about this industry.