[Blood of Tyrants]

First, the majority of oil companies do not pay anywhere near the market for oil because they pump the stuff out of the ground, pay the federal government a small royalty and then refine it themselves. Some companies import more than they pump out of the ground, some import very little.

Truthfully, the less a company has to buy at market spot prices, the higher thier profit. Their record profits come from raising their prices to match the market, even if their true average cost was about $35 a barrel.

No matter hou you put it, they are screwing us.

[Onelifetogive]

No matter hou you put it, they are screwing us.

Anyone who has sold a house (or a stock) at a marked-up price over what they paid for it is also screwing us.....right?

[Onelifetogive]

Their record profits come from raising their prices to match the market, even if their true average cost was about $35 a barrel.

No matter hou you put it, they are screwing us.

Assuming you have a job......do you charge you employer any more than your "cost" for your time? I'll bet you have raised your price up to the market level for your job.....Who's screwing who?

[justa-hairyape]

First, the majority of oil companies do not pay anywhere near the market for oil because they pump the stuff out of the ground, pay the federal government a small royalty and then refine it themselves.

Thanks for the info. How are the royalty payments indexed ? Are they tied to the current price of crude ?