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To: Doe Eyes

The truth is it is a complicated market and industry, much more than the average person even begins to comprehend.

The number of oil companies who both drill, refine, and market the product are very few. There are literally thousands who drill, a few dozen who refine, and hundreds who market retail gasoline in the US.

Each of those segments compete against each other, which is a good thing. It keeps all of them honest.

Today, the drilling and producing side is making all the profit. The refining and marketing arms are maybe breaking even or losing money in most cases.

In different business cycles the reverse is often true.

It all depends on what you want to call an “oil company.” Is it the Shell station down the corner? Is it the Valero refinery? Is it Bubba Joe and Mary who operate a stripper well and request a truck to pick up the oil every three weeks?

Each of them have different profit or loss margins depending on which they are.

There is no misrepresentation. It’s all out there for everyone to see. Those who do not want to examine the facts and prefer to believe in an evil plot may do so, but that is an alternative reality.


35 posted on 05/23/2008 4:35:07 PM PDT by Dog Gone
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To: Dog Gone
There is no misrepresentation.

The misrepresentation is to only show cost/profit/loss from the refiner's standpoint.

That's what I was pointing out.

Refiners are not doing well at all.

36 posted on 05/23/2008 5:03:16 PM PDT by Doe Eyes
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