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Oil co. stocks are rising on a 30 degree slope.
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If I should die before I wake...great,a little more sleep. -
Large oil companies own leases. When the price of crude goes up they make more money selling the lighter, sweeter crude ( less sulfur) to small refineries that can't refine the poor grades of crude. This better grade of crude is usually not refined by companies that can process the "crap" crude so it is sold off.
As far as profit from gasoline when prices increase, I don't know if there is any increase to the refineries. Though oil companies charge more for the finished product they also pay more for the crude. It isn't given to them. When crude is really, really cheap that's when the largest profit margin comes providing the price of gasoline doesn't drop too severely.
Remember, the refineries did well under Trump when crude was < $50 barrel and reg gas at the pump was < $2 a gal.
Most larger refineries would rather make other products than gasoline but I believe they are mandated to produce certain amounts or %.
If refining was that profitable there would be an increase rather than a decrease in operating units left.
If you'll notice the oil company stocks float largely upon crude prices.
Last edited by Allen; 06-08-2022, 10:36. -
When it's a choice of who to blame for my $6.25 gas, the Oil Companies
or the Politicians - the latter get my vote every time. Politicians are a cancer
on society, especially the Donkey kind.Comment
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Slo Joe says it is going to be so much better when we get through this, whatever this is. Meanwhile he will beg the world's thugs with oil to sell more.Comment
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Free market."The first gun that was fired at Fort Sumter sounded the death-knell of slavery. They who fired it were the greatest practical abolitionists this nation has produced." ~BG D. UllmanComment
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Oil co. stocks are rising on a 30 degree slope.
That pretty much equals the rise of the price at the pump. Which means the profits would remain the same percentage of the bottom line before the price increase. It is the same with taxes. If you do like the Socialists want, you would put huge tax levees on corporations, they would simply raise prices and the bottom line would increase to include the tax on the expense column and the profit column would increase proportionally. Economics 101.Comment
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Who thinks oil stock shareholders are mad at their boards for riding the high price wave?
It's unbelievable. Supposedly a board of free-market conservatives here who understand that government doesn't, and shouldn't, call all the shots. Yet when a GLOBAL price spike happens, they start bleating about how government isn't fixing the problem.
So if the 'other guy' was in office, you think this GLOBAL price situation would be different? THINK AGAIN. The only thing that would be different is that you wouldn't be blaming him. That's the only difference.
Bully pulpit? Did it work on prescription drug prices? No it did not. No reason to think it works on oil either.Comment
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