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There’s No Love for Oil Companies
By JLP | March 15, 2006
Oh dear, the Senate is now involved in trying to figure out why oil companies are making so much money. Perhaps the Senators should all attend economic classes and learn about SUPPLY AND DEMAND! Where were these Senators when oil was at $10 per barrel and oil companies were losing money?
The oil and gas industry is fighting back with full page ads in newspapers. They have even set up a website to address consumer concerns.
Topics: Miscellaneous | 3 Comments »
March 15th, 2006 at 1:25 pm
JLP,
daily reader here.., love the website, keep up the good work!
Got a question for ya; what route/profession would you suggest for a person to take in life, a person that loves finance, the markets, and personal finance, but hates the American Express, etc financial advising (rip ppl off with commissions and fees) “sales” jobs?
Become a fee based planner such as yourself? A market analyst? Id love to hear what you think, thanks
March 15th, 2006 at 1:50 pm
Hmmm…yeah, it does seem a little odd. Especially considering how much the government makes on oil sales. But it is suspicious when the barrel price goes down but the price at the pump goes up…don’t ya think?
March 15th, 2006 at 4:17 pm
The barrel price represents the cost of the raw materials, not the finished product.
For example, while the price of oil has increased 3x – 4x the price of a gallon at the pump has increased only about 50% and, as you’ve observed, has not necessarily moved in tandem with the price of oil.
Clearly the end product depends on quite a bit more than just the raw material.