F... gas prices

[Schneed10]

Originally Posted by FRPLG

I read something interesting this morning on this. Don't remember where though. Anways, basically the point of the article was that oil companies actually make a small percentage of their profits on actual gas. They make all their money on the oil they pump out of the ground. And oil companies dont set prices. Traders on wall street do. When traders offer $68 for a barrel of oil are the oil companies supposed to say no? The cost of oil now is in response to a concern for future shortages. People pay more now to ensure they have it going foward. So when oil companies make 36 billion based on inflated prices it is not because supply is an issue now but that it may be in the future. When the future comes around all those people who paid $68 a barrell will be thankful they have oil. Long and short is that the real issue isn't much with oil companies but rather with our ability to import oil and refine it. Oil companies didn't just decide to start charging more. I wish it was that easy but it is short sighted and ineffective to blame big oil when they are only a fraction of the issue if at all.

Very well put.