by MattNW » Tue Apr 05, 2005 9:18 pm
Yeah it's a glitch. My post yesterday came out as a double. The cursor kept jumping around the text box and I couldn't get the "Post" button to work right.
Would someone explain something to me. I must be a little dense or something because this escapes me but supposedly the Oil companies are only "passing on the added expense". If so then why is it that they make record profits when the price of fuel is high like it is now.
If for example, I have a product that costs me $10 to make and I sell it for $20. I make $10 on the unit. Now if my materials cost goes up to $15 and I "pass on the added expense" and sell my product for $25. I still only make $10 per unit. No added profits. No record profits. Just a little more money changes hands but nobody really benefits.
Why is it then if the oil companies are only "passing on expenses" that they end up with record profits? The only way they could do that is to pump up the price by adding to it. If they pay $50 a barrell then refine it and sell the resulting extract for a price equivalent to $55 a barrel then you get added profits but that isn't "passing on added expense" it's a price increase across the board.
Interesting history fact: The US hasn't always been in love with the large car. Back after the "Oil Embargo" manufacturers started making cars more fuel efficient. Lots of small US cars were manufactured (I still have a 4 cylinder 2 Door Grand Am I've been meaning to fix up for an economy ride).
The oil companies however were hurt by this. More efficient cars mean less fuel purchased. They lobbied Congress to pass legislation limiting the best mileage a car could get. Congress refused but more recently the price of fuel went down for a few years which ushered in the latest "Big Car Craze". Interesting now that huge gas guzzling cars are "in" and so many have them that the price of fuel is on the upswing once again.
Also if you will notice the car manufacturers have been actively "pushing" the supersize SUV's within the past five to ten years. The US consumer is truely collectively only sheep. Push a product and it'll become the rage. Push large cars and SUV's and everyone will want one. Once everyone gets one then jack up the price of gas and make a killing on that too.
Ah ha, caught the bug in the forum. I hit the "Post" button and got a page saying "Server Error" I went back and hit "Post" again and another server error, tried it a third time and same thing. I opened the last page on the thread and found a triple post. It's posting the replies but showing a server error.
In Memory of John Consterdine (FS Tipster)1962-2003