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I don’t know anything about oil, but my understanding is that it’s a high risk high reward situation. And we all know oil isn’t cheap to find.
I was watching this Netflix documentary about an American company who invested into Nigerian oil and those guys made tens of millions. It was kind of sad because the Nigerians involved were not giving that money back to the country
Anyways, some folks are just lucky or rich enough to be major players in the oil game
If I owned a gas station this is how I'd run it. Say I bought gas at $2 a gallon. Then the price went down to $1.50. I'd try my damndest to get back at least my $2 that I had put into the gas I bought. I might lower it little, gradually. But I'd do my best to get back my $2 because I have to pay that to the supplier.
Now, if the price I paid went up to $2.50, I'd raise my price immediately. Because my customers would have no alternative. All the other gas stations would do the same.
This happen all the way up and down the oil delivery chain.
Quote:
Originally Posted by maineguy8888
You hit the nail on the head. This is the problem. So they instantly raise their prices, when their own cost goes up. But they never do the inverse.
So I wish them all much, much pain.
After losing money having to sell for less than they paid they need to get prices up as fast as possible. How happy would you be if they didn't, lost enough that they had to close, and there were only three gas stations left in town? And there you are at the end of that long long line running out of gas.
At the higher levels I agree. The guy running the corner Kwiki Mart, no.
E85 is substantially cheaper? i thought ethanol gives significantly worse gas mileage.
Honestly, IDK, but I darn sure would give E85 a try.
Well, on edit I will add:
I recently did buy about 7 gallons of E85 in my non-flexfuel vehicle. The E85 I bought was about $2.80 a gallon.... Local unleaded was about $3.40 a gallon. I know the E85 is bad for a non-flexfuel vehicle, mainly due to corrosion issues. But I wanted to try it and my vehicle ran fine and I think I got close to the same MPG as with unleaded.
I really wish the price of gas would come down, at least a little, really hurts when you are going on a trip.
There is only so much of the stuff. It will run out ultimately. Then there will be no debate on prices but on availability. I used to think Peak Oil was more myth than fact. Unfortunately, after investigating, numbers are facts and my doubts are not valid anymore. Shale is a fool's paradise. Baby Boomers will make it ok but other generations are screwed.
There is only so much of the stuff. It will run out ultimately. Then there will be no debate on prices but on availability. I used to think Peak Oil was more myth than fact. Unfortunately, after investigating, numbers are facts and my doubts are not valid anymore. Shale is a fool's paradise. Baby Boomers will make it ok but other generations are screwed.
If the right people get their act together we should have massive solar and wind farms that supply electricity which, in turn, will charge high efficiency batteries in cars.
I'm not talking about how it breaks down. I am talking about why it rises quickly (after crude prices go up); but it drops very slowly (after crude prices go down). Riddle me that.
i told you why . the only thing that forces a drop is competition . ALL volatile prices go up instantly with replacement cost , for the reasons i explained above in my example . but only competition forces anyone to take a pay cut .
why don't you take a pay cut at work every time the cpi comes in lower ????? well if your competitors started to do that ,that is what would become your industry norm . i dont think you want to give back your money so fast if it came to that
No one WILL answer the philosophical question as to why a private entity is entitled to huge profits of a natural resource.
I come from where the state just keeps jacking the oi prices just to keep the refining companies afloat - who gets their pension, medical insurance and benefits till they die.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by shanv3
No one WILL answer the philosophical question as to why a private entity is entitled to huge profits of a natural resource.
I come from where the state just keeps jacking the oi prices just to keep the refining companies afloat - who gets their pension, medical insurance and benefits till they die.
It's no different than Weyerhauser and others making profits from the forests (lumber) or Nestle and others making profits from the sale of bottled water (If you pay $1 for a 16 oz. bottle of water, that's in effect $7.57/gallon)
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