Gas price includes largest profit margin ever recorded.

originally posted by: 1947boomer

originally posted by: Jason79
a reply to: TerryMcGuire

Green energy is nowhere ready to replace fossil fuels, one of Biden'scalls for higher fees for oil, gas leasing on federal land, stops short of ban.

When supply is reduced without reducing demand, prices go up.

www.npr.org...

Yes, but that’s not what happened, initially.

Petroleum production in the US plunged in 2020 AFTER producers realized that demand was decreasing due to the pandemic:

www.eia.gov...

It started recovering in late 2020 and has been growing slowly and steadily ever since. The time constant for ramping up new production seems to be about 5 or 6 months. You have to line up work crews, drill rigs, drilling mud, tankers, etc. In other words, there’s a time lag between when producers decide to ramp up production and when it actually comes on line.

Also, a number of refineries went out of business during the pandemic, starting in 2020 under Trump and continuing under Biden. Those were business decisions and not the responsibility of either President:

www.reuters.com...

Supply decreased basically as a response to the pandemic and has not recovered as fast as demand because of the time lags in the supply chain.

o wow the bullsnip in this post is piled high AND deep.

the spin would make even the most strongest stomach person who laughs at carnival tilt a whirl puke their guts.

the CONSUMPTION was down during the pandemic on PERSONAL TRAVEL.
BUT UP ON DELIVERIES to people (like amazon, post office, ect).

the oil industry was still going gangbusters (oil refinery going out of business... please) because we were EXPORTING for the first time in DECADES.

to the point OPEC was threatening us so we stop

our strategic reserve was topped off.

along with the UNDENIABLE FACT oil workers were working like crazy and making great wages (both production and pipeline).

but your trying to say there was a downturn and blame covid?

really?

again dont know whats worse

a. you believe this spin job bs
b. you think your convincing people of this BS
c. some people are BUYING THIS BULLSHIP.

(just shakes head)

scrounger

a reply to: Somedumbum

Might I suggest you look at this with a different perspective.

You see this as gas prices going up because of inflation, and the oil companies tacking on excessive profits.

What you should realize is that prices don't go up because of inflation, inflation is the result of the value of the currency going down. Economics Rule #1: Supply and Demand. More dollars in circulation, they are worth less.

So how does that apply here? Let me give you a real world example.

I make a product that I sell to a company. The last time I made these, I charged about $22 each. Usually they order about 20 at a time. The last time I made them, I made 80 extra, figuring they would order them some time in the future. That was in 2017. Haven't heard from them since.

Recently, they asked for a price on 54 of them. Well, I have them in stock from 2017. I could charge them the same price as 2017, same profit margin. But, the kicker is that the money they pay me today is worth less than it was in 2017. What I actually "make" on these wouldn't buy what it did back then. I have to increase my profit margin just to maintain my standard of living, or keep my profit margin the same and decrease my standard of living.

If I were to keep doing that, first I would be bankrupt, then homeless.

While most oil execs may not be facing homelessness, I can understand their desire to maintain their standard of living. As the government continues to borrow money for things that don't help the American people, and have the People foot the bill, the losers are going to be the ones who are the last to increase their prices and profit margins to keep up with the artificially inflated currency.

If you take nothing else from this post, remember this. Prices aren't going up, the value of the dollar is going down because of an increase in the supply of dollars.

You may also remember that the Nazi regime was preceded by the Weimar Republic.

a reply to: VictorVonDoom

I agree it plays a part and no small part at that.

it should also be taken into .

but when the supply is CLEARLY/DELIBERATELY being cut by the biden/liberal democrats.
no value of the dollar can change that.

once we get supply up then look at all aspects of the economy to fix.

preferred all at the same time.
but congress never wanted to do that

scrounger

a reply to: scrounger

No doubt. One of the first thing Biden did was kill US oil production. But, you know, I can almost understand that if you consider the concept of Peak Oil.

If oil is going to become harder to find, harder to refine, etc., it would make sense to use as little of our own as possible. If we can con everyone else into selling us their oil for dollars, that are essentially ones and zeros on a computer, then when they run out and we still have oil, what are they going to do with dollars? They can burn those dollars for heat, but we can fill a jet with fuel and bomb their little campfire if they give us any lip.

You know what true money is, in essence? It's energy. Every population explosion in the life corresponds to an increase in available energy, like getting more energy from petroleum than wood or whale oil. Every decrease in population results in a reduction of available energy, like the extinction of the dinosaurs.

I may not like the New World Order, but they are smart and they think ahead.

a reply to: VictorVonDoom

with respect you need to get off that "peak oil" train

first there have been claims since i believe the 70s (maybe earlier) that we are gonna hit "peak oil" on XX date.
this "prediction" , then passes, then "predicted" again over and over

it is now been found out "oil" is not a limited commodity but the earth produces more .
it is theoretically possible to pump out more than the earth can "refill" (for lack of a better word), but to date practical data has proven this wrong.

so if we are debating what is jacking up the oil prices..
i believe we are on the same page.

if you are gonna go down the road of "peak oil"

that is a whole other discussion not in this scope

scrounger

a reply to: scrounger
Well explain to me why in the UK at the moment I'm paying approx $12 a gallon and we haven't got Biden or the liberal Democrats, or a killed major pipeline (in fact North Sea Oil is still spewing forth), we aint got leases to deal with, production is only down because they choose to, and we aint got that many draconian laws.????????????

originally posted by: crayzeed
a reply to: scrounger
Well explain to me why in the UK at the moment I'm paying approx $12 a gallon and we haven't got Biden or the liberal Democrats, or a killed major pipeline (in fact North Sea Oil is still spewing forth), we aint got leases to deal with, production is only down because they choose to, and we aint got that many draconian laws.????????????

well the answer is simple

called TAXATION.

Something england needs to pay for alot of their socialistic programs

but you knew that and tried to use piss poor deflection of what biden/democrats have done

as the english would say at your tacitc
"poor form my good sir poor form"

scrounger

Under national socialism Hitler/Nazis decided profit margins that companies could make and they also forced companies to reinvest a percentage of their profits back into the national economy. We could do that in the name of consumer rights in the west as well couldnt we? Competition sure as %$%$ is not driving down prices like capitalists will claim........ The public do want profit controls in the name of consumer rights right? I mean look at the outrage that guy caused when he increased price of that drug. Forget what it was. Didnt you put him in jail or something? We have 'competition watchdogs' that can fine companies for increasing prices too high already right? Maybe next we need to do what Hitler did and just set profit margin limits.

Then again - this is capitalism right? A business can charge whatever they like for products and services right? My father had a gas/petrol station and I used to work there with him and it always bothered me if someone complained about the price of our fuel. We can charge what we want for it. Capitalism. If you dont like the price go somewhere else. Ha.There was only one other gas/fuel station in the small town we are from and while we did not collude with them actively we knew each others prices and they were always pretty much the same... If we decided to make a bit extra one week - they would too... Ha. Capitalism!