Texsox Posted September 25, 2005 Share Posted September 25, 2005 Washington Post Linkage Gas Profit Guzzlers Refiners Captured The Biggest Part Of the Price Increase By Justin Blum Washington Post Staff Writer Sunday, September 25, 2005; Page F01 When the average price of a gallon of regular gasoline peaked at $3.07 recently, it was partly because the nation's refineries were getting an estimated 99 cents on each gallon sold. That was more than three times the amount they earned a year ago when regular unleaded was selling for $1.87. The companies that pump oil from the ground swept in an additional 47 cents on each gallon, a 46 percent jump over the same period. If motorists are the big losers in the spectacular run-up in gas prices, the companies that produce the oil and turn it into gasoline are the clear winners. By contrast, the truckers who transport gasoline, the companies that operate pipelines and the gas station owners have profited far less. As always, more, much more than that, at the link Quote Link to comment Share on other sites More sharing options...
nitetrain8601 Posted September 25, 2005 Share Posted September 25, 2005 I gotta invest in gas. Quote Link to comment Share on other sites More sharing options...
southsider2k5 Posted September 25, 2005 Share Posted September 25, 2005 QUOTE(nitetrain8601 @ Sep 25, 2005 -> 01:51 PM) I gotta invest in gas. http://www.nymex.com/gas_pre_agree.aspx Quote Link to comment Share on other sites More sharing options...
NUKE_CLEVELAND Posted September 25, 2005 Share Posted September 25, 2005 QUOTE(southsider2k5 @ Sep 25, 2005 -> 01:25 PM) http://www.nymex.com/gas_pre_agree.aspx Probably better off buying gas producers like Chesapeake and EnCana. Im happy with my halliburton as of late but those 2 are rocking a lot more. Quote Link to comment Share on other sites More sharing options...
Balta1701 Posted September 25, 2005 Share Posted September 25, 2005 Just remember...this is the definition of what unrestrained capitalism gives you. Unlike almost every other consumer good, the demand curve for oil is very inflexible. Therefore, a huge increase in price causes only a very small decrease in consumption. The oil market is unlike almost any other market in that effect. If you need a new vacuum, and 1 brand has a price too high, you simply choose a different brand. But if you have a certain amount of miles to drive to work, you have to drive those miles whether gas costs $1.50 or $4.00 a gallon. Therefore, it is to the advantage of oil companies to drive the price up...because even though they're driving the price up, they're not driving demand down. Therefore, if they want to maximize profits...they can keep pushing the price even higher. Here's a nice little post on the reasons no refineries have been constructed in this country in decades...and why oil companies are even trying to close some profitable ones down. Quote Link to comment Share on other sites More sharing options...
southsider2k5 Posted September 25, 2005 Share Posted September 25, 2005 QUOTE(NUKE_CLEVELAND @ Sep 25, 2005 -> 02:41 PM) Probably better off buying gas producers like Chesapeake and EnCana. Im happy with my halliburton as of late but those 2 are rocking a lot more. I doubt the prices of those stocks has gone up 250% over about 2 years. The energy futures is where it is at. Quote Link to comment Share on other sites More sharing options...
NUKE_CLEVELAND Posted September 25, 2005 Share Posted September 25, 2005 QUOTE(southsider2k5 @ Sep 25, 2005 -> 02:10 PM) I doubt the prices of those stocks has gone up 250% over about 2 years. The energy futures is where it is at. I get nervous about commodities, the stocks offer some great returns if you're nimble with em and they're a lot less risky. Quote Link to comment Share on other sites More sharing options...
Rex Kickass Posted September 25, 2005 Share Posted September 25, 2005 I'm contemplating making a career change - and a major concern involves the price of oil. Quote Link to comment Share on other sites More sharing options...
NUKE_CLEVELAND Posted September 25, 2005 Share Posted September 25, 2005 QUOTE(Rex Kickass @ Sep 25, 2005 -> 04:49 PM) I'm contemplating making a career change - and a major concern involves the price of oil. What are you considering doing..........if Im not prying too much by asking? Quote Link to comment Share on other sites More sharing options...
Rex Kickass Posted September 26, 2005 Share Posted September 26, 2005 Going back into inside sales for cruises. Quote Link to comment Share on other sites More sharing options...
JUGGERNAUT Posted September 26, 2005 Share Posted September 26, 2005 Oil services & real estate. I've doubled my $$$ in 3 yrs. Work is no longer a neccessity. As for the profits by refineries .. who can blame them? Thanks to the environmentalists we haven't had new refineries built since 1970's. Yet look at how much demand has increased. The Kuwaiti government has offered to fit the full expense of building new refineries in America. Now it's a question of whether the environmentalists will let it happen. I'm as big an environmentalist as there is but you can't just keep ignoring problems in your idealism. America is on course to hit 350M in population in the next 30 yrs. You can't ignore that reality. You have to plan for the energy needs of that population. So work out a compromise. Outlaw sales of cares with < than 25 mpg in exchange for more refineries. Do we really need late late night TV? Going dark a few hours a night on all channels would help provide for prime-time energy needs at a lower cost. Quote Link to comment Share on other sites More sharing options...
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