soxfan364 wrote:yeah I know all about supply and demand. Isn't demand DOWN in the US ? So prices should fall (as they are starting to fall the past few weeks). But if the big oil companies COSTS are high (record oil prices, higher costs to produce the gasoline), shouldn't their profit margin remain the same and not increase to a record high?
soxfan364 wrote:This is what I don't get... if the cost of crude oil is also going up, then why are Exxon's (and Shell's) profits also at all time high. Should they barely be breaking even if they are NOT artificially inflating gasoline prices?!
Demand for Oil is inelastic in the US, so it really doesn't change that much in the short-run. Demand world wide is continuing to increase (especially in China). Since the Oil market is a monopoly, Exxon can decrease the supply and increase the price.
"I do not think baseball of today is any better than it was 30 years ago... I still think Radbourne is the greatest of the pitchers." John Sullivan 1914-Old athletes never change.
God I can't wait till hydrogen fuel cells, nuclear power, and electric cars take hold. But of course, the oil lobby will try to delay that until we have six months of oil left in the world and gas costs $25 a gallon.
Rocinante2: you know Rocinante2: its easy to dismiss the orioles as a bad team ofanrex: go on Rocinante2: i'm done Rocinante2: lmao
Hydrogen has major storage issues. It's so light that a lot of it is lost just in the process of getting it from point A to point B, and that's before you put it in your car and start losing more of it.
Electric is probably the next best bet, but that will put an even bigger crimp on home heating costs, since it would come from the same infrastructure. Then all the complainers will shift from "Big Oil" to "Big Electric."