Actually, as a percentage of their gross income their profit is lower
than just about any other industry. (except maybe grocers) Oil profit
is usually around 3%. It cost a huge amount to do all of the R&D,
drilling dry holes, etc. I know they make a lot - but compared to
other industries it's very low.
The people who really rake in the big bucks from oil sales is the
government! They make their profit without any effort!
LarryT
On 12/1/2014 11:36 PM, Curly McLain via Mercedes wrote:
Well, there are a couple of benefits to this big time poker game. We
get slightly lower fuel prices for a short period, and Vlad gets hung
out to dry off a bit.
The downside:
The goobers here have been talking for a year and a half about raising
fuel taxes. This will give them incentive and excuses to raise the
taxes.
Meanwhile the oil companies and distributors rake in record profits.
Yeah, I think that it's really messing Vlad up quite a bit. Tough to
pay for all his toys and deal with the embargoes in place from the
West and the EU when one of his major exports is tanking. Im curious
to see if he tries to cut off Eastern European natural gas as winter
closes in.
A good Planet Money the other day (I think it was Planet Money) about
OPEC and how the players are constantly cheating each other over
sneaking oil out when they have agreed to a particular level of
production. There were a number of descriptions of how various
countries "cheat" on OPEC production limits so they can generate more
$$$.
Dan
On Dec 1, 2014, at 1:07 PM, Curly McLain <126die...@gmail.com> wrote:
No suspicion. That was the announcement over the weekend after the
last opec meeting. They refused to cut production to try to put the
frackers out of business. They are deliberately lowering oil prices
to put competition out of business. It is a global price war.
Unfortunately, not much of it has shown up at the pump.
They are trying to strengthen their position long term by
eliminating competition.
> It is also putting the squeeze on Vlad and the Norge.
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