Think of it this way: If you make 10% profit on a candybar that
retails for $1.00 and demand for that candy bar pushes the price to
$1.50, your profits are going to go up 50% as well. The oil companies
aren't taking a bigger slice of the piece, their slice is just worth
more money.
That is a pretty good way to think about it. After the big debate last
year, I read a few essays by economists who commented on the situation.
A few argued against taking away the oil companies profit margin because
they use that money to further invest in infrastructure that can deliver
gas cheaper in the future.
-Dennis
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