How the Big OIL COmpanies are going to justify raising the price of gas

[skrappyone]

This is just my thought as I watch the news.

 

The big oil companies are always trying to figure out how to make more money from the consumers.  With the drop in oil prices, they have already shut down drilling facilities, cancelsed drilling contracts, and are complaining about cost vs profits.  They are now going to shut down refining facilities to drive the prices back up.  Why would they do this just as the American people are just starting to feel some relief?  It's simple.

 

1)  If they shut down refining facilities, supply will go down.  They know that we, as a country, need fuel for every day operations, this is the demand.

 

2)  We all know that as prices rise demand will decrease, but not to the extent that they will lose profits.  We have top have the fuel.

 

3)  With the prices of oil being low and they use the above to drive fuel prices at the pumps higher, they make bigger profits.

 

4)  The supply of oil is already over the OPEC ceiling, which is why the price for oil has dropped.  Countries have boosted their production to try to ensure they can make their countries economic needs.  Now, what is going to happen is with the fuel prices going up, the demand right now will go down, becasuse people will go back to not traveling as much due to the cost at the pump.

 

5)  Oil producing nations will keep producing in order to fill their budgets.  With them still producing at the rate we are seeing now, the over supply of oil will keep the price per barrel donw on oil.   This in turn will be more profitable to the big oil companies because the oil is relatively cheap and the price of the pump is higher because of the refinery shut downs.

 

6)  With the oil business cutting back, closing refiners, laying off workers, they have now made it possible to line their pockets with more money by falsely claiming they have no choice but to take advantage of the consumer.  The American worker and consumer are not the only ones to suffer.  The oil producing companies are going to have less monies in their coffers due to having to sell their oil, which most are 50% of budget or more, for less thus hurting the Global economy as a whole.

 

I believe they will get the prices back up to around the $3.00 mark or more by the start of the 3rd quarter and there isn't much we can do about it.

 

Just my thoughts and opinion........I would like to hear yours.

Thanks

Skrappy

[wbuse984]

  ... thanks for the post skrappy...interesting thoughts and unfortunately probably right on the mark...

Edited February 9, 2015 by wbuse984

[Indraman]

Who can tell me who makes more money off the sale of one gallon of gasoline? Big GOV or Big Oil?

 

Indy

[gymrat76541]

"there isn't much we can do about it." Sad but true!

[Indraman]

Who takes the risks to make that one gallon of gasoline?

[gymrat76541]

Who takes the risks to make that one gallon of gasoline?

 

No risk involved!

Who can tell me who makes more money off the sale of one gallon of gasoline? Big GOV or Big Oil?

 

Indy

 

Share holders of the company make the money, Government profits off of taxes.