Ryan D
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The current "shortage" has less to do with a drop-off in supply than a spike in demand. In the past few years, India and China have been buying millions more barrels of oil than they did in previous years. So while oil companies are still selling just as much oil as they used to, now they can sell it at $75/barrel instead of $15/barrel because more people are willing to pay for it.
It's important to note that their profit *margins* are the same as they always were: 10-15%. When they were selling oil at $15 a barrel, they'd make around two bucks a barrel. Now they're selling the same barrel of oil for $75 and making north of $10. As their volume hasn't gone down at all, they're now making five times as much money as they used to. |
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j03139
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people are bidding up the price of crude oil futures because of anticipated supply shortages. The oil companies are producing the same amount that they always have (except in Nigeria and the Gulf following Katrina) so they are able to sell oil for more. |
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cal-p
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Have you seen the prices of Gas???????? Oh you have well why did you ask this dumb question? |
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Penney S
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WE CONTINUE TO PAY PAY PAY!! |
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mkulda
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Because they can.
If you want to also reap some of the benefits, buy their stock. It's done very, very well. |
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cindy_cee13
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Because they're greedy |
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quest779
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demand is high,so people would be ready to pay high |
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mansfield2687
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Greed is not a true statement. They process the crude and then sell the product at a profit just like any other business.
It only cost McDonalds about 18 cents to make a big mac, but they charge over $2 for one. Why don't people rant and rave about that? |
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♪ Nickels ♪
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Because they put prices up so that their profits aren't affected. |
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Fool in the Rain
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Because we are paying out our *** for gas. |
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augy30
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becos oil it basic of living |
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?
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Well the cost of crude oil is almost nothing as they have to pump it out from the well. Normally they would have to shell some amount as royalty. Most other cost remain static.
but as the crude price goes up, they selling price will also. this is the reason for their rise in profits. |
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Bapboy
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Hmm.
the other day I saw an ad for bp that said "We're investing £275 million in Advanced Biofuel Techonology. Making the world a better place"
I think their profits were something like 4 billion? It makes you wonder why so many people still trust Bush. An oil millionaire. |
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Nice Planet- I'll Take It
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because they know the supply wont last too much longer, so they are getting theirs while they can at yours and my expense. |
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CW
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These are enormous corporations with hundreds of companies and subsidiaries under their umbrella, they profit from far more than petroleum alone, but if you want to focus on solely the oil issue, it all comes down to supply and demand. There is no shortage; there just aren’t many large oil reserves left. Most of the oil is coming from many small pockets which costs more. There are a few large reserves left, but they are not easy to get to. Russia and Alaska have for instance have large amounts of oil right under their noses, but it’s buried under frozen tundra. As reserves dry up we are forced to drill further and deeper, which costs more money and time. |
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ceprn
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It is an unregulated monopoly; all the companies are colluding on the prices; we have p u s s ies in congress who won't has a windfall profits tax so there is no incentive to change. There are no regulations on the speculators.
They know "Peak Oil" is real, and that we are headed for the "Olduvi Cliff" soon, and want to make as much money as they can as quickly as they can. |
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