Oil is down 12 percent for the week...........I WONDER

[kydonky]

I have a hard time with words so I am going to quote a friend from an aviation forum i frequent...

"You need economics 101, profit margin and total profits are two very different things. You may have noticed oil is a popular product, lots of people buy it and need it.

Profit of 8% or so is constant over any amount, you are just having a little trouble wrapping your mind around the size of the business.

Once you can do without oil, you won't have to worry about how much people sell it for, but that isn't going to happen anytime soon.

In fact the government takes about 42 cents on every gallon of gas sold and the typical oil company makes about seven cents. Do the math on that." - Jungle

This guy knows his sh*t... I will find the links to all the information that backs this stuff... I was actually in agreement with don that oil companies were to blame til this guy pointed me in the right direction and i did some research... Now I understand how teh government getting involved is just bad.

Why don't you send BP a donation check if they have it so bad.

Geez, think I will send the check I was going to send to the Red Cross for the Alabama disater to Exxon Mobile after reading this.

What you are saying is that he government makes more money on gas sales than all of the oil companies combined???? This would include Exxon, Mobile, Conico, BP, Chevron and scores of others. Each one of the bigger companies report quartarly earnings (In the US) of as much as 500 Billion dollars (for a quarter!!!). Thease earning approch close to the GDP of California, New york, Florida combined.

Sorry I do not buy into the 21 cents to 28 cent profit per gallon.