GAS Supply and Demand

There has been much said about the rising cost of gasoline.  When I had my first gas station, gas was 32 cents a gallon.  Diesel was a side product of gasoline production, and I sold it for 16 cents a gallon.  Now this by product costs more than gasoline. WHY?

You have heard the stories about the crazy people driving up the cost of oil.  People who know nothing about the oil business paying more than the oil is worth (for future profits).

This is what I have learned.  Like all business, the oil companies are in it for the profit.  PROFIT  is what they are getting.  Posting unusually high profit margins every quarter.  Every quarter the profit margin gets higher.  Why is this.  We the consumer let them jab us at every turn.

While it is true the uneducated oil buyer is doing his share to raise the cost of oil,  the Oil companies, do their share too.  What are the oil companies doing?  A simple thing called SUPPLY AND DEMAND.  They are controlling the supply end of it.  Currently the big Oil Companies are operating at approximately 80% of capacity.  (Artificially; as I see it; decreasing the supply).  What else are they doing, you ask.  They are exporting more oil products to foreign countries.  Our American oil companies are supplying probably more diesel fuel to the African Continent than we use here in the USA.  I don’t know what these other countries are paying.  But I would bet it is like our medical companies, who sell medicine to other countries for less than we have to pay.  Again USA pays other countries benefit.

That Is How I See It.

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