$75/barrel oil plus 40 cents in taxes and 50 cents in refining costs adds up to about $2.60 before other costs and profits can be calculated. $10/barrel oil of about a decade ago (~45 gallons of gas/diesel per barrel after refining) costs about $1.10 before the same.
Gouging? No, just supply and demand. If you're tired of paying this, as I am, I'd suggest you might do well to look closely at one of these. Some nice side effects include increased strength, weight loss and being generally more pleasing to one's wife.
Clearing The Decks: 4/19 Edition
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In one sense, this blog hasn’t changed much in the 22 years I’ve been
running it. I get up early, I write stuff. For the past 20 years, it’s
doubled as sho...
5 hours ago
2 comments:
Well, that's all good except if you live in the metro Orlando area which consistently ranks among the top 5 worst cities to ride a bicycle. You know, I'm all for supply and demand but something's not right when the Exxon CEO just got a $400 million retirement package. I mean the oil cos did exceptionally well last year due to supply/demand rather than any action the CEO implemented but please correct me if I missed anything here.
You didn't miss much. The thing the Exxon head did right was position them well with long term contracts and their own wells, so they're selling at market price, but producing oil at a much lower price.
Worth $400 million? Dunno. Maybe that pay package will entice someone to drill a new well somewhere, though.
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