samhill wrote:Franco, think about your posts, in one you say that Exxon claims to only make 3 cents/gal, lets assume that is the average profit. Then you say there is no shortage because you & I & everyone else is driving less, if this is true & they are selling less at the same markup their profit would be less. We also get the bulk of our oil from Canada which is not a cartel country, its the Co.s & speculators that are driving the price up plain & simple.
Their profit was made on other things in addition to oil. They are not selling less. Conservation has helped to prevent a shortage and further price increases. I also do not know if that figure of 3 cents is true.
Oil is a world market no matter which country it comes from. If we used only domestic oil the price would be the same but the money would not be shipped out.
I was under the impression that the last spike in oil was in fact contributed to by speculation in the futures market. If so our government has seen fit to ignore it. It also has done nothing to increase supply which certainly would lower prices. Comments by the president seem to indicate he wants high energy prices. When his re election is in danger he will probably get moving.