> When a barrel of oil (43 gal.) goes from $20 to $65 that's an increase of
> $1.05 a gal . The rest happens after it comes ashore .
>
> When fuel prices go up several things will happen:
> We'll use less
> They'll find more places to drill
> The price will drop some
> We'll get used to paying more
>
> Freedom works so well that a lot of things can go wrong and a hard working
> person can still have a darn good life .
>
>
> John Burk
John,
This has been a useful discussion. I have learned a few things and been
reminded of somethings I had forgotten...42/43 gallon barrels...DrMayf
commodity breakdown is instructive. Another thing we probably haven't
considered is that the oil companies profits are not exclusively gasoline
pump profits. Most of their profits probably come from the higher price of
crude oil which is basically set by OPEC by limiting their production. All
the oil companies produce crude and their cost of production comes in much
less than the world price, but it is sold on the world market.
The getting used to paying more is the only thing that bothers me. That is
the way of life however. We are like the frog being boiled...the
temperature goes up slowly and before we know it our goose is cooked.
Tom, Redding CA - #216 D/FCC
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