Quote:
Originally Posted by nate2512
Because they is no room to store all the gas they are making, when the demand for gas was really high they were selling it as fast as they could produce it. Also, it doesn't really make a difference, they may be making more money per gallon, but they aren't producing as many gallons, so they really aren't making all that much more money, but if they can't sell the gas then they are having to pay to store, therefore losing money. No one likes losing money.
I know someone who is pretty high up with a huge international oil company and he said when oil hits below $35 a barrel, then they are no longer working for profit and will starting shutting operations down.
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Big difference between $70 a barrel and $35 a barrel. None of those oil companies are hurting for profits. In recent years, many have reported record earnings, far surpassing expected profits.
And we have heard from almost every industry having to raise their prices to cover increased gas costs (airlines, food & agriculture, retail, manufacturing etc.). It trickles down, and people need to decide whether to pay for gas to get them to work, and necessities of life.