Why is the oil industry earning record profits?
Well, you could call it pricegouging all you want but the law of supply and demand is still the law that rules free enterprise. And afterall, no one told you to buy a Suburban to drive your lonely butt to work.
Well, first of all, with the exception of a few historical occurrences, oil doesn't bubble to the surface on it's own. you have to build extremely costly drilling rigs, drill for it, pump it out, then you have to transport it halfway around the world, then refine it in refineries that are older than you, maybe older than your parents, then you pump it across the country, then you transport it to the gas station where it is sold to the public, to fuel their 4MPG Hummers or 8MPG Bentleys. I ma not saying there is anything wrong with driving a full size rig, I have one too, but you chose it, now shut up and pay for the fuel.
If you still think it is far to expensive, think about what it takes to drill a well and bottle the water, then sell it at the store down the street, where you pull in your Excursion and happily pay $1.50 for a quart, which equates to $6 a gallon. The guy who bottled the water did no have to put up with the pompous Saudi prince, or ship it halfway around the planet for you. You just gulp it and smile, and drive off into the sunset.
So the answer is in the question. They reap record profits because they earned it.
Well, first of all, with the exception of a few historical occurrences, oil doesn't bubble to the surface on it's own. you have to build extremely costly drilling rigs, drill for it, pump it out, then you have to transport it halfway around the world, then refine it in refineries that are older than you, maybe older than your parents, then you pump it across the country, then you transport it to the gas station where it is sold to the public, to fuel their 4MPG Hummers or 8MPG Bentleys. I ma not saying there is anything wrong with driving a full size rig, I have one too, but you chose it, now shut up and pay for the fuel.
If you still think it is far to expensive, think about what it takes to drill a well and bottle the water, then sell it at the store down the street, where you pull in your Excursion and happily pay $1.50 for a quart, which equates to $6 a gallon. The guy who bottled the water did no have to put up with the pompous Saudi prince, or ship it halfway around the planet for you. You just gulp it and smile, and drive off into the sunset.
So the answer is in the question. They reap record profits because they earned it.
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