In article ,
"HeyBub" wrote:


And exporting the refined product is a plus. Look how well-off Saudi
Arabia is.

there are no plans to build new refineries. there has been the need
for extra refinery capacity for years, if not decades but the number
has actually decreased.

Conveniently driving prices up.

To an oil company, price is irrelevant. What counts is profit. Every, and I
do mean EVERY, economic study of products made from oil, mostly gasoline and
heating oil, show that profit is inversely proportional to price. That is,
the lower the price, the more profit.

The great arch-villian, John D. Rockefeller, drove down the price of
Kerosene from $3.00/gallon to five cents (in three years) and became rich as
a result.

Obviously, there's no profit if the oil company sells gasoline below the
cost to produce, but numerous studies prove that the closer oil companies
get to the production cost, the greater their profit. Hence, upward prices
reflect, not the desire to make more profit, but instead the increased cost
of production.

oh come now, except for the price of oil there are no increases in the cost of
production. also this does not reflect the fact that prices rise faster than
they fall giving the same thing for oil cost