[OT] Gas companies report record profits (old energy thread)
devel at muhlesteins.com
Mon Jan 30 10:58:54 MST 2006
> Think of it this way: If you make 10% profit on a candybar that
> retails for $1.00 and demand for that candy bar pushes the price to
> $1.50, your profits are going to go up 50% as well. The oil companies
> aren't taking a bigger slice of the piece, their slice is just worth
> more money.
That is a pretty good way to think about it. After the big debate last
year, I read a few essays by economists who commented on the situation.
A few argued against taking away the oil companies profit margin because
they use that money to further invest in infrastructure that can deliver
gas cheaper in the future.
More information about the PLUG