Re: Oil profits: rent?

"Ron Peterson" <ron@xxxxxxxxxxxxxx> wrote in message
news:1132928948.092878.156170@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
>
> Dan in Philly wrote:
>> "Dan in Philly" wrote in message ...
>>
>> > Oil companies have made big profits lately. How much of that is due to
>> > their owning oil wells? (as opposed to profits from refining,
>> > transporting, etc).
>>
>> I checked the balance sheets of Exxon and BP (via yahoo) to see if any
>> assets increased tremendously inn value over the past couple years. None
>> did, so either they have no oil wells (or very few), or they don't mark to
>> market.
>
> http://bigcatchronicles.blogharbor.com/blog/_archives/2005/5/9/663449.html
> lists the oil reserves of various countries/companies.
>
>> I'm just surprised that any firm can make big profits on the intermediate
>> steps (refining, transportation). I thought the oil well owners would
>> extract all profits by raising the price of crude.
>
> The price of crude is going to be limited by the cost of discovery and
> the possibility of extracting oil from the oil sands.

The price of crude is limited only by the amount people are
willing/forced to pay and the price of alternatives they have to
the use of oil.

--
"I know no safe depository of the ultimate powers
of society but the people themselves; and
if we think them not enlightened enough to
exercise their control with a wholesome
discretion, the remedy is not to take it from
them, but to inform their discretion by
education." - Thomas Jefferson
http://GreaterVoice.org


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