Generally lower prices increase demand for something. So while they may sell for less profit per gallon, they make it up in quantity sold. That said, gas prices falling like they did in the early stages of covid hurt the oil companies big time.
There is a balance point somewhere where demand and price meet, question is what is that point?
With Trump the US controlled world oil prices, with the dems OPEC does. So, who is really helping the people?
Oil companies want market share. They make their money on bulk. Most produced, for the lowest production cost, to undercut competition on price. US crude is higher quality than most foreign crude, thus cheaper to refine and commands a premium on oil markets. Stated Democrat policy is to eliminate all US fossil fuel production, by increased production costs through regulation and outright banning of production.
Y’all want us to ignore stated policy, and actions taken, by Biden et al, with obvious effects.
Liberals will never understand economics or they would not be liberals.
The bag of spoiled oatmeal posing as President of the United States Joe Biden shut down oil and gas lease sales from the nation’s vast public lands and waters in his first days in office, citing worries about climate change.
That’s why the price of gas is sky high & the demented Biden is taking from our oil reserves. The environmental nut jobs are hell bent on dragging the country back instead of forward, there is nothing progressive about what Dems are doing to the country it’s all regressive and destructive.
Build Back Better my behind, it’s all Build Back Broke, weak, divided and destroyed!
Ok, all snarkiness aside. Biden made it very clear, in fact he promised that he would do away with fossil fuels. This has been the stated goal of the far left, which is clearly who he is appeasing. What, besides political reasons, drove Biden’s decision on day one in office, to shut down Keystone? He put tens of thousands out of work without a thought or care for how these workers would continue to support their families. Many of those workers have specialized skills and can’t just go anywhere to find another job.
Your leaders have laughed and scoffed at these people, and thousands of others since the Obama administration saying stupid, callous things like “ let them find another job. There are plenty of green jobs that need to be filled.” Do you remember Obamas “SHOVEL READY JOBS” that never materialized, and then Obama and company literally laughed and said “I GUESS THEY’RE NOT SHOVEL READY AFTER ALL !” when someone asked him about it? It is exactly this same total disregard and contempt for America and Americans displayed by that senile bastard that makes conservatives despise him and everything he stands for! And YOU GUYS SUPPORT EVERY ANTI AMERICAN THING HE DOES!
So how do you think that American companies, especially in industries declared enemies by the President, are going to behave, when they know that they are subject to new policies and/or regulations that could cost them billions of dollars or even bankrupt them or put them out of business entirely? Remember again, OBAMA flat out declared he was going to bankrupt coal companies.
As you stated, companies main concern is their shareholders. The stock market is primarily driven by emotion, fear and greed, which are formed largely by not just actual news or events, but by perceived news and events which may happen down the road. If the public anticipates bad news for a company or industry guess what happens to the stock and the goods or services a company may produce?
My point is, it isn’t just one specific thing Biden has done to drive up fuel prices and cause inflation to rise to levels not seen in decades. It is the fact that the far left radicals are driving Biden’s agenda and they absolutely don’t give a rats ass about how many Americans get hurt by the forced implementation of their agenda. Every single thing Biden has done has caused pain to working Americans, and none of that pain had to happen if Biden had an ounce of comprehension of what is happening and even a teeny bit of actual leadership ability to assume the office he was elevated to.
He is nothing but an imbecilic sock puppet frontman being propped up by people who hate this country and are selling us down the road to countries that hate us too.
He’s a TREASONOUS PIECE OF DOG ■■■■■
No we just object to idiotic government policies making our lives harder.
Biden policies across the board are idiotic.
It will get there. It always does.
This is not unique to the US right now. Energy prices everywhere are up as is inflation.
The inflation and call for ”lowering expectations” is only a foretaste of what is to come with the Democrat’s policy of cheap money for everyone and prematurely destroying our fossil fuel industry.
It is more than cost.
Day 1 killing Keystone investment also killed our national security.
President Puppet is an idiot.
In part, yhe volatility of the market. The fracking boom then bust whacked a bunch of companies
OPEC will raise oil prices as high as they can get away with considering supply and demand. Fracking and shale oil reserves present a supply barrier to them. With Biden and the Democrat’s anti fossil fuel policies, they feel free to raise oil prices without risk. There will be no call for energy independence, as we reached under Trump.
Truth. This is happening world wide, and for the same reasons. Of course our friends on the right won’t acknowledge it, but it doesn’t change the facts.
Serious? The US did not control oil prices.
Yup. If a business raise prices during catastrophe, they cry to government about price gouging.
If only we try to get better mileage on cars so we are less dependent on oil.
Tsk tsk. Which idiot did this I wonder?
Exactly right. Oil companies suffered tremendously in 2020, even starting before Covid. The oil companies fear volatility and don’t trust, yet, that the high prices of today will remain.
Plus, when profits are as high as they are now, there is little reason to take risk and upset the status quo.
Plus, oil companies are capital constrained. Banks and investors have lost patience not seeing returns so available capital has dried up. Recent profits are being funneled towards debt reduction or stock buybacks, not capital projects. Those are choices the oil companies make.
Businesses are having to raise prices because of government intterference.
Libs don’t understand how capitalism works. Even though keystone wasn’t completely built, it was a bargaining chip against opec to keep costs down, because they knew eventually we wouldn’t need them, nor could they compete with us in exporting. When you killed the pipeline you killed OPEC’S possible competition, they know this and are jacking prices on us because they know we have fools running the show, and they will do and say nothing.
I don’t, higher prices are a market mechanism that increases the flow of goods to the crisis area.
