Gasoline/Energy
As we travel north on I-95 in our motor home, which gets all of 7 to 8 miles per gallon, I thought I would offer a few thoughts on the current fuel price increases.First a brief history lesson that goes back 30 years. That was when fuel prices hit record levels, 80 cents a gallon for goodness sake, and everyone including the do nothing congress of the United States was complaining. It was as now, save fuel, pump up your tires, and make cars get better gas mileage, use solar energy and start a research program to free us from high fuel prices. What happen is fuel prices went down; everything went back to “normal”. The one exception is the Japanese car companies got a foothold in the US and never left. And of course our domestic car companies learned nothing and kept building a lot of crap no one really wanted but bought anyway. Now the history lesson is over. I want bother you with what is happening now, it’s the same thing all over again.
I generally accept that we have had fuel prices to cheap for a long time and if the prices were raised slowly over the years nothing would be said. Having gotten that out of the way please someone explain to me the following business question.
I know that you need to sell your “beans” on the shelf for what it will take to buy new “beans” at the higher “bean” prices. OK, that fine up to now. My question is how can the oil companies report record profits and still by oil at the higher prices. Should not the money coming in be retained earnings to pay for the oil on the futures market? If the oil companies are retaining enough money to pay for their future purchases and still report record profits they are screwing us to the wall.
Have I got it wrong? If so, someone pitch in a straighten this out.
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