Why Are We Still Talking About Oil Profits?

Has anyone noticed that gas prices are coming down very quickly?

Politicians have talked about a windfall tax on profits, that is ridiculous.

It is a typical political move to play on the emotions of uninformed Americans.

Are they going to give oil companies tax credits in down times to protect their investors?

Of course not.

I just saw $2.49 per gallon on my way home.

Back on Nov. 4th, as part of another post I said,

I just paid $2.56 per gallon, I'm fine with that...

5 days, 7 cent drop, that's pretty good.

Since Sept. 1st, the national average per gallon has dropped 50 cents, from $2.96 to $2.46, according to AAA.













The most interesting thing I see in that chart is that the price of Crude is almost flat, but we are paying less, hmm, that's pretty nice of the oil companies.

Of course, this is the real world, and the oil companies are business people, not nice people.

The fact of the matter is that after the hurricanes, the supply of oil is high, and typical of this time of year, demand is low.

Hence, lower prices at the pump.

It's simple economics.

Let's put this in perspective, I love saying that, if you are a frequent reader, you hear that term fairly often.

We'll say my gas tank holds 20 gallons of gas.

Even if tomorrow gas goes up 50 cents, 50 cents would send the country into an outrage! but let's say it anyway.

How much more would it cost me to fill up my tank?

$10.

Go ahead, say it...

"That $10 would be worth 2 trips to Starbucks, or one movie ticket, or, or, or, I don't know, but $10 is a lot of money!"

Also consider this.

A 32 oz. (or 1/4 gallon) of bottled water is costing you over $1.

That's more than $4 per gallon!

Who's screaming at Arrowhead, Aqua Fina, and Evian?