This made national news last year and this year Towne Market Mobil is looking to do the same thing.
But the reality is this “protest” is nothing more than a “look at me moment.” They want their 15 minutes of fame and want to look like they are doing something when in reality there is no impact…none…zero…nada!
The economist in the article has it right, “If a lot of people reduced their consumption of gas permanently, that would have an effect.” Barring this there really is no way to force fuel prices down in this fashion.
I know that the media and the lefties out there will point to the $11 billion profit of Exxon and but they ignore that the demand for the product has more to do with the price of gas than the profit margin of Exxon which is only around 10%...Microsoft’s profit margin is around 30% but I don’t hear anyone protesting that.
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1 comments to "YEAH! He’s got it right…uh, no, never mind."
Unknown says:
Although it should be noted that the profit big oil companies make is not dependent on the price of gas. It's dependent on the the price of crude, which at times can range drastically from the price of gas.
Companies like Valero are the ones that profit from the crack spread (the difference in price that it costs for Valero to purchase the crude oil from the big oil companies vs what they can sell the gasoline for).
Last year that difference for Valero was $40 per barrel which is huge!! Huge profit margins. A few months ago it was actually negative, and now it's at about $7 per barrel (profit).